The first time I asked a property manager for a line-item breakdown of what they charged me, the answer came back as a single number with a percentage sign next to it. Ten percent. That, plus "the leasing fee," plus "the renewal fee," plus whatever the maintenance vendor charged plus "the management uplift." On a $2,000 rental that turns over once a year, I was paying something between $3,400 and $4,650 — and I had no idea why.
Where the money actually goes
Here is what a typical year looks like on a $2,000 single-family rental:
- Monthly management: 10% of rent collected × 12 = $2,400
- Leasing fee on the one turnover: typically one month's rent = $2,000 (some PMs go 50%, some 100%, some flat $500-$1,500)
- Renewal fee: if the tenant stays, often $100-$350 = ~$250 avg
- Maintenance markup: usually 10-15% on top of vendor invoices. On a $1,500 annual maintenance budget, that is another $150-$225
Add it up: $4,200 to $4,800 per door per year, on a $24,000 / year rental. That is 17 to 20 percent of gross rent going to the management company.
What you are actually paying for
The 10 percent management fee is supposed to cover: rent collection, tenant communications, maintenance dispatch, lease enforcement, bookkeeping, and a monthly statement. On a per-door basis, that is about 1 to 2 hours of human work per month. Most of those tasks — sending rent reminders, drafting routine notices, dispatching vendors, reconciling payments — are now things AI can draft in seconds and a human can approve in minutes.
The leasing fee is supposed to cover: writing a listing, taking photos, screening applications, showing the unit, drafting the lease, and conducting the move-in walkthrough. A typical turnover involves maybe 8-12 hours of actual human work. A flat $400 covers it. A full month's rent (often $2,000+) does not reflect the work — it reflects the convention.
What the alternatives cost
If you DIY with software like RentRedi or Avail, you pay $0 to $30 / month flat and you do all the work yourself. Cheapest by far. But it is also: all the work yourself. If you have a day job, kids, or any travel, this gets old fast.
If you use a platform that handles drafting but leaves you to approve and ship, you get most of the benefit of a PM at a fraction of the cost. That is what Manorway Rentals Platform does at $15 / door / month. On the same $2,000 rental, that is $180 / year — about 0.75 percent of gross rent vs the traditional 17-20 percent.
If you want a human in the loop too — someone who answers the 9pm leaking-toilet call so you do not have to — Managed at $59 / door + $400 flat leasing fee gets you to about $1,100 / year on the same rental. Still less than a third of what a traditional PM costs.
When the traditional PM is still right
Three cases where a traditional PM is worth what they charge:
- You live in a different state from your rental and you need physical presence — driving to the property for inspections, walkthroughs, court appearances.
- You own more than 30 doors and need a team large enough to handle the volume.
- The property has a complicated commercial or mixed-use component that small-landlord software does not handle.
If none of those describe you, the math says you are overpaying.
The honest pitch
I work at Manorway Rentals. We built the thing that solves this. Of course I am going to tell you we are the answer. But the math above is the math regardless of which tool you choose. If you take one thing away from this post, let it be: ask your property manager for a line-item breakdown. If they cannot produce one in 24 hours, that is your answer.