“Why should I pay 10% when I can do it myself?”
“What exactly am I getting for $150 a month?”
“Isn’t 10% just… expensive?”
If you’ve ever asked these questions, you’re not alone.
Here’s what most property owners don’t realize:
That 10% management fee isn’t just paying for someone to collect rent.
It’s paying for 19 years of systems, expertise, and infrastructure that would cost you $50,000+ to build yourself.
And when you factor in what’s NOT included in our fee (no placement fees, no markups, no hidden charges), our 10% is actually cheaper than most companies’ 8%.
After managing 250 properties in the Lansing area, I can tell you exactly where every dollar of that 10% goes.
In this post, I’ll break down: – What’s included in the 10% (the complete list) – What’s NOT included (and why that matters) – The real hourly breakdown of management work – Why 10% with no hidden fees beats 8% with markups – How to calculate if property management is worth it for you Let’s talk about what you’re actually paying for.
What’s Included in the 10% Management Fee
Our 10% fee covers everything related to managing your property. Here’s the complete breakdown:
- Tenant Screening & Placement ($1,500 value per placement)
What we do: – Market your property (Zillow, Facebook Marketplace, Craigslist, our website) – Schedule and conduct showings – Answer prospect questions (20-30 inquiries per property) – Pre-qualify applicants (income, credit, rental history) – Process applications – Run background checks, credit checks, rental history verification – Verify employment and income (call employers, review pay stubs) – Contact previous landlords (not current landlords who may lie) – Conduct in-depth interviews – Make final tenant selection – Prepare and execute lease agreements – Conduct move-in inspection with photos/video – Collect first month’s rent and security deposit
Time investment: 15-20 hours per placement Industry standard: $500-$1,500 placement fee
Our fee: $0 (included in 10%)
- Rent Collection & Financial Management ($100/month value)
What we do: – Set up tenant payment portal (online, automatic) – Process rent payments (ACH, credit card, check) – Send rent reminders (automatic) – Track late payments – Apply late fees (per lease terms) – Send pay-or-quit notices when necessary
- Initiate eviction process if needed – Distribute funds to property owners (direct deposit)
- Provide monthly financial statements – Track income and expenses – Provide year-end tax documentation (1099s) – Handle security deposit accounting
Time investment: 2-3 hours per property per month What you avoid: Chasing tenants for rent, awkward money conversations, accounting headaches
- Maintenance Coordination ($200/month value)
What we do: – Provide 24/7 emergency maintenance line – Take all tenant maintenance calls – Assess urgency (emergency vs. non-emergency) – Diagnose issues (often remotely, saving unnecessary service calls) – Schedule repairs (in-house or contractor) Dispatch our handyman team (95% of repairs) – Coordinate outside contractors (when needed) – Get multiple quotes for large repairs – Obtain owner approval for repairs over $500 – Oversee repair quality – Follow up with tenants to ensure satisfaction – Document all repairs with photos – Maintain repair history for each property – Track warranty information
Average work orders: 4 per property per month (52/year) Time investment: 3-4 hours per property per month What you avoid: Middle-of-the-night emergency calls, finding reliable contractors, project management
- Property Inspections ($150 value per inspection)
What we do: – Conduct move-in inspections (detailed photo/video documentation) Perform annual inspections (comprehensive property assessment) – Conduct bi-annual inspections (maintenance check) – Document property condition with photos/videos Identify maintenance issues before they become expensive – Verify lease compliance (unauthorized occupants, pets, etc.) – Check smoke detectors, carbon monoxide detectors – Inspect HVAC filters, water heater, appliances – Review exterior condition (roof, gutters, siding, landscaping) – Provide detailed inspection reports to owners – Post inspection videos to YouTube for owner access – Conduct move-out inspections (document damages, assess security deposit deductions)
Inspections per year: 2-3 per property Time investment: 2 hours per inspection (6 hours/year per property)
Industry standard: $75-$150 per inspection Our fee: $0 (included in 10%)
- Lease Management & Renewals ($200 value per renewal)
What we do: – Track lease expiration dates – Contact tenants 90 days before lease end
- Assess market rent (adjust for current market conditions) – Negotiate lease renewals Prepare lease renewal documents – Update lease terms as needed – Obtain signatures
- Process lease renewal payments – Update insurance certificates – Maintain lease files and documentation
Average lease term: 1 year (renewals every 12 months) Time investment: 2-3 hours per renewal
Industry standard: $150-$300 renewal fee Our fee: $0 (included in 10%)
6. Tenant Relations & Communication ($100/month value)
What we do: – Answer tenant questions (email, text, phone, portal) – Handle tenant complaints and concerns – Mediate neighbor disputes – Enforce lease terms – Issue lease violations when necessary – Coordinate move-outs – Conduct exit interviews Process security deposit returns – Provide itemized deduction lists (when applicable) Handle tenant emergencies (lockouts, lost keys, etc.)
Average tenant contacts: 8-10 per property per month Time investment: 2-3 hours per property per month
What you avoid: Tenant drama, difficult conversations, legal liability
- Legal Compliance & Risk Management ($500/year value)
What we do: – Stay current on Michigan landlord-tenant law – Ensure Fair Housing compliance – Use attorney-reviewed lease agreements – Handle evictions (court filings, hearings) – Maintain required licenses (real estate broker, general contractor) – Carry $1M+ liability insurance – Ensure compliance with local ordinances – Handle code violations and inspections – Respond to attorney letters and legal notices – Maintain proper documentation for legal protection
What you avoid: Legal mistakes that cost $5,000-$20,000, Fair Housing violations, eviction errors
- Marketing & Vacancy Management ($300 value per vacancy)
What we do: – Professional property photos – Write compelling property descriptions Post to multiple listing platforms (Zillow, Apartments.com, Facebook, Craigslist) Respond to inquiries within 1 hour – Schedule showings (including evenings and weekends) – Conduct property showings – Follow up with prospects – Adjust pricing strategy if needed – Track days on market – Optimize listings for maximum exposure
Average vacancy period: 2 weeks or less Time investment: 10-15 hours per vacancy
Industry standard: $200-$500 advertising fee Our fee: $0 (included in 10%)
- Vendor Management & Contractor Relations ($100/month value)
What we do: – Maintain relationships with 20+ trusted contractors – Vet new contractors (insurance, references, pricing) – Negotiate volume pricing discounts (passed to you) Schedule contractor work – Provide property access – Oversee contractor work quality Handle contractor disputes – Process contractor invoices – Maintain contractor insurance certificates – Re-bid contracts every 2 years to ensure competitive pricing
What you avoid: Finding contractors at 2 AM, getting ripped off, managing multiple vendor relationships
- Technology & Systems ($50/month value)
What we do: – Provide tenant portal (rent payments, maintenance requests, communication) – Provide owner portal (financial reports, maintenance updates, documents) – Use AppFolio property management software ($300/month subscription) Maintain website and online presence – Provide online rent payment processing Automated rent reminders and late notices – Digital document storage and management – Automated financial reporting
What you avoid: Buying property management software, learning complex systems, manual record-keeping
- Administrative & Office Support ($100/month value)
What we do: – Answer phones during business hours – Process paperwork and documentation – Maintain organized files (digital and physical) – Handle mail and correspondence – Coordinate between tenants, owners, and contractors – Data entry and record-keeping – Invoice processing and payment – Document scanning and storage
Time investment: 2-3 hours per property per month
12. Emergency Response & After-Hours Coverage ($200/month value)
What we do: – Provide 24/7 emergency maintenance line – Rotate on-call staff (one handyman per week) – Respond to emergencies within 1 hour – Dispatch emergency services when needed – Handle flood, fire, and life-threatening situations – Coordinate with emergency contractors – Document emergency situations – Follow up with owners
Average emergencies: 1-2 per year per property
What you avoid: Being woken up at 2 AM, handling crisis situations, emergency decision-making under pressure
The Real Hourly Breakdown
Let’s calculate the actual time investment for managing one property:
Monthly Time Investment (Per Property):
- Rent collection & financial management: 2-3 hours
- Maintenance coordination: 3-4 hours
- Tenant communication: 2-3 hours
- Administrative tasks: 2-3 hours
- Vendor management: 1 hour
- Emergency availability: 24/7 (on-call rotation)
Total monthly hours: 10-14 hours per property
Annual hours: 120-168 hours per property
Annual Time Investment (Per Property):
- Monthly management: 120-168 hours
- Tenant placement (every 2-5 years): 15-20 hours
- Property inspections (2-3 per year): 6 hours
- Lease renewals: 2-3 hours
- Vacancy management (every 2-5 years): 10-15 hours
Total annual hours (with stable tenant): 128-177 hours
Total annual hours (with turnover): 153-212 hours
What’s Your Time Worth?
Example property: $1,500/month rent Annual management fee: $1,500 × 12 × 10% = $1,800 Annual hours invested: 150 hours (average) Effective hourly rate: $1,800 ÷ 150 = $12/hour But here’s the key:
That $12/hour includes: – 19 years of experience – Licensed real estate broker and general contractor – $1M+ liability insurance – Attorney-reviewed contracts and processes – Established contractor relationships with volume discounts – $300/month property management software – 24/7 emergency response system – In-house maintenance team (95% of repairs)
Could you replicate all of that for $12/hour? No.
Would it even be worth your time at $50/hour? Probably not.
What’s NOT Included (And Why That Matters)
Here’s what we DON’T charge for (but most property management companies do):
Fees We Don’t Charge:
- Placement fee: $0 (industry standard: $500-$1,500)
- Lease renewal fee: $0 (industry standard: $150-$300)
- Property inspection fee: $0 (industry standard: $75-$150 per inspection)
- Advertising fee: $0 (industry standard: $200-$500)
- Lease preparation fee: $0 (industry standard: $100-$250)
- Coordination fee: $0 (industry standard: $25-$100 per work order)
- Early termination fee: $0 (industry standard: $500-$2,000) 8. Maintenance markup: 0% (industry standard: 20-50%)
The Real Cost Comparison
Scenario: $1,500/month rent, 1 tenant turnover every 3 years, 4 maintenance requests/month Company A: 8% management fee + hidden fees Annual costs: – Management fee: $1,500 × 12 × 8% = $1,440 – Maintenance markup (30% on $13,000): $3,900 – Lease renewal fee (annual): $200 – Inspection fees (2 per year): $300 – Placement fee (every 3 years): $500 ÷ 3 = $167/year – Total annual cost: $6,007
Simply Live: 10% management fee, no hidden fees Annual costs: – Management fee: $1,500 × 12 × 10% = $1,800 – Maintenance markup: $0 – Lease renewal fee: $0 – Inspection fees: $0 – Placement fee: $0 – Total annual cost: $1,800
Your Savings: $4,207/year
That’s right:
Our 10% fee with no hidden charges costs $4,207 LESS per year than their 8% fee with markups and hidden fees.
Over 5 years: $21,035 saved Over 10 years: $42,070 saved The lesson: Don’t just compare management fee percentages. Compare total cost.**
Is the 10% Management Fee Worth It?
Here’s how to calculate if property management makes financial sense for you: The DIY Cost Calculation
Your time value: $______/hour (what you earn or could earn) Annual hours to self-manage: 150-200 hours
Your time cost: $______ $______ Plus: – Property management software: $300-$600/year – Background check services: $100-$200/year – Legal consultation: $500-$1,000/year – Mistakes and learning curve: $1,000-$5,000/year
×
150
hours
=
Total DIY cost: $______
Professional management cost: $1,800/year (for $1,500/month rent) Savings with professional management: $______
The Break-Even Analysis
If your time is worth $50/hour:
DIY cost: – Your time: 150 hours × $50 = $7,500 – Software/services: $1,000 – Mistakes: $2,000 (conservative) – Total: $10,500
Professional management cost: $1,800 Savings: $8,700/year Break-even: If your time is worth more than $12/hour, professional management saves you money.
The Opportunity Cost
But here’s the real question:
What could you do with those 150 hours instead?
- Acquire another rental property
- Grow your business • Spend time with family
- Pursue hobbies
- Work your day job (and earn more than $1,800)
For most property owners, the 10% fee isn’t an expense. It’s an investment in time freedom and peace of mind.
What You’re Really Paying For
The 10% management fee isn’t just paying for tasks. It’s paying for:
- Expertise & Experience
- 19 years in property management
- 250 properties managed
- Zero evictions in 3 years
- 80%+ tenant retention
- 4.9-star Google rating
You’re not paying for someone to learn on your property. You’re paying for proven systems and expertise.
- Risk Mitigation
- Fair Housing compliance (avoid $10,000-$50,000 lawsuits)
- Legal lease agreements (avoid costly eviction mistakes)
- Proper tenant screening (avoid $7,000-$20,000 bad tenant costs)
- Licensed and insured ($1M+ liability coverage)
You’re not paying for management. You’re paying for protection.
- Time Freedom
- No tenant calls at 2 AM
- No maintenance emergencies on vacation • No awkward rent collection conversations
- No weekend property showings
You’re not paying for convenience. You’re paying for your life back.
- Better Financial Results
- <2% vacancy rate (industry average: 5-8%)
- 2-week average turnaround (industry average: 30-45 days)
- 80%+ tenant retention (industry average: 50-60%)
- Zero maintenance markups (industry standard: 20-50%)
You’re not paying a fee. You’re making an investment that pays for itself.
- Scalability
Managing 1 property yourself: Doable, but time-consuming Managing 5 properties yourself: Overwhelming Managing 10 properties yourself: Impossible With professional management: – 1 property: $1,800/year – 5 properties: $9,000/year (same time investment from you: zero) – 10 properties: $18,000/year (same time investment from you: zero)
You’re not paying for management. You’re paying for the ability to scale.
Common Questions About the 10% Fee
Q1: “Can I negotiate the 10% fee?”
A: Yes, for larger portfolios.
Our standard fee: – 1-3 properties: 10% or $100/month minimum – 4-10 properties: Negotiable (as low as 8-9%) – 10+ properties or apartment buildings: Custom pricing Why we negotiate for larger portfolios: – Economies of scale (more efficient to manage multiple properties for one owner) – Lower marketing costs (less turnover as a percentage) – Stronger relationship and commitment
Q2: “What’s the $100/month minimum?”
A: For properties that rent for less than $1,000/month, we charge a $100 minimum. Why:
Example: $800/month rent × 10% = $80 But the work is the same: – Same tenant screening process – Same maintenance coordination – Same inspections – Same legal compliance – Same administrative work
$80/month doesn’t cover the cost of professional management. $100/month does.
For properties renting at $1,000+/month, the 10% fee applies (no minimum).
Q3: “Do you charge extra for multiple units at one property?”
A: No, each unit is treated as a separate property.
Example: Duplex – Unit A: $1,200/month rent – Unit B: $1,100/month rent
Management fee: – Unit A: $1,200 × 10% = $120/month – Unit B: $1,100 × 10% = $110/ month – Total: $230/month
But we may negotiate lower rates for multi-unit properties (8-9% for 4+ units).
Q4: “Do I still pay the 10% during vacancies?”
A: No. You only pay when rent is collected. How it works:
Month 1: Tenant moves out on the 15th – Rent collected: $750 (half month) Management fee: $750 × 10% = $75 Month 2: Property is vacant, being marketed – Rent collected: $0 – Management fee: $0 Month 3: New tenant moves in on the 10th – Rent collected: $1,000 (prorated) Management fee: $1,000 × 10% = $100
You only pay when we collect rent. No rent = no fee.
This is different from many companies that charge full fees during vacancies.
Q5: “What if I want to cancel? Are there any fees?”
A: No cancellation fees. Ever.
Our contracts are month-to-month: – Give us 30 days’ notice – We’ll coordinate the transition – No early termination fees – No penalties
Why we don’t lock you in: – We’re confident in our service quality – 80%+ of clients stay 7+ years (without contracts) – Month-to-month contracts keep us accountable
If we’re not earning your business every month, you shouldn’t be locked in.
Q6: “Do you charge separately for accounting and tax documents?”
A: No. All included in the 10%.
What you receive: – Monthly financial statements (income and expenses) – Year-end tax summary – 1099 forms (if applicable) – Detailed transaction history – Access to AppFolio owner portal (24/7 access to all financial data)
No separate accounting fees. No tax prep fees. All included.
The Bottom Line: What 10% Really Buys You
After 19 years managing 158 properties, here’s what I’ve learned:
Property owners who try to save money by self-managing usually: – Spend 150-200 hours per year per property – Make costly mistakes (bad tenants, legal errors, maintenance delays) – Experience higher vacancy rates – Deal with constant stress and interruptions – Struggle to scale beyond 2-3 properties Property owners who invest 10% in professional management: – Spend zero hours managing properties – Avoid costly mistakes (proven systems and expertise) Experience lower vacancy rates (<2% vs. 5-8%) – Enjoy peace of mind and time freedom – Can easily scale to 10+ properties
The 10% fee isn’t an expense.
It’s an investment that pays for itself through: – Time savings (150+ hours/year) Better financial results (lower vacancy, better tenants) – Risk mitigation (legal protection, proper screening) – Scalability (grow your portfolio without growing your workload)
And when you factor in what’s NOT included in our fee (no markups, no hidden charges), our 10% is actually cheaper than most companies’ 8%.
Ready to See What 10% Can Do For You?
If you’re tired of managing properties yourself (or paying hidden fees to your current property manager), let’s talk.
Free 20-minute consultation: We’ll review your properties and show you exactly what our 10% fee includes.
What you’ll get: – Complete breakdown of services included – Comparison to your current costs (DIY or current property manager) – Custom pricing for larger portfolios No-obligation assessment
We serve rental property owners in the Lansing tri-county area. 10% management fee. Zero hidden fees. Complete transparency. That’s not just our pricing. It’s our promise.
Simply Live LLC | Lansing Tri-County Property ManagementPhone: [ (517) 258-0349] | Serving rental property owners in Michigan’s tri-county area for 19 years
“10% buys you 19 years of expertise, 150 hours of your time back, and complete peace of mind.”
Recent Comments