Property Management Fees in Montgomery, AL: What to Expect in 2026

If you own rental property in Montgomery, Alabama, one of the first questions you'll ask is: what should I be paying for property management? The answer depends on a lot more than the monthly percentage. Setup fees, placement fees, maintenance markups, and renewal charges can quietly eat into your returns — and many companies aren't upfront about them.

We wrote this guide to give you a clear picture of what property management actually costs in Montgomery in 2026, what fees to watch out for, and how our pricing at James-Hawkins stacks up against the competition.

What Most Montgomery PM Companies Charge

After reviewing fee structures from property management companies across the Montgomery and River Region market, here's what you'll typically see:

• Monthly management fee: 8–10% of collected rent. This is industry standard. On a $1,000/month rental, you're paying $80–$100 per month.
• Leasing or placement fee: 50–100% of the first month's rent. This is the single biggest fee most owners overlook. On a $1,200/month property, that's $600–$1,200 every time a tenant turns over.
• Lease renewal fee: $150–$300. Some companies charge this every year when an existing tenant renews.
• Setup or onboarding fee: $200–$500. Charged once when you first sign up. Some companies also charge a cancellation or early termination fee if you leave.
• Maintenance markup: 10–20% on top of every vendor invoice. This is the hidden fee that costs owners the most over time — and the one most companies don't advertise.

That means on a single $1,100/month rental, a typical Montgomery PM company might cost you $110/month in management fees, $550–$1,100 per placement, $200–$300 per renewal, a $300 setup fee, and an extra 15% on every repair invoice. It adds up fast.

What James-Hawkins Actually Charges

Here's our full fee structure — no fine print, no surprises:

• Monthly management fee: 10% of collected rent. Industry standard — and you only pay when rent is collected. If your property is vacant, you pay nothing.
• Tenant placement fee: $200 flat. Not 50% of rent. Not 100% of rent. A flat $200 per new tenant placed. On a $1,100/month property, that saves you $350–$900 compared to most competitors.
• Lease renewal fee: $75. Less than half what most companies charge.
• Setup fee: $0. No onboarding fee. No startup cost. No cancellation penalty.
• Maintenance markup: None on repairs under $500. A 10% oversight fee may apply on repairs exceeding $500 — and we notify you in writing before any repair is subject to oversight fees. Most competitors mark up every invoice by 10–20% regardless of the amount.

Side-by-Side: James-Hawkins vs. Typical Montgomery PM

Here's what the numbers actually look like on a $1,100/month rental property over the course of a year, assuming one tenant placement and one $2,000 repair:

* 10% oversight fee applies only to the portion of repairs exceeding $500. On a $2,000 repair: 10% × $1,500 = $150. Repairs under $500 have no oversight fee.

That's a savings of $675 to $1,875 per year per property. If you own five rental properties, you could save $3,375–$9,375 annually by working with us instead of a typical Montgomery property manager.

The Placement Fee Is Where We Save You the Most

The single biggest difference is the tenant placement fee. Most property management companies in Montgomery charge 50–100% of the first month's rent to place a new tenant. That means every time a tenant moves out, you're paying $500–$1,200+ just to fill the vacancy.

At James-Hawkins, the placement fee is a flat $200 regardless of rent amount. Whether your property rents for $800 or $1,800 a month — you pay $200. Period. That includes marketing the property, showing it, screening applicants through 3-bureau background checks, and executing the lease.

On a property renting at $1,300/month where competitors charge 75% of first month's rent, you'd save $775 on a single placement. If you have three turnovers across your portfolio in a year, that's over $2,300 saved on placement fees alone.

No Maintenance Markup on Everyday Repairs

Here's a fee that most management companies don't advertise: maintenance markups. Many firms add 10–20% on top of every vendor invoice. A plumber charges $300? You pay $345–$360. An HVAC repair costs $2,000? You pay $2,200–$2,400. It's an extra cost you never agreed to and rarely see itemized.

At James-Hawkins, repairs under $500 are passed through at cost with zero markup. For larger repairs exceeding $500, a 10% oversight fee may apply — and we always notify you in writing before any fee is charged. You'll never be surprised by an inflated invoice.

Other Hidden Fees to Watch Out For

When comparing property managers in Montgomery, make sure you ask about these often-overlooked charges:

• Advertising or marketing fees — some companies charge extra to list your property. We don't.
• Inspection fees — some companies charge $75–$150 per property inspection. We include regular property oversight in our management fee.
• Accounting or statement fees — monthly owner statements and year-end tax documents should be included. We provide them at no extra charge through our owner portal.
• Early termination penalties — some companies lock you into 12-month contracts with a cancellation fee. We don't charge early termination fees.
• Vacancy fees — some companies charge a monthly fee even when your property is empty. At James-Hawkins, if we don't collect rent, we don't get paid.

What's Included in Our 10% Management Fee

Our monthly management fee covers the full scope of property management — not just collecting rent. Here's what you get:

• Online rent collection with automated tenant payment portals
• Monthly owner statements and year-end tax documentation
• 24/7 emergency maintenance coordination
• Vetted local vendor network — no markup on repairs under $500
• Section 8 compliance, HQS inspection prep, and HUD rent negotiations
• Lease enforcement, late fee collection, and eviction coordination
• Annual rent increase recommendations
• Transparent reporting through your online owner portal

We also retain late fees and NSF fees as part of our administrative compensation — these cover the real costs of chasing late payments so your management fee stays low.

Collections: What Happens When a Tenant Doesn't Pay

If a tenant is evicted or moves out with an unpaid balance, we refer the account to Hunter Warfield, a professional collections agency. Hunter Warfield retains 40% of all recovered funds, and James-Hawkins receives a 10% management fee on the net amount recovered. The collections agency is authorized to settle balances at up to 50% of the total owed. A $25 cancellation fee applies to accounts withdrawn after more than 5 days in collections.

This process is designed to maximize recovery without requiring you to chase down former tenants yourself.

Bottom Line: What You'll Save With James-Hawkins

Our management fee is competitive with the Montgomery market. But the real savings come from everything else: a flat $200 placement fee instead of $550–$1,100, a $75 renewal fee instead of $150–$300, zero setup fees, and no maintenance markups on repairs under $500.

For a single rental property, that's roughly $675–$1,875 per year in savings. For a five-property portfolio, you could save $3,375–$9,375 annually. The numbers speak for themselves.

Frequently Asked Questions About Property Management Fees

Is 10% of collected rent a good rate?
In Montgomery, 10% is the standard for full-service management. Some companies charge 8% but add fees elsewhere (maintenance markups, lease renewal fees, inspection charges). What matters is the total cost, not just the headline rate. Our 10% includes everything listed above with zero hidden fees.

What if my property is vacant — do I still pay the management fee?
No. Our management fee is based on collected rent. If the property is vacant, you pay nothing. This aligns our incentive with yours: we want your property occupied and generating income as quickly as possible.

How do your fees compare for Section 8 properties?
Same rate, same structure — but the value is even higher. Section 8 properties require additional compliance work: HQS inspection preparation, HAP contract administration, annual recertifications, and rent increase negotiations with the Housing Authority. Many companies charge extra for Section 8 compliance. We include it.

Is there a minimum number of properties?
No. We manage single-property owners and multi-unit portfolio investors with the same level of service. That said, our fee structure is the same whether you own 1 property or 20 — we don’t offer volume discounts because our standard rate is already competitive.

Can I switch to James-Hawkins from another property manager?
Yes, and we make the transition as smooth as possible. We handle the transfer of tenant relationships, security deposits, vendor contacts, and all documentation. Most transitions complete within 2–4 weeks. The most common reasons owners switch to us are hidden fees, poor communication, and maintenance markups at their current company.

Do you charge for lease renewals?
No. Lease renewals are included in your management fee. We proactively contact tenants before lease expiration, negotiate renewal terms, and handle the paperwork. Some companies charge $150–$300 per renewal — on a 5-property portfolio, that’s $750–$1,500/year in fees we don’t charge.

We're a 5.0-star rated property management company and licensed real estate brokerage serving Montgomery, Prattville, Millbrook, Wetumpka, Pike Road, and the surrounding River Region. Ready to see the difference? Schedule a free consultation — no commitment required.