Many property management companies, including ours, offer more than one plan: a lower monthly percentage with more items billed separately, and a higher percentage that includes more. Owners understandably look at the percentage first. A 9% plan sounds cheaper than a 10% plan, and on a monthly statement it is. Over a year, it often is not.
This guide shows how to compare plan levels at one company. The method is simple: list every fee in each plan, turn it into a yearly cost for your house, and do it twice, once for a year when a new tenant moves in and once for a year when the tenant renews. We use our own three published plans as the worked example, because the numbers are real and you can check them on our pricing page. The same method works for any company's tiers.
Why the monthly percentage misleads
The monthly management fee is the one number every plan shows in large type, and the one owners compare. But it is only part of what you pay in a year. The other parts are charged at specific moments: when a tenant is placed, when a lease renews, when the house is enrolled, when a repair is coordinated, or when a tenant has to be removed. A plan can trade a lower monthly percentage for higher charges at those moments, and the trade can go either way.
That is why a fair comparison needs two different years. In a year with a new tenant, the leasing fee and any onboarding charge dominate. In a year where the tenant simply renews, the monthly fee and the renewal fee dominate. A plan can win one year and lose the other. Our general fee comparison worksheet uses the same idea to compare two different companies; this guide applies it to two plans at the same company.
The three plans in our example
These are our published standard numbers. Every plan includes an annual property inspection, 24/7 emergency response and the online owner portal.
- Standard (single homes and small portfolios): 9% of monthly rent; tenant placement 75% of one month's rent; lease renewal $200; property enrollment inspection $49; maintenance coordination 4.9% of the repair cost; optional eviction service $7.95 per month.
- Full Service (our most popular plan): 10% of monthly rent; tenant placement 50% of one month's rent; lease renewal $150; onboarding and enrollment inspection included; maintenance coordination 5% of the repair cost; eviction service included.
- Investor Special (portfolios of 5 or more units): 7% of monthly rent; tenant placement 50% of one month's rent; lease renewal $149; property enrollment inspection $125; make-ready coordination 3% to 5% of cost; optional eviction service $7.95 per month.
The final fee for a house is set after the rental analysis. A newer home that needs no turn work can come in lower, and an older home that needs permits and repairs at every turn can carry a premium. Whatever is agreed goes into the management agreement, and a fee that is not in the agreement is not charged.
The worked example: a house renting at $2,000 a month
The assumptions, chosen to keep the arithmetic easy to follow: the house rents for $2,000 a month and is rented and paying all twelve months, and the owner spends $2,000 a year on repairs that the manager coordinates. Your rent and repair spending will be different; the method stays the same.
First year, with a new tenant.
- Standard: monthly fee $180 x 12 = $2,160; placement 75% of $2,000 = $1,500; enrollment inspection $49; maintenance coordination 4.9% of $2,000 = $98. Total $3,807, or $3,902.40 with the optional eviction service ($7.95 x 12 = $95.40).
- Full Service: monthly fee $200 x 12 = $2,400; placement 50% of $2,000 = $1,000; onboarding included; maintenance coordination 5% of $2,000 = $100; eviction service included. Total $3,500.
In the year a tenant is placed, the 10% plan costs $307 less than the 9% plan, or $402.40 less if the Standard owner adds the eviction service. The lower placement fee more than covers the higher monthly percentage.
A year when the tenant renews.
- Standard: $2,160 + renewal $200 + coordination $98 = $2,458, or $2,553.40 with the eviction service.
- Full Service: $2,400 + renewal $150 + coordination $100 = $2,650.
In a renewal year, the 9% plan costs $191.60 less, or $96.60 less with the eviction service. Here the monthly percentage wins, because there is no placement fee to offset it.
Over the years you will own the house
The two years together give the real answer, and it depends on how long your tenants stay.
- Two years, one placement and one renewal: Standard with the eviction service costs $6,455.80 and Full Service $6,150, so Full Service is $305.80 cheaper. Without the eviction service, Standard costs $6,265 and Full Service is still $115 cheaper.
- Three years, one placement and two renewals: Standard with the eviction service costs $9,009.20 against $8,800 for Full Service, which stays $209.20 cheaper. Without the eviction service, Standard costs $8,723 and becomes $77 cheaper.
The pattern: every new tenant favors Full Service, every renewal year favors Standard. With the eviction service added to Standard, Full Service stays cheaper until the same tenant has renewed four times in a row. Without it, Standard pulls ahead after two renewals.
Tenant changes also bring costs that no plan removes, such as vacant days and make-ready work, which is why the guides on leasing fees and renewal fees are worth reading alongside this one. A plan that is cheaper when tenants change is also cheaper in exactly the years that already hurt the most.
Running the comparison for your own house
You need four numbers, and you can have them in ten minutes. First, the monthly rent you expect, from a rental analysis rather than a hopeful listing. Second, your realistic yearly repair spending: owners who have lived in the house usually know it, and a house that has needed a new water heater and two plumbing calls in the last few years will keep needing similar work. Third, how many tenant changes you expect over the years you plan to own the house; your own history with past tenants, or your manager's experience with similar homes nearby, is the best guide. Fourth, whether you would add the optional eviction service on a plan that does not include it.
Multiply each plan's monthly percentage by twelve months of rent, add the placement fee once for every tenant change, the renewal fee for every renewal year, the one-time enrollment charge, and the coordination percentage of your repair spending. Put the totals side by side for the whole period. The plan with the lower total for the same service is the cheaper one, whatever its percentage says.
What the totals leave out: risk
The yearly totals assume a normal year. The real difference between plan levels shows up in a bad one. An eviction in Tarrant County involves court costs, possibly an attorney, weeks of lost rent and a turnover afterward. A plan that includes eviction service turns part of that cost into a known monthly number. On a plan where the eviction service is optional, the owner chooses whether to carry that risk.
Look at what each plan includes for the events you cannot predict: who coordinates and pays for the eviction process, whether onboarding is a one-time charge you pay again if you add a house later, and what happens if a tenant you placed leaves early. Our guides on what an eviction costs an owner and on property management guarantees show what to read in the agreement.
How to decide which plan fits your house
Four questions settle it for most owners:
- How long do your tenants usually stay? If the house turns over every year or two, the plan with the lower placement fee usually wins. If you have a long-term tenant who renews year after year, the lower monthly percentage starts to matter more.
- How much risk do you want to carry? If an eviction would be a financial shock, a plan with eviction service included, or the optional service added, is insurance worth pricing in.
- How much repair work does the house need? Coordination percentages differ only slightly between plans, but on an older house with large repair bills even a small difference adds up. Our guide to maintenance markups explains how these charges work.
- How many rentals do you own? Portfolio pricing exists because the work per unit falls as the portfolio grows. With five or more units, compare the portfolio plan too; in our example, the Investor Special costs $2,805 per house in a placement year and $1,829 in a renewal year before any make-ready coordination or the optional eviction service.
Then run your own numbers: your rent, your realistic repair spending, and how many tenant changes you expect over the years you plan to own the house. The guide to what DFW property managers charge shows how our percentages compare with the market.
How Perpetual handles this
We publish all three plans with every fee on our pricing page, and we would rather you choose the plan that costs you less than the one that pays us more. When you request a free rental analysis, we estimate the rent, look at the condition of the house and your plans for it, and run this same comparison for your property: a year with a new tenant, a renewal year, and the years you expect to own it.
The quote comes in writing before you sign, and every number we agree is written into the management agreement. Whichever plan you choose, our guarantees apply: your home is marketed within 5 business days of being market-ready, rent we collect reaches you by the 10th, and a tenant we place who defaults and is removed or breaks the lease in the first 6 months is replaced without another leasing fee. The full list is on our guarantees page. To see what each plan includes in day-to-day service, read how our full-service property management works, or talk to us about your house.
The takeaway: The plan with the higher monthly percentage is often the cheaper one: compare every fee for a year with a new tenant and a renewal year, then weigh how often your tenants change and how much risk you want to carry.
Questions owners ask
Is a 10% property management fee too high?
Not on its own. A 10% plan that includes onboarding, eviction service and a lower leasing fee can cost less over a year than a 9% plan that charges for those separately. Compare yearly totals for a year with a new tenant and a renewal year, not the monthly percentage.
What does full-service property management include that a cheaper plan does not?
It varies by company, so read each plan's list. In our plans, Full Service includes onboarding and the enrollment inspection, eviction service and a 50% placement fee, where Standard charges $49 for the inspection, $7.95 a month for the optional eviction service and 75% of a month's rent for placement.
Which plan is cheaper if my tenant renews every year?
Usually the plan with the lower monthly percentage, because a renewal year has no placement fee to offset it. In our $2,000-a-month example, Standard costs $96.60 to $191.60 less than Full Service in a renewal year, depending on whether the optional eviction service is added.
Can I switch plans later?
Ask before you sign. Plan terms are part of the management agreement, so how and when a plan can be changed should be written there. We set the plan after the rental analysis and confirm every number in writing.
Property management in Keller, North Richland Hills and Fort Worth. How full-service management works in Tarrant County →
