How much do PM fees reduce NOI?

An 8% PM fee on $120k gross rents = $9,600/year reduction in NOI. At a 6% cap rate, this reduces property value by $160,000 — significant over a portfolio.

When does self-management make sense?

Self-management saves 6–10% of gross rents but costs time and expertise. Viable for nearby properties under 10 units; less practical for large or remote portfolios.

What should PM contracts include?

Leasing commissions, maintenance markups, vacancy fees, eviction costs, and renewal fees all add to stated management percentage. Read the full contract carefully.

Property Management Fee NOI Impact Calculator

Calculate how property management fees (typically 6–12% of gross rents) erode NOI and reduce property value. Compare self-management vs professional management ROI.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate how property management fees (typically 6–12% of gross rents) erode NOI and reduce property value. Compare self-management vs professional management ROI. Use the pm fee noi impact result to inform your calculation.

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Frequently Asked Questions

How much do PM fees reduce NOI?

When does self-management make sense?

What should PM contracts include?