By Lloyd ·
When you hire a property management company, the advertised management fee is the number that gets discussed. It is the number on the website, if they publish it at all. It is the number the sales representative quotes on the phone. But for many Halifax property management companies, the management fee is the beginning of the cost, not the total.
Here is what many property managers are not telling you about how their fee structures actually work, and how to read a management agreement before you sign it.
The Advertised Fee vs. the Actual Cost
Most Halifax property management companies advertise a management fee in the range of 8% to 14% of monthly rent collected. The industry average sits around 12%. That percentage looks straightforward: if your unit rents for $2,000, you pay $240 per month in management fees.
But the management fee is only one line item. The real cost of property management includes every fee, charge, and markup in the agreement. For many companies, those additional charges add 3% to 6% on top of the advertised rate.
Six Hidden Fees to Watch For
1. Maintenance Markups
This is the most common and least discussed hidden cost. Some property management companies add a markup of 10% to 20% on every maintenance invoice that passes through them. A $400 plumbing repair becomes $480. A $1,200 HVAC fix becomes $1,440.
Over a year, maintenance markups on a typical residential property can add $500 to $2,000 to your costs, depending on the age and condition of the building. On a multi-unit property, the impact is multiplied.
How to spot it: Look for language in the agreement like “coordination fee,” “maintenance administration fee,” or “contractor management surcharge.” Ask directly: “Do you add any markup to maintenance invoices?”
At Kirin, our in-house maintenance team handles repairs directly. There is no contractor markup because there is no third-party contractor. Service calls are $99 on our Core plan and $49 on our Premium plan — flat rates, not percentages.
2. Vacancy Fees
Some companies charge their management fee on the expected rent even when a unit is vacant. If your unit sits empty for a month, you still owe the management fee on what you would have collected if the unit were occupied.
This creates a troubling incentive structure. The management company gets paid whether or not your unit is generating income. Their urgency to fill your vacancy is reduced because the vacancy does not cost them anything.
How to spot it: Check whether the agreement specifies fees on “rent collected” or “gross potential rent.” The former protects you. The latter does not.
3. Lease Renewal Fees
When an existing tenant renews their lease, some companies charge a renewal fee, typically $100 to $300. The work involved in a lease renewal is minimal: generating a new document with updated dates and rent. Charging a separate fee for this is a margin enhancer, not a service.
How to spot it: Look for “lease renewal fee,” “re-lease fee,” or “continuation fee” in the agreement.
4. Advertising and Listing Fees
Separate charges for listing your property on rental platforms, creating listing descriptions, or professional photography. These activities are core to the tenant placement process and should be included in the placement fee.
How to spot it: Ask whether any listing, advertising, or marketing costs are charged separately from the placement fee.
5. After-Hours Service Surcharges
Emergency maintenance does not happen during business hours. Some companies charge premium rates for after-hours maintenance coordination, which is exactly when most emergencies occur.
How to spot it: Check whether the agreement specifies different rates for standard and after-hours service calls.
6. Early Termination Penalties
Long-term contracts with steep cancellation fees lock you in even if the service quality drops. Some agreements require 60 to 90 days’ notice plus a penalty equal to several months of management fees.
How to spot it: Read the termination clause carefully. Look for notice period requirements and any associated financial penalties.
How to Read a Property Management Agreement
Before signing any property management agreement, read it completely and look for these specific sections:
Fee Schedule
Every fee should be listed explicitly. Management fee percentage, placement fee, service call fee, eviction fee, and any other charges. If a fee is not listed, it should not appear on your invoice later. Ask the company to confirm in writing that there are no fees beyond what is listed.
Fee Basis
Confirm whether fees are charged on collected rent or gross potential rent. Confirm whether fees apply during vacancy periods.
Maintenance Provisions
Look for language about how maintenance is handled, who performs the work, and whether any markups or coordination fees apply. If the company outsources maintenance, ask about their contractor selection process and markup policy.
Contract Term and Termination
Understand the minimum commitment, notice period, and any early termination costs. Month-to-month agreements with 30 days’ notice are the most owner-friendly structure.
Reporting
What financial reporting will you receive, how often, and through what platform? A real-time owner portal should be standard. Monthly financial statements should be automatic, not available only upon request.
The Kirin Approach to Fees
We built our fee structure on a principle: every cost should be published, explained, and justified.
Our pricing page lists every fee for every plan:
- Management fee: 9% (Core), 11% (Premium, 1-3 units), 10% (Premium, 3+ units)
- Placement fee: 50% of one month’s rent (Core), 40% (Premium)
- Service call fee: $99 (Core), $49 (Premium)
- Eviction fee: $199 (Core), $0 (Premium)
No maintenance markups. No vacancy fees. No lease renewal fees. No advertising surcharges. No early termination penalties. Our agreements are month-to-month because we believe that if we are not delivering results, you should be free to leave.
The industry average management fee in Halifax is approximately 12%, often with hidden charges that push the effective rate higher. Kirin’s published rates are below the industry average, and the total cost is the published cost.
Ask the Right Questions
When evaluating any property management company, ask these five questions:
- Can you provide a complete schedule of every fee I will ever be charged?
- Do you mark up maintenance invoices, and if so, by how much?
- Are management fees charged on collected rent or gross potential rent?
- What is the minimum contract term and what does termination cost?
- What financial reporting do I receive, and how do I access it?
The answers will tell you more about the company than any marketing material.
If you want to see what transparent, published pricing looks like in practice, review our pricing and request a free CMA report to understand what your property should earn under professional management.