Most landlords who contact a property management company ask the same first question: "What's this going to cost me?" It's the right question — but the answer is more nuanced than a single percentage. Property management fees in London, Ontario vary based on what's included, what's billed separately, and how each company structures its pricing. CMHC's rental housing resources offer useful context on the broader Ontario rental market and what landlords can expect.
This guide breaks down every layer of cost you're likely to encounter, what's negotiable, what to watch out for in the fine print, and how to figure out whether hiring a property manager actually makes financial sense for your rental.
What the Monthly Management Fee Actually Covers
The monthly management fee is the core cost — typically charged as a percentage of collected rent. In London, Ontario, that percentage generally falls between 8% and 12% for residential properties.
On a $1,800/month rental, that translates to $144–$216/month. On the surface, that might seem steep. But what's included in that fee makes all the difference.
A full-service monthly management fee should cover:
- Rent collection and disbursements to you
- Tenant communication and day-to-day requests
- Coordinating maintenance and repairs (not the cost of repairs — just the coordination)
- Lease enforcement, including issuing notices when required
- Monthly financial statements
- 24/7 emergency response
Some companies charge a flat monthly fee instead of a percentage. Flat fees typically range from $100–$200/month per unit. These can work well for higher-rent properties but may feel expensive on lower-rent units.
The key question to ask: Does the fee only apply when rent is collected, or is it charged regardless? A "management fee on collected rent only" model aligns the company's incentives with yours. If they don't collect, they don't get paid.
Leasing Fees: The Cost to Find a New Tenant
This is the fee most landlords don't think about until they see it on their first invoice. When a property management company places a new tenant in your unit, they typically charge a leasing fee (also called a placement fee or letting fee).
In London, Ontario, leasing fees are usually structured as:
- One month's rent (most common for full-service companies)
- Half a month's rent (more common at discount or partial-service companies)
- A flat fee, typically $500–$900
This fee covers everything involved in filling the vacancy: professional listing photos, advertising across multiple platforms, screening applicants, checking credit and references, drafting the lease, and completing the move-in inspection.
If you're comparing companies and one has a lower monthly fee but charges a full month's rent as a leasing fee, do the math over a 12-month period. A tenant who stays two years costs you one leasing fee across 24 months of management — that's a very different cost profile than a leasing fee every 8 months due to high turnover.
High tenant retention is worth more than a low leasing fee.
Lease Renewal Fees: Read the Fine Print
Some property management companies charge a separate fee every time a tenant's lease is renewed — even if nothing changes except the date and the rent amount.
Renewal fees are typically $100–$300 per renewal, or sometimes a flat percentage equivalent to one or two months of the management fee.
Ask any company you're evaluating: Do you charge a lease renewal fee? If yes, how much, and under what circumstances?
If a company has both a renewal fee and a high leasing fee, you're paying twice — once to keep the tenant, and again if they leave. Understanding how lease renewal in Ontario works will help you ask the right questions here, especially around automatic month-to-month conversions and what triggers a "new lease" in the company's billing model.
Maintenance Markups: The Hidden Cost
Maintenance and repairs are not included in your monthly management fee — you pay the actual cost of the work. What varies is whether the management company adds a markup on top of the contractor's invoice.
Common markup structures:
- No markup — company uses preferred vendors at standard rates, passes the full cost to you
- 10–15% markup — added on top of every contractor invoice
- In-house maintenance team — hourly rate billed directly (sometimes cheaper, sometimes not)
A 15% markup on a $600 plumbing repair adds $90 to your bill. That's manageable. But if that same markup applies to a $4,000 furnace replacement, you're paying $600 just in markup.
Ask specifically: "Do you mark up contractor invoices? If so, by what percentage?" Get that in writing before signing anything.
Also ask whether there's a maintenance threshold — an amount below which the company can authorize repairs without contacting you. Thresholds of $200–$500 are common. Anything above that should require your approval.
Vacancy Fees: Are You Paying When the Unit Is Empty?
Some companies charge a reduced management fee (or even the full fee) during vacancy periods. Others charge nothing when there's no tenant.
Landlord Insights
Get practical tips for Ontario landlords — delivered free.
This matters more than most landlords realize. If your unit sits vacant for six weeks between tenants, you don't want to also be paying management fees on zero rental income.
Ask: "What do you charge during a vacancy period?" The answer tells you a lot about how the company is aligned with your interests.
Setup and Onboarding Fees
Many companies charge a one-time setup fee when you bring a new property onto their portfolio. This typically covers:
- Initial property inspection
- Documenting current condition
- Setting up your owner portal and financial accounts
- Reviewing the existing lease if a tenant is already in place
In London, Ontario, setup fees generally range from $150–$400 per property. Some companies waive this fee entirely as a sign-on incentive. It's often negotiable, especially if you're bringing multiple units.
What a Full Year of Property Management Actually Costs
Let's put all of this together with a realistic example.
Scenario: Single-family rental in London, Ontario. Rent: $1,900/month. New tenant placed at the start of the year. Tenant stays the full year with one lease renewal.
| Fee | Amount |
|---|---|
| Monthly management (10%) × 12 | $2,280 |
| Leasing fee (one month's rent) | $1,900 |
| Lease renewal fee | $150 |
| Setup/onboarding fee | $250 |
| Total year-one cost | $4,580 |
As a percentage of annual gross rent ($22,800), that's about 20% in year one.
In year two, if the same tenant stays and renews again:
| Fee | Amount |
|---|---|
| Monthly management (10%) × 12 | $2,280 |
| Lease renewal fee | $150 |
| Total year-two cost | $2,430 |
That's about 10.7% of gross annual rent — and every year the tenant stays, the effective cost drops. This is why tenant retention is a core part of good property management, not just a nice-to-have.
Many of these costs are also tax-deductible as business expenses. If you want a full picture of what you can write off, the rental property tax deductions guide for Ontario covers management fees, maintenance, insurance, and more.
What You're Not Paying For When You Self-Manage
Some landlords look at property management costs and decide to self-manage instead. That's a legitimate choice — but it's not free.
When you self-manage, you're spending time on:
- Advertising, showing, and screening tenants
- Drafting legally compliant leases (Ontario's standard lease has specific requirements)
- Collecting rent and chasing late payments
- Coordinating and supervising repairs
- Serving notices correctly under the Residential Tenancies Act
- Attending LTB hearings if things go wrong
Time is money. If you spend 10 hours per month managing a single property and value your time at $40/hour, that's $400/month — more than most management fees. And that doesn't account for costly mistakes: an improperly served N4 notice, a missed maintenance obligation, or a tribunal hearing you weren't prepared for can cost thousands.
The real question isn't "Can I afford a property manager?" It's "Can I afford not to have one?"
How to Compare Companies Without Getting Burned
When you're evaluating property management companies in London, Ontario, don't just compare the headline percentage. Ask these questions:
- What exactly is included in the monthly fee? Get a written service list.
- Do you charge a fee on collected rent only, or every month regardless?
- What is your leasing fee, and what does it cover?
- Do you mark up contractor invoices? By how much?
- What is your maintenance authorization threshold?
- Do you charge during vacancy periods?
- Is there a lease renewal fee?
- What is your average tenant tenure? (Longer is better — it means lower leasing fee frequency)
- What does your contract termination clause look like? (Watch for long lock-in periods or punishing exit fees)
- Do you have references from landlords with similar properties?
A transparent company will answer all of these without hesitation. Evasiveness on any of them is a red flag.
Good property management fees in Ontario aren't just about the number — they're about what you're getting for that number and whether the incentives are aligned.
Is Property Management Worth It for Small Landlords?
If you own one or two properties in London, Ontario and you live close by, you might wonder whether professional management makes sense at your scale. Here's the honest answer: it depends on your time, your risk tolerance, and your tenants.
The math often works out surprisingly well for small landlords when you factor in:
- Reduced vacancy through better tenant screening and faster placement
- Fewer costly mistakes on notices, inspections, and lease enforcement
- Better vendor pricing through a management company's contractor network
- Peace of mind — no 11pm maintenance calls, no chasing rent, no LTB research at midnight
If you're a first-time landlord in London, Ontario, starting with professional management while you learn the landscape is often the smartest move. You can always transition to self-management later once you understand the RTA, the LTB process, and what good tenants look like.
Key Takeaways
- Monthly management fees in London, Ontario typically run 8–12% of collected rent
- Leasing fees are usually one month's rent and cover the full tenant placement process
- Always ask about maintenance markups, vacancy fees, and renewal fees — these add up
- Year-one total costs run approximately 18–22% of gross rent; year two and beyond drops to around 10–11%
- Management fees are generally tax-deductible as a rental business expense
- Comparing companies on headline percentage alone will mislead you — get the full fee schedule in writing
Prospera Properties manages residential rentals in London, St. Thomas, and Strathroy, Ontario. We're transparent about our fees, responsive to our landlords, and focused on keeping your units filled with reliable tenants. If you want a straight answer on what management would cost for your property, reach out — no obligation, no runaround.