You Deserve to Know Exactly What You’re Paying for in Phoenix Property Management
You Deserve to Know Exactly What You’re Paying for in Phoenix Property Management
You deserve to know exactly what you’re paying for — before you sign a property management agreement. Too often, landlords see ads promising “flat fees” or “10% management” only to find a long list of surprise charges buried deep in the fine print.
At Veracity Home Group, we believe transparency isn’t a marketing gimmick — it’s a professional responsibility. And in Arizona, it’s more than that — it’s the law.
In this post, we’ll unpack what Arizona statutes require, what “no hidden cost property management in Phoenix” truly means, and how to recognize the common traps that make some “simple” fee structures far more expensive than they appear. We’ll also break down the actual cost of some of the most common property management fees — from leasing and renewal charges to inspection and “technology” fees — so you can see how a 10% plan can quietly turn into 15% or more once the math is done.
Why “No Hidden Fees” Really Matters in Phoenix Property Management
When you hire a property manager, you’re trusting them with your income stream, your tenants, and one of your most valuable assets. That relationship should be built on clear expectations and mutual accountability.
Unfortunately, many landlords end up paying more than they expected once lease renewals, inspection charges, or administrative fees start appearing after the contract is signed.
Under A.R.S. § 32-2173, Arizona requires property management firms to:
- Write agreements in clear, unambiguous language,
- State all material terms and compensation in writing, and
- Explain how funds are collected, disbursed, and reported.
The intent is simple: every owner should understand what they’re agreeing to. While some companies technically “disclose” their fees, the law’s spirit is true transparency, not a maze of fine print and surprise add-ons.
What “Transparent Fee Structure” Really Means
A transparent fee structure shows every possible cost — upfront and in plain language — so landlords can calculate the true annual cost of management before signing.
A well-structured agreement should:
- Clearly define the monthly management fee and what services it includes.
- Disclose any one-time marketing or leasing costs, such as photography, listing placement, and advertising.
- Identify whether the company charges renewal, setup, or inspection fees, and how often they apply.
- Explain any optional or value-based services, like vacant property monitoring or seasonal inspections, so owners can choose them knowingly rather than discovering them later.
When every detail is spelled out clearly in writing, landlords can make fair comparisons between management companies and avoid surprises after the first renewal or tenant turnover. A well-documented agreement eliminates confusion about what’s included in the monthly fee versus what might appear later as an add-on. This clarity allows property owners to budget accurately, evaluate true costs, and make decisions based on service quality instead of guessing which company is hiding extra charges.
Companies that publish their fees online or provide a written summary of every potential cost show they understand what real transparency means. It’s not about advertising the lowest percentage — it’s about making sure clients understand what they’re paying for. A truly transparent firm makes its pricing easy to find, easy to read, and easy to verify — before a signature ever goes on the page.
See an example of our clearly itemized property management fee structure: [HERE]
Common Hidden Charges in Property Management Agreements
If you’ve ever searched for “rental firms with transparent fee structures and no hidden charges” or “fair and transparent fees in property management,” you’re not alone — most landlords are looking for the same thing: honesty. Everyone wants to know the real cost of management before signing, not find out later through renewal invoices or line items they didn’t expect. That’s exactly why understanding how to identify residential property managers with transparent fee structures matters so much. The goal isn’t just finding the lowest rate — it’s finding a company that puts every cost on the table from the start. Here’s what those hidden fees typically look like once you dig a little deeper.
All are legal — but none are transparent if the company markets itself as “flat-fee property management.”
- Setup or Onboarding Fees
- Charged before management even begins — $99 to $350 per property is typical.
- Leasing and Renewal Fees
- A leasing fee equal to half or even a full month’s rent (≈ $1,000 on a $2,000 rental).
- Then, when that same tenant renews, another $200 – $400 “renewal” fee appears.
- Administrative or Technology Fees
- Often $10 – $25 per month or an annual “reporting” fee. These seem small but compound across a portfolio.
- Inspection or Walk-Through Fees
- $95 – $125 each, sometimes required twice yearly.
- Eviction or Compliance Fees
- “Eviction administration,” “compliance,” or “tenant guarantee” fees may add another $300 – $400 per case — on top of the legal cost itself.
- Maintenance Mark-Ups
10–15 % added to vendor invoices or coordination charges that aren’t advertised online.
What Does Property Management Really Cost Me?
Step 1: Start With Your Monthly Management Fee
Begin by writing down the management fee you’ve been quoted. Let’s say your property rents for $2,500 per month and the company charges 8 percent. That means you’re paying $200 each month, or $2,400 per year.
That recurring $200 is your base cost—it’s the steady amount you’ll pay whether the company handles one repair or ten. Everything else you add later will build on top of this foundation, so it’s the best place to start when you’re calculating the real cost of management.
Step 2: Add all one-time or periodic charges
Next, list out every fee that can appear outside your base management cost. These one-time or periodic charges can make a big difference once you spread them out over the life of a lease.
Leasing or marketing fee: This can be a flat dollar amount, a percentage of the lease, or as much as one month’s rent depending on how advertising, showings, and tenant placement are handled.
Renewal fee: Some companies charge a flat fee or a small percentage of the rent each time a tenant renews.
Setup or onboarding fee: This can be a one-time charge — often a flat rate — to establish your account and process the property.
Inspection or walk-through fee: These can be billed once or twice per year, either as a flat fee or as part of a service package.
Administrative or technology fees: Some companies add recurring monthly costs for software, reporting, or online payment systems.
Add these to your total for the first year so you can see the complete picture of what property management actually costs you.
Step 3: Average it over the tenant’s stay
If your tenant stays about the national average of three years (36 months), you’ll likely pay one marketing fee, one leasing fee, two renewal fees, and at least three inspections during that time. Instead of treating these as one-time expenses, it helps to divide them across the full length of the tenancy so you can see what they actually add to your monthly cost.
Let’s say:
- Marketing fee: one month’s rent ($2,500) when you first list the property.
- Leasing fee:$300 when the tenant signs.
- Renewal fees:two at $300 each = $600 total.
- Inspections:three at $100 each = $300 total.
Spread over 36 months, that looks like this:
- $2,500 ÷ 36 = $69 per month
- $300 leasing fee ÷ 36 = $8 per month
- $600 renewals ÷ 36 = $17 per month
- $300 inspections ÷ 36 = $8 per month
Together, that’s about $102 per month added to your $200 base management fee, bringing your total to roughly $302 per month.
That means your real cost of property management works out to about 12.1 percent of rent, not the 8 percent headline rate you thought you were paying. Those small numbers matter, they raise your low percentage management rate 2-4% depending on what fees apply.
Step 4: Look for clarity, not perfection
The goal isn’t to find a company with zero fees — it’s to find one that tells you exactly what they are, when they occur, and why they exist. A good property manager shows you the full picture up front, so you can budget confidently instead of being surprised later.
When you add up every number and spread those costs across the life of a lease, the difference between advertised pricing and actual cost becomes clear. And that’s exactly what Arizona law intends to prevent. Under A.R.S. § 32-2173, property management firms are required to use plain language, disclose all material terms, and clearly state how they handle funds and compensation. The spirit of that law is full transparency — not fine print, hidden fees, or after-the-fact surprises. When every charge is visible and easy to understand, you’re not just complying with the law — you’re building trust, protecting your investment, and setting the foundation for a long-term partnership that works for both owner and manager.
Checklist: How to Identify Property Managers with Transparent Fee Structures
If you find yourself as a landlord searching “how to identify rental providers with transparent pricing” or “which residential property managers have transparent fee structures,” you’re already asking the right questions.
Here’s a simple checklist you can use to evaluate any company before you sign a management agreement:
- Ask for a full fee table before signing — not just a brochure or estimate.
- Confirm the leasing and renewal fees — they’re often the biggest add-ons.
- Look for “account setup” or “inspection” charges.
- Ask about maintenance mark-ups or coordination fees.
- Check if there’s a vacancy fee (some charge while the home is empty).
- Review the cancellation terms. Arizona law (§ 32-2173 A 1 d) requires cancellation provisions agreeable to both parties.
- Make sure compensation terms are clear. The statute (§ 32-2173 A 1 i) requires that payment terms be explicitly stated in writing.
If a company glosses over the details or gives general answers like “don’t worry, it’s standard,” take a moment to slow down and ask for those terms in writing. A truly transparent manager will be comfortable showing you every fee and condition before you agree to anything.
If you’re ready to work with a management team that believes in clarity, compliance, and no hidden charges, we’d be glad to help.
Contact Veracity Home Group to start a straightforward conversation about your rental goals — no surprises, just full transparency.
Why Transparency Matters Beyond Cost
Transparency isn’t just about saving money — it’s about:
- Budgeting accuracy: You can plan cash flow without “surprise” renewals or invoices.
- Fewer disputes: Clear terms prevent misunderstandings.
- Faster decisions: You know exactly what’s covered and what’s not.
- Trust: When everything is in writing, landlords feel confident and informed.
That’s why landlords searching for “residential property managers transparent fee structures” end up choosing firms that publish clear pricing and avoid jargon.
