Rental Property Investor / Construction Manager · Raleigh, NC · Member since 2015 · 201 posts · 103 votes
I am doing a little research on property management fees to understand what the typical fees property managers are charging and why they are justified. I am wondering if we can get a thread going on this topic with investors and PM's to identify any and all potential fees. I am interested in getting this list going as I am working on soliciting another PM in my area and want to understand what other folks are seeing.
To start the list...
1. Activation fee $________ (I am seeing 8.5% to 10%)
2. Leasing fee $_________ (Due each time a PM finds a new tenant?) (I am seeing 1/2 to 1 full months rent)
3. Monthly Mgmt fee $__________ (8.5% to 10% in my area)
4. Repair fee $_____or _____% (in addition to contractor fee) (0 to 10% in my area)
5. Renewal Fee $_________ (varies in my area)
6. Late Fee $_________
7. Other ?????
Please continue to list your additional fees that you may have seen. Thanks for the help.
Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
9y
Three basic fees, which I won't share here (legal/professional reasons) but which are same or better than shown:
Leasing fee negotiable/size of portfolio
Monthly management fee/negotiable
Renewal fee/negotiable
Eviction, inspections, move out/turnover management all included except for costs (filing fees, contractors, etc) and lastly, a small percent markup on repair services for the administrative load.
Oh, and sorry, we're aggressive about collection so we keep late fees.
Real Estate Agent · Rome, GA · Member since 2015 · 23 posts · 4 votes
9y
I am a with a property management company in Georgia and we get 6-10% of the rent and that is it. We do not believe in getting a half month to full months rent for just finding a tenant, we handle evictions at no cost to the property owner and there is no renewal fee.
Investor · Athens, GA · Member since 2011 · 306 posts · 156 votes
9y
The new economy of property management would suggest no "leasing fee" because that doesn't incentivize the manager to actually get the best tenant possible, but just a warm body who has the money ready up front. As soon as they stop paying, you at even more of a loss on top of eviction and cleanup costs, and the next tenant pays the manager a leasing fee all over again.
Most fees for our company are also kept by the company rather than owner because we are the ones sending out mail, making calls, following up on late payments, collecting what's owed, etc. Some people may not agree with that though and the owner should be entitled to some of the late fees.
Maybe a small renewal fee, but renewing for a manager makes their job that much easier because no turn over cleanup or repairs from end of lease to next.