Residential Property Managers Revenue Benchmarks
The average residential property managers business in the United States generates $2.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 39,462 residential property managers businesses in the U.S., employing 485,256 workers with an average profit margin of 20.0%. The average employee in this industry earns $62K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Residential Property Managers Business Actually Do?
Businesses that manage rental properties on behalf of owners — tenant screening, rent collection, maintenance coordination, evictions. Serve single-family investors and small multifamily portfolios.
Who buys: Rental property investors who don't want to self-manage (out-of-state, multiple properties, hands-off preference).
Average Revenue
$2.6M
per year
Profit Margin
20.0%
industry average
Revenue / Employee
$211K
per year
Total Businesses
39,462
in the US
Est. Owner Income
$519K
small business avg
Labor Cost
25.0%
of revenue
Avg Employee Wage
$62K
per year (BLS)
Market Saturation
11.9
firms per 100K people
How Much Do Residential Property Managers Charge?
Residential property managers charge a percentage of monthly rent plus setup and vacancy fees.
| Service | Typical range |
|---|---|
Monthly management fee | 8–12% of collected rent |
Leasing fee (per new tenant) | 50–100% of first month's rent |
Renewal fee | $200–500 or 25–50% of one month |
Vacancy fee | $50–200/month while vacant |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete residential property managers business plan
A 12-section data-backed business plan for a residential property managers business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the residential property managers industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Property expenses | $8 | $214K | Maintenance, repairs, property taxes, HOA fees, utilities on managed properties. |
Wages & benefits | $25 | $649K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $3 | $71K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $214K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $36 | $928K | Insurance, legal, financing costs, agent commissions to sub-agents. |
Net profit | $20 | $519K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
14.5%
openings/year
Closure Rate
10.73%
closings/year
Net Job Growth
+5.45%
annual
Businesses Closed
8,058
in 2023
Firm Count Trend
Should You Start a Residential Property Managers Business?
Startup Cost
$50K – $250K
Break-Even
3 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a residential property managers business do?
- Businesses that manage rental properties on behalf of owners — tenant screening, rent collection, maintenance coordination, evictions. Serve single-family investors and small multifamily portfolios. Rental property investors who don't want to self-manage (out-of-state, multiple properties, hands-off preference).
- How much do residential property managers charge?
- Residential property managers charge a percentage of monthly rent plus setup and vacancy fees. See the pricing table above for typical rates by service type.
- How much does the average residential property managers make per year?
- The average residential property managers business generates $2.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $519K per year at a 20.0% profit margin.
- How many residential property managers businesses are there in the US?
- There are 39,462 residential property managers businesses operating in the United States, employing a total of 485,256 workers.
- How much does it cost to start a residential property managers business?
- Startup costs for a residential property managers business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the residential property managers industry?
- The average employee in the residential property managers industry earns $62K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The residential property managers industry is actively growing — adding jobs at a net rate of 5.5% per year. New establishments are opening faster than existing ones close (14.5% entry vs 10.7% exit), indicating healthy demand.
Approximately 57% of residential property managers businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 8,058 firms in this industry closed permanently.
Employment & Wages
The average employee in the residential property managers industry earns $61,602/year. This is near the national average of ~$65K. With 74,909 establishments employing 526,208 people, the typical business has about 7 employees.
Industry Trend (2000–2023)
The residential property managers industry has grown 70% since 2000 (from 44,954 to 76,436 firms).
See full historical statistics →Compare Residential Property Managers revenue with other industries: