How Much Does Property Management Really Cost? (And Is It Worth It?)

Apr 25, 2025

Hiring a property manager may seem like an added cost, but managing rentals takes time, structure, and expertise. This article breaks down what it really costs — and if it’s worth it.

💰 The Perceived Cost vs. the Real Cost

Property management companies typically charge between 8% and 12% of the monthly rent collected. At first glance, that may seem like a lot. But if you're handling everything yourself, consider the hidden costs:

  • Time spent responding to tenant issues

  • Delayed rent collection

  • Long vacancies due to poor marketing

  • Legal risks from non-compliance

  • Stress from juggling maintenance, screening, and paperwork

When you factor in those indirect costs, professional management can pay for itself.

📋 What’s Included in a Property Manager’s Fee?

Not all property managers are the same, but a full-service company like Lakea typically provides:

  • Tenant screening and placement

  • Lease creation and enforcement

  • Rent collection and late follow-up

  • 24/7 maintenance coordination

  • Legal compliance support

  • Owner reports and communication

  • Vacancy reduction strategies

This saves you time, reduces risk, and improves cash flow — all from day one.

🧾 The Hidden Costs of Self-Management

Doing it all yourself might seem cheaper, but it often leads to:

  • Emergency repair overcharges

  • Longer vacancies

  • Poor tenant retention

  • Legal issues due to inexperience

  • Missed tax advantages

Even one bad experience — like a costly eviction or extended vacancy — can cost more than a year of professional management fees.

✅ When Should You Hire a Property Manager?

You’ll benefit most from hiring a professional if:

  • You don’t live near the property

  • You have a full-time job or other business

  • You own multiple units or plan to scale

  • You want to minimize hassle and protect your investment

At Lakea, our clients value peace of mind, not just convenience.

💡 Lakea’s Transparent Pricing

We believe in simplicity. Our plans typically range from 8% to 10% of monthly rent, with no hidden fees and full-service coverage — from leasing to maintenance and reporting.