Property Management fee advice

[Giridhar Kumar]

I am trying to decide between two property management fee structures offered by a company.

Rent: $1340

Option A:
Monthly Management Fee: 6%
New Tenant Leasing Fee: 70% of Rent
Lease Renewal Fee: 35% of Rent

Option B:
Monthly Management Fee: 8%
New Tenant Leasing Fee: 70% of Rent
Lease Renewal Fee: $150 flat fee

All other terms remain the same and both the options offered by same company. Which option is better. I am thinking of taking option A (6% monthly fee with 35% renewal fee). Both options have the same annual cost with lease renewal. With new tenant lease, the annual cost is lower with the 6% fee option.

Appreciate your thoughts.

Thanks

[Theresa Harris]

Do the math...

option A 6%= $80/month, so $964 a year

renewal $469

$1433/yr

option B 8% =$107/month or $1286/yr

renewal $150

$1436/yr

I think a renewal fee of 35% is high just to get the tenants to sign the same lease.