Property Management Leasing Fees

[John Cimino]

I am currently self managing my first rental property(A duplex) in Wilmington, DE but with my next property I would like to try out a management company.  My major concern when researching various companies is the leasing fee. In the Delaware market it seems typical for the property management company to charge a full month's rent.  This seems fair because marketing and showing a rental is a significant amount of work, but if the tenant is evicted after a few months I stand to lose some significant money.  Has anybody had luck negotiating a full/partial refund in this situation?  I would like to ensure that the management company has incentive of choose a good tenant rather than filling the unit as fast as possible. 

[Tim Shin]

Hi @John Cimino. I don't know about Newark, Delaware, but here in Houston there are some larger property management companies that do "lease guarantees" where if your tenant that THEY found leaves or is evicted early, they will find you a replacement and pay for the lost rents. You might check out larger companies and ask if they do lease guarantees. I think they may be up to 6 months reimbursement for a 12 month lease and maybe 18 months for a 2 year lease.