Property Management fees

[Charlotte Goodman]

Newbie here. Checking out property  mangers in the SE NC. Things I've found % rate is 10-12% of gross rent. THEN the extras, companies want 100-150 PER RENEWAL to get tenants to sign contracts. Most PM want , I dont know what else to call this but "tribute fee" 100-150 if PM helps place your tenant and next year the same tenant renews directly with you, the owner. 

  Im flabbergasted by this. A couple will not charge any extra fees EXCEPT $500 "ON BOARDING" fee.  

  this appears to be extortion. 

so of i have 10 unit property 100-150 per door per year on top of 10-12% they are requiring?

make this make sense for me please. 

[Drew Sygit]

Quote from @Charlotte Goodman:

Newbie here. Checking out property  mangers in the SE NC. Things I've found % rate is 10-12% of gross rent. THEN the extras, companies want 100-150 PER RENEWAL to get tenants to sign contracts. Most PM want , I dont know what else to call this but "tribute fee" 100-150 if PM helps place your tenant and next year the same tenant renews directly with you, the owner. 

  Im flabbergasted by this. A couple will not charge any extra fees EXCEPT $500 "ON BOARDING" fee.  

  this appears to be extortion. 

so of i have 10 unit property 100-150 per door per year on top of 10-12% they are requiring?

make this make sense for me please. 

You obviously have no idea what's involved in a renewal and probably think it's just sending a new lease for tenant to sign:(

Questions you should consider to better understand & appreciate what a PROFESSIONAL renrewal process takes into consideration:

1) How is market rent determined?

2) How long has the tenant been in the rental home?

3) What's been the tenant's 12-month payment performance?

4) How many maintenance issues has the tenant reported in the last 12-months?

5) How many of those maintenance issues were tenant-related?

6) How easy it the tenant to deal with?

7) Who's doing a visit to the rental home to docuement how they are taking care of the home?

8) How many lease violations has the tenant had and how serious were they?

9) What happens if tenant wants a MTM lease only?

10) Who analyzes current rent, market rent, occupancy length and all of the above, to determine: 
--- If the tenant should be retained or not?
--- What amount of increase to propose to tenant?
--- Is it better to accept less than market rent, but avoid losses due to RentReady repairs and vacancy?

In the future, you may want to reconsider your aggressive & negative approach to issues you are clueless about.

Happy Holidays:)