In a $150,000 market
the manager is the investment
A single vacant month costs 8% of annual gross at that price. The variance between a competent manager and a poor one is larger than the variance between most markets.
Before you read on
- General information as of August 2026, not tax or legal advice. Confirm withholding obligations with a CPA experienced in non-resident ownership.
- Fee structures and local practice vary. Everything below is typical rather than universal.
- Test the relationship on one property for a full year before scaling on top of it.
Point 1What the fee should actually buy
The headline percentage is the least informative part of a management agreement.
| Charge | Typical range | What to establish |
|---|---|---|
| Management fee | 8–10% of collected rent | Collected, not scheduled — the difference matters |
| Leasing fee | 50–100% of one month | Charged on every new tenancy, including turnovers |
| Renewal fee | Flat, or a part month | Some charge nothing; ask explicitly |
| Maintenance mark-up | 0–20% on contractor invoices | Frequently undisclosed unless asked |
| Inspection frequency | Quarterly to annual | With written reports and photographs, or it did not happen |
| Reserve held | $300–$500 per unit | Replenished from rent, for small repairs without approval |
A manager charging 8% with a 20% maintenance mark-up can cost more than one charging 10% with none.
Point 2The numbers to demand before engaging
Across their portfolio, not a best case. In most markets anything beyond 30 days on a correctly priced unit warrants explanation.
What proportion of their tenants are behind. This is the clearest evidence of how carefully they screen.
Average spend to make a unit ready between tenancies. It reveals both the housing stock they handle and their contractor discipline.
A manager excellent at eighty units may be stretched at three hundred. Ask what the current load is and where it is heading.
How many in the past year, and how long each took. Local court timelines vary enormously and they should know theirs.
Specifically from owners who live outside the United States. Their experience is the one that predicts yours.
Point 3The withholding nobody mentions
A non-resident owner's rental income carries a US tax mechanism that surprises people in year one.
Rental income paid to a foreign owner is generally subject to US withholding on the gross rent unless an election is made to treat the income as effectively connected with a US trade or business — in which case tax applies to the net after depreciation, interest, management and operating costs.
Filing a US return and claiming the deductions is generally far better than accepting withholding on gross rent. Both routes require an ITIN, and the property manager frequently has obligations in the process. Establish with a CPA which route applies to you before the first rent is collected, not at the first filing deadline.
Point 4How to supervise from another continent
Agree the reporting rhythm in writing: a monthly statement showing collected rent, arrears and every expense with the invoice attached, plus a quarterly inspection report with photographs. Set an approval threshold — repairs below it proceed without you, above it require written consent — so that neither party waits on a time zone for a $200 decision.
Then watch the leading indicators rather than the income statement. Rising turnover costs, lengthening days to lease and growing arrears all appear before the return falls, and each is a conversation worth having early. A manager who reports problems before you notice them is worth more than one whose statements are always clean.
Commonly 8-10% of collected rent, plus a leasing fee of half to one month on each new tenancy. Maintenance mark-ups and renewal fees vary and are frequently undisclosed unless asked.
Legally yes, practically rarely. Tenant law, maintenance response and eviction procedure are local, time-sensitive and difficult to handle across a time difference.
Ask for numbers: days to lease, delinquency rate, turnover cost per unit, units per staff member. Then run one property for a full year before adding another.
Generally withholding applies on gross rent unless an election is made to treat the income as effectively connected, allowing tax on the net after expenses. Confirm your position with a CPA.
Quarterly is common for single-family rentals, with written reports and photographs. An inspection without a report did not happen.
Rising turnover costs and lengthening days to lease, both of which move before the income statement does.
RELATED GUIDES
Let’s talk first
We assess management before clients buy in income markets. Tell us the market and we will tell you what to ask.
Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.