Re-Lease Fee to Property Managers
I own rental properties in 5 different states and everyone does things differently. In most of the ares I have more than 5 rentals so I am usually able to negotiate a good deal.
My question is about a re-lease fee....
What is a release fee: When your current tenants lease runs out, you pay the property manager a fee to have them sign a new lease. (LITTLE TO NO WORK, IN MY OPINION.)
My thoughts against it: It is almost no work. Like you send a easy 1 page doc-u-sign to them. Done. My managers in IL and PA are charging 1/2 months rent for this.
My thoughts for it: Mostly I don't trust that people won't act in their own self-interest and if I negotiate it the re-lease fee out of the deal I think they will try to get tenants to move out after their lease so they can make a full lease up fee. This will cost me way more in the long run.
What do you think?