Updated about 7 years ago on . Most recent reply
Questionable PM Fees for Leasing
I need opinions/advice. We bought a property that already had a tenant but not under a lease. We hired a property manager who did a background check and had him sign a lease. Our PM agreement says we will pay PM 50% of first month's rent "each time property is leased to new tenant." Is it standard to pay the fee if the property is already occupied with a tenant? Since he wasn't in a lease, would he be considered a "new tenant" now that he is in a lease? Just want to be fair but not charged unnecessarily. Thanks.