How Much Does It Cost to Start a Property Management Company?
Last updated: May 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:
Startup Costs
$22,700
Monthly Costs
$4,000
First Year Total
$70,700
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $8,085 | $18,480 | $42,350 | $50 | 7.0% |
| West Virginia | $8,085 | $18,480 | $42,350 | $100 | 6.0% |
| Oklahoma | $8,400 | $19,200 | $44,000 | $100 | 4.5% |
| Alabama | $8,505 | $19,440 | $44,550 | $200 | 4.0% |
| Arkansas | $8,505 | $19,440 | $44,550 | $45 | 6.5% |
| North Dakota | $8,610 | $19,680 | $45,100 | $135 | 5.0% |
| Iowa | $8,715 | $19,920 | $45,650 | $50 | 6.0% |
| Kansas | $8,715 | $19,920 | $45,650 | $160 | 6.5% |
| Missouri | $8,715 | $19,920 | $45,650 | $50 | 4.2% |
| South Dakota | $8,715 | $19,920 | $45,650 | $150 | 4.2% |
| Kentucky | $8,820 | $20,160 | $46,200 | $40 | 6.0% |
| Louisiana | $8,820 | $20,160 | $46,200 | $100 | 5.0% |
| Wyoming | $8,820 | $20,160 | $46,200 | $100 | 4.0% |
| Nebraska | $8,925 | $20,400 | $46,750 | $105 | 5.5% |
| Indiana | $9,030 | $20,640 | $47,300 | $95 | 7.0% |
| Michigan | $9,240 | $21,120 | $48,400 | $50 | 6.0% |
| Ohio | $9,240 | $21,120 | $48,400 | $99 | 5.8% |
| New Mexico | $9,450 | $21,600 | $49,500 | $50 | 4.9% |
| South Carolina | $9,450 | $21,600 | $49,500 | $110 | 6.0% |
| Wisconsin | $9,555 | $21,840 | $50,050 | $130 | 5.0% |
| 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% |
| Minnesota | $9,870 | $22,560 | $51,700 | $155 | 6.9% |
| Illinois | $9,975 | $22,800 | $52,250 | $150 | 6.3% |
| Idaho | $10,080 | $23,040 | $52,800 | $100 | 6.0% |
| North Carolina | $10,080 | $23,040 | $52,800 | $125 | 4.8% |
| Pennsylvania | $10,080 | $23,040 | $52,800 | $125 | 6.0% |
| Montana | $10,185 | $23,280 | $53,350 | $35 | 0.0% |
| Utah | $10,500 | $24,000 | $55,000 | $54 | 6.1% |
| Delaware | $10,920 | $24,960 | $57,200 | $110 | 0.0% |
| Nevada | $11,025 | $25,200 | $57,750 | $425 | 6.8% |
| Virginia | $11,235 | $25,680 | $58,850 | $100 | 5.3% |
| Vermont | $11,445 | $26,160 | $59,950 | $125 | 6.0% |
| Arizona | $11,550 | $26,400 | $60,500 | $50 | 5.6% |
| Colorado | $11,550 | $26,400 | $60,500 | $50 | 2.9% |
| Florida | $11,760 | $26,880 | $61,600 | $125 | 6.0% |
| Oregon | $11,760 | $26,880 | $61,600 | $100 | 0.0% |
| Rhode Island | $11,760 | $26,880 | $61,600 | $150 | 7.0% |
| Maine | $11,970 | $27,360 | $62,700 | $175 | 5.5% |
| 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% |
| Maryland | $12,705 | $29,040 | $66,550 | $100 | 6.0% |
| New Jersey | $13,125 | $30,000 | $68,750 | $125 | 6.6% |
| Alaska | $13,335 | $30,480 | $69,850 | $250 | 0.0% |
| New York | $14,595 | $33,360 | $76,450 | $200 | 4.0% |
| California | $15,960 | $36,480 | $83,600 | $70 | 7.3% |
| Massachusetts | $16,170 | $36,960 | $84,700 | $500 | 6.3% |
| Hawaii | $20,265 | $46,320 | $106,150 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$18,480
- West Virginia$18,480
- Oklahoma$19,200
- Alabama$19,440
- Arkansas$19,440
5 Most Expensive States
- Hawaii$46,320
- Massachusetts$36,960
- California$36,480
- New York$33,360
- Alaska$30,480
Frequently Asked Questions
Starting a property management company typically requires a mid-five-figure investment, including real estate licensing, property management software, liability and E&O insurance, and working capital while you build a portfolio.
At a typical management fee on mid-market rents, each unit generates a modest three-figure monthly fee. You need a few dozen units for a sustainable solo business 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 (a meaningful share of collected rent), a leasing fee (often a substantial share of first month's rent), a lease renewal fee, maintenance coordination markups on vendor invoices, and late payment fees. A 100-unit portfolio at typical fee rates on mid-market rents generates a healthy five-figure monthly gross.