Example
An owner’s duplex brings in $3,200 a month, $1,600 per unit. At an 8% management fee, the manager keeps $256 a month, or $3,072 a year, plus a leasing fee of half a month’s rent, $800, each time a unit is re-let. To the tenant, the manager stands in for the landlord: rent, repair requests and notices go through them.
In a lease it looks like…
Landlord has appointed Oak Street Property Management as its agent to collect rent, receive notices and handle repairs. Tenant shall pay rent and send all notices to the manager at the address below.
Good to know
Many states require a property manager who leases or collects rent for others to hold a real estate or property management license. The owner stays responsible for the landlord’s legal duties, even with a manager in between.
Plain English, not legal advice. Last reviewed September 29, 2026.