If you're thinking about hiring a property management company in Prescott, one of your first questions is probably pretty simple:
How much is this actually going to cost me?
It's a fair question. Unfortunately, getting a straight answer isn't always quite as simple.
Most property management companies structure their fees differently. One company may advertise a lower monthly percentage but charge separately for leasing, renewals, inspections, maintenance coordination, marketing, or other services. Another may charge a higher management fee but include more within it.
So, comparing property management companies based solely on the monthly percentage can be a little like comparing airline tickets based only on the base fare. The cheapest number on the screen isn't necessarily what you'll pay when everything is said and done.
Let's break down what property management typically costs, what those fees actually pay for, and what Prescott-area rental property Owners should look for when comparing management companies.
What Is a Typical Property Management Fee in Arizona?
Most full-service property management companies charge either a percentage of the monthly rent collected or a flat monthly management fee.
Across Arizona, percentage-based management fees commonly fall somewhere around 8% to 12% of collected rent, although pricing varies based on the company, property type, location, number of units, and services included.
For a home renting for $2,000 per month, for example, a management fee of 10% would equal $200 for that month.
But the monthly management fee is only one part of the equation.
Depending on the company, you may also encounter fees for:
- Marketing and leasing
- Resident placement
- Lease renewals
- Property inspections
- Maintenance coordination
- Eviction coordination
- Property accounting
- Early termination or cancellation
None of those fees are automatically unreasonable. Managing a rental property involves a lot more than collecting rent.
The important thing is knowing what you're paying, when you'll pay it, and what you're getting in return.
What Does Property Management Cost at Rent Right?
We'll make this part easy.
At Rent Right, our current full-service monthly management fee is based on the number of units we manage for an Owner:
1–2 units: 12% of monthly rent collected
3–4 units: 10% of monthly rent collected
5+ units: 9% of monthly rent collected
And there's an important distinction in the words rent collected.
If your property is vacant and we're not collecting rent, we don't collect a monthly management fee.
For example, let's say you own one Prescott rental home that rents for $2,000 per month.
At a 12% management rate:
$2,000 × 12% = $240 per month
Over a full 12 months of collected rent, that would equal $2,880 in monthly management fees.
But let's keep going, because this is where comparing property management pricing gets more useful.
What Other Fees Does Rent Right Charge?
For full-service management, our current fee structure also includes:
Account Setup
The account setup fee is $250 for the first unit and $50 for each additional unit.
This is a one-time onboarding expense rather than a recurring monthly charge.
Leasing Fee
When we place a new Resident, there is a $200 leasing fee for a new lease.
We do not charge this fee for lease renewals.
That's an important number to compare when you're shopping for property management. A company with a lower monthly management percentage could ultimately cost more if it charges a large portion of one month's rent every time a new Resident is placed.
Property Reserve
We require a $500 property reserve for full-service management.
The reserve isn't a management fee. It's Owner money held on the account so funds are available when something at the property needs attention.
Because rental homes have an incredible ability to need something at the least convenient possible moment.
Maintenance Oversight
When we coordinate maintenance through one of our vendors, Rent Right charges a 10% maintenance oversight fee based on the vendor invoice.
Why?
Because maintenance coordination involves more than forwarding an invoice.
Depending on the situation, our team may need to communicate with the Resident, troubleshoot the issue, contact vendors, coordinate access, review the work, communicate with the Owner, process the invoice, document the repair, and follow up when necessary.
When comparing property management companies, ask how maintenance is handled and whether the company charges a coordination fee or adds a markup to vendor invoices.
So What Are You Actually Paying a Property Manager to Do?
This is where the conversation becomes more important than percentages.
If all a property management company did was collect rent every month, paying 8%, 10%, or 12% would probably feel pretty expensive.
Full-service property management should involve considerably more than that.
At Rent Right, our management process includes preparing properties to meet our Rent Ready Standards, marketing, professional photography, Resident screening, lease preparation, move-in documentation, rent collection, accounting, routine inspections, maintenance coordination, Resident communication, lease renewals, move-out inspections, and security deposit disposition.
We also provide a 24/7 emergency maintenance line because, sadly, water heaters have never agreed to limit their activities to Monday through Friday between 9 and 5.
The goal isn't simply to put a Resident in a house and collect a check.
It's to help protect the investment, manage the residency, reduce avoidable problems, and help the Owner make informed decisions about one of their largest assets.
Is a Cheaper Property Manager Actually Cheaper?
Maybe.
We're not going to tell you that the company with the highest fee is automatically the best property manager any more than we'd tell you the cheapest one is automatically the worst.
Instead, compare the total cost and total service.
Suppose Company A charges 10% per month and Company B charges 12%. At first glance, Company A wins.
But what if Company A also charges half of one month's rent every time it places a new Resident, $250 for every renewal, separate inspection fees, and additional administrative fees?
Suddenly, that two-percentage-point difference doesn't sound like such a good deal.
That's why rental Owners should look beyond the headline number and compare what they'll actually pay over the course of a year.
Questions to Ask Before Hiring a Prescott Property Management Company
Before signing a management agreement, ask for the complete fee structure in writing.
Then ask:
- Is the management fee based on rent collected or rent due?
- What happens to the management fee when the property is vacant?
- Is there a leasing or Resident placement fee?
- Do you charge for lease renewals?
- Are routine inspections included?
- Do you charge for maintenance coordination or mark up vendor invoices?
- Are marketing and professional photos included?
- Are there setup or onboarding fees?
- What happens if I decide to cancel the management agreement?
- Are there services I'll regularly need that aren't included in the advertised management fee?
And perhaps most importantly:
What are you actually going to do to protect my property?
Because saving $40-$50 a month in management fees doesn't mean much if poor Resident screening, deferred maintenance, excessive vacancy, weak documentation, or a preventable property issue ultimately costs you thousands.
Is Property Management Worth the Cost?
That depends on the Owner.
If you live nearby, understand Arizona landlord and resident laws, have reliable vendors, know how to screen applicants, have time for inspections and documentation, don't mind handling difficult conversations, and have no problem answering your phone at 2 in the morning for a maintenance emergency, self-management may make total financial sense.
There is nothing inherently wrong with managing your own rental property.
The real question is whether you want the job and what is your time worth.
Because owning a rental property and managing a rental property are two different things.
For many Owners, the value of professional management is being able to remain the Owner without personally handling every application, maintenance problem, inspection, vendor call, accounting question, lease deadline, and move-out.
Looking for Property Management in Prescott, Arizona?
Rent Right has been managing residential rental properties in the Prescott area since 2013.
Today, our team manages more than 750 units throughout Prescott, Prescott Valley, Chino Valley, and Dewey.
Over the years, we've learned a lot about what works, what doesn't, and the hundreds of little things you simply don't know until you've managed a lot of rental properties. We've used those lessons to build our 10-Step Rental Process and the systems we use today.
If you're considering renting your property and aren't sure whether professional management makes financial sense, we're happy to talk through it with you.
No mysterious pricing. No pretending every property is the same.
Just a conversation about your property, your goals, what we charge, and what we actually do for that money.
Want to know what your Prescott-area property could rent for? Start with a complimentary rental analysis or contact Rent Right (928) 771-0308 to schedule a consultation.
Rent Right | 302 W Willis Street Ste 100 | Prescott, AZ 86301
Designated Broker – Michael Yarnes
