A leasing fee, also referred to as a procurement fee or tenant placement fee, is the price that some property managers charge for finding a suitable tenant for a property. This service may include background checks, prior eviction searches, financial verifications and more. Specific tasks the property manager will perform should be outlined in the contract. Not all companies charge a leasing fee, so always ask for details about specific costs before signing a contract, recommends Kroll with Choice Management Services Group. Leasing fees are included in the 10 percent management fee charged by Choice Management Services Group. Here are some examples of average leasing fees:
A vacancy fee is the amount of money the property owner pays to the management company when a property is vacant. Some companies have no vacancy fee, and some have a flat fee that applies when the property is empty (typically a lower cost than the standard monthly management fee). Others dictate vacancy fees based on "rents scheduled," which means the management fee for a property is the same regardless of whether it is vacant or rented to a tenant. This arrangement is typically the least favorable situation for the property owner.
Property managers may charge no lease-renewal fee, a flat rate, or a percentage of the scheduled rent each time a lease needs to be renewed with existing tenants. This fee is to cover the additional time and effort involved in making any lease modifications and getting tenants to sign the new lease. WrightDavis Property Management does not charge a lease-renewal fee, but Redleg Property Group charges a flat $150 lease-renewal fee.
Choice Management Services Group have been with the local BBB A+ rating since 1995