Today we are addressing a question that we hear a lot from Santa Cruz property owners, and that is: What is a leasing fee?
Property management companies will generally manage properties on a full time basis on behalf of the property owner. Sometimes, owners want to manage those properties themselves. There are some property management companies (not all of them) that will provide tenant placement services only. The leasing fee is what a property management company charges to lease up the property whether they manage or the owner manages.
The leasing fee covers all the work involved in getting a home leased. This includes showing the property, screening all the applicants and finding a good tenant who will get approved. Then, the property manager puts together the lease paperwork and conducts the move in process for the property. Once the lease is signed with the tenant, everything gets turned over to the property owner for ongoing management or the property is now being managed full time by the management company. Most property managers who perform this service will charge a percentage of the first month’s rent as a leasing fee. The fee charged for Tenant Placement only tends to be higher than when the management company keeps the property under management.
If you have any questions about this, please contact us at Portola Property Management, and we’d be glad to talk to you.
