The most common business models by which property managers are paid are:

  • Percentage of rent – The most commonly used model in the residential market where the property manager leases the property to tenants for the landlords, collects the rent and keeps a certain percentage of the rent, commonly 10%-15%;
  • Revenue share – A model that used for commercial space (e.g., apartments and retail or business centers) where the property manager leases the property for the landlords and keeps a percentage of the revenue, rather than rent;
  • Guaranteed rent – The most commonly used model for small residential units in high demand markets where the property manager enters into a lease agreement with the property owner that gives the property manager the right to sublease the property for rent that is higher than the fixed lease payment paid to the landlord, with the property manager keeping the difference; and
  • Fixed fee – The model most often used where a property manager monitors empty homes or lots and ensures that the property is safe and secure, for which the property manager receives a fixed monthly fee.

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