Hiring a property manager should make your life easier and your investment more profitable. CMHC's rental housing resources offer context on the rental housing market across Ontario. But the fee structure varies enormously — and some companies bury costs in places you won't find until you're already locked in.
Here's what you should actually be paying in Ontario in 2026.
The Main Fee Categories
1. Monthly Management Fee
This is the core fee — a percentage of monthly rent collected, charged every month whether there's a tenant or not (in most cases).
Ontario range: 8–15% of monthly rent
For a $1,900/month unit:
- 8% = $152/month ($1,824/year)
- 12% = $228/month ($2,736/year)
- 15% = $285/month ($3,420/year)
A $1,500+ gap per year for the same service is significant. Ask what's actually included.
What should be included at any fee level:
- Rent collection
- Tenant communication
- Maintenance coordination
- Monthly financial statements
- Annual inspections
What's often charged separately (watch for these):
2. Tenant Placement / Leasing Fee
Charged when a new tenant is placed. Often the most expensive single fee.
Ontario range: 50–100% of one month's rent
This is where companies make a lot of their money, and some have perverse incentives — the more tenants they churn, the more placement fees they collect.
What to ask: Is there a discount for multi-year tenants? Is there any guarantee period? (If a tenant leaves within 60 days, do you pay again?)
3. Lease Renewal Fee
Some companies charge $150–$500 to renew an existing lease. This one particularly annoys landlords — you've already done the work of finding the tenant, and now you're being charged to keep them?
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Prospera's policy: Free. Retaining a great tenant is a good outcome for everyone.
4. Maintenance Coordination Fee / Markup
Some companies charge a percentage markup on top of every maintenance invoice — typically 10–20%. If your furnace costs $800 to repair, you pay $800 + 15% = $920.
This creates a conflict of interest: the more repairs cost, the more the management company earns. Look for companies that charge cost-only on maintenance, or that are transparent about any coordination fee.
5. Vacancy Fee
Some companies charge a reduced monthly fee (e.g., 50% of their normal management fee) during vacancies. Others charge nothing. This matters — extended vacancies are already painful enough.
6. Other Fees to Watch For
- Setup / onboarding fee: $200–$500 in some contracts. Avoid or negotiate.
- Professional photo fee: $150–$400. Quality photos are worth it — but ask upfront.
- Annual inspection fee: Some charge extra per inspection. Should be included.
- Eviction coordination fee: Some charge $500–$1,000+ for LTB file management. Ask if this is included or extra.
- Early termination fee: If you want to leave the management agreement, what do you owe?
Questions to Ask Any Property Manager
Before signing anything, get clear answers to:
- What is your monthly management fee, and what exactly does it include?
- What is your tenant placement fee?
- Do you charge a lease renewal fee?
- Do you mark up maintenance costs?
- Do you charge during vacancy?
- What is the term of the management agreement and what are the exit terms?
If they're evasive or the contract is hard to read, that's information.
What Prospera Properties Charges
We believe in transparent, simple pricing with nothing hidden:
- Monthly management fee: 8–10% (based on property type)
- Tenant placement: Half month's rent
- Lease renewal: Free
- Maintenance markup: 0% — you pay cost only
- Vacancy fee: None
- Setup fee: None
- Photos and listing: Included
Frequently Asked Questions
What is a typical property management fee in Ontario in 2026?
Most residential property managers in Ontario charge a monthly management fee of 8–15% of collected rent. For a $1,900/month unit, that's roughly $150–$285/month. Fees vary based on property type, services included, and local market rates. Always ask for a complete breakdown — monthly fees are just one component of the total cost.
What is a tenant placement fee and how much should it cost?
A tenant placement fee (also called a leasing fee) is charged when a new tenant is secured. The Ontario range is typically 50–100% of one month's rent. This is often the largest single fee a landlord pays. Ask whether a guarantee period applies — some companies re-place tenants at no extra cost if the tenant leaves within 60–90 days.
Do property managers in Ontario charge a maintenance markup?
Some do. Markups of 10–20% on contractor invoices are common, which creates a financial incentive for property managers to approve more (or more expensive) repairs. Ask any prospective property manager directly whether they mark up maintenance costs, and look for companies that pass through contractor invoices at cost.
What fees should an Ontario landlord watch out for when hiring a property manager?
Watch for lease renewal fees ($150–$500 to keep an existing tenant), setup or onboarding fees ($200–$500), professional photo fees charged separately, eviction coordination fees ($500–$1,000+), and early termination fees if you want to end the management agreement. These items are often buried in the contract.
Is it worth hiring a property manager in London or Southwestern Ontario?
For landlords managing multiple properties, living out of town, or uncomfortable with the LTB process, professional management typically pays for itself. A single missed maintenance issue, a bad tenant, or an improperly served notice can easily cost more than a full year of management fees. The value is greatest when problems are prevented — not just resolved.
See our full pricing breakdown or get in touch for a quote on your specific property. You can also read our guides to property management in London, Ontario and how to find a property manager in Ontario for more context on evaluating your options.