Do you include Lease Fee Property Analysis?

[Eddie Werner]

It seems in many property analysis posts BPers use 10% as an estimate for monthly PM costs.

What about the leasing fee (which in my area is the first months rent)? The 10% PM rate would underestimate this expense. Are you adding the leasing fee in under miscellaneous expenses for the year or would you up the PM % to mathematically cover the possible leasing fee each year (or two years).

Example: SFH rents for $700/month. PM company charges $700 for leasing the unit then a flat rate of 10% a month for managing.

A basic analysis using the 10% PM fee would be $840 ($70 x 12).....but if the unit was leased that year it would be $700 + ($70 x 11) = $1,470.00

Using 18% as the PM fee factors in the possible leasing fee each year (worst case scenario)

Just curious how other investors factor this into their analysis??

Eddie