PM asking for 50% of Rent for New Lease and 25% for Lease Renewal

[Puneet Sharma]

Is it normal for Property Management companies to ask for 50% of first month's rent for a new lease and 25% for every lease renewal. There's no cap to this amount. I have seen this is in two different markets though not every PM asks for it. I was just wondering if this is normal and acceptable. 

[Bill B.]

It’s totally market dependent. I pay $300 to place a tenant because 50-100% of $2500-$3,000 would be insane. But I could see 25-50%  for $500-$750/mo rentals. I really don’t mind that fee, but $150 renewal bothers me a little since it’s an email with the terms I set. 

I just don't want them incentivized to desire turnover. With long term SFH, 8% is good pretty good money.