Cleveland Property Manager Fees

[Jeff He]

Is it normal for a Property Manager to charge a $50/unit vacancy fee when the property is vacant?

"A monthly fee of $50.00 per unit per month for all vacant single family residences and multi-family residences.

Is it also normal for PMs to charge a $100 electronic lockbox/showing fee on top of the 1 month's rent placement fee?

"Electronic lockbox for showings and 3-D virtual tour $100.00"

[Nathan Gesner]

There is no "normal" because every company does things how they see fit and by what the market supports. There are some managers that charge a "minimum management fee" even when a rental is vacant, then they charge a percentage of rent collected when it is occupied. Most property managers do not charge that fee but there are many that do.

Same with the electronic lockbox fee. I've actually never seen that one and it doesn't make sense. If they use a lockbox to show the property, that means an agent doesn't have to travel to the property to show it, which is saving the PM money and time. I would get the details on this one and push back, or at least ask for justification. 

I'll bet dollars to donuts your PM also charges a leasing fee every time a property turns over. That leasing fee should cover the PM costs, so why would they add a minimum management fee and a lockbox fee on top of that? It sounds like way too much to me.

Read your PM agreement. All fees should be fully disclosed before you signed on the dotted line. If not, contest it.