In real estate investment, post purchase performance is strongly influenced by the choice of a property management company. The recurring management fee directly affects long term returns, making it essential to understand market levels and contract terms. This article summarizes practical standards as of 2025.

1. Basic Fee Range

For residential rentals, management fees are commonly 5% to 10% of monthly rent.

Rent collection and remittance

Tenant support and first response to issues

Lease renewal and move out handling

These core services are usually included, with around 8% often seen in practice. Lower rent units tend to have higher percentage fees.

2. Additional Costs to Watch

Beyond the base fee, contracts often include extra charges that are easy to miss.

Advertising fee of one month rent for new tenants

Renewal handling fee of 0.5 month rent

Coordination fee for restoration work at around 10%

When combined, the effective cost can exceed the headline 5% to 10% range.

3. Practical Example in Numbers

Assumptions

Monthly rent 100000 yen

Management fee 8%

Monthly fee equals 8000 yen or 96000 yen per year.

If a 50000 yen renewal fee is added, total annual management related cost becomes 146000 yen. This level should be reflected in yield calculations.

Takeaway

While rental management fees typically range from 5% to 10% of rent, decisions should be based on the total effective cost including advertising and renewal fees. Clarifying service scope and extra charges before signing is key to stable long term property operations.