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See the annual management cost and rent remaining after your entered fees.
Annual management cost
$3,120Percentage fee, letting fee and extrasAnnual net rent after these fees
$20,880Your entered rent leaves $20,880 over the year after the specified management, letting and extra fees.
Example figures.
Rates as of
A management quote may combine a recurring percentage with a separate charge for finding a tenant and other fixed fees. This calculator brings those amounts together for one year. The calculation is a budgeting comparison using your figures, not a valuation of the manager or a prediction of property profit.
Start with the monthly rent used as the fee base in your agreement. The model uses that same amount for twelve months. A zero percentage is allowed when the service has only fixed charges. The percentage is applied to annual rent.
The letting fee is a dollar total for tenant placement or leasing during the modeled year. It is added once rather than multiplied by twelve. If the quote expresses that fee as half a month of rent or as a percentage, work out the dollar amount first. Include the total for the placements you expect during the year; the form does not assume a turnover frequency.
Annual net rent = monthly rent × 12 − annual cost
The example uses $2,000 monthly rent, an 8% management fee, a $1,000 letting fee for the year and $200 in annual extras. Annual rent is $24,000. Eight percent of that is $1,920.
Adding the two fixed fee amounts gives $3,120 in annual costs. Subtracting those costs from rent leaves $20,880 before mortgage payments, other property expenses and income tax.
The rent field is not adjusted automatically for vacancy or non-payment. An agreement based on collected rent can produce a different bill from one based on scheduled rent. Choose a monthly figure consistent with the contract and the scenario you want to compare. Where income varies significantly across the year, this constant-month model cannot reproduce each invoice.
Extras are the annual total of additional management-related charges that you want to include. Review whether the quote has renewal, inspection, administration or other separate fees. Avoid putting a charge in extras if it is already included in the letting fee or percentage calculation.
Use amounts that include any applicable tax on the fees, or include that extra tax amount in extras if appropriate to the quote. The calculator does not decide which service taxes apply or apply an automatic tax percentage. It also does not add minimum monthly fees, percentage tiers or discounts that were not entered. Review the actual agreement if its pricing cannot be represented by the four fields.
This page does not set a permitted management charge or suggest that a particular percentage is standard in your area. A cheaper quote may cover fewer services or use a different rent base, so compare written terms alongside the numeric total.
Net rent here is annual rent less the three entered fee components. It is before financing, property operating expenses and income tax. A positive number is therefore not a statement of profitability, and a negative number is not replaced with zero.
IRS Publication 527 lists management fees among common rental expenses. That provides US tax context, but this tool makes no deduction or tax estimate. Your ownership arrangements, personal use, accounting method and the nature of an expense can affect its treatment. Keep the fee calculation separate from the amount reported on a tax return.
Before signing, ask the manager to explain the charge base, the services included and circumstances that trigger extra fees. Seek professional help if there is a disputed invoice, an unclear cancellation charge or uncertainty about tax treatment.
For a wider investment budget, use the relevant country cash flow tool and keep fee amounts consistent between calculations. Enter a management cost only once in that wider budget. This page isolates the service cost so you can understand it before combining it with other property expenses.
Multiply monthly rent by 12 and by the management percentage, then add the letting fee and extras entered for the year. In the example, $24,000 of annual rent produces $1,920 of percentage fees and $3,120 of total fees.
Enter a dollar amount covering all tenant placement or leasing fees in the modeled year. It is added once. If your agreement quotes a percentage or a month of rent, convert it to its dollar amount before entering it.
No. This result subtracts only the management percentage, letting fee and extras. Mortgage payments, maintenance, property taxes, insurance and income tax remain outside the calculation unless a relevant management-related charge is already included in your entered fee total.
No. The reset figure is only an arithmetic example. Use your own written quote and check the services and fee base it covers.
Yes. Fixed fees can exceed rent, even when rent is zero. The calculator retains a negative result so that the shortfall is visible.
See what remains after running costs, mortgage payments and income tax.
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Compare rent, operating costs and Canadian mortgage payments in one estimate.
