Property management expenses involve a variety of costs-related elements of owning and running a real estate asset. They can be divided into different categories: maintenance and repairs, utilities, property taxes, insurance, management fees, marketing and advertising expenses, legal and administrative fees, and vacancy costs.

Property managers charge a monthly fee to manage the property, which can be a flat fee or a percentage of the monthly rental income. Property managers typically charge between 4% and 7% of the rental income, but smaller properties might cost 10% or more. Maintenance fees may also be charged for services, including garbage, snow, and leaf removal.

Property management fees cost up to 8% -12% of your monthly rental income. But, keep in mind property managers will take care of most of the day-to-day tasks of being a landlord. While this expense can significantly affect your bottom line, it frees up your time to focus on other tasks.

The average cost of property management is between 7% and 10% of the monthly rent, according to Kevin Ortner, chief executive officer of Renters Warehouse — a company that manages around 23,000 properties throughout the U.S.