Property Management Fee Structure Question
Hello Everyone,
What is the standard practice for applying (or not) both of the following in the first month of a new tenant placement: 1) the monthly property management fee; and 2) the leasing fee (1/2 of the monthly rate)?
For simplicity's sake we'll say:
- $1000/monthly rental rate
- 10% PM Fee to rents collected
- 1/2 Monthly Rental Rate for placing new tenant
- Move in date 1st day of the month
Which of the below fee calculations is the general practice in PM industry?
Scenario A - both fees collected (double dip)
$500 Leasing Fee + $100 PM Fee = $600 PM fees 1st Month
Scenario B - both fees collected (but prorated PM Fee)
$500 Leasing Fee + (10% of the remaining rent not applied to Leasing fee - or $50) = $550 total PM Fees 1st Month
Scenario C - only the leasing fee applied 1st month
$500 Leasing + $0 PM Fee = $500
Scenario D ???