Freedom Rental Property Management charges a flat $125 a month per unit to manage your Minnesota rental, no matter how much rent it brings in. Tenant placement is 50% of one month’s rent ($995 minimum), and the annual lease renewal and inspection is $400. There’s no maintenance markup, no annual accounting fee and no charge for tenant CRP forms.
Like anything else, you get what you pay for in property management. There’s always somebody who will do it cheaper, because there are a lot of corners to cut, and each one raises your risk of higher maintenance costs, problem tenants, evictions and legal trouble. Freedom provides thorough, done right management at a fair price to protect your investment, minimize legal risk and maximize your returns. No gimmicks or hidden fees. You’re paying for our knowledge of Minnesota’s frequently changing rental laws and our experience reviewing thousands of tenant applications and managing thousands of rental units and tenant parties since 2010.
Our Property Management Fee Schedule
| Service | Price | Details |
|---|---|---|
| Monthly Management | $125 | For our expertise managing thousands of tenant parties since 2010 and knowledge of changing rental laws, maintenance troubleshooting and coordination, after hours on call, handling tenant questions/issues, accounting, and monthly reporting and payments. See our what does a property manager do article for more information. |
| Turnover / New Tenant Leasing | 50% of 1mo rent ($995 Min) | Marketing the home, showings, application processing, lease paperwork, handling move in of new tenant and move out of previous tenant, deposit processing. |
| Lease Renewal and Inspection | $400 total ($200 inspection + $200 renewal) | Includes detailed inspection of the home and report and photos to the owner, market rent analysis, and lease renewal. |
| Initial Per Unit Setup Fee | $50 unoccupied or $125 if occupied | Setup into our systems, may include taking photos of the home as needed, transferring existing tenant leases, deposits, keys, move in conditions, etc. |
Fees We Don't Charge
Some of the biggest costs of property management never show up in the monthly fee. They’re buried in add-on charges that show up later on your owner statement. Here are three we don’t charge.
- No maintenance markup. You pay the vendor’s invoice with nothing added on top. A markup rewards a manager for using more expensive vendors, and we’d rather keep your repair costs down. We contact you before any repair over $500 except emergencies, jobs of $1,000 or more get multiple quotes, and every paid bill has the vendor’s invoice attached in your owner portal.
- No annual accounting fee. Many managers bill one every year. We don’t. Monthly owner statements and your 1099 by January 31 are part of the $125 monthly fee.
- No fee for CRP forms. Minnesota landlords must give each tenant a Certificate of Rent Paid by January 31 so they can claim the renter’s property tax refund. We prepare and send them every year at no extra cost.
How Do Our Fees Compare to a 10% Property Manager?
Many Twin Cities property managers charge 8% to 12% of the rent and mark up maintenance. Here’s what a $2,600 a month home with $3,000 a year in repairs costs over the first two years with Freedom, compared to a manager charging 10% of the rent each month, one full month’s rent to place a tenant, a $400 renewal fee and a 10% markup on maintenance.
The biggest differences are the monthly fee and tenant placement. A 10% manager collects $260 a month on this home, more than double our $125, which adds up to $1,620 more every year. Placing a tenant costs a full month’s rent of $2,600 with the other manager and $1,300 with us. The 10% markup on $3,000 of repairs adds another $300 a year.
| Cost on a $2,600/Month Rental | Freedom | Typical 10% Manager |
|---|---|---|
| Monthly management (12 months) | $125 x 12 = $1,500 | 10% x 12 = $3,120 |
| Tenant placement | 50% of rent = $1,300 | 1 month = $2,600 |
| Markup on $3,000 of maintenance | 0% = $0 | 10% = $300 |
| Year 1 total | $2,800 | $6,020 |
| Monthly management (12 months) | $1,500 | $3,120 |
| Lease renewal | $400, includes inspection and photos | $400 |
| Markup on $3,000 of maintenance | 0% = $0 | 10% = $300 |
| Year 2 total | $1,900 | $3,820 |
| Two year total | $4,700 | $9,840 |
That’s $5,140 more in your pocket over two years on a single home. The $3,000 in repairs is the same with either manager, so only the markup is shown. Setup fees are left out for both managers.
Because our fee is flat, the gap grows every time your rent goes up. At $2,000 a month in rent, a 10% manager charges $200 a month. At $3,000 it’s $300, and at $3,500 it’s $350. Freedom stays at $125 no matter what the home rents for.
A flat fee also keeps the advice honest. At every renewal we inspect the home, run a market rent analysis and recommend a rent, and you approve it. When your rent goes up, all of the increase goes to you instead of a slice going to your manager. Own several rentals and the savings multiply, because every unit pays the same $125 a month.
Here’s what that looks like over time. A home renting for $2,500 that sees a few rent increases over five years could be at $3,000 or more. A 10% manager’s fee climbs from $250 to $300 a month along with it, an extra $600 a year. Ours is still $125.
Be aware of gimmicks offered by other property management companies and hidden fees.
Note some gimmicks offered by other property management companies including a “Free Handyman”. In the fine details you’ll see what’s included for free – screw tightening, hinge lubrication, and most things tenants aren’t creating a maintenance request for. For many real estate companies, the property management service is a loss leader, so watch out as sometimes their contracts require you to use their realtors in case you ever want to sell the home. Our values focus on doing the job thoroughly and right; rental property management is our primary focus. Additionally, other companies may have a maintenance markup as high as 18% of the vendor’s invoice. Be wary of this as it incentivizes them to use more costly vendors to increase their own profits. Freedom has no maintenance markup and as rental property owners ourselves, we have an eye for the (your) bottom line.
Curious how other Minnesota property managers price their services? Read How Much Do Property Managers Charge in Minnesota? for a full breakdown of the common fees and what to watch for.
Included In Services
| Turnover / New Tenant Leasing | Professional Management |
|---|---|
| Professional Rental Price Analysis | Dedicated Local Property Manager |
| Home Showings | Online Resident Portal and Mobile App |
| Listings on the Most Popular Rental Listing Websites | Online Owner Portal |
| Quality Listing Photos | End of Year CRP Form Processing |
| Comprehensive Tenant Screening | Maintenance Coordination |
| Solid and Efficient Electronic Lease Signing and Payment Collection Process | Accounting, rent collection, and owner payments |
| Pre-move In Inspection and Detailed Photos to Protect Your Investment | Annual Property Inspection |
Property Management Pricing FAQ
How much does property management cost with Freedom?
A flat $125 a month per unit, plus 50% of one month’s rent ($995 minimum) when we place a new tenant and $400 for the annual lease renewal and inspection. A one time setup fee is $50 for a vacant unit or $125 for an occupied one.
Is the $125 monthly fee charged per unit?
Yes. Every unit pays the same $125 a month, occupied or vacant, and every owner pays the same price whether they have one home or twenty.
Why do you charge a flat fee instead of a percentage of rent?
A percentage fee grows every time your rent goes up, even though the work doesn’t. On a $2,600 home, a 10% manager collects $260 a month. Our flat fee keeps more of each rent increase with you.
Do you charge a maintenance markup, an annual accounting fee or a fee for CRP forms?
No. You pay the vendor’s invoice with no markup, there’s no annual accounting fee, and we prepare your tenants’ Certificates of Rent Paid at no extra cost.
Is the leasing fee charged again when a tenant renews?
No. The leasing fee only applies when we place a new tenant. A renewal is $400, which covers a detailed inspection with photos, a market rent analysis and the new lease.
Can I lower the leasing fee by finding my own tenant?
Yes. If you find a qualified tenant who is approved through our screening, we cut the leasing fee in half.