How should I model property management costs?
Published October 1, 2026 · 1 minute read
The answer
Use the actual proposed contract rather than a generic percentage. Check the fee basis, additional charges, minimums, maintenance coordination, marketing costs, and included tasks. Some fees may apply to revenue categories you did not expect.
Model the cost alongside the work it replaces and the obligations you retain. A lower headline percentage is not necessarily a lower total operating cost.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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