How Much Does Property Management Cost in the Twin Cities?

Owners usually ask two questions before hiring a property manager: what will it cost, and what do I actually get for it? Many companies make that hard to answer with percentage fees and add-ons. This guide walks through the fees you should expect, using Fuze Real Estate's published pricing as a concrete example.

The fees most owners will see

Property management pricing usually comes down to a few kinds of charges: an ongoing monthly management fee, a leasing or tenant placement fee, a lease renewal fee, year-end reporting, and optional one-off services. Here is how Fuze prices each one.

• Monthly management: $130 per unit per month. Owners with 4 or more units can share their rent roll for custom portfolio pricing.
• Leasing (tenant placement): one month's rent ($1,500 minimum) for leases up to 12 months, or 1.25 months' rent ($1,875 minimum) for leases of 13 months or more. It is charged only after a lease is signed, so you don't pay until the unit is rented.
• Lease renewal: 30% of one month's rent.
• Year-end reporting: $75 per owner per year, which includes one 1099 and one Minnesota Certificate of Rent Paid (CRP). Each additional 1099 or CRP is $25.
• Enhanced services, only if you need them: $150 each for a property walkthrough or inspection, lockbox setup, key copying, rental license paperwork, or a rental license inspection.
• Ending management: our agreement has no fixed term, and either side can end it with 60 days' written notice. A $400 termination fee applies, waived if you sell the property through Fuze.

The full schedule is on our pricing page.

What the monthly fee covers

A low monthly fee is only a good deal if it covers the work that actually takes time. Fuze's full-service management includes:

• Rent collection and delinquency prevention
• 24/7 maintenance intake and coordination
• Lease enforcement and legal notices
• Owner and tenant ledgers, plus monthly financial statements
• A tenancy summary and risk review
• Market rent analysis
• A pre-renewal property inspection, plus renewal recommendations and execution
• Year-end 1099 and CRP preparation

What the leasing fee covers

Finding and placing a good tenant is where most of the risk sits. The leasing fee covers market valuation and pricing strategy, a rent-ready condition assessment, professional marketing and photography, credit, background and rental history screening, lease preparation and utility setup, move-in condition reporting, and resident benefits package setup.

Full service or tenant placement only?

If you want to manage the property yourself after move-in, Fuze also offers tenant placement only, at one month's rent ($1,500 minimum). We handle marketing and showings, screening, the lease and first month's rent collection. After that, rent collection, maintenance, tenant communication, accounting, security deposits, inspections, renewals and lease enforcement are on you. With full-service management, we handle all of it.

A worked example

Say you own one single-family home in the Twin Cities that rents for $2,000 a month, on a 12-month lease.

• Monthly management: $130 x 12 months = $1,560 a year (6.5% of the rent).
• Leasing fee when a new tenant signs: $2,000 (one month's rent, above the $1,500 minimum). On a 13-month lease, it would be $2,500 (1.25 months' rent).
• Year-end reporting: $75.
• If the same tenant renews the next year instead: 30% of $2,000 = $600.

So the first year with a new tenant comes to $3,635 in management, leasing and year-end fees. A year where the tenant renews comes to $2,235. A flat monthly fee also means your management cost doesn't rise automatically every time the rent does.

Questions to ask any property manager

• Is the monthly fee flat or a percentage of rent?
• When exactly is the leasing fee charged: at listing, at approval, or only after a signed lease?
• What does a renewal cost, and who handles the renewal inspection?
• How are repair costs billed, and can you see the work orders?
• Are 1099s and Certificates of Rent Paid included, or billed separately?
• What does it cost to end the agreement, and how much notice is required?
• Which services cost extra, and what are the prices?

Talk to Fuze about your rental

Want to see what management would cost for your property? See how Fuze property management works, view our pricing, or call 612.353.8080.