When you’re hiring a property management company in Orlando, you’re likely going to expect a monthly management fee. Most property managers also charge a leasing fee, and if this is less familiar to you, we’re discussing what a leasing fee is and why it’s important.
This leasing fee might also be called a tenant placement fee or a lease-up fee. Let’s discuss what it means for your Orlando rental property.
Orlando Leasing Fees: What They Cover
Leasing fees typically cover the cost of finding a tenant for your vacant Orlando rental property. You should expect your property manager to:
- Advertise and market your home. This includes taking great photos, setting up online ads, and following the performance of those ads.
- Establish a competitive and profitable rental value for your home based on market data. Your property manager should conduct a comparative market analysis to arrive at the correct price point.
- Respond quickly and completely to any tenant inquiries or question.
- Schedule showings at times that work for the prospective tenant. Some property managers show the properties in-person and others rely on technology like digital lockboxes, which allow tenants to let themselves in and look around.
- Collect applications.
- Screen prospective tenants in accordance with all fair housing laws.
- Collect security deposits, pet fees, first month’s rent, and other move-in funds.
- Conduct a move-in inspection with photos and reports.
- Discuss and sign the lease agreement.
As you can see, the leasing fee covers a lot of services that are needed before a tenant is even placed and before rent is even collected.
Leasing Fee Structures in Orlando
The amount you pay will depend on the Orlando property management company you choose. There may be different costs associated with specific types of properties, and you’re likely to get a per-unit discount if you’re bringing a management company an entire portfolio of properties to lease and manage.
Many property management companies will likely charge you a percentage of the first month’s rent. It may even be the equivalent of a whole month’s rent. Other companies will charge a flat fee, like $500 or $1,000.
You’ll also face different prices depending on whether you’re only looking for leasing services or if you’ll be using the same company for full-service property management going forward. The leasing costs will always be cheaper if you’re signing on for full-service management.
Why Leasing Fees are a Good Value
We understand why some landlords might bristle about paying for leasing fees before there’s a tenant in place or rent coming in. We know it cuts into your cash flow right out of the gate. But, a professional leasing process will make a big difference in the tenant you place, the way your property is protected and maintained, and the type of investment experience you have.
When leasing goes wrong, you can find yourself making expensive mistakes. There may be a fair housing claim against you. There may be a long and expensive vacancy period. Maybe you won’t price your property correctly or you’ll trust your instinct instead of the data that comes back on a screening report, and you’ll rent to the wrong tenant.
There’s a lot of room for error in the leasing process. Don’t take the chances. What you’re paying for more than covers the services you receive and the peace of mind you’ll earn.
If you need help leasing or managing an Orlando property, contact our team at Park Avenue Property Management.