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Updated about 9 years ago,

User Stats

136
Posts
62
Votes
James Paine
  • San Diego, CA
62
Votes |
136
Posts

Re-Lease Fee to Property Managers

James Paine
  • San Diego, CA
Posted

I own rental properties in 5 different states and everyone does things differently.  In most of the ares I have more than 5 rentals so I am usually able to negotiate a good deal.  

My question is about a re-lease fee....

What is a release fee:  When your current tenants lease runs out, you pay the property manager a fee to have them sign a new lease.  (LITTLE TO NO WORK, IN MY OPINION.)

My thoughts against it:  It is almost no work.  Like you send a easy 1 page doc-u-sign to them.  Done.  My managers in IL and PA are charging 1/2 months rent for this. 

My thoughts for it:  Mostly I don't trust that people won't act in their own self-interest and if I negotiate it the re-lease fee out of the deal I think they will try to get tenants to move out after their lease so they can make a full lease up fee.  This will cost me way more in the long run. 

What do you think? 

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