Unfortunately, since you signed a contract you are stuck, at least until the contract ends. There are a lot of brokers/property management companies that charge a list of fees, one being a lease renewal fee. Here is a list of commonly charged fees by some management companies, even here in Las Vegas.
Admin and/or Setup Fees - Personally, I don't believe in charging a fee just to hire a management company.
Lease Renewal Fees - It is both your and the management company's advantage to keep tenants long term. I consider this a junk fee. There is no laborious work involved to support this fee.
Maintenance Surcharges - Check with your state laws on this one as here in Nevada it is illegal, yet some still get away with it. I find it immoral to add a charge on top of the actual repair costs. Scheduling maintenance is a part of the property management job.
Vacancy Fees - By charging this fee there is no urgency to find a tenant. It's the management company's job to keep the property rented. Who else would you be willing to pay for not doing their job?
Marketing Fees - Typically agents use the MLS to list properties for sell or rent. Granted, they pay a fee to utilize the MLS but that is a business expense. It doesn't cost anymore to list 1 or 100 properties. Yet, another junk fee.
Annual Fees - This one really ruffles my feathers. Continuing services should be based on performance, not how much you pay. The word "Greed" comes to mind.
I am a successful professional property manager and I don't charge my clients any of these greedy fees, yet there are a lot of property management companies, brokerages, that do. The reason they charge them is because people keep paying them. I am sure any of them reading this will be very upset with me. They'll get over it.
A property management company can easily keep your property from profiting by charging you unnecessary fees to line their greedy pockets. I suggest you shop your local market and find a management company that isn't going to nickel and dime you in fees.
