How to use this calculator
- Enter or choose monthly rent per unit.
- Enter or choose number of units.
- Enter or choose vacancy.
- Enter or choose management fee type.
- Enter or choose tenant placement fee.
- The total fees per year updates as you type. Use Copy result or Share to keep it.
Method
Rent collected = Rent × Units × 12 × (1 − Vacancy); Management = Fee% × Rent collected (or Flat × Units × 12); Total = (Management + Placement% × Rent × New tenants + Renewal fee × Renewals + Other) × (1 + Tax%)
- Placement%
- tenant-finding fee as a percentage of one month’s rent
- Tax%
- any VAT, GST or sales tax charged on the fees
Worked example
- Rent collected = 1,800 × 4 × 12 × 95% = 82,080; 8% of that = 6,566.40.
- Placement = 50% × 1,800 × 2 = 1,800; renewals = 150 × 2 = 300.
- Total = 6,566.40 + 1,800 + 300 = 8,666.40, which is 10.56% of rent collected.
An 8% manager actually costs 8,666.40 a year, 10.56% of the rent collected, once placement and renewal fees are included.
What the result means
Compare quotes on the effective percentage, not the headline rate. A lower ongoing fee with high placement fees can cost more in a building with frequent turnover.
Assumptions and limits
- Percentage fees are charged on rent collected, not on scheduled rent.
- All fee rates are inputs from your own quote.
- Maintenance call-out charges and mark-ups on repairs vary widely; add an estimate under other fees.
Questions
Is the fee charged on rent due or rent collected?
Most agreements charge on rent collected, so empty months cost nothing; check yours. If it is on rent due, set vacancy to 0 to see the cost.
Are management fees tax-deductible?
In many countries they are an allowable expense against rental income, but the rules are local; ask a tax adviser.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.