What is a reasonable property management fee in Tarrant County?

Full-service property management in Tarrant County commonly runs 8-10% of monthly collected rent, though structures vary. Ours is 10% of collected rent, negotiable by portfolio size, with no maintenance markup; the full schedule is on our pricing page. Some companies charge as low as 6-7% but offset with higher placement or renewal fees. Others charge a flat monthly rate. Evaluate the all-in annual cost, not just the monthly percentage. A 7% management fee with a $1,500 placement fee and a $300 renewal fee may cost more over a two-year tenancy than a 10% fee with no additional charges.

What is a renewal fee and is it standard?

A renewal fee is charged when the PM executes a lease renewal with a current tenant. It can range from $100-$300 flat to half a month's rent. It is fairly common but not universal. When comparing PMs, factor in the renewal fee for a tenancy that stays two to three years, it adds up. Ask whether the renewal fee applies for month-to-month extensions as well or only for a new fixed-term lease.

What happens to my tenants if I fire my property manager?

Your tenants' lease remains valid regardless of who manages the property. Changing managers does not terminate or alter an active lease. The transition requires written notice to tenants identifying the new point of contact for rent payments and maintenance requests. Ask how the security deposit will be handled in the handoff: it should be accounted for and moved to the new manager (or to you) in writing. The outgoing PM should provide all lease documents, maintenance history, and tenant communication records. Get this documentation listed as a deliverable in the contract termination clause before you sign.

Can a PM require that I use their preferred vendors?

Some contracts include language giving the PM authority to use their preferred vendor list exclusively. This is not inherently problematic (a PM who has reliable, vetted vendors is providing value), but you should know whether you retain the right to use your own contractors for significant work. If you have a trusted HVAC contractor or plumber, confirm upfront whether the contract allows you to designate them. Some PMs will accommodate owner-preferred vendors for large-ticket repairs; others have vendor exclusivity built into their operating model.

Should I have an attorney review the PM contract before signing?

For a single-family rental where the contract is a standard Texas Association of REALTORS® form with minimal modifications, attorney review is optional but not necessary for most owners. If the PM is using a heavily customized contract with unusual fee structures or binding arbitration clauses, a one-hour attorney review (often $150-$300) is worth it. The five provisions listed in this answer cover the most common contract issues. Read them carefully yourself before deciding whether legal review is warranted.

Tarrant County · Owner Guide

What should I look for in a property management contract in Texas?

By Andrew ChavisUpdated October 16, 20265 min read

The Short Answer

Five things to verify before signing any Texas PM contract: the management fee structure, the placement fee and its refund terms, the maintenance authorization threshold, the termination clause, and vendor markup disclosure. Each one gets its own section below. Most contract disputes trace back to one of these five provisions being misunderstood at signing.

Management Fee: Collected vs. Scheduled Rent

The most important clause in the management fee section is whether the fee is calculated on collected rent or scheduled rent. 'Collected rent' means the PM takes their percentage only from what the tenant actually pays. 'Scheduled rent' means they take their percentage on what should have been collected, whether the tenant paid or not. On a $1,800/month rental at 9%, the difference is $162/month that you may or may not owe depending on whether your tenant is current. Most professional PMs charge on collected rent. If a contract says 'scheduled rent,' ask why and consider it a yellow flag. Also confirm whether the management fee applies during vacancy. Some PMs charge a flat monthly fee or a reduced percentage even when no tenant is in place.

Placement Fee: Amount, Trigger, and Refund Policy

The placement fee (sometimes called a leasing fee or setup fee) is charged when the PM places a new tenant. In Tarrant County, this typically runs from a flat $250-$500 to as much as one month's rent, depending on the company. Ask three things:

How much is it?
When is it triggered: upon lease signing, upon move-in, or upon first rent payment?
What is the refund policy if the tenant breaks the lease or vacates within the first 60-90 days?

Some PMs will pro-rate or waive the fee if the placement fails early. Others will not. A tenant who leaves after 45 days is costly regardless of the refund policy, but a PM who stands behind their placement with a partial refund is signaling something about their screening confidence.

Maintenance Authorization Threshold

Every PM contract should specify the dollar amount above which a repair requires your explicit approval before work proceeds. A common range is $150-$500 for non-emergency repairs, though contracts vary. Ours is set in the agreement, typically $250 to $500. Some contracts set it as low as $100; others allow the PM to authorize up to $1,000 without owner approval. Emergency situations (a water heater failure, a broken HVAC in July) typically have a separate clause allowing the PM to proceed without owner approval regardless of the cost. Understand both thresholds before you sign. If the non-emergency threshold is set too high, a PM can authorize significant work without your knowledge. If it is set too low, you will get approval requests for minor items that should just be handled.

Termination Clause: How to Exit Without Getting Trapped

Many Texas PM contracts are 12-month agreements with automatic renewal. The termination clause determines how you can exit and at what cost. Look for: required notice period (30, 60, or 90 days), whether early termination triggers a fee (common: one to two months of management fees), and what happens to your current tenant if you terminate. Some contracts include a 'tail clause' that entitles the PM to their management fee for the duration of any currently active lease, even after termination. This means switching managers mid-tenancy may still cost you fees to the outgoing PM through the end of the lease. That is not unreasonable, but it needs to be understood before you sign.

Vendor Markup and In-House Maintenance

Some property management companies have in-house maintenance staff or affiliated maintenance companies. When they do, their labor rate may be higher than market, or they may charge a markup on materials. Other PMs use third-party vendors but add a coordination fee of 10-15% on top of the vendor invoice. Neither practice is necessarily dishonest, but both need to be disclosed in the contract. Ask directly: 'Do you add a markup or coordination fee on vendor invoices?' and 'Do you use any in-house or affiliated maintenance services?' Get the answer in writing before signing. As an example, if a single-family rental has $2,000 to $5,300 of repairs in a year, a 15% markup adds roughly $300 to $800.

Common Questions

What is a reasonable property management fee in Tarrant County?: Full-service property management in Tarrant County commonly runs 8-10% of monthly collected rent, though structures vary. Ours is 10% of collected rent, negotiable by portfolio size, with no maintenance markup; the full schedule is on our pricing page. Some companies charge as low as 6-7% but offset with higher placement or renewal fees. Others charge a flat monthly rate. Evaluate the all-in annual cost, not just the monthly percentage. A 7% management fee with a $1,500 placement fee and a $300 renewal fee may cost more over a two-year tenancy than a 10% fee with no additional charges.
What is a renewal fee and is it standard?: A renewal fee is charged when the PM executes a lease renewal with a current tenant. It can range from $100-$300 flat to half a month's rent. It is fairly common but not universal. When comparing PMs, factor in the renewal fee for a tenancy that stays two to three years, it adds up. Ask whether the renewal fee applies for month-to-month extensions as well or only for a new fixed-term lease.
What happens to my tenants if I fire my property manager?: Your tenants' lease remains valid regardless of who manages the property. Changing managers does not terminate or alter an active lease. The transition requires written notice to tenants identifying the new point of contact for rent payments and maintenance requests. Ask how the security deposit will be handled in the handoff: it should be accounted for and moved to the new manager (or to you) in writing. The outgoing PM should provide all lease documents, maintenance history, and tenant communication records. Get this documentation listed as a deliverable in the contract termination clause before you sign.
Can a PM require that I use their preferred vendors?: Some contracts include language giving the PM authority to use their preferred vendor list exclusively. This is not inherently problematic (a PM who has reliable, vetted vendors is providing value), but you should know whether you retain the right to use your own contractors for significant work. If you have a trusted HVAC contractor or plumber, confirm upfront whether the contract allows you to designate them. Some PMs will accommodate owner-preferred vendors for large-ticket repairs; others have vendor exclusivity built into their operating model.
Should I have an attorney review the PM contract before signing?: For a single-family rental where the contract is a standard Texas Association of REALTORS® form with minimal modifications, attorney review is optional but not necessary for most owners. If the PM is using a heavily customized contract with unusual fee structures or binding arbitration clauses, a one-hour attorney review (often $150-$300) is worth it. The five provisions listed in this answer cover the most common contract issues. Read them carefully yourself before deciding whether legal review is warranted.