Tenant placement services are a common feature of property management companies. These services make finding tenants and keeping leases fulfilled much easier. However, there are a few fees that come hand in hand with property management services. Discover more about lease-up and other fees that property management services might charge.
Lease-up Fee Explained
A part of a property manager’s job is to fill vacancies for your property. The lease-up fee covers all expenses that may occur when trying to find tenants. This includes property showings, applicant screenings, and compiling lease paperwork for signage. The property manager works hard to find the best and most reliable tenants each time a lease ends. The lease-up fee typically amounts to a percentage of the first month’s rent. Anywhere between 50 and 100 percent is common for the lease-up fee.Other Tenant Placement Service Fees
The lease-up fee isn’t the only fee associated with property management or tenant placement services. Some property management companies charge additional fees for vacant units. This fee funds the marketing, showings, and paperwork preparations for each month a unit is vacant. Once a tenant moves out, maintenance and updates are typically required. The property management company may charge a maintenance fee in order to perform these duties. Property managers often retain a maintenance crew that works directly with the company. Therefore, labor and material charges are common during the time of tenant replacement. Talk to your Centennial property management company about setting a limit on maintenance services and fees. Another item that falls under the tenant replacement umbrella is eviction. Property managers will navigate evictions for you, but at a cost. The eviction process can be a tedious one, as well. Management will need to successfully handle irresponsible or disgruntled tenants. Eviction fees cost up to 500 dollars, not including court and settlement costs. Some types of fees depend on how involved the property management company is with your rentals. Some management services are all-encompassing. They communicate directly with tenants for maintenance, emergencies, and processing payments. If there are delays in tenant payments, this directly impacts the quality of their services. So, late fees are collected on a case-by-case basis if tenants don’t pay on time. There are a few other fees that a property manager can charge. These include:- Monthly percentages
- Advertising fees
- Annual inspection fees
- A bounced check or deposit fees
- Administrative fees