Property Management Fees in Ontario: What You're Actually Paying For
By Solutions Property Management — Tue Apr 21 2026
Quick answer
Property management fees in Ontario typically include a monthly management fee (7-10% of collected rent), a leasing/tenant placement fee (50-100% of one month's rent), and sometimes a renewal fee ($150-$300) or project management fee for major repairs. Be wary of high setup fees or markups on maintenance costs, and understand what happens during vacancy.
Property management fee structures range from clean and simple to intentionally opaque. Here's the plain version.
The four legitimate fees
1. Management fee. Usually 7-10% of collected rent. Covers rent collection, tenant communication, maintenance coordination, monthly reporting. Should be percentage-based so incentives line up — no rent collected, no fee.
2. Leasing fee / tenant placement. Usually 50-100% of one month's rent. Covers advertising, showings, screening, lease preparation. Only charged when a new tenant is placed.
3. Renewal fee. Sometimes charged (usually $150-$300) when an existing tenant renews. Covers paperwork and rent-review analysis. Reasonable if disclosed.
4. Project management fee on major repairs. If a manager oversees a $30,000 renovation, a 10% oversight fee is standard. Should only apply above a defined threshold ($1,000-$2,500 typically).
The two you should push back on
- Setup / onboarding fees above a couple hundred dollars. Onboarding a new property is basic operational overhead for a manager.
- Charges on maintenance. A manager charging you the invoice plus 15% is double-dipping if they're already earning a percentage of rent. The trades should invoice at their rate, full stop.
The one question that clarifies everything
Ask: "If my unit sits vacant for two months, what do you charge me?" A well-aligned manager charges nothing during vacancy (no rent = no percentage). A poorly-aligned one has a flat monthly minimum that means they get paid whether or not you do. Neither is wrong per se — just know which one you're signing up for.
Read the whole agreement. The margin on this business isn't in the headline percentage; it's in the fine print.
Frequently asked questions
What are common property management fees in Hamilton, Ontario?
Common fees include a monthly management fee, usually 7-10% of collected rent, covering daily operations. A leasing fee, typically 50-100% of one month's rent, is charged for finding new tenants. You might also encounter a renewal fee ($150-$300) for lease extensions or a project management fee for major repairs, often around 10% of the project cost.
Should I pay an onboarding fee to a property manager?
While some setup or onboarding fees exist, you should push back on anything above a couple hundred dollars. Onboarding a new property is generally considered basic operational overhead for a property manager. Solutions Property Management does not charge excessive setup fees, focusing on transparent and fair compensation for ongoing services.
How does a property manager charge for maintenance or repairs?
A property manager should not charge you a markup on maintenance invoices. If they are already receiving a percentage of rent, charging an additional 15% on top of a tradesperson's invoice is considered double-dipping. Trades should invoice directly at their standard rate. Solutions Property Management ensures transparent billing for maintenance, without hidden markups.
What happens if my rental property in Hamilton sits vacant?
It's crucial to understand how your property manager charges during vacancy. A well-aligned manager typically charges nothing if the unit sits vacant, as no rent means no percentage fee. Conversely, some managers have flat monthly minimums. Always ask, "If my unit sits vacant for two months, what do you charge me?" to understand your financial exposure.