Investing in rental real estate seems simple on paper: rent collected each month, a loan paid off gradually, and an asset that appreciates over time. Yet, the reality is more nuanced. Property management represents a cost item that is often underestimated, capable of significantly cutting into the final profitability. In 2026, between 6% and 10% of rents are generally allocated to management fees, not counting additional costs. Understanding exactly how much property management costs and what fees to anticipate helps avoid unpleasant surprises and optimizes every euro invested in a rental investment.
The average rates of property management
The percentage applied to rents
This is the most common model: the agency takes a percentage of the rents received for property management. In France, in 2025–2026, this rate generally fluctuates between 6% and 10% VAT included of the rent charges included, according to consolidated data from property management networks.
Specifically, for an apartment rented at €900 per month, this represents between €54 and €90 monthly, or €648 to €1,080 per year. Over a period of 10 years, the difference can exceed €4,000. This differential often depends on the location. In Paris and in large cities like Lyon or Bordeaux, the rates tend to be between 6% and 8%. In medium-sized cities or less tight areas, they can reach 9% to 10%, as agencies compensate for a lower volume of activity.
This percentage generally covers the collection of rents, managing reminders, regularizing charges, and preparing management reports. However, it does not systematically include exceptional services. This is where the real cost of property management can climb.
Monthly fixed fees for property management
Some agencies, and more and more digital platforms, offer a fixed monthly fee rather than a percentage. Offers are observed between €39 and €79 per month in 2026 for a standard property.
At first glance, the flat fee may seem more advantageous, especially for high-rent properties. For example, for a rent of €1,200, a flat fee of €49 corresponds to an implicit rate of 4.1%, well below the national average. In contrast, for a studio rented at €450, this same flat fee is nearly 11% of the rent.
It is also necessary to look at the details of the included services. Some low-priced offers charge extra for annual tax declarations, management of claims, or representation at general meetings. In practice, what seems economical at first can ultimately match the standard rates once options are added.
Rental fees
Property management is not limited to routine administration. Renting generates specific fees, often billed separately. These fees cover the advertisement dissemination, visits, tenant selection, and the preparation of the file.
The law strictly regulates these amounts for the portion billed to the tenant, with a ceiling ranging from €8 to €12 per m² depending on the geographical area. In very tight areas, the ceiling reaches €12 per m² for visits and file preparation, plus €3 per m² for the inventory.
On the owner’s side, the fees are free. In practice, they frequently represent the equivalent of one month of rent excluding charges. For an apartment rented at €800, this means €800 in fees for each change of tenant. With an average turnover rate observed around 30% per year in large cities (source: 2024 barometers of real estate networks), these costs can weigh heavily on the profitability.
But why call on an agency?
Indeed! The question arises, but keep in mind that property management represents much more than a simple administrative service. With fees ranging from 6% to 10% of rents, rental fees equivalent to one month’s rent, and additional costs such as GLI or exceptional services, the impact on profitability can exceed 20% of gross yield. Yet, these expenses come with a gain in time, legal security, and a stability of income that is difficult to measure solely in percentage terms.
Above all, property management can prove to be cost-effective when considering the mental load and operational constraints implied by managing a property: selecting tenants, drafting the lease, managing reminders, tracking work, handling potential unpaid rents or disputes. These situations can quickly become time-consuming and costly in case of errors. By delegating to a professional, the owner reduces legal risk, limits vacancies through effective marketing, and secures their cash flows. In other words, even if management has a direct cost, it can preserve or even improve overall profitability by avoiding losses much greater linked to poor management.
So the real question is not only how much property management costs, but how much does the absence of professional management cost you if an unforeseen event occurs.
Property management can be time-consuming and a real burden for a landlord. Don't hesitate to delegate your property management to us for more agility!
The additional fees related to rental management.
That said, let’s get back to our fees!
The drafting fees for the lease
Drafting the lease seems administrative, almost trivial. However, it has an important legal dimension. A poorly written contract can lead to costly disputes or complicate an eviction procedure.
In most cases, drafting fees are included in the rental fees. However, some agencies charge them separately, between €150 and €400 depending on the complexity of the file and the type of rental (unfurnished or furnished). Furnished leases, which are more detailed, often involve a higher cost.
For an investor, it is important to remember that each rental reactivates these fees. Over a period of 15 years, with four tenant changes, this can represent more than €1,000 cumulatively.
The move-in inspection fees
The move-in inspection is a key document. It conditions the return of the security deposit and limits conflicts. Its drafting can be carried out by the agency, an external provider, or a bailiff in case of disagreement.
The rates generally vary between €100 and €250 for a standard apartment. In the case of the intervention of a commissioner of justice, the bill can exceed €300, depending on the area and location.
Even if these amounts seem modest on the scale of an investment, they add up. Considering a relocation every three years, the average annual cost related to the move-in inspection can reach €40 to €80 per year.
The rental default insurance fees
Rental default insurance (GLI) constitutes a safety net appreciated by landlords. In 2025, about 35% of private landlords subscribe to it according to insurance market data.
Its cost generally represents between 2.5% and 4.5% of the annual rent, including charges. For a property rented for €900 per month, this amounts to €270 to €486 per year. In return, the insurance covers unpaid rents, litigation costs, and sometimes property damages.
Statistically, the rate of defaults in France is around 2% of active leases. In other words, the probability remains low, but the financial risk can be high in the case of prolonged default. The GLI thus reduces the volatility of rental income but mechanically lowers the net yield.
The fees for exceptional services
This is often where the gaps widen. Some interventions fall outside the standard framework of rental management: monitoring significant works, managing a claim, legal proceedings, representation in court.
These services can be billed by the hour, between €60 and €120 excluding VAT depending on the agency, or as a percentage of the amount of the works (often 3% to 5%). For a renovation project of €20,000, the monitoring fees can thus reach an additional €600 to €1,000.
These costs are not systematic, but they must be anticipated in a realistic projection. Because the profitability of a rental investment is not determined solely by the rent collected, but by all direct and indirect costs.
Price differences according to the management method
Behind the term rental management are actually two very different models. On one side, traditional real estate agencies, rooted locally. On the other, digital platforms that promise lower rates through automation. The choice of management mode directly influences the cost of rental management, as well as the level of support and the security of the investment.
Agency Rental Management
Agency rental management relies on a local presence. The property manager knows the local market, has a network of craftsmen, and can intervene physically in case of a problem. This service comes at a price.
In 2026, the fees charged by traditional agencies are mainly between 7% and 10% VAT included of the collected rents. According to the barometers of real estate networks published in 2024 and 2025, the national median rate hovers around 8.2%. In dynamic metropolitan areas like Paris, Lyon, or Toulouse, competition slightly lowers the rates, sometimes around 6.5% to 7.5%. Conversely, in less pressurized areas, they can reach 9% or even 10%.
This additional cost is explained by the very structure of the agency: physical premises, dedicated staff, travel, follow-up of interventions. In return, the owner benefits from an identified contact, capable of managing an urgent water leak, a neighborhood conflict, or a late payment procedure without delay.
Specifically, for an apartment rented at €1,000 per month, management at 8.5% amounts to €1,020 per year. Over 15 years, excluding rent revaluation, this exceeds €15,000. Therefore, the question is not trivial: this expense must be weighed against the time saved, the reduction of legal risk, and the mental comfort it provides.
Online Rental Management
Online rental management has significantly developed since 2020, driven by the digitalization of the real estate sector. The principle is simple: automate as many administrative tasks as possible to reduce fixed costs.
Platforms generally offer packages ranging from €29 to €59 per month, sometimes with no commitment. For a property rented at €900, a €39 package equals 4.3% of the rent, almost half that of a traditional agency at 8%. The annual savings can reach €400 to €600.
However, this price difference reflects a distinct service perimeter. Communications mainly occur online, and certain on-site interventions (visits, inventory management, work management) may be charged additionally. The owner often remains more involved, particularly in local coordination.
It is also essential to consider the quality of support and responsiveness. In the case of complex disputes or major disasters, the absence of a physical contact can extend processing times. For an investor residing far from their property — which concerns nearly 28% of rental owners in France according to recent notarial data — this distance can become a source of stress.
Ultimately, online property management reduces the nominal cost but requires greater autonomy. It is particularly suitable for experienced profiles who are comfortable with digital tools and have a local network that can be mobilized in case of emergency.
The consequences of the cost of property management on profitability
Property management fees are not just a simple line item in a budget. They directly influence the net return and can turn a profitable investment on paper into a break-even operation, or even a loss. It's at this stage that the numbers become crucial.
Calculating the net return after fees
The gross return is calculated simply: annual rent divided by the purchase price of the property. But this figure is misleading. What really matters is the net return after deducting all expenses, including property management.
Let’s take a concrete example. An apartment bought for €200,000 generates €10,800 in annual rent (€900 per month). The gross return is 5.4%. If we apply 8% in property management fees (€864), add a GLI at 3% (€324), and include €1,200 in non-recoverable charges and property tax, the net income drops to €8,412.
The actual net return then becomes 4.2%. The difference of 1.2 points may seem modest, but it represents a drop in profitability of more than 22% compared to the gross. Over 20 years, the cumulative impact is significant.
The break-even point depending on the level of fees
Every percentage of property management alters the financial break-even point. If your mortgage shows an interest rate of 3.5% in 2026 and your net return drops to 3.8%, the margin for safety is slim.
In practice, an investment becomes fragile when the gap between net return and financing cost falls below 1 point. A vacancy of two months — which is about 16% less in annual rent — can then completely erase profitability.
The higher the fixed costs, the more the break-even point requires a significant rent or a high asset appreciation. Conversely, reducing the cost of property management by 2 points can improve the net return by 0.3 to 0.5 points depending on the overall charge structure.
Choosing between delegated management and autonomy
Beyond the numbers, the decision relies on strategic arbitration. Delegating property management allows for secure income, limits legal errors, and saves time. For an investor owning multiple properties or engaged in a demanding professional activity, this delegation has real value.
On the other hand, managing it oneself can save between €800 and €1,500 per year depending on the level of rent. Over 15 years, the savings can exceed €15,000. But this approach involves availability, administrative rigor, and the ability to manage a potential rental conflict.
One must also factor in the hidden cost of time. If managing a property requires an average of 25 to 40 hours per year — between finding tenants, administrative follow-up, and coordination — the valuation of that time should be included in the equation. At €30 per hour, that already represents €900.
In reality, there is no universal answer. The right choice depends on the investor's profile, their risk tolerance, and their wealth management objective. What changes the game is the clarity on the actual cost of rental management and its impact on overall performance.
What you need to know
Property management represents much more than just an administrative service. With fees ranging between 6% and 10% of rents, placement fees equivalent to one month's rent, and additional costs such as GLI or exceptional services, the impact on profitability can exceed 20% of gross returns. However, these expenses come with time savings, legal security, and revenue stability that are difficult to measure solely in percentage. Therefore, the real question is not just how much property management costs, but how much the absence of professional management costs you if an unforeseen event occurs.
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