A 2026 landlord guide using real Houston agreement numbers (TAR-2201) — so you can compare providers and avoid surprise fees.
If you own a rental property in Houston, one of the first questions you’ll ask is: “How much does property management cost?”
The honest answer is that fee structures vary — but most Houston property management agreements follow a common pattern: a monthly management fee, a leasing fee for placing a tenant, renewal fees, and a few operational add-ons tied to maintenance or special situations.
This 2026 guide breaks down Houston property management fees using real numbers from a Residential Leasing & Property Management Agreement (TAR-2201) so you can understand how the math works and what to ask before you sign.
Here are the filled-in fee terms from a real Houston-style management agreement:
In the agreement example, the ongoing management fee is: 10% of gross monthly rent collected.
This monthly fee typically covers day-to-day management:
Important: This is usually based on collected rent, which is typical. Some agreements also include a minimum monthly fee during vacancy or nonpayment. In the example agreement, the “minimum” line exists but is not filled in — so always confirm how vacancy is handled.
Leasing fees are where many Houston landlords get surprised because they can equal a full month of income. In the agreement example: leasing fee = 100% of one full month’s rent.
Leasing typically covers:
If your rent is $2,000/month and your leasing fee is one month’s rent: $2,000 is paid each time you place a new tenant.
Translation: turnover frequency heavily impacts your true annual cost.
In the agreement example, renewal/extension is: 50% of one full month’s rent.
If rent is $2,000/month, that’s a $1,000 renewal fee. This can be worthwhile if your property manager is actively preventing vacancy and adjusting rent intelligently. But it’s a major term you should compare across companies.
Houston rentals face predictable maintenance categories: HVAC, plumbing (soil movement), storm repairs, fencing, drainage, and more. Maintenance is also the area where “hidden costs” often show up.
The agreement example includes a 15% service fee on the total cost of each repair/maintenance/alteration. Example:
This is essentially a coordination/management fee for repairs. If a company charges this, you should ask whether there are also vendor markups, trip charges, or additional admin fees on top.
The agreement example authorizes repairs up to $1,000 per item without owner consent (unless it’s an emergency). That can speed up repairs — but owners should be comfortable with this threshold.
The agreement example includes an hourly fee for broker time coordinating insurance/legal matters: $75 per hour.
This can include things like disputes, insurance coordination, legal notices, or eviction-related communication. You’re not “planning” for it — but it’s important to understand the rate before problems occur.
Some management agreements include sales commission language — particularly if a tenant purchases the property or the broker procures a buyer. In the agreement example:
If you might sell in the next 12–18 months, this section matters a lot. Always read it carefully and ask questions.
Houston is agent-driven. Many leases happen because a cooperating broker brings a qualified tenant. In the agreement example, the broker’s policy is: 100% of one month’s rent paid to a cooperating broker (MLS and non-MLS).
That can increase marketing exposure and showings — but it’s also part of your leasing economics.
Don’t compare property managers using only the monthly percentage. Using real agreement numbers, the true annual cost often includes:
If you want a clear breakdown of what management would cost for your property, request a free analysis: Request a Free Rental Analysis.