Property Manager Lease Renewal Fees
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.
Most Popular Reply
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.