Property Management Fees in Riyadh: An Owner’s Guide

What is the percentage applied to?

Ask whether the fee applies to rent actually collected, contracted rent or another amount. Clarify the treatment of vacant units, overdue payments and tenant discounts. Each affects what you pay and when.

Nestor’s published management rate is 8%. As an arithmetic example only, if your proposal applies 8% to SAR 100,000 of collected rent, the management fee would be SAR 8,000 before any tax or other charges specified in the proposal. This illustrates the calculation; it is not a quote for a particular property.

Separate these items in the proposal

• Ongoing management: payment follow-up, tenant communication and owner statements.
• Leasing: marketing, viewings, signing a new tenant and lease renewals.
• Maintenance: contractor labour and materials, plus any separate coordination or supervision fee.
• Other expenses: external service charges and work requested outside the agreed scope.
• Tax: whether the quoted amount includes any applicable tax or adds it separately.

How to compare two management proposals

Give each company the same brief: property type, district, unit count, occupancy, current leases and known maintenance needs. Request written exclusions instead of relying on a phrase such as ‘full management’.

Compare the schedule for transferring income, the reporting frequency, the spending threshold that requires your approval and how records are returned when the agreement ends. A lower percentage alone does not show how much work the team will take on.

Questions to ask before signing

• Are fees charged while a unit is vacant or a payment remains uncollected?
• Are leasing fees separate from the management fee?
• Who approves maintenance quotations, and how are invoices recorded?
• When will I receive income and statements, and who answers my questions?
• What are the agreement’s duration, termination and handover arrangements?