What is the term for the percentage of rental income that property management companies typically charge?

The term for the percentage of rental income that property management companies typically charge is "management fee." This fee is intended to compensate property managers for their services in overseeing the property, which can include tasks such as finding tenants, handling leases, collecting rent, and maintaining the property.

Management fees are often calculated as a percentage of the gross rental income, making it a performance-based cost for property owners. This alignment of interests encourages property managers to maximize rental income, which benefits both the property owner and the management company.

While the terms "service fee" and "commission rate" might seem similar, they do not specifically refer to the ongoing percentage charged on rental income for property management services. A "rental fee," on the other hand, typically refers to what tenants pay to occupy the rental property, rather than a fee levied by property managers for managing that property.