Property Management Fees

[Christopher Goll]

I am close to purchasing a turnkey property from a company and I just asked to review their PM contract and fees.  In addition to 8% of rent and other miscellaneous fees, there appears to be something I find concerning.  A one time leasing fee.

ONE TIME LEASING FEE: One full month’s rent per new lease; the leasing fee is exclusive of any tenant discounts or rent specials given to the tenant as a rental incentive.

Is this normal?  If so, this would mean the PM company actually keeps 15.6% for every one year lease signed.