Hiring a property manager is about more than convenience—it’s about maximizing your investment returns. But what are you really paying for? District Realty offers full-service property management, and this ultimate guide breaks down fee structures, services, and value so you can confidently assess the cost—and benefit—of outsourcing your real estate operations.

1. Management Fees: Your Ongoing Operations Partner

What it covers: day-to-day oversight like rent collection, lease renewals, tenant communication, and coordination of routine maintenance.

Typical structure: Often a flat percentage of monthly rent, usually 6–12%, depending on property type and service level. At District Realty, residential rates average ~8% and commercial rates vary based on asset complexity and lease volume.

Why it pays off:Your manager becomes a proactive partner—reducing vacancy, ensuring on-time rent, and keeping tenants happy, which in turn preserves income and asset appeal.

2. Leasing Fees: Turning a Vacancy into Revenue

What it covers: marketing, showings, tenant screening, application processing, lease drafting, and move-in coordination.

Fee types:

• One-time flat fee (e.g., $500–$1,000 per lease)
• Or commission-style: 50–100% of one month’s rent

Why it’s worthwhile: Professional marketing attracts quality tenants faster, reducing downtime and cutting vacancy costs. District Realty’s screening and lease structuring also lower risk and establish clear rental agreements.

3. Maintenance & Repair Fees: Keeping Your Property in Top Shape

What it covers: organizing repairs, vetting contractors, approving timelines and costs, and ensuring quality control.

Fee models:

• No extra markup—manager coordinates and passes through contractor cost.
• Or, a markup of 10–20% on third-party bills.

Value add: District Realty negotiates volume discounts, respects warranty policy, and handles emergency issues professionally—reducing capital drain and preserving your asset’s condition. Learn more at http://www.districtrealty.com/

4. Inspections & Preventive Maintenance Fees

What it covers: scheduled safety and condition inspections (semi-annual or annual), coupled with preventive actions (HVAC filter changes, pool maintenance, seasonal servicing).

Fee setup: Many firms include basic inspections in monthly service; others charge $50–$150 per scheduled visit or as a bundled service.

Long-term benefit:Proactive upkeep prevents expensive emergency repairs—District Realty data shows $1 spent on preventive maintenance can prevent up to $4 in future costs.

5. Admin & Accounting Fees: Transparency, Simplified

What it covers: software, records, financial reporting, tax prep documents, ledger management, year-end statements.

Fee formats: Either part of the flat management fee or a nominal monthly charge ($25–$50) or transaction fee.

Why it matters: Professional-grade reporting helps you track income, expenses, and investment performance—and stay audit-ready.

6. Eviction & Legal Fees: Protecting Your Rights

What it covers: delinquencies, late-rent notices, eviction filings, court representation, and lease enforcement.

Fee types:

• Landlords pay court, legal, and filing costs.
• Managers often add a fee ($250–$500) to coordinate legal action.

Safety net: District Realty’s structured lease terms and professional handling of non-payment reduce the frequency and severity of legal proceedings.

7. Additional Service Fees: Concierge-Level Care

Some tasks lie beyond standard management—bringing peace of mind but at added cost:

• Move-in or Move-out coordination: $100–$300 per tenant
• Project management: for renovations or upgrades—billed hourly or at 10–15% of project costs
• Annual budget planning: bundled with fiscal oversight or offered as a stand-alone strategic consult
• Pet-related services: pet deposit administration, policy enforcement, or pet-damage inspections

Why it’s optional: Great for portfolio owners who want turnkey service—with or without intensive assets—but remember to compare deliverables carefully.

8. How to Compare Management Proposals

Not all management offers are created equal. Here’s how to compare:

• Services included vs. optional: ensure the monthly fee covers essentials (inspections, admin, tenant support).
• Fee alignment with your portfolio: residential vs. commercial assets attract different rates.
• Transparency in billing: opt for flat fees over markups.
• Value ROI: check average vacancy downtime, tenant screening rigor, and maintenance responsiveness.
• Contract flexibility: clarify termination rights and minimum terms.

9. Why District Realty’s Fee Model Adds Value

Here’s what sets us apart:

• Full-service pricing with no hidden costs—covering inspections, tenant portals, and basic tech support
• Volume-based vendor pricing for maintenance and repair savings
• Robust digital portal for owners and tenants with real-time metrics
• Professional lease drafting, rent collection, and compliance oversight
• Access to performance dashboards and tailored financial reporting

10. Final Take: Fees vs. Financial Outcomes

Property management fees are an investment in your portfolio’s performance—not a cost to cut.

Opting for pro-level management often drives better tenant retention, stronger rental yields, and fewer asset disruptions—outweighing the expense. District Realty’s fee structure is built to align with investor tier, property complexity, and service expectations—and designed to drive your returns upward.