PM Fees - Too Much or Normal?

[Chani Walker]

I'm helping my MIL get her apartment set up as a LTR in Memphis. She found a PM through a friend in the building and they sent me the contract to review. The fees seem far above what I expected, but I manage my own rentals in FL so am not familiar with PM fees in general. I have listed the fee structure below. If you have any experience or knowledge in the Memphis area, will you please share your insight as to whether this is a normal fee breakdown or too much. If too much, do you have any PM recs?

Management & Leasing Fees

1. Management Fee: 10% of the monthly rent = $180/month
2. Leasing Fee (Tenant Placement): 60% of one month’s rent = $1,080 (one-time)
3. Lease Renewal Fee: $250 per lease renewal

Upfront & Annual Fees

1. Onboarding Fee: $350 (one-time for setting up the property)
2. Annual Administrative Fee: $45 per year (for statements and 1099s)
3. Reserve Fund Requirement: $300 (held for maintenance and expenses)

Maintenance & Repairs

1. Ordinary Maintenance: Any repair costs exceeding $300 require owner approval.
2. Emergency Repairs: Up to $300 without prior approval; HVAC, plumbing, and electrical repairs can go up to $500 without approval.
3. Home Warranty Claim Handling: $40 per claim (if applicable).
4. Multiple Quotes Request Fee: $100 per request if you require multiple vendor quotes.
5. HVAC Filter Supply Fee: $195 per year per HVAC unit.
6. Repairs & Improvements: 10% markup over vendor invoice cost.

Additional Fees

1. Interest on Unpaid Sums: 10% late fee with a $39 minimum per month.
2. Paper Check Administrative Fee: $20 per check if not using direct deposit.
3. Insurance Documentation Penalty: $40 per month if proof of insurance is not provided.
4. Eviction Protection Program (Optional): $15/month
5. Property Damage Protection Program (Optional): $25/month

Termination Fees

1. Early Termination Fee: Equal to the management fees for the remaining lease term.
2. Vacant Property Termination Fee: $500 if no tenant is in place.
3. Transfer to Another Manager: $500 file transfer fee.

[Tina Sandoval]

Hi Chani. Looks like for the Memphis market these fees are right in line with most pm companies. If you need any additional help I will tag @Crawford Peay who is an experienced  property manager perhaps he can help.