Breaking Down Property Management Costs: What Landlords Should Expect

Understanding Property Management Costs

Hiring a property management company can save landlords time, reduce stress, and maximize rental income. However, understanding property management costs is essential to ensure you’re making a financially sound decision.

In this blog, we break down the standard fees, additional charges, and potential hidden costs associated with property management services in Las Vegas, Summerlin, and Henderson.

How Much Do Property Management Services Cost?

1. Monthly Management Fees

The primary property management cost is the monthly management fee, which typically ranges between 8% to 12% of the monthly rent. This fee covers essential services such as:

• Rent collection and financial reporting
• Tenant communication and issue resolution
• Lease enforcement and legal compliance
• Coordination of maintenance requests

Some Las Vegas property management companies offer a flat-rate fee, while others charge a percentage of the rent. Be sure to compare pricing models to see which works best for your rental property.

2. Leasing Fees

A leasing fee is charged when a property management company markets your property, screens tenants, and prepares lease agreements. This one-time fee is usually 50-100% of the first month’s rent and covers:

• Professional photography and online listings
• Scheduling and conducting property showings
• Comprehensive tenant screening (credit, income verification, rental history)
• Lease preparation and move-in coordination

Leasing fees can vary, so it’s important to clarify whether this fee is separate from the monthly management fee.

3. Renewal Fees

When an existing tenant renews their lease, some property management companies charge a renewal fee ranging from $150 to $500 or a percentage of rent. This fee covers:

• Lease renewal negotiation
• Market analysis to adjust rent if needed
• Preparing updated lease agreements

Not all companies charge a renewal fee, so it’s worth asking in advance.

Additional Property Management Costs to Consider

Maintenance & Repair Costs

While the property management team handles routine maintenance requests, the cost of repairs is typically passed on to the landlord. Common maintenance expenses include:

• Plumbing and electrical repairs
• HVAC system servicing
• Appliance repairs or replacements
• Landscaping and pest control

To prepare for unexpected costs, landlords should maintain a maintenance reserve fund to cover emergency repairs.

Vacancy Fees

Some property management companies charge a vacancy fee when the property is unoccupied. This fee can range from $50 to $100 per month and covers:

• Property inspections and security checks
• Continued advertising and listing updates
• Coordination of cleaning and maintenance to prepare for new tenants

Not all companies charge vacancy fees, so verify whether this is included in the management agreement.

Eviction & legal Fees

If a tenant violates their lease agreement and eviction becomes necessary, property managers typically charge for handling the process. Eviction fees may include:

• Serving legal notices ($50-$150)
• Court filing fees ($200-$500)
• Legal representation costs (varies)

Hiring a property management company helps landlords reduce eviction risks by thoroughly
screening tenants upfront.

Hidden Costs to Watch Out For

Not all property management costs are transparent upfront. Some hidden fees to look out for include:

• Admin or setup fees – One-time charges for onboarding a new property.
• Advertising fees – Additional costs for premium online listings or paid advertising.
• Vendor markup fees – Some companies upcharge maintenance costs, increasing expenses.
• Cancellation fees – Charges for terminating a contract early.

Before signing a property management agreement, carefully review the terms and fee structure to avoid unexpected charges.

Is Hiring a Property Management Company Worth It?

Hiring a property management company is a smart investment for many landlords, even with the associated costs. The benefits include:

• Consistent rental income with professional rent collection and tenant management
• Fewer vacancies and tenant turnover due to strategic pricing and marketing
• Less stress from handling maintenance, legal compliance, and tenant disputes
• Increased property value through proper upkeep and market-driven rental adjustments

If you’re looking for a transparent and professional property management company in Las Vegas, The Brokerage offers competitive pricing and full-service management to help you maximize your rental investment.

Call us at (702) 476-6000 or contact us here to schedule a free consultation!