Total Expense Per Unit Per Year
Maintenance Cost Annual
Two-Input Ratio Expense Metrics Operating Expenses

Management Cost Annual

Annual property management cost.

Example Result

Sample Data
$2,736

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Management Cost Annual Formula

Gross Potential Rent x Management Rate
$34,200 x 8.00%
$2,736

What This Means

A sample property priced at $385,000 with $2,850/month rent has a management cost annual of $2,736. Even if you self-manage, including this cost in your analysis ensures you are evaluating the property objectively. If you ever decide to hire a manager, your returns should still work.

Where This Value Comes From

Management Cost Annual is not entered directly — it is calculated from Gross Potential Rent. See the formula breakdown above and the detailed inputs below.

Calculated From

Management Cost Annual is calculated using these inputs:

Gross Potential Rent
Total annual rental income assuming full occupancy.
$34,200

Platform Distribution

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Why It Matters

Even if you self-manage, including this cost in your analysis ensures you are evaluating the property objectively. If you ever decide to hire a manager, your returns should still work.

Detailed Explanation

The annual property management fee, typically calculated as a percentage of gross rental income. Professional management companies typically charge 8-12% of collected rent.

Example

Sample Result
$2,736

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Per Unit Operating Cost

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