How Much Does It Cost to Start a Property Management Company?
Last updated: March 2026
National Average
Low
$10,500
Medium
$24,000
High
$55,000
Start a property management company managing residential and commercial rental properties on behalf of landlord clients.
Time to Launch
2-4 months
Profit Margins
20-40%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Property Management Company in Nationally
Budget:
$2,500
$1,500
$2,000
$400
$300
$2,000
$2,000
$12,000
Options
Employees:
One-Time Costs
$22,700
Monthly Costs
$0
First Year Total
$22,700
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $8,925 | $20,400 | $46,750 | $50 | 7.0% |
| West Virginia | $9,030 | $20,640 | $47,300 | $100 | 6.0% |
| Alabama | $9,240 | $21,120 | $48,400 | $200 | 4.0% |
| Arkansas | $9,345 | $21,360 | $48,950 | $45 | 6.5% |
| Oklahoma | $9,345 | $21,360 | $48,950 | $100 | 4.5% |
| Kansas | $9,450 | $21,600 | $49,500 | $160 | 6.5% |
| Indiana | $9,555 | $21,840 | $50,050 | $95 | 7.0% |
| Iowa | $9,555 | $21,840 | $50,050 | $50 | 6.0% |
| Michigan | $9,555 | $21,840 | $50,050 | $50 | 6.0% |
| Nebraska | $9,555 | $21,840 | $50,050 | $105 | 5.5% |
| Ohio | $9,555 | $21,840 | $50,050 | $99 | 5.8% |
| Kentucky | $9,660 | $22,080 | $50,600 | $40 | 6.0% |
| Louisiana | $9,660 | $22,080 | $50,600 | $100 | 4.5% |
| Missouri | $9,660 | $22,080 | $50,600 | $50 | 4.2% |
| Tennessee | $9,660 | $22,080 | $50,600 | $300 | 7.0% |
| Texas | $9,660 | $22,080 | $50,600 | $300 | 6.3% |
| Georgia | $9,870 | $22,560 | $51,700 | $100 | 4.0% |
| Illinois | $9,975 | $22,800 | $52,250 | $150 | 6.3% |
| New Mexico | $9,975 | $22,800 | $52,250 | $50 | 5.1% |
| Wisconsin | $9,975 | $22,800 | $52,250 | $130 | 5.0% |
| North Carolina | $10,080 | $23,040 | $52,800 | $125 | 4.8% |
| South Carolina | $10,080 | $23,040 | $52,800 | $110 | 6.0% |
| South Dakota | $10,185 | $23,280 | $53,350 | $150 | 4.5% |
| Minnesota | $10,290 | $23,520 | $53,900 | $155 | 6.9% |
| North Dakota | $10,395 | $23,760 | $54,450 | $135 | 5.0% |
| Wyoming | $10,500 | $24,000 | $55,000 | $100 | 4.0% |
| Nevada | $10,710 | $24,480 | $56,100 | $425 | 6.8% |
| Arizona | $10,815 | $24,720 | $56,650 | $50 | 5.6% |
| Florida | $10,815 | $24,720 | $56,650 | $125 | 6.0% |
| Idaho | $10,815 | $24,720 | $56,650 | $100 | 6.0% |
| Pennsylvania | $10,815 | $24,720 | $56,650 | $125 | 6.0% |
| Delaware | $10,920 | $24,960 | $57,200 | $110 | 0.0% |
| Virginia | $10,920 | $24,960 | $57,200 | $100 | 4.3% |
| Colorado | $11,130 | $25,440 | $58,300 | $50 | 2.9% |
| Montana | $11,130 | $25,440 | $58,300 | $70 | 0.0% |
| Utah | $11,130 | $25,440 | $58,300 | $54 | 4.8% |
| Oregon | $11,760 | $26,880 | $61,600 | $100 | 0.0% |
| Vermont | $11,760 | $26,880 | $61,600 | $125 | 6.0% |
| Maine | $11,970 | $27,360 | $62,700 | $175 | 5.5% |
| Rhode Island | $12,180 | $27,840 | $63,800 | $150 | 7.0% |
| New Hampshire | $12,285 | $28,080 | $64,350 | $102 | 0.0% |
| Washington | $12,390 | $28,320 | $64,900 | $200 | 6.5% |
| Connecticut | $12,495 | $28,560 | $65,450 | $120 | 6.3% |
| New Jersey | $13,125 | $30,000 | $68,750 | $125 | 6.6% |
| Alaska | $13,335 | $30,480 | $69,850 | $250 | 0.0% |
| Maryland | $13,545 | $30,960 | $70,950 | $100 | 6.0% |
| California | $14,175 | $32,400 | $74,250 | $70 | 7.3% |
| New York | $14,595 | $33,360 | $76,450 | $200 | 4.0% |
| Massachusetts | $15,750 | $36,000 | $82,500 | $500 | 6.3% |
| Hawaii | $20,265 | $46,320 | $106,150 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$20,400
- West Virginia$20,640
- Alabama$21,120
- Arkansas$21,360
- Oklahoma$21,360
5 Most Expensive States
- Hawaii$46,320
- Massachusetts$36,000
- New York$33,360
- California$32,400
- Maryland$30,960
Frequently Asked Questions
Starting a property management company typically costs $15,000–$35,000, including real estate licensing ($1,000–$2,500), property management software ($500–$1,500/year), liability and E&O insurance ($800–$2,000/year), and working capital while building your portfolio.
At 10% management fees, a property managing $1,500/month rents earns $150/unit/month. You need 30–50 units for a sustainable solo business ($4,500–$7,500/month) and 100+ units to support a small team. Growth comes from property investor referrals and real estate agent partnerships.
Requirements vary by state — 25+ states require a real estate broker license to manage properties for others for compensation. Some states (CO, WI, ID) allow a separate property manager license. A few states (KS, VT, MS) have no licensing requirement. Check your state's real estate commission.
Standard fees include monthly management (8–12% of collected rent), leasing fee (50–100% of first month's rent), lease renewal fee ($100–$300), maintenance coordination (10% markup on invoices), and late payment fees. A 100-unit portfolio at 10% on $1,200 average rent generates $12,000/month gross.