Managing your rental
A flat fee stays the same and a percentage rises with the rent. See what each costs at Ontario rents, when a percentage is cheaper and how to compare quotes.
By the Tenant.ca teamUpdated 3 min read
It depends on your rent. A flat fee is a fixed dollar amount for each unit. A percentage fee is a share of the rent, so it rises when the rent does. At lower rents a percentage can cost less; at higher rents a flat fee usually does. What decides it in the end is your rent and what each quote leaves out.
These are monthly amounts before HST. The rates are illustrations, not quotes from any manager. Tenant.ca's fee is $98 a month plus HST for a condo or apartment and from $148 a month plus HST for a house, whatever the rent.
| Monthly rent | 6% | 8% | 10% |
|---|---|---|---|
| $1,200 | $72 | $96 | $120 |
| $1,500 | $90 | $120 | $150 |
| $2,000 | $120 | $160 | $200 |
| $2,500 | $150 | $200 | $250 |
| $3,000 | $180 | $240 | $300 |
A flat fee of $98 a month equals 10% of a $980 rent, 8% of a $1,225 rent and 6% of a $1,633 rent. Below those rents the percentage costs less; above them the flat fee does.
For a house at $148 a month, the same points are 10% of $1,480, 8% of $1,850 and 6% of $2,467.
Two quotes with the same rate can cost very different amounts over a year. Ask about each of these, in dollars.
Work out each quote for 12 months at your actual rent, then add every separate charge you would expect in that year. Do the same for a year with a tenant turnover, since that is when many charges appear. Compare both before HST or both after it.
Neither structure guarantees better service. Read what each fee covers and who does the work: a low fee with little included can cost more than a higher one that covers the job.
Management fees are among the rental expenses the Canada Revenue Agency lets you deduct, so compare them before and after tax with your accountant if the difference is close.
