Rental operations decision tool

Property Management Cost Calculator

Calculate management fees, leasing costs, vacancy drag, net rental income, monthly cash flow, rental yield, cash-on-cash return and the ROI loss caused by management.

Before vs after management
Yield and cash-on-cash return
5-year outlook
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Down payment plus closing costs and capital used.
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mode
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lease
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cnt
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debt
Primary result
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annual management-related cost
Percent
Net annual income
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Yield after mgmt
0.00%
CoC after mgmt
0.00%
Percent fee 11 occupied months Mortgage included
Low drag
Management costs are a relatively small share of effective annual rent.
Yield before
0.00%
before management
Yield after
0.00%
after management
CoC before
0.00%
cash-on-cash
CoC after
0.00%
cash-on-cash
Income lost to management
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Yield drop
0.00 pts
CoC drop
0.00 pts
Potential annual rent
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Collected rent after vacancy
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Management fee
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Leasing fee
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Inspection fee
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Maintenance reserve
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Fixed operating costs
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Mortgage cost
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Net annual income
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Self-managed
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net annual
Current
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net annual
Full-service
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net annual

Enter rent, fee structure and operating allowances to estimate management cost drag and return erosion.

Management
Other operating
Net income
Scenario Mgmt cost Yield after CoC after Net annual
Year Collected rent Mgmt cost Total cost Net annual

What this calculator does

This calculator measures how property management changes the economics of a rental asset. It estimates management fees, leasing fees, vacancy loss and fixed operating costs, then shows the impact on net income, rental yield and cash-on-cash return.

Core logic

Potential annual rent = monthly rent ร— 12

Collected annual rent = monthly rent ร— occupied months + other income ร— 12

Yield = net annual income รท property value

Cash-on-cash return = net annual income รท cash invested

Why before vs after management matters

Many rental tools stop at showing the fee. This one also shows the investment impact. A management fee is not just a cost line, it changes yield, cash-on-cash return and cumulative profit over time.

How to use it properly

Enter the property value and actual cash invested first. Then model realistic rent, occupancy and management structure. The strongest outputs are the yield drop and cash-on-cash drop, because they show whether the convenience of third-party management is worth the return erosion.

Frequently asked questions

Because the fee alone does not show the investment impact. The yield drop makes the economic cost much clearer.
It is annual net income divided by the cash you have invested in the deal. It is commonly used for leveraged rental property analysis.
Yes. Ignoring vacancy usually makes returns look better than they are in practice.
Because tenant placement costs often create large but irregular profit hits, especially in high-turnover properties.
Because fee drag compounds over time. Even small annual differences can create meaningful cumulative profit gaps.
No. It is a focused operating and return-impact calculator, not a complete acquisition or tax model.