Below you will find an overview of each of the fees you may be charged for management and leasing services. There may be some exceptions depending on the terms of your management agreement. All fees are deducted from the property owner's portfolio income as it is available (some exceptions may apply) to avoid an owner having to make a payment and increase their work and involvement.
Management Fee: This fee is generally a percentage of collected rental income, although it may be a flat monthly fee in some cases. This fee includes general management services from rent collection, client/tenant relations, lease enforcement and oversight, and many general activities which often come up in the management process.
Leasing Fee: A leasing fee is charged to a property owner each time a vacant unit is leased to a new tenant. This fee includes the advertising of the unit (unless a separate advertising fee is agreed to), answering of calls from prospective renters, scheduling of showings, periodic vacancy inspections to check condition and security, screening of applicants to find the best possible tenants, negotiating terms, drafting and executing a signed lease agreement, collecting funds, setting up accounts, and creating positive relationships in the process.
Lease Renewal Fee: A lease renewal fee is charged to a property owner once a lease with an existing tenant is renewed for another term. This covers the back and forth communication, audit of accounts, preparing of documents, and execution of a new lease.