Property Management Fees & Rates in Texas
Bay Management Group Texas charges three fees: a 7% monthly management fee on rent collected, a leasing fee of 70% of the first month’s rent charged only after a tenant moves in, and a lease renewal fee of 10% of one month’s rent. There is no onboarding fee and no setup cost. Texas has no statewide rental license requirement, so there’s no licensing charge built into our pricing the way there is in many states.
Three fees. No onboarding fee, no setup fee, no rental license cost.
Units Under Management
Eviction Rate
Avg. Time on Market (Days)
Renewal Rate
Years in Business
Avg. Google Rating
| Fee | Amount | When it's charged |
|---|---|---|
| Monthly management fee | 7% of rent collected | Monthly, when rent is collected |
| Leasing fee | 70% of the first month's rent | Once, after the tenant moves in |
| Lease renewal fee | 10% of one month's rent | At each lease renewal |
| Onboarding / setup fee | $0 | Never — we don't charge one |
| Rental license | $0 | Texas has no statewide requirement |
Prices and fees are subject to change. Your rate is confirmed in writing before you sign anything.
Reviewed by: Alexus Harris | Director of Operations
Maximize Your Rental Income with
Top Notch Property Management Services
Three fees, no surprises. Get it in writing before you commit.
Monthly Management Fee: 7% of Rent Collected
Our management fee is 7% of the rent we collect each month. Not a range you have to negotiate down from — 7%, quoted the same way to every owner, with reductions available as you add units to the portfolio.
The fee applies to rent collected, not rent due. If a tenant doesn’t pay in a given month, there’s no management fee on that unit for that month.
Ours covers full-service management: marketing, screening, rent collection, maintenance coordination, inspections, and financial reporting. There is no separate charge for any of it.
Leasing Fee: 70% of the First Month's Rent
Most Texas property management companies charge a full month’s rent to place a tenant. We charge 70% of the first month.
On a $2,200 rental, that’s $1,540 instead of $2,200 — $660 that stays with you on every placement. Across a portfolio, or across a few years of turnover, the difference is significant.
The fee is charged after the tenant takes possession, not when you sign with us and not while we’re marketing. If we don’t place a tenant, there’s no leasing fee. It covers listing the property across the MLS and the major rental platforms, conducting showings, and screening every applicant — including credit, income verification, rental history, and background checks.
Lease Renewal Fee: 10% of One Month's Rent
When a tenant renews, the fee is 10% of one month’s rent. It covers a review of the tenant’s payment and maintenance history, and fresh market research to make sure your rate is still where it should be — renewing a good tenant at a below-market rate is its own kind of loss.
A renewal is always cheaper than a turnover. On a $2,200 rental, renewing costs $550. Replacing that tenant costs $1,540 in leasing fees plus however many weeks the unit sits empty. Our renewal rate is 79%, which means most of our owners avoid that math in any given year.
What the 7% Covers
The monthly management fee covers day-to-day management in full:
- Rent collection and owner disbursements
- Maintenance coordination and vendor management
- 24/7 emergency response
- Tenant communication and lease enforcement
- Monthly and year-end financial statements
- Routine and move-in/move-out inspections
- Texas landlord-tenant compliance
There is no separate charge for any of these. If you want the full picture of what we handle, our property management services page walks through each area in detail.
What We Don't Charge
A low headline percentage often comes with a list of add-ons underneath it.
Here’s what isn’t on ours:
- No onboarding or setup fee — confirmed, currently live
- No rental license cost — Texas has no statewide requirement
- No vacancy fee — no charge while a unit sits empty
- No technology, portal, or statement fees
What This Costs on a Real Property
| Onboarding fee | $0 |
| Monthly management, 7% ($154 × 12) | $1,848 |
| Leasing fee (70% of first month's rent) | $1,540 |
| Rental license | $0 |
| First-year total | $3,388 |
In year two, with that tenant renewing, it drops to $1,848 in management fees plus a $550 renewal fee — $2,398 total, with no placement cost and no vacancy.
For comparison: a company charging 10% with a full month’s leasing fee would cost $4,840 in year one on the same property.
Do You Need a Rental License in Texas?
Texas doesn’t require a statewide rental license or registration to lease out a single-family home. That’s a real difference from many states, where registering a rental property carries an annual cost and an inspection requirement before a unit can legally be leased.
Property management itself is regulated. Managing property for someone else — leasing, collecting rent, negotiating agreements — generally requires a real estate license under Texas Real Estate Commission rules. Every property we manage is handled under a licensed broker.
Agents who send clients our way are covered under our realtor referral program.
Want to see what we’re leasing right now? Our current rental listings show live market rates across our Texas markets.
Our Fees Across Texas
Our fee schedule is the same in every Texas market we serve — 7% management, 70% leasing, 10% renewal, no onboarding fee. What changes from city to city is the rent, and with it the dollar amount those percentages produce.
Rents in Austin sit at the higher end of our Texas markets, which is worth factoring in when you’re modeling returns on property management in Austin.
The same 7% applies to our San Antonio properties, where rents typically run lower than Austin. Owners in Round Rock and Cedar Park see the same fee schedule as everywhere else in Texas. We manage across the Austin metro, including Pflugerville, and out into the Hill Country in Boerne.
Managing property in Maryland, Washington DC, Northern Virginia, or Pennsylvania? Those markets have their own fee schedule.
Real-Time Client Reviews
Frequently Asked Questions
How much does Bay Management Group Texas charge for property management?
We charge three fees. Management is 7% of the rent we collect each month. Placing a tenant in a vacant unit costs 70% of the first month’s rent, charged only after the tenant moves in. Renewing a lease costs 10% of one month’s rent. There’s no onboarding fee, no setup fee, and no rental license cost, because Texas doesn’t require one statewide.
On a $2,200 rental with one placement, that works out to $3,388 in the first year and $2,398 in a year where the tenant renews.
What is the average property management fee in Texas?
Bay Management Group Texas charges 7% management and 70% of the first month’s rent for leasing.
The percentage alone doesn’t tell you much. A company quoting 6% with a maintenance markup, a vacancy fee, and a full-month leasing fee costs an owner more across a year than one quoting 7% with none of those. When you’re comparing quotes, ask each company for the full fee schedule in writing, not just the management percentage.
Is the 7% based on rent collected or rent due?
Collected. We charge the management fee on rent we actually collect, not on rent that’s owed on paper. If a tenant doesn’t pay in a given month, there’s no management fee on that unit for that month.
That keeps our incentives lined up with yours — we get paid when you get paid, which means chasing late rent matters to us directly. It’s worth asking any company you’re considering which basis they use. Many don’t volunteer it.
Do you charge a fee while my property is vacant?
No. A vacant unit collects no rent, so there’s no management fee that month. Some companies charge a flat monthly minimum whether or not the property is occupied. We don’t.
You’ll pay the leasing fee once a tenant has been placed and moved in, but nothing during the marketing period itself. Our average time on market is 23 days.
Why is your leasing fee 70% of the first month's rent instead of a full month?
Because we believe that 70% is a fair percentage for the work in this market, and we’d rather win the business than the placement.
A full month’s rent is the Texas standard, and it’s what most companies charge. On a $2,200 rental, 70% means $1,540 instead of $2,200 — $660 that stays with you on every placement. If you own several properties, or you turn over a unit every couple of years, that difference adds up faster than a percentage point on the management fee does.
Do you charge an onboarding or setup fee?
No. There’s no cost to bring a property under management with us in the Texas market — no account setup charge, no onboarding fee, no initial assessment fee.
Getting started costs nothing. The first money that changes hands is the leasing fee, and that’s only after we’ve placed a tenant and they’ve moved in.
Do you mark up maintenance and repair costs?
No. You pay the invoiced cost of the work. We don’t add a percentage to third-party repair bills.
Maintenance markups are one of the most common places where a low advertised management percentage gets recovered. A company at 6% with a 15% markup on every repair can cost more across a year than one at 7% billing at cost. Ask about this specifically when you’re comparing.
Do I need a rental license to rent out my property in Texas?
Not at the state level. Texas has no statewide rental license or registration requirement for leasing out a single-family home — unlike many states, where registering a rental carries an annual fee and often an inspection before the unit can legally be leased.
Managing property for someone else is a different question — that generally requires a real estate license under Texas Real Estate Commission rules.
Does the management fee change if I own multiple properties?
Yes. Our 7% is the standard rate, and owners with multiple units under management with us can qualify for a reduced percentage.
If you’re weighing whether to bring a second or third property over, ask for a quote on the whole portfolio rather than assuming the rate on your first property carries across. The difference compounds monthly.
What's included in the 7% monthly management fee?
Rent collection and owner disbursements, maintenance coordination and vendor management, 24/7 emergency response, tenant communication and lease enforcement, monthly and year-end financial statements, routine and move-in/move-out inspections, and Texas landlord-tenant compliance.
There’s no separate charge for any of it. The only things billed outside the management fee are the leasing fee when a unit needs a tenant and the renewal fee when a tenant stays.
Are property management fees tax deductible?
Generally, yes. Property management fees are typically treated as a deductible operating expense on a rental property, along with leasing fees, maintenance, and repairs. For most individual owners these are reported on Schedule E.
How it applies to you depends on how the property is held and your broader tax situation, so confirm the specifics with your own CPA. We provide monthly statements and year-end documentation for each property, which is what your accountant will ask for.
Is there a fee to cancel my management agreement?
It depends on when you leave. The agreement runs for one year and renews automatically each year after that. To end it cleanly, give us written notice at least 60 days before the end date — at that point you owe only the fees and expenses already earned through your final month.
Ending it mid-term costs the management fee for the months remaining in the year, calculated on the rent in effect when you terminate. On a $2,200 rental with six months left, that’s about $924. If the property is vacant at that point, the calculation uses the most recent lease rent, or market rent if the property has never been leased.
Selling the property doesn’t avoid it. We may end the agreement as of the sale date, and the same calculation applies.
One more case: if we’ve secured an approved applicant and you terminate before that tenant moves in, the charge is $1,500 or one month’s rent, whichever is greater — the marketing, showings, and screening are already done at that point.
Section 11 of the management agreement has the full terms, and we’ll walk you through them before you sign.