I've been listening to a lot of property management related podcasts lately to continue to improve. One thing I found interesting was that a lot of management companies have a significant portion of their income come from fees that aren't part of their management fee rate. What are fees that you charge to help grow your income? (Lease renewals, extra keys, lockout, etc.) Do these fees deter your tenants from renewing leases, or don't they think twice about them? Thank you.
We don't charge enough fees to tenants and the only fees I charge to the owners is a renewal fee and maintenance/repair coordination fee. I've never charged tenants for lockout because I'd rather let them in than replace a door jamb. I do intend on starting to charge tenants a notice fee for any notices that we send out because to many tenants see them notices as grace periods to pay rent.
If tenants cause you to do any extra work. Charge a fee. Late fee,posting fee, nsf fee, lock,out fee, coordination of repairs after move out of tenant damage and the list can go on and on. You don't work for free as a Property manager. If you set the tone that you will do anything and not charge you will be working for free. You don't have to charge a lot be reasonable and fair. I like to remind them they are renting a house and not a hotel room. I am not the front desk waiting to do whatever they don't want do
The property managers I work with have 3 major fees. Monthly fee: 8-10 percent. Maintenance coordination fee: 10-15 percent mark up. Most maintenance is under 200 bucks so this is usually nominal.
Tenant placement: one month rent. Lease renewal: 100-200