Property Management Fee Negotiation

[Grant R.]

I'm located in the Midwest U.S., and have experience with 2 previous property managers.  I'm looking now at a 3rd PM, and have found a lot of extra fees that I haven't paid before.  Are these fees considered appropriate, or have you negotiated them out or lowered them?  Let me know your thoughts - thanks!

> Fee for every new tenant equal to 50% of 1 month's rent
> Fee for to renew lease of an existing tenant:  $140 (WHY)
> 6-month walk through/inspection fee:  $90
> Outside vendors fee for repairs:  oversight fee of 10% vendor's invoice
> Outside major repair fees (insurance claims, etc.):  oversight fee of 20% vendor's invoice

[Aaron K.]

1. Very common, can be negotiated depending on price point of your rentals

2.  Common, but in my opinion very unnecessary, I avoid companies with that fee

3. That is a little high, especially if it is just the PM and not someone with a construction background but that can be useful

4. I avoid any company with this fee, it incentivizes them to get more expensive repairs, you want your incentives aligned with your PM

5. I avoid companies with this fee as well, but I also wouldn't trust a PM to fully handle a large repair or remodel without input from me.