Real Estate Investor · Lake Mary, FL · Member since 2016 · 11 posts · 1 vote
I'll be renting out a condo soon; the prior tenant was a relative, great tenant for many years. I self-managed, no extra fees, etc.
I've recently hired a property manager. Here are their fees to the tenant--
$150 administrative fee $75 application fee (I think that is per person) 44.95 per month resident benefit package (includes renter's insurance, monthly air filters, credit building, I.D. protection) --mostly a cash grab Plus our condo charges $100 application fee.
I might be $50-$100 high on the rent I've set which I can of course change if I don't get a potential tenant.
Their monthly charge is 7% whereas the standard seems about 10%. So the tenant is basically paying the difference on a $2K rental.
Are these fees going to scare off potential renters or is this the norm?
$400 (for 2 people $150+$75+$75+$100) of (junk) fees is really high (and you do not even make a penny on this). It will scare off some renters wanting to rent for just 1 year. As you mentioned, the tenant is now covering part of your management fees. I would make sure that tenants are aware of all the fees in the rental listing.
I'll be renting out a condo soon; the prior tenant was a relative, great tenant for many years. I self-managed, no extra fees, etc.
I've recently hired a property manager. Here are their fees to the tenant--
$150 administrative fee $75 application fee (I think that is per person) 44.95 per month resident benefit package (includes renter's insurance, monthly air filters, credit building, I.D. protection) --mostly a cash grab Plus our condo charges $100 application fee.
I might be $50-$100 high on the rent I've set which I can of course change if I don't get a potential tenant.
Their monthly charge is 7% whereas the standard seems about 10%. So the tenant is basically paying the difference on a $2K rental.
Are these fees going to scare off potential renters or is this the norm?
Thanks!
Yes I think this will deter people from applying. $75 application fee is higher than standard (in Delaware at least) and then a condo fee as well. I would ask what the condo fee covers and see if you need both. These discounted management companies generally make up the difference somewhere else.
most companies not charging 10%, in my experiences, are making it up elsewhere. It all costs us the same to do business. The owner benefit package is BS but pretty much everyone does it because it makes so much money every year. However you can't go after it if the owner doesn't pay in the way you can go after rent in court. $75 is pretty standard for the fees. We charge 10% plus the first months rent to the owner and then $75 application fee to our potential tenants. For 7% make sure they're doing everything for you and have a 24 hour person on call.