Most full-service property managers charge a monthly fee of about 8% to 12% of the rent they collect, plus a one-time fee to place each new tenant. In Maryland the advertised percentage is only part of the story. What it includes, what gets billed separately and how repairs are handled decide what you actually keep.
I run SW Property Management, so I’ll start with our own numbers and then go through what to ask any manager you are comparing us with.
What most managers charge
The most cited national figure comes from a study by iPropertyManagement, which put the average advertised management fee at 8.49% of rent, with quotes ranging from under 4% to 14%. That study was last updated in 2022, but in our experience the 8% to 12% range still holds for single-family homes in Central Maryland. The same study found tenant placement fees averaging about 70% of one month’s rent.
You will usually see these charges, in some combination:
- A monthly management fee, as a percentage of rent or a flat dollar amount.
- A tenant placement or leasing fee each time a new tenant moves in.
- A lease renewal fee when a tenant signs on for another year.
- Setup or onboarding fees for a new property.
- A markup on repairs, or a fee for coordinating them.
- Inspection fees, eviction coordination fees, and sometimes a fee for vacant months.
A low monthly percentage with four extra fees can cost more than a higher percentage with none, so look at the whole year.
Percentage or flat fee?
A percentage of rent collected ties the manager’s pay to yours. If the rent doesn’t come in, the percentage doesn’t either, which gives the manager a reason to screen carefully and chase late rent. A flat monthly fee is easier to budget, and on a high-rent home it can come out cheaper. The catch is that a flat fee gets paid whether or not the tenant pays, so read what happens in a month with no rent before you sign. Either way, the fee should be written in the management agreement, not explained over the phone.
What SW Property Management charges
Our fees are written down and you see all of them with your rent analysis:
| Fee | What it is |
|---|---|
| Monthly management | 10% of the rent collected |
| Tenant placement | One month’s rent, one time per new tenant. Covers photos, MLS listing, showings, screening and the leasing agent’s commission |
| Lease renewal | Set in your management agreement |
| Evictions | Billed separately, only if one is needed |
| Repairs | Priced up front. Anything over the limit in your agreement waits for your approval |
The leasing commission is inside the placement fee. Some managers charge a placement fee and then a separate leasing commission for the agent who finds the tenant, which can double the cost of a vacancy.
What it costs on a real rental
Here is the first year on a single-family home renting for $2,000 a month with a new tenant:
| Amount | |
|---|---|
| Tenant placement (one month’s rent) | $2,000 |
| Management, 10% x $2,000 x 12 months | $2,400 |
| First-year management cost | $4,400 |
In year two, with the same tenant renewing, the placement fee drops away and the cost is the $2,400 in monthly fees plus whatever renewal fee your agreement sets.
On a townhouse renting for $1,600, the same math gives $160 a month, or $1,920 a year, plus the $1,600 placement fee in a year when a new tenant moves in.
When you compare managers, build this same table from each one’s fee schedule. Use your real rent, and assume one turnover every two or three years.
Maryland costs that are not the manager’s fee
Some of what you pay as a Maryland landlord comes from the state and your county, whoever manages the home. A good manager handles the paperwork, but the costs are yours.
Lead paint
Rentals built before 1978 must be registered with the Maryland Department of the Environment and renewed every year, at $30 per unit, unless the home has a lead-free certificate. The home also needs a passing lead inspection from an MDE-accredited inspector at each change of tenant.
Rental licenses
Baltimore City and several counties, including Montgomery and Prince George’s, require a rental license or registration, and some require an inspection first.
Security deposits
For leases signed on or after October 1, 2024, the deposit is capped at one month’s rent for most rentals, pet deposit included. It has to be returned with an itemized list of deductions within 45 days of move-out under Real Property section 8-203. A smaller deposit puts more weight on screening and on documenting the move-in condition.
Our landlord-tenant guide covers these in more detail, including what happens when a tenant stops paying.
Check the license before you sign
In Maryland, leasing and managing homes for other people for pay is generally brokerage work under Business Occupations section 17-301, which takes a license from the Maryland Real Estate Commission. Ask any manager who holds the license and look it up on the Commission’s site. Also ask where tenant deposits are held. They should be in a separate account, never mixed with the manager’s own money.
Questions to ask any property manager
- Is the fee charged on rent collected or rent due? If the tenant doesn’t pay, does the manager still get paid?
- What does the placement fee include, and is the leasing commission extra?
- Is there a renewal fee, and how much?
- Do you mark up repairs or charge to coordinate them? What is the approval limit before you call me?
- Who does the repairs: your own crew, or whoever is available?
- How do I end the agreement, and is there a fee to cancel?
- How often do I get statements, and when does the money reach my account?
Is a property manager worth it?
It depends on how many homes you own, how far you live from them and what your time is worth. A manager earns the fee by keeping the home rented, collecting on time and handling the 9 p.m. call about a leak. For a lot of owners, the bigger savings come from shorter vacancies and fewer mistakes with deposits and lead paperwork than from the fee itself.
Repairs are where our setup differs from most. Stephen owns Monarch Bay Renovations, a licensed Maryland contractor (MHIC #149066), and our own crew does the maintenance and make-ready work. A leak or a dead furnace goes to people we already work with every day instead of into a vendor’s queue, and turnovers get done on our schedule. You are never required to use our crew. If you have a contractor you trust, we will work with them.
If you want to see your own numbers, send us the address. We’ll come back with a rent range from recent leased homes nearby, our full fee schedule and what you would net each month.