If you are comparing property managers in Louisville, you have probably noticed that no two fee sheets look alike. One company quotes a low monthly percentage, another quotes a flat leasing fee, and a third bundles things you did not know you needed. The sticker price is rarely the whole story.
This guide explains the common fee types and the questions worth asking. It is general information, not legal or tax advice.
The monthly management fee
This is usually a percentage of the rent, billed each month. It typically covers rent collection, resident communication, coordinating maintenance and sending you a statement. Ask whether the percentage applies to rent collected or rent scheduled, and whether there is a monthly minimum.
The leasing or placement fee
When a home is vacant, someone has to market it, show it, screen applicants and prepare the lease. Many managers charge a one-time fee for this, often expressed as a fraction of one month's rent. Ask what it includes: photos, video tours, listing syndication, showings, application screening and move-in paperwork.
The renewal fee
When a resident renews, there is paperwork, a rent review and sometimes an inspection. Some managers charge a flat fee for that. Others include it in the monthly fee.
Setup or onboarding fee
Taking on a new home involves an inspection, entering your property into the system, collecting documents and setting up your owner account. Some companies charge once for this. Ask what it covers.
Maintenance charges and markups
Repairs are a real cost of owning a rental, and this is where fee sheets differ most. Ask:
- Does the manager add a markup to vendor invoices?
- Is there an approval limit, so small repairs do not wait on your reply?
- Who does the work: in-house crews or outside vendors?
- Is there a charge for coordinating a larger project?
At LREI, maintenance runs through our sister company, Reliabuilt Contracting, and requests are tracked in PropertyMeld. Ask any manager you are considering how work is tracked and how you will see the invoices.
Vacancy fees and other extras
Some agreements charge for a vacant month, for lease-break handling, for eviction coordination, or for inspections. None of these is automatically wrong, but you should know about them before you sign.
What our fees look like
Here is how LREI prices it. Full details are on our pricing page.
- Standard plan: 8-10% of monthly rent (minimum $50)
- Owners with 50+ units: 7% of monthly rent (minimum $50)
- Leasing-only plan: no monthly management fee
- Leasing fee: half of one month's rent (minimum $450)
- Renewal fee: $150 Standard / $75 for owners with 50+ units
- Setup: from $99 Standard / $500 for owners with 50+ units
Questions worth asking any manager
- What would I pay in a typical year, including one turnover?
- What is not included in the monthly fee?
- How long is the contract, and what does it cost to leave?
- How quickly is rent paid out, and how do I see statements?
- Who holds the security deposit, and how is it accounted for?
- Are you licensed in Kentucky, and who is the responsible broker?
Look past the percentage
A low monthly rate paired with high leasing, renewal and maintenance charges can cost more than a higher rate that includes more. Add up a full year, with one vacancy and one renewal, for each company you consider. Then compare what you would actually get: responsiveness, reporting, and who answers when a resident calls at night.
Your attorney or CPA can tell you how management fees fit into your lease and your taxes.
Own a rental in Louisville? Request a free rental analysis at louisvillepropertymanagement.com/owners and our team will follow up.
LREI Property Management LLC has managed rental homes in Louisville since 2017.
