Leasing Fee

The leasing fee is the charge a property manager collects for marketing a vacant unit, showing it to prospects, screening applicants, and executing a signed lease. Industry standard is one half month's rent on the low end and one full month's rent on the high end, charged once per placement. Some PMs charge a flat placement fee of $400 to $900 instead. A typical single family rental with a 12 month lease gets hit with one leasing fee per tenant turnover, so lease turnover directly affects your return. If your PM charges a full month's rent every time a new tenant moves in and your tenants turn over every year, you are effectively giving back one full month of annual rent just on leasing fees. That is why tenant retention is so important. A good PM with strong retention can save you one or more leasing fees per year compared to a PM with high turnover. When comparing PMs, always look at both the management fee percentage and the leasing fee structure, because the total cost of service depends on both plus typical tenant tenure.