Property Management Fees in Michigan: Every Fee Explained

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Property management fees in Michigan usually include a monthly management fee, a leasing fee when a new tenant is placed, and a handful of smaller charges such as setup, renewal and late fees, plus the cost of repairs, which owners pay. The way to compare managers is to put every fee side by side, in writing, before you sign.

This guide explains each common fee, what it pays for, and what JMZ Management charges, using only the figures JMZ publishes. Where JMZ does not publish an amount, we say so instead of guessing.

Key takeaways

The monthly management fee is the biggest recurring cost; JMZ charges 10% of monthly rent with a $100 monthly minimum.
JMZ charges no management fee while a home is vacant.
The leasing fee at JMZ is the first month's rent, and there is none if a tenant is already in place.
Repairs are an owner cost, so ask how approvals work.
Ask for any fee that is not published, such as setup or renewal fees, in writing.

Step 1: The monthly management fee

This is the ongoing fee for running the property: collecting rent, handling tenant communication, coordinating maintenance, enforcing the lease, and sending statements. Most companies charge it as a percentage of rent collected, sometimes with a flat minimum.

JMZ: 10% of monthly rent, $100 monthly minimum.
Lower rates may be possible for large portfolios, multifamily and commercial properties.
No management fee while the home is vacant.

Ask whether the percentage is taken on rent due or rent actually collected, and whether a minimum applies to lower-rent homes.

Step 2: The leasing or tenant placement fee

A leasing fee pays for the work of filling a vacancy: pricing, photos, listing, showings, screening and the lease itself. At JMZ, the residential leasing fee is the first month's rent, and none applies if a tenant is already in place when JMZ takes over.

For that fee, JMZ prepares an updated rental analysis, markets the home on its own site, more than three dozen rental sites and through agents, screens applicants, and gives you the full packet to approve. JMZ reports an average of 17 days from listing to signed lease when a home is priced to market.

Step 3: Setup and onboarding fees

Many companies charge a one-time fee to set up a new owner and property. JMZ has a one-time new client fee, but the amount is not published, so ask for it when you request a proposal.

Step 4: Renewal fees

When a tenant renews, a manager typically reviews the rent, prepares a new lease and gets it signed. At JMZ, the legal team drafts the new lease and a renewal fee applies. The amount is not published, so confirm it up front.

Step 5: Late fees

Late fees are paid by tenants, not owners, but who keeps them is a real contract term. According to JMZ, late fees are customarily kept by the manager, and that point is negotiable. Rent paid on time (the 1st to the 7th) is disbursed to owners between the 12th and the 17th.

Step 6: Maintenance and repair costs

Repairs are not a management fee, but they are the cost owners most often underestimate. At JMZ, owners pay for most repairs, and any work order over $500 requires owner approval with a contractor estimate. JMZ runs an in-house maintenance company and a 24-hour emergency hotline.

Turnover is a related cost. JMZ puts typical turnover cost at $200 to $500. Our guide to the make-ready process in Metro Detroit explains what that work includes.

Step 7: Optional programs

Eviction Protection: $25 per month per door. It covers court filings, attorney time, one hearing and a Writ of Eviction if needed.
Guaranteed Rent Program: a separate agreement with its own terms and fees, which are not published.
Cert Assist Program: handles city rental compliance, including forms, fees, inspections, violation repairs and the passing certificate. City fees and repair costs are separate from the management fee.

Step 8: Small charges to watch for

Read the fine print for small recurring charges. At JMZ, the bank charges a $1 ACH fee for direct deposit of owner funds. Statements, the AppFolio owner portal, a 1099 and an annual statement are part of the service.

Common mistakes

Comparing only the monthly percentage and ignoring leasing and renewal fees
Not asking whether the fee is charged while the home is vacant
Skipping the repair approval limit in the contract
Assuming late fees go to the owner
Signing before you have every unpublished fee in writing
Choosing the cheapest manager without asking how fast they lease homes

Frequently asked questions

How much do property managers charge in Michigan?

Fees vary by company, so compare written proposals. JMZ Management charges 10% of monthly rent with a $100 monthly minimum, plus a leasing fee equal to the first month's rent.

Do property managers charge when the house is vacant?

Some do, but JMZ does not charge a management fee while a home is vacant.

Who pays for repairs when you hire a property manager?

The owner pays for most repairs. At JMZ, work orders over $500 need owner approval with a contractor estimate.

Is there a fee to switch to a new property manager?

JMZ has a one-time new client fee, and the amount is not published. No leasing fee applies if a tenant is already in place.

Who keeps the late fees?

At JMZ, late fees are customarily kept by the manager, and that term is negotiable.

Related guides and resources

The bottom line

The real cost of property management is the full list: monthly fee, leasing fee, setup, renewal, late fee terms, repairs and any optional programs. Get every item in writing and compare it against how fast and how well the manager fills homes. At JMZ Management, your property is our business.

Want a clear, written fee proposal for your rental? Get a free rental analysis or management proposal at jmzmanagement.com/freerentalanalysis or call 248-284-6990.

CONTACT US to learn more about professional property management in Michigan.