How much do property managers charge in Virginia?

What decides the price

There is no fixed rate for property management in Virginia. The management fee is something the manager and the owner agree in writing, and under the Real Estate Board's regulations only a licensed individual or firm may negotiate or agree to a management fee.^[2] Firms typically charge a monthly fee plus separate charges for leasing a vacant unit and for extras. The precise figures vary by firm, by city and by the number and type of units so this page does not quote percentages. What matters is what each line of the quote covers.

The charges to ask about

Ask every firm to list its fees on one page, then compare the same scenario across firms: one unit, one tenant, one repair, one vacancy.

• Monthly management fee. Ask what it is based on (rent billed or rent collected) and whether there is a monthly minimum, which matters on a low-rent unit.
• Leasing or tenant-placement fee. Charged when the manager finds a tenant and signs the lease. Ask whether it applies again at renewal.
• Lease renewal fee. Some firms charge it each time a tenant renews; others include it.
• Repair and maintenance charges. Ask whether the manager adds a markup or coordination fee to a vendor's invoice, and the dollar amount above which the manager must call you first.
• Inspections and reporting. Move-in, move-out and periodic inspections can be included or billed each time.
• Onboarding and termination fees. Ask what it costs to start, and what it costs and how much notice is required to leave.
• Vacancy. Ask whether any fee continues while the unit is empty.

Fees paid by the tenant

Some charges come from the tenant, not you. Virginia's landlord-tenant law defines an application fee as any nonrefundable fee that is paid by a tenant to a landlord or managing agent for the purpose of being considered as a tenant for a dwelling unit.^[4] Ask whether the manager keeps those fees or passes them to you, and put the answer in the agreement.

Money the manager may not simply keep

A manager does not get to treat your tenant's deposit as income. The regulations say that unless otherwise agreed in writing by the principals to the lease or property management agreement, as applicable, a licensee will not be entitled to any part of the security deposit or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission except in accordance with the terms of the lease or the property management agreement, as applicable.^[3] So settle in the agreement who keeps what.

Rent and deposits also have to sit in an escrow account until they are disbursed according to the lease, the agreement or the law.^[3] Ask which bank holds the account and when your net rent is paid out each month.

Compare quotes fairly

1. Give each firm the same facts: address, rent, lease status, condition, and what you expect them to handle.
2. Get the quote in writing and the draft property management agreement before you commit.
3. Total a year of fees for a normal year (one lease, two small repairs, one inspection) and for a bad year (a vacancy, a turnover and a bigger repair).

A lower monthly percentage can cost more overall if the leasing fee, renewal fee and repair markups are higher. The cheapest quote on paper is not always the cheapest manager.

Self-managing costs something too

Managing your own rental avoids the fee but not the work: showings, screening, evenings spent on leaks, deposit accounting. If you live far away, or own several units, a manager's fee can be cheaper than your time. If you stay local and the building is simple, you may not need one.

Stop and call a pro if

• A firm offers to manage without a Virginia real estate licence. Management of rental property for others for compensation is licensed work in Virginia, because a broker is someone who, for compensation, leases or offers to lease, or rents or offers for rent, any real estate or the improvements thereon for others;^[1] see the licence answer linked below.
• The agreement lets the manager keep deposits or late fees without saying so. Do not sign until the clause is explicit, and ask a Virginia attorney to review the contract.
• The quote hides fees until after you sign. Walk away or ask for a revised written quote.
• A fee dispute with a manager is heading to court. Talk to a Virginia attorney.

Getting help in Virginia

Read what a property manager does for a rental owner before you compare fees, and whether a property manager needs a licence in Virginia before you hire. Browse more commercial answers or the commercial services directory. To get repair work on your rental priced, describe the job and local pros quote it.