Understanding Property Management Fees in Ontario

Property Management in Ontario

Property management fees are not one-size-fits-all — understanding the fee structure ensures you're comparing services correctly and not surprised by additional charges.

The monthly management fee is the primary charge: typically 8 to 12% of collected rent for residential single-family and small multi-unit properties. This fee covers day-to-day management — tenant communication, maintenance coordination, rent collection, and monthly reporting. It does not typically cover major projects, leasing, or LTB representation.

Key Responsibilities and Best Practices

Leasing fees cover the cost of advertising, showing the unit, screening applicants, and executing a new lease. These are charged as a one-time fee per new tenancy, typically ranging from half a month's rent to a full month's rent. In high-demand markets where units are easy to rent, the lower end of this range is appropriate. In slower markets or for specialist properties, the higher end reflects the additional marketing effort.

Maintenance mark-up is a common secondary revenue source for property management companies. Some charge a percentage (10 to 20%) on contractor invoices for coordinating and supervising repairs. D&D Property Management's fee structure is transparent — we do not mark up contractor invoices, and clients pay contractor costs directly.

How D&D Property Management Helps

Vacancy fees — some managers charge a flat fee during vacancy periods when no rent is collected. This can result in a misaligned incentive: the manager profits during vacancy. Review whether your prospective manager charges fees during vacancy, and if so, how this aligns with their motivation to fill units quickly.

Lease renewal fees are charged when an existing tenancy is renewed (lease extended). These are typically lower than initial leasing fees and reflect the administrative work of processing the renewal. Some managers charge renewal fees; others include them in the monthly management fee. Clarify this upfront.