We are looking at our first property management contract for hire to our first rent house. I have always known that we would be paying the 10%, but this management service also takes the first months rent from every new tenant as well as 50% of the first month for tenants who renew their lease. Is this customary?
Hey @Sean Tippens Typically it's just a leasing fee of half month or 1 month of first month rent, not usually both
I've seen 1 months rent + 10% per month quite often. I've never seen the 50% for renewal though.
It is common to pay a leasing fee (placing a new tenant) and a renewal fee if they opt to renew for another year. Amounts vary and nobody can tell you what is "normal" for your market. Shop around, do your research, screen them like you would a tenant, and remember that cheaper doesn't mean better or put more money in your pocket.