Hi Lenesia, I have heard about this type of fee. I noticed the lease renewal fee while reviewing the contract before signing, nothing hidden or shady about it. I have a question — I have been a commercial property manager for a large privately owned firm for over 30 years and I lease a townhome that I have lived in for the last five years. If you have one property and enough time to handle it on your own, hiring a manager may cut too deeply into your profit margin. The fee typically covers the work they will perform (drafting paperwork, negotiating terms with the tenant, making adjustments to the lease, etc.) I would say, yes, your property manager needs to provide some sort of proof that he has preformed the tenant screening and leased the property, but not necessarily by giving you copies of completed applications and background reports. The trade off for working with a property manager does mean less income from your property as the result of owed management fees. It can also help improve the landlord-tenant relationship because the property manager can take care of tenant concerns, helping make their experience smoother. Check your inbox for information about how to access your prize. Your car lease agreement likely requires you to pay a fee or two at the end of your car lease. This fee, called the disposition fee, helps the automaker cover the costs of selling a leased vehicle, and it’s usually equivalent to or a little more than one month’s lease payment. The fee typically covers the work they will perform (drafting paperwork, negotiating terms with the tenant, making adjustments to the lease, etc.) For example, if you agree to a one-year relationship but opt for self-management 10 months later, you may have to pay an early termination fee. You might need to bring a lawyer on board to help you with this one especially since you live out of state. I would check your state and local laws about utility charges. I'd much rather pay a renewal fee than have a turnover. Whats your overall view on this? However we are confident that Rera is doing everything to ensure these companies abide by not only the law, but best industry practices. Late Fee: If a tenant needs to pay a late fee for a late rent payment, a management company can choose to collect all or a portion of late fees charged to your tenants, or pass along 100% of late fees to you as the owner. You wouldn't believe it,but after all this the tenants decided to move out.All worked out well as we had 25 groups through the open inspection to rent and someone offered tenty five dollars more than the asking price to secure it at $750. For example, many managers charge an eviction fee when they have to help you get a tenant out. However, to buy your leased vehicle before it reaches the end of its term, you will usually have to be in the last six months of your lease, and even then it may be wisest to wait until your lease reaches its term. I understand paying a weeks rent when finding new tenants. The PM is HomeEncounter, for your info and for others that is one to avoid! If you’re in the process of expanding and you sign on with a property manager, their services can help tighten your overall rental property infrastructure. I would change agents…that is just rude. This year, for the first time, the property management firm has charged me, the Tenant, a $95 Lease Renewal Fee. Yikes, sounds like your property management company really likes to nickle and dime you for extra income. Hiring a full-service management company can make property management a hands-off experience. It wont hurt to ask. I like to negotiate one up front fee with clients that's both transparent and fair. no – for all new tenants a definite plus GST – but not a renewal – but there are a lot of bottom feeders out there. Lease renewals are a core workflow in property management that need to be executed with care and professionalism to get the desired outcome. Yes there was a deposit taken of $1250 so much of the redecorating costs were covered, but still out of pocket overall. The disposition fee is usually non-negotiable at the beginning of the lease and will not increase or decrease during lease period. get free cost estimates from property managers, How to hire a property management service. To answer your question, it is more normal to charge than not to charge. While not a solution, a potential remedy could be to get your property manager to sign a document that says the tenant they placed meets all the agreed upon tenant screening qualifications and if it turns out the manager did not verify the tenant’s background or the tenant does not meet these qualifications, the property manager is liable for any damages. Tresl will curate finance offers for you and manage the transaction process. So essentially, your property can collect whatever fees and percentage of income from you, as long as it in your contract. He is charging 1 month rent for tenant placement and on top charging 10% as management fee on gross monthly rent. I have other examples from last year that is in the same area of poor management. Free education topics for property managers, landlords, and tenants. You should also read reviews and ask for references. The tenant placement fee of one month’s rent would be for all the overhead to market and process rental applications.