Property Manager Lease Renewal Fees

[Erin Kilrain]

Wondering what the going rate is for Property Management (PM) lease renewal fees (same tenant, just renewing lease for another 12 months) I’m in Philadelphia and have seen anywhere from $0 renewal fee to a flat $200 per renewal to the entire first month’s rent again! I expected to pay the first month rent to get a new tenant but when it’s just admin work of sending the existing tenant basically the same lease and getting them to sign it, I can’t justify anything more than a nominal amount, especially when I’m paying them 8-10% each month to manage the property.

[Account Closed]

Hey Erin! Personally I charge 20% of the monthly rent as a renewal fee, this is due to a few factors.

1. I reach out to the tenants ninety days before their lease is up, asking if they'd like to renew. If yes, I work with them on the new rental rate, any changed terms, etc...

2. I need to create another lease for them, and either send it to them or schedule a time for them to come to the office and sign

3. If I renew with the current tenants, I'm saving the property owner the cost of turn over and placing a new tenant

There are many different fee structures that PM companies use, definitely look at all the areas you're being charged to determine if they are a good long term fit for you.