Monthly property management fees in the Austin metro run 8% to 10% of rent collected, and the leasing fee for placing a new tenant runs 50% to 100% of one month’s rent. On a $2,000 unit, that is roughly $2,500 to $4,500 per year in total cost in a year with one turnover, before maintenance markups, renewal fees, or any of the smaller line items that quietly inflate a management agreement.
Sounds simple right. Then you read an actual contract and find seventeen fee categories you have never heard of. Setup fee. Marketing fee. Inspection fee. Bill pay fee. Technology fee. After-hours surcharge. A few of those are reasonable. A few are how a 10% headline fee turns into 14% of effective spend by year-end.
I run Kendall Creek Properties in Austin. We charge what we charge, and our owners see the whole fee schedule before they sign anything. This post is the breakdown I wish every owner had before they shopped PM companies. What the fees are, what they should cover, what is reasonable, what is predatory, and the specific questions to ask before you sign.
(For TREC’s rules on broker compensation and disclosures, see TREC Rule 535.156 and the TREC Information About Brokerage Services form. PMs in Texas operate under a real estate license and the same disclosure obligations apply.)
Austin Metro Snapshot
Austin MLS data via Kendall Creek Properties, May 2026:
- 3,378 active residential lease listings inside the City of Austin, $2,351 average asking rent, $1,850 median
- Round Rock: 261 active, $2,328 average
- Cedar Park, Leander, Pflugerville: 132 to 228 active, averaging $2,256 to $2,417
- Closed leases in 2026 so far: 53-day average days on market
Why does that matter for fees? Because a percentage-of-rent fee structure on a $2,000 unit produces very different gross revenue for the PM than the same percentage on a $3,500 Lakeway lease. The fee model has to make sense for your rent point, not just for the market average.
The Two Fees That Do Almost All the Work
Almost every PM company in Texas uses some mix of two core fees: a monthly management fee and a leasing fee. Everything else is an add-on, and the add-ons are where the comparison shopping gets messy.
Monthly Management Fee
The ongoing fee for day-to-day operations. In Austin and across Central Texas the structures are:
- Percentage of rent collected: 8% to 12% of rent collected. On a $2,000 unit, $160 to $240 per month. Some PMs charge percentage of rent due rather than rent collected, which means you pay them even when the tenant does not pay you. That distinction matters.
- Flat monthly fee: $100 to $200 per month regardless of rent. Predictable but removes the incentive alignment that percentage models create.
The percentage-of-collected model aligns the PM’s incentive with yours. If they keep the unit rented at market rate and the tenant pays, they earn. If the unit sits empty or the tenant goes delinquent, they do not. The flat fee removes that alignment, which is fine if you trust the operator but is a flag if you do not.
What the monthly fee should include at minimum:
- Rent collection and accounting
- Tenant communication and customer service
- Maintenance coordination (receiving requests, dispatching vendors)
- Monthly owner statements and accounting
- Lease enforcement (late notices, lease violation notices)
- Periodic property inspections (frequency varies)
- Year-end 1099s and expense reports for your CPA
If a company charges a monthly fee and then adds line items for “rent collection,” “monthly statements,” or “basic communication,” they are double-dipping. That is a red flag.
Leasing Fee (Tenant Placement)
One-time fee for finding and placing a new tenant. Range: 50% to 100% of one month’s rent in Texas, occasionally a flat dollar amount.
What it should include:
- Marketing the property (MLS, syndication portals, sign in the yard if appropriate)
- Showings (in-person, self-show, or a mix)
- Application processing and tenant screening under FCRA-compliant procedures
- Lease preparation using a current TAA lease or equivalent
- Move-in walkthrough with signed condition report and timestamped photos
Some companies split this into a “leasing fee” and a separate “marketing fee.” Be cautious of that structure. The total cost is what matters and splitting fees is usually how the total gets higher without looking like it.
A 100% leasing fee can be justifiable in a market like Austin’s right now. The average days on market for closed leases in 2026 is 53. Two years ago it was 22. PM labor cost per lease has roughly doubled, and good PMs are spending more time on photos, pricing analysis, showings, and applicant communication than they were in 2023.
The Other Line Items (Read Before You Sign)
Lease Renewal Fee
$150 to $300 per renewal at most companies. Some PMs roll renewals into the monthly fee, which is the cleaner structure. Since renewals require less work than new placements (no marketing, no showings, no fresh screening for the same tenant), the renewal fee should be meaningfully less than the leasing fee.
If a PM charges 75% of one month’s rent as a “renewal fee,” that is functionally a second leasing fee on the same tenant. Push back or walk.
Maintenance Markup
Many PMs add a 10% to 20% markup on maintenance and repair work. This covers vendor coordination, bid review, and quality oversight. Some PMs use in-house maintenance instead, which can reduce nominal cost but can also create a conflict of interest (the PM has an incentive to find work to keep their crew busy).
Ask specifically how maintenance is handled and billed. A PM coordinating competitive bids from multiple vendors usually saves you more money over a year than one running everything through a single preferred contractor at a flat markup.
For context on what maintenance the law actually requires, see landlord maintenance responsibilities in Texas and Texas Property Code Section 92.052.
Vacancy Fee
A reduced monthly fee charged while the property is vacant. Less common, generally not in the owner’s favor. If the unit is empty, the PM should be motivated to fill it, not earning a billing line. Some PMs disclose this as an “account maintenance” or “minimum monthly” fee. Same thing.
Setup or Onboarding Fee
$100 to $500 one-time fee for initial account setup, property inspection, and system configuration. Reasonable if it covers a thorough initial inspection with photo documentation, account creation in the owner portal, vendor handoff, and lease audit. Not reasonable if it is just “signup admin.” Ask what the deliverable is.
Eviction Coordination Fee
$200 to $500 to coordinate an eviction (separate from attorney fees and court costs). Some PMs include eviction coordination in the standard management fee. Others bill it. Either is defensible if disclosed. Watch out for PMs who charge an eviction fee and then file evictions at a high rate, because the fee creates the incentive. The KCP philosophy is that evictions are operational failures and we work hard to avoid them. Read our Texas eviction process guide for what the process actually looks like.
Early Termination Fee
Most management contracts have a term (often 12 months) with a fee for early cancellation. Standard, but the size varies wildly. I have seen $500 termination fees and $5,000 termination fees. Read the cancellation clause carefully before signing. Negotiate to a 30- or 60-day notice with no termination fee if possible.
Hidden Fees to Watch For
Not all PM companies are transparent. Watch for:
- Advertising fees charged on top of the leasing fee (the leasing fee should already include marketing)
- Inspection fees charged per visit beyond the standard cadence
- Bill pay fees for paying your mortgage, HOA, or insurance from rental proceeds
- Technology fees for owner portal access or online rent collection (this is core infrastructure, not an upsell)
- After-hours maintenance surcharges passed through to the owner
A reputable PM will provide a complete fee schedule before you sign. If a company is vague about additional charges or directs you to “see the contract for details,” that is information.
(Also worth knowing: a property manager in Texas has to be a licensed real estate broker or operate under one. TREC license number should be on the agreement. Look it up in the TREC license database before you sign.)
What Drives Fee Differences Between Companies
Property type. Single-family homes in suburban submarkets like Pflugerville or Round Rock typically run lower fees than older homes in central Austin or small multifamily where the maintenance load is higher.
Property value and rent. Higher-rent properties often command lower percentage fees because the dollar amount is already substantial. 10% on $3,500 ($350/mo) is more revenue than 12% on $1,800 ($216/mo), even though the headline percentage is lower.
Service level. Full-service management with regular inspections, proactive maintenance planning, and detailed reporting costs more than basic rent-collection-and-dispatch. The two are not the same product even if both are called “property management.”
Company size and overhead. Larger companies with dedicated staff, vendor networks, and professional tech platforms charge more but often deliver more consistency. Solo operators charge less but can be a single point of failure when they take a vacation.
How to Calculate the True Annual Cost
Do not compare PMs on the monthly fee alone. The cheapest option can become the most expensive fast if the manager takes weeks to fill vacancies, places weakly screened tenants, or fails to coordinate timely maintenance.
Run the math on total annual cost, including a realistic estimate of leasing fees (assume one turnover every 18 to 24 months), maintenance markup on a normal year of repairs, and any per-event fees. Compare the total to the value of the services. A PM at 10% who keeps your unit occupied with a quality tenant and well-maintained is far more valuable than one at 6% who lets problems compound and bleeds you on vacancy.
Worked example for a $2,000 unit, typical year, no eviction:
| Line item | Amount |
|---|---|
| Monthly management fee (10% x $2,000 x 12) | $2,400 |
| Leasing fee (50% of one month, every 18 mo = ~$667/yr amortized) | $667 |
| Lease renewal fee (every other year, amortized) | $125 |
| Maintenance markup (15% on $1,500/yr typical maintenance) | $225 |
| Total annual PM cost | $3,417 |
That is roughly 14% of annual rent collected ($24,000). That is the real number to compare across companies, not the 10% headline.
Questions to Ask Before Hiring
- What is your complete fee structure? List every possible charge.
- What is included in the monthly management fee?
- Is the monthly fee a percentage of rent collected or rent due?
- How do you handle maintenance requests and vendor selection?
- What is the maintenance markup, and what is your typical maintenance run-rate per unit per year?
- What is your average days on market for filling a vacancy?
- What is your eviction rate, and what do you do to avoid one?
- How often do you inspect properties? Interior vs exterior?
- What does your owner reporting look like? Can I see a sample statement?
- What are the contract terms, notice period, and early termination provisions?
How Kendall Creek Properties Prices
We charge what is normal for the Austin market, with a flat percentage of rent collected, a leasing fee for new placements, and a smaller renewal fee for keeping a good tenant in place. No setup fee. No technology fee. Maintenance markup is transparent and disclosed. The full fee schedule is on the management agreement before you sign, and we walk through it with every prospective owner so there are no surprises in month two.
Our philosophy is that fee transparency is part of the product. Every owner should know exactly what they pay and what they get for it. The owners who switch to us from other PMs almost always tell us the same thing: they wish they had read the fee schedule on their previous contract more carefully.
Frequently Asked Questions
What is the average property management fee in Austin?
The Austin market range is 8% to 10% of monthly rent collected, plus a leasing fee of 50% to 100% of one month’s rent for placing a new tenant. Total annual cost on a $2,000 unit usually runs $2,500 to $4,500 in a year with one turnover.
Are property management fees tax deductible in Texas?
Yes. PM fees are a deductible operating expense on Schedule E of your federal return. See our guide to rental property tax deductions in Texas. Texas has no state income tax, so federal is the only return that matters.
What is a leasing fee in property management?
A one-time fee for finding and placing a new tenant. Range in Texas is 50% to 100% of one month’s rent. Should include marketing, showings, screening, lease prep, and move-in walkthrough.
Should I pay a maintenance markup?
A 10% to 20% markup on third-party maintenance work is normal. It compensates the PM for vendor coordination and oversight. Whether it is worth it depends on the PM’s vendor relationships and quality control. Ask for a sample work order to see the breakdown.
Can I negotiate property management fees?
Sometimes. Larger portfolios (3+ units with one PM) often get a discount. New construction or premium properties in tight submarkets where the PM wants the listing also have negotiating room. A solo unit at average rent in a normal submarket usually pays market rate.
Does a Texas property manager need a real estate license?
Yes. Property management in Texas is a real estate brokerage activity. The PM must be a licensed broker or operate under one. TREC license number should be on every management agreement. Verify in the TREC license database.
What is included in a typical Texas property management contract?
Monthly fee, leasing fee, renewal fee, maintenance markup, term and cancellation provisions, vendor approval thresholds, owner draw schedule, reporting cadence, and indemnification language. Read all of it before signing.
How long are property management contracts?
Typically 12 months initial term, then month-to-month with 30 to 60 days notice. Some PMs require longer initial commitments. Avoid contracts with multi-year auto-renewals or steep early termination fees.
Do property managers charge fees during vacancy?
Most do not (or charge a much smaller “account maintenance” fee). A PM who charges a full management fee on a vacant unit has the wrong incentive structure.
What is the difference between a leasing fee and a management fee?
Leasing fee is a one-time charge for placing a tenant. Management fee is the ongoing monthly charge for day-to-day operations. Both are normal. Most PMs charge both.
The Bottom Line
The 10% monthly fee is the headline. The 14% all-in is the reality on a typical year. The right PM is the one whose total annual cost is reasonable for the service level, who discloses every line item before you sign, and who can answer the screening, vacancy, and eviction questions without dancing around them.
If you want to talk through what professional management would actually cost for your specific property, reach out through our contact page and we will give you a straight quote. You can also see what our services include, browse current rentals to see what we put on the market, and learn when it makes sense to hire a PM in the first place.