PM charging Administrative Move In Fees and lease signing fee

8 Replies

I posted this in the regional subsection, but figured here would get more responses.  We have a property that has become available for rent at the beginning of December. I have been looking around at the listings on craigslist, hotpads, zillow and noticed there is a $225 "Administrative Move In fee" listed. This fee is not disclosed in the PM's contract. There is a full months rent though that is listed for placing a tenant. I have asked but have not gotten an answer from the PM about this.

This is not a fee that I am familiar with and seems like it could be stopping potential tenants from renting the units. Is anyone familiar with this?  


Yes, PM can charge a full month rent for commission most of the time the Landlord pay the commission. Best of luck

Many PMs charge an admin fee.  This often covers the expense for running credit and processing the application.  I agree that it seems excessive.  You would think that the lease up fee (1 month) would cover all of that, but I guess they like to double dip.  THey don't want credit check charges coming out of their commission.

Maybe you could negotiate a lower fee for the admin, or offer tenants the ability to go through an online service to provide their credit or screening.


Our administration fee covers the professional Inspection fee charged by a third party, by th way is no cost to th owner. It also covers our time to he the house ready, meet Co tractors, or staffs processing the paperwork, etc.... the Leasing fee covers the agents time for going to show the property numerous times, gas, and referral fees if an outside agent brings a prospect. 

There is so much that goes into Leasing a property than just putting up a sign and someone just shows up and bam! It’s all done. If anyone has run a business, they know the processes and procedures cost money, staffing and time

@Sean Dawson the property manager should disclose all fees charged to you. Contact them and ask. I suspect it's probably a fee they are charging to the tenant.

Seems like it might be something that was missed in the contract either by your or the PM company. Does seem excessive but Kim does make a good point above. Sounds like this company offers a lot of quality services if they are doing all that. I've never hired an outside company to manage for me so I'm not sure what constitutes quality.

Thanks for the replies. 

No, this was not disclosed in the management agreement.  This is a fee that is charged to the tenant.

The problem as I see it , other than what other fees are out there that have not been disclosed, is that the tenant has to come up with more money to rent one of our places.  1st months rent, security deposit and this fee may have qualified tenants looking elsewhere to rent where there is not an additional fee.  

@Kim Meredith Hampton , we manage some of our own properties in the town we live in so I am well aware of what it takes to lease a unit.  That is what the 1 months rent fee for renting the unit should cover in our opinion.  

This is not a fee that I see in our market hence my questioning of it.  


Thanks for posting this, as I will now know to check with any PM I may use in the future regarding ALL fees they charge, including to applicants/tenants. Sure, there is work that goes into renting a unit: thats why they are paid a commision. If the amount they charge (even to applicants) seems excessive, may be time to look for a better rate elsewhere.

I would be very unhappy if my PM charged more than $25-50 for an application fee...which is what an administration fee must be. A small charge us expected as it pays for the initial screen and serves to weed out all but serious applicants who meet the leasing criteria. If your application fee is $200 higher than anyone else’s, then I would expect your unit to be one if the last to be rented.

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