While it might feel like an extra charge to tenants, these packages often provide value that indirectly benefits the property owner as well—like reduced maintenance calls or ensuring the property is better protected.In my experience managing a large portfolio of properties, these fees are becoming more common due to the thin margins in property management.

It adds extra protection for your assets.

Larger brokerages sometimes are in need of administrative work, which could earn you a steady income while also getting exposure to the field. 

Most investors let the tenants pay down the mortgage and use extra money for their down payment on their next rental.  

At 6% I’ve only saved $360k, but you would have saved $720k, an extra $72k/yr.

With some more math, you’ll see that the extra amount in dollars is not that much compared to the total amount of interest paid.

Hi All,
I own investment properties in Virginia Beach and Hampton Virginia.  Two years ago I started a maid company in Hampton Road Virginia.  While I have grown my client base to a respectable number, I've struggled...

I like to believe I earned their trust for when I need to borrow from them again.

The only question is if the increased risk of loss is worth the extra return. 

Although it isn't some miraculous contract that will hold a buyer hostage, there can be repercussions to you and/or the agent you eventually earn a commission with.