OwnAway

Money

What a management company actually costs you, beyond the 8–10%

Marcus WebbFounder, OwnAway3 min read

The quoted number is almost always 8–10% of collected rent. That's the part every management company will tell you upfront. It's also usually less than half of what actually leaves your account over a year.

Where the rest goes

55%27%12%5%Typical annual cost, 10-unit portfolio ($18k/mo gross rent)Management fee (8–10%) [19440]Leasing fees (one month's rent per turnover) [9600]Markup on vendor invoices (10–20%) [4200]Renewal / admin fees [1800]

The management fee is the number in the pitch deck. The other three are the number on the year-end statement — and they scale with exactly the events you'd expect to be routine: a tenant moving out, a repair, a lease renewal.

The three line items nobody quotes upfront

Leasing fees. Most companies charge close to a full month's rent to fill a vacancy — on top of the monthly management fee, not instead of it. Turn over three units in a year and that's three months of rent gone before the tenant has paid a dime.

Markup on vendor work. A $400 repair billed through the management company often shows up as $460–480. It's rarely itemized as "markup" — it's just the invoice total, and there's no line showing what the vendor actually charged.

Renewal and admin fees. Smaller, but persistent: a flat fee every time a lease renews, sometimes a separate fee for each maintenance ticket opened, regardless of how small.

What self-managing actually costs instead

Self-managing avoids all four line items above — and replaces them with something that doesn't show up on a statement: being the person who answers a 9pm text about a leak. For a landlord with one or two units, that's a fair trade. Past six or eight units, it's the thing that makes people sell.

Management companySelf-managedOwnAway
Monthly fee8–10% of rent$0Flat, well under a management company's fee
Leasing fees~1 month's rent per turnover$0$0 — not a leasing service
Vendor markup10–20%, usually unitemized$0 (you negotiate directly)$0 — your vendors, your rates
Who answers the 9pm textTheir after-hours lineYouOwnAway, with you looped in and able to step in any time

The pitch for OwnAway isn't that it's cheaper than doing it yourself — it's that it removes the one part of self-managing that doesn't scale: being reachable, all the time, for every tenant issue, while still using your own vendors at your own rates.