Property Managment - Tenant Placement Fee?

[Charles Pridgen]

Curious, is it common for a property management company to charge a fee that’s 100% of first month’s rent upon place a new guaranteed tenant? If so, is this negotiable? Thanks

[Ethan Jacobsen]

Yeah, it depends on where you are. Tenant placement fees are a little odd in my opinion since it isn't always aligned with the owners goals. As an owner, you want to minimize vacancy, but as a property manager that charges a tenant placement fee, you would be incentivized to get a new tenant placed every year with that kind of fee in place. We don't charge a fee at all for tenant placement - everything is covered under the standard management fee. However, some of our competitors charge $250-$400 as a tenant placement fee. So like @Drew Sygit said, it really depends on the area.