Ops Overhead Per Unit Calculator

Property management overhead varies by portfolio scale and operating model.

Total annual overhead

Unit count

Management fee %

Annual rent roll

Overhead per unit / yr

$1,250

Management fee collected

$630,000

Net margin to mgmt company

-$120,000

How the math works

Per unit = overhead ÷ units. Fee collected = rent × %. Net margin = fee − overhead.

$750k ÷ 600 units = $1,250/unit. $18M × 3.5% = $630k fee − $750k OH = -$120k loss. Scale up or raise fee.

How to Use

Enter total annual overhead.
Enter unit count.
Enter management fee %.
Enter annual rent roll.
Read per-unit overhead + margin.

Frequently Asked Questions

What is 'ops overhead'?

Everything the property management company charges or absorbs to operate: direct labor (on-site staff), indirect labor (regional managers, corporate overhead), technology (PMS/AMS software), marketing, training, legal & accounting, insurance, corporate rent, bad debt reserve. Per-unit varies dramatically: institutional Class A multifamily: $800-1,500/unit/yr. Value-add Class B/C: $400-900. SFR scattered: $1,000-2,000 (no economies of scale). Large portfolios achieve lower per-unit overhead.

Self-manage vs third-party?

Self-manage: full control, can overcomehead into other portfolio, flexible. Third-party (Greystar, Cortland, Bell): economies of scale, professional systems, lower cost above 500 units, recruiting advantage. Breakeven typically at 100-300 units — below that self-managing, above typically third-party. Hybrid: asset manager + third-party on-site staffing common in institutional. Don't skip either end of the analysis; running the math matters.

Management fee structure?

Typical third-party: 3-5% of effective gross income (EGI) for large stabilized properties. 5-8% for smaller (<200 unit) or new assets. Sometimes flat per-unit ($45-95/unit/mo common). Plus leasing commissions (half-month rent per new lease is standard). Plus construction management fee (8-15% of capex). Plus reimbursable costs. Institutional negotiation levers: volume discount, fee cap at $X/unit, leasing included in base fee, no reimbursables above threshold.

How to benchmark?

Compare: (1) cost per unit vs regional peer median (NMHC Survey, IREM Report, Yardi Matrix), (2) % of EGI vs similar portfolios, (3) turnover cost per unit vs market, (4) leasing cost vs industry. Outliers at 20%+ above peers usually indicate: scale inefficiency, outsourced to premium provider without justification, or management company price gouging. Routine quarterly benchmarking catches drift. Worth $10-25k/year in consultant fees to get third-party review.