property managers , lease up fee?

[Gabe G.]

Do all decent property managers charge a "lease up" fee. Most I have talked to seem to charge 1/2months rent on renewals, and 1 month on new lease ups.

Is that the best you are getting? Obviously the renewal and lease up fees, jack the annual percentage rate up pretty good.

Thank you!

[Ricky A.]

I think it depends on the company.

In my area of North Carolina, I have spoken with two PM firms. One charges approximately 1 month's rent for ANY lease--new or renewal.

The other company charges a one-time placement fee (now about $400) when you FIRST place a property with them and nothing based on the signed lease.

I happen to first sign with the 2nd one just based on referrals. I only spoke with the 1st one because I had some small issues mostly around reporting. However, those problems weren't nearly enough to pay even half a month's rent on subsequent renewals. I just say that to point out that both companies are reputable, professional PM companies.

That said, I think everything is negotiable. All the work is in the original lease, so renewals should only deserve a nominal fee if any. I would see if I could argue a better rate and if I couldn't, I'd try to determine if it's worth it.