A management quote should show the work included, yearly cost and decisions you still make. Check extra charges as well as the monthly fee.
Use this worksheet to compare written quotes for the same property. Calculate one year with the same tenant and one year when tenants change.
Check how fees are calculated
The fee may be a percentage of rent, a fixed monthly amount or a mix of regular and extra charges. Check which rent amount is used, what happens during vacancies or partial months, and which work is included.
Finding a tenant may have a separate fee for preparation, ads, questions, showings, application checks, the lease and move-in. Convert each quote to a yearly cost and compare the tasks the manager takes over.
- Percentage fee: confirm the exact rent basis used in the calculation
- Flat fee: confirm vacancy, partial-month and unpaid rent treatment
- Tenant placement: confirm the included work and payment milestone
- Separate services: identify HST, inspections, renewals and specialized work
Compare yearly costs for each quote
Start with the recurring amount shown in the proposal. If it is monthly, multiply it by the number of chargeable months defined in the agreement. If it is percentage based, apply the stated percentage to the exact rent basis identified by the provider. Add HST as a separate line, then repeat the calculation for vacancy, unpaid rent or a partial month if the agreement treats those periods differently.
Build a separate turnover column for leasing. Homes for Rent Ottawa's confirmed standalone leasing fee is half of one month's rent plus HST. At $2,700 monthly rent, that is $1,350 before HST, $175.50 HST and $1,525.50 total. Other providers' fees and included features vary; use the amount and trigger in each written proposal rather than assuming a market rate.
- Recurring service before HST
- HST shown separately
- Leasing or tenant-placement charge in a year when tenants change
- Event-based administration, inspection or coordination charges
- Property expenses and third-party professional costs kept separate
Check the four types of costs
Ongoing management covers the work in your agreement. Leasing covers finding a new tenant. Repairs are separate property expenses; ask about charges or markups for arranging them. Legal help, filing fees, accounting, engineering and major projects may also cost extra.
Keep these buckets separate when comparing proposals. A contractor's invoice is not the same as the fee for coordinating that contractor, and an LTB filing fee is not the same as the cost of a lawyer or licensed paralegal. The proposal should say what the manager charges, what a third party charges, and which work requires your approval.
- Ongoing management and owner reporting
- Tenant placement, lease coordination and move-in
- Repair invoices plus any disclosed coordination charge or markup
- Exceptional, tribunal and licensed professional costs
Check what the regular fee covers
Check whether the fee covers rent collection, statements, tenant questions, repairs, contractor bookings, after-hours requests, inspections, lawful notices, renewals and move-outs. Ask how often you receive updates and what records come with repairs and visits.
The fee basis also matters. A percentage of rent collected may stop or decline when rent is not received, while a percentage of rent scheduled or a flat monthly charge may continue. Ask what happens during vacancy, unpaid rent, partial months and credits, and make sure the answer appears in the agreement rather than only in a sales conversation.
Price a year when tenants change separately
Ask which preparation, photos, ads, showings, application checks, lease work and move-in records the leasing fee covers. Confirm when you pay and whether advertising, credit reports or after-hours showings cost extra.
A renewal fee is different from a placement fee. Ask what happens at the end of a fixed term and what charge, if any, applies to a renewal, lawful rent change or transition to month-to-month status. Comparing a stable year and a year when tenants change prevents a one-time leasing charge from being hidden inside a low monthly headline.
Read the add-ons and exit terms before signing
Ask for one schedule that lists setup, inspections, arranging repairs, contractor markups, after-hours attendance, notices, lease changes, tax documents, vacancy visits, insurance claims, tribunal support, cancellation and file transfer. Not every separate charge is unreasonable, but an owner should be able to see it before the work is needed.
Check contract length, automatic renewal, cancellation notice, exit fees and the return of records and photos. Confirm repair spending limits, emergency approvals, funds held for expenses and whether you can use your own qualified contractors.
- Is HST included in every quoted figure?
- Is the recurring fee based on rent collected, rent scheduled or a flat amount?
- Which inspections and after-hours services are included?
- Is there a contractor markup, coordination fee or referral benefit?
- What needs owner approval, and what is the emergency spending limit?
- What are the term, cancellation, file-transfer and asset-ownership rules?
Understand tax treatment without overestimating it
The Canada Revenue Agency's rental-income guide says amounts paid to a person or company to manage a property, collect rents or find new tenants can be deducted under line 8871. That does not mean every invoice connected to a rental is treated the same way. Personal-use portions, capital work and other circumstances can change the result.
Keep the management agreement, invoices, HST detail and proof of payment with the property's tax records. Ask an accountant how the rules apply to your ownership structure and expenses. Treat a potential deduction as tax reporting, not as a discount that makes an unsuitable service worthwhile.
Check what the manager handles and reports
Compare each quote for the same property and year. Add regular fees, expected leasing or renewal charges, inspections, admin fees, repair markups and HST. Calculate a year with the same tenant and a year when tenants change.
Then identify what comes off your plate: who answers the tenant, who makes a repair decision, what you receive each month, how an urgent issue is escalated and when a licensed professional becomes involved. The right agreement is the one whose total cost, service boundaries and communication match the way you want to own the property, not automatically the lowest advertised percentage.
- Calculate a stable occupied year
- Calculate a tenant-placement or year when tenants change
- List the owner tasks that remain in each proposal
- Compare approval limits, reporting and response coverage
- Review specialized and legal referral costs separately
