Property Manager fees

[Robert Howard]

is it customary to give up the first month's rent to a property manager? Can some share what their agreement is with their PM.

[Laticia Braxton]

Hi Robert. I own a property management company and it is customary for a few reasons. Firstly, if your PM is also an agent, your rental listing goes onto the MLS (which gets your property in front of more renters) and the first month's rent then becomes a commission which is typically split between your PM and the agent who brings a tenant.

Secondly, there is work involved with placing the tenant (assuming your PM is a good one).  They need to process the application, verify employment, etc., get the lease signed, collect & deposit the security deposit, inspect the property, etc.  If my owner brings a tenant, I will lower the price but it is not free because there is work involved.  I hope this helps.  

Best of luck to you!