How Much Does Property Management Cost in New York?

In New York, property management companies typically charge a fee of 6% to 12% of the rent collected. In the Hudson Valley, we’ve found that the cost tends to be anywhere from 8% to 10% of the rent collected.

That said, there are a few other important factors that you should be aware of when comparing property management pricing.

1.  Percentage vs. flat fee
2.  Minimum monthly charges
3.  Ancillary costs
4.  Maintenance coordination fees
5.  Early termination fees

Let’s take a look at each one of these areas, and break down exactly how they affect the overall cost of hiring a property manager.

Percentage vs. Flat Fee

Percentage based property management fees tend to be the most common pricing structure in New York. Under this model, the property manager would charge a fee based on the rent or property income. This could be calculated based on the rent collected, the annual rent (regardless of whether it’s collected or not), or any other calculation determined by the management company.

Some companies charge a flat monthly fee for property management. Under this structure, you’d pay a predetermined flat fee each month. We’ve seen flat fees range anywhere between $149 to $299, typically on a per unit, per month basis.

Minimum Monthly Charges

Many property management companies have a minimum monthly charge for their services. For example, if a home is vacant, they may charge a minimum monthly fee, even though there is no rent collected that month. It’s important to know if you will be charged when no rent is coming in, including:

- When the home is vacant
- If the tenants aren’t paying rent
- If the home is uninhabitable

We’ve seen minimum monthly charges range anywhere from $49 per month, all the way up to 100% of the normal property management fee.

Ancillary Costs

There are many different fees that can be charged by a property management company. While the property management fee is how most consumers compare management pricing, it’s important to know what other charges may be incurred. Here is a list of some of the most common ancillary fees.

- Startup Fees
- Maintenance Markups
- Inspection Fees
- Leasing Fees
- Lease Renewal Fees
- Utility Management Fees
- Eviction Coordination Fees
- Early Termination Fees
- Pet Fees
- Late Fees
- Year End Fees

Maintenance Coordination Fees

Some property management companies will charge a maintenance coordination fee to offset the cost of scheduling, coordinating, and completing maintenance and repairs on rental properties.

Maintenance coordination fees can range anywhere from $5-$10 per work order, up to 10% of the total invoice price.

Some companies charge a maintenance coordination fee on all maintenance and repair items, while others only charge them on larger projects, or invoices over a certain dollar amount.

Early Termination Fees

Like many service businesses, some property management companies charge a fee for terminating the agreement early. These fees can range anywhere from $99 to $499. In addition, you may be on the hook for the balance of the management fees for the remainder of the contract period, so it’s important to check these terms closely.

In Summary

In order to have a clear understanding of the cost of property management services, it’s important to know how the property management fee is structured, what the minimum monthly cost will be, any ancillary charges you may incur (including maintenance coordination fees), and any charges for early termination.

Knowing these important factors will help you determine the full cost of property management, and compare property management companies apples-to-apples.

A Few Free Resources

If you’d like to find out more about our property management services, including our pricing, you can visit our Property Management page.

Shopping for property management? Download our free Property Manager Questionnaire.

Check out our video How Much Does Property Management Cost?