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Property Management Profitability: FAQs on Profit Margin

Second Nature

In the most basic terms, property management companies make money through real estate investors paying for the services they offer. Also known as tenant placement services, this is the process of filling a unit so that you can get back to collecting rent, and its typically charged as a percentage of rent.

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Multifamily property management fees: What to expect and how to budget

MRI Software

Flat-rate management fees Some property management companies use a flat-fee pricing model instead of charging a percentage of rent. This approach is common for large multifamily properties where a percentage-based fee would result in significantly higher costs.