A property management proposal should let a landlord see the annual dollars, the operating work included and the decisions that remain with the owner. The headline percentage or monthly amount is only one line in that comparison.
Use this guide as a reading worksheet after you receive written proposals. The commercial fees page explains the pricing models themselves; this article focuses on turning each actual quote into the same stable-year and turnover-year view.
Start with the fee model, then read the scope
An ongoing management proposal may use a percentage of rent, a flat monthly charge or a combination of recurring and event-based fees. The agreement should define the percentage basis or flat amount, how vacancy and partial months are handled, and the recurring work included for that charge.
Tenant placement is often identified separately because a new leasing cycle concentrates preparation, marketing, inquiries, showings, screening, lease coordination and move-in work into a shorter period. A different format is not automatically better or worse. Convert each proposal into annual dollars and compare the work transferred to the manager.
- Percentage fee: confirm the exact rent basis used in the calculation
- Flat fee: confirm vacancy, partial-month and arrears treatment
- Tenant placement: confirm the included work and payment milestone
- Separate services: identify HST, inspections, renewals and specialized work
Turn each written quote into the same annual columns
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, arrears 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 inclusions 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 turnover year
- Event-based administration, inspection or coordination charges
- Property expenses and third-party professional costs kept separate
Separate the four cost buckets
Recurring management pays for the ongoing tenancy work defined in the agreement. Tenant placement pays for a new leasing cycle. Repairs are property expenses, although the manager may charge separately to coordinate vendors or add a disclosed markup. Exceptional matters can create filing, licensed legal, accounting, engineering or project-management costs outside ordinary service.
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 recurring fee buys for you
A useful recurring service should remove defined work from the owner's calendar. Confirm whether the fee includes rent collection and statements, tenant communication, maintenance intake, vendor coordination, after-hours response, inspections, lawful notice coordination, renewal or month-to-month administration, and move-out support. Ask how often you receive updates and what documentation accompanies 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, arrears, partial months and credits, and make sure the answer appears in the agreement rather than only in a sales conversation.
Price a turnover year separately
Tenant placement can include rental-readiness advice, photography, advertising, inquiry response, showings, screening, lease coordination and move-in documentation, but the exact package varies. Confirm the trigger for payment: a signed lease, possession, first rent collected or another milestone. Also ask whether advertising, photography, credit reports or after-hours showings can be added.
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 turnover year 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, maintenance coordination, 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.
Read the term, automatic renewal, notice to cancel, early-exit cost and ownership of records or listing assets. Confirm the maintenance spending threshold, emergency authority, owner reserve and whether you may use your own qualified trades. A low fee can become an expensive agreement when exclusions, exit friction or owner workload are not visible at the start.
- 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.
Choose the workload and accountability you are buying
The best comparison puts each proposal against the same property and year. Add recurring charges, expected placement or renewal charges, known inspection or administration fees, coordination markups and applicable HST. Run the calculation once for a stable tenancy and again for a tenant-change year.
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 turnover year
- List the owner tasks that remain in each proposal
- Compare approval limits, reporting and response coverage
- Review specialized and legal referral costs separately