The comparison most owners run is a management fee against zero, which is not the actual choice. Self-managing has no invoice, but it has costs: your hours, vacancy days, retail pricing on repairs, and the legal exposure that comes with handling notices and deposits yourself.
Quick Answer
Professional management in the Richmond market is typically priced as a percentage of collected rent, plus a separate leasing fee when a new tenant is placed. Depending on the company you may also see a renewal fee, a maintenance coordination charge, inspection fees, or onboarding costs. Self-managing shifts those costs from an invoice to your calendar and your risk tolerance. Compare total annual cost against total annual return, not fee against zero, and run your own property through the pricing calculator for real numbers.
How Management Fees Are Structured
Fee structures across the industry are fairly standardized in shape, even though the amounts vary widely by company, property type, and service level. Understanding the shape is what lets you compare two proposals honestly.
| Fee type | What it generally covers | What to ask |
|---|---|---|
| Monthly management fee | Rent collection, tenant communication, maintenance coordination, accounting, compliance | A percentage of collected rent or scheduled rent? Charged during a vacancy? |
| Leasing or tenant placement fee | Marketing, showings, applicant screening, lease preparation and signing | Flat amount or a share of one month’s rent? What happens if the tenant breaks the lease early? |
| Lease renewal fee | Renewal negotiation, market review, paperwork | Charged every renewal? Is a rent review included? |
| Maintenance coordination or markup | Vendor dispatch, oversight, invoice handling | Is there a percentage added to vendor invoices? Are vendors in-house or independent? |
| Inspection fees | Move-in, periodic, and move-out inspections | How many are included, and what does the report look like? |
| Setup or onboarding | Bringing the property and any existing tenancy into the system | One time? What is included for an occupied property? |
We are not going to quote numbers here, ours or anyone else’s, because a fee only means something attached to a specific property, rent, and scope. That is what the pricing calculator is for: put your address and rent in and you get real figures instead of a range copied from a national article.
The distinction that matters most
Collected rent versus scheduled rent. A fee on collected rent means the manager earns when you earn, so a vacant or delinquent month costs them too. A fee on scheduled rent is charged regardless. Neither is wrong, but they are not the same product, and comparing two percentages without checking is the most common mistake owners make.
The Costs of Self-Managing That Never Appear on an Invoice
- Time. Photos and marketing, fielding inquiries, showings, screening, drafting the lease, chasing late rent, coordinating vendors, inspections, and bookkeeping.
- Vacancy days. Mispricing slightly or answering inquiries a day late adds days on market, and it compounds if the vacancy pushes into a slow season.
- Screening quality. One bad placement can cost more than several years of fees, and consistency matters legally, which is why we publish a tenant screening checklist.
- Compliance exposure. Fair housing, required disclosures, entry notice, notice timing, and security deposit accounting including the 45-day return window under the Virginia Residential Landlord and Tenant Act. Mistakes here are expensive.
- Maintenance pricing. A company sending steady volume to a vendor usually gets faster response and better pricing than an owner calling on a Saturday night.
- Bookkeeping and taxes. Expense tracking, vendor 1099s, and clean records for your Schedule E. The IRS publishes guidance on rental income and expenses, and management fees are generally deductible as an ordinary rental expense.
- Distance. Self-managing from another state is harder than it sounds. Someone still has to open the door for the HVAC tech.
A Fair Way to Run the Comparison
- Estimate your annual hours honestly. Track a real month, then multiply, and include turnover months.
- Put a number on your hour. Use what your time actually earns elsewhere.
- Estimate the vacancy difference in days, then convert those days into rent.
- Add the costs you pay either way: make-ready work, photos, screening reports, lease documents.
- Add a risk-weighted allowance for one bad tenancy, weighted by how likely you think it is.
- Get the actual management cost for your property from the calculator, then compare totals.
- Remember the tax treatment. A deductible fee and a non-deductible Saturday are not equivalent.
When DIY Genuinely Makes Sense
- One property near where you live, with a long-term tenant already in place.
- You have weekday flexibility and are comfortable being the after-hours contact.
- You are handy enough for small repairs, have reliable trades, and keep organized records.
- Frankly, you enjoy it. Some owners do, and that is a legitimate answer.
When Professional Management Usually Wins
- You live out of the area or travel frequently.
- You have more than a couple of doors, or you are actively growing a portfolio.
- Your day job makes weekday showings and vendor coordination impractical.
- The property has high turnover or is in a segment where screening depth matters.
- You have already lived through one bad tenancy and would rather not repeat it.
Questions to Ask Any Manager Before You Sign
- Can I see the complete fee schedule in writing, including every situational charge?
- Is the management fee on collected or scheduled rent, and is it charged during vacancy?
- Do you mark up maintenance invoices, and do you own the vendor companies you use?
- Who holds the security deposit, and how is the 45-day accounting handled?
- What is your screening standard, and is it applied identically to every applicant?
- What spending can you approve without contacting me, and can I use my own vendors?
- What are the termination terms, and what reporting do I get?
A manager who answers all of those without hedging is showing you how they will handle everything else. Our full scope is on the property management services page.
Frequently Asked Questions
What do property managers in Richmond charge?
Structures are consistent across the industry, but amounts vary by company, property type, rent level, and scope. Use the pricing calculator for figures tied to your actual property rather than a national average.
Is the leasing fee separate from the monthly management fee?
Usually yes. The monthly fee covers ongoing operations. The leasing fee covers the work of marketing, showing, screening, and signing a new tenant, which is concentrated and front-loaded.
Are property management fees tax deductible?
Management fees are generally deductible as an ordinary and necessary expense of operating a rental property. Review your specific situation with a CPA and see IRS guidance on rental income and expenses.
What is the biggest hidden cost of DIY management?
Extended vacancy and one poor tenant placement. Both are avoidable, and both dwarf a year of management fees when they happen.
Do management companies mark up maintenance?
Some do, some do not. Ask about invoice markups, coordination fees, and vendor ownership, and get the answer in writing before you sign.
Run your own numbers first. The Mission Realty pricing calculator gives you real figures for your property in about a minute, and a free rental analysis tells you what the home should lease for. Compare both against an honest count of your own hours.
