Do you think a 1100 MOVE IN FEE, is unreasonable?

25 Replies

I only use deposits and pet fees. Has never been any trouble for me. This might be a bigger headache in other states.

I also think “fees” are the next action tenants unions will lobby against. And trying To charge that large of a non refundable fee may put you at the forefront of that media  and lobbying campaign

what percentage of the rent is that? In my market if it were more then 50% maybe 60% of the rent I do not think it would fly. so it really depends on your market.

What problems are you having with refundable deposits?

Does the tenant know its non refundable? I dont know why anyone would agree to such a thing 

If you rent through a realtor isn't the fee 1 months rent. Or, if you buy a property with management services attached to it they have a whole bunch of fees just for paperwork. When I bought my first apartment I had to pay $700 just for submitting an application to building management for approval/denial.  What's the difference?

Originally posted by @Charlie Moore :

@John Underwood

The only thing that scares me is security deposits come with many rules and regulations

So just know the rules and abide by them. Shouldn't be scary if you are clear on what to do and how to do it.

 

@Charlie Moore -  I've started switching to Move in fees.  We do half of a normal security deposit.  People seem to like it once we explain the reasoning behind it.

Now we're learning about Surerty bonds, and will be coupling the two.  That should give us all the benefits of the added income from the fee, as well as the protection from the bond.

In general, we don't have trouble with security deposits. We follow local laws and document anything we hold back and send the tenant a detailed statement. What issues are you having?

Can folks share their reasoning behind move in fees?  Why would a tenant agree to a fee and without a security deposit dont they just leave a mess behind when they leave? 

Originally posted by @Nathan G. :

What problems are you having with refundable deposits?

Worried about disputes at end of tenancy! And having to put it in a bank and pay interest rubs me incredibly the wrong way

Originally posted by @Michael Ablan :

@Charlie Moore -  I've started switching to Move in fees.  We do half of a normal security deposit.  People seem to like it once we explain the reasoning behind it.

Now we're learning about Surerty bonds, and will be coupling the two.  That should give us all the benefits of the added income from the fee, as well as the protection from the bond.

Awesome! 

How do you explain it when tenants ask about it? The fee? 

I could really use this advice!

 

Originally posted by @Michael King :

An $1100 fee? I'd take the front door with me at the end of the lease, since I'd need to get something for my $1100. 

 You got something, you got an opportunity to rent a home

The security deposit is leverage to ensure the tenant abides by the contract and returns the property in good condition, hoping to get the money back.

If you charge them a non-refundable fee and no deposit, they'll know that the fee is already gone and they are far more likely to get that back from you by not paying the last month's rent, leaving the place filthy, stealing from you, etc. I'm a really honest person but if you charge me a non-refundable $300 fee, I'm not going to feel bad about leaving $300 worth of cleaning when I walk out the door. 

I think your idea is a bad one and it will come back to bite you.