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Post by buddysmom on Oct 19, 2023 17:09:16 GMT
I'll be renting out a condo soon; the prior tenant was a relative, great tenant for many years. I self-managed, no extra fees, etc.
I've recently hired a property manager. Here are their fees to the tenant--
$150 administrative fee $75 application fee (I think that is per person) 44.95 per month resident benefit package (includes renter's insurance, monthly air filters, possibly other things??) Plus our condo charges $100 application fee.
Also $500 non-refundable pet deposit and $25 per month per pet fee (I would receive that). I would prefer no pets so that is why it is set high. (I'm a super animal lover but people housebreak their pups at rentals-I've done it).
I might be $50-$100 high on the rent I've set which I can of course change if I don't get a potential tenant. So that would offset the fees and "resident benefit package."
Are these fees going to scare off potential renters or is this the norm?
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Post by MichyM on Oct 19, 2023 17:13:10 GMT
That “resident benefit package” sounds ridiculous to me. As to the pet fees, it’s YOUR property. If you don’t want tenants with pets, just say no
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snyder
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Apr 26, 2017 6:14:47 GMT
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Post by snyder on Oct 19, 2023 17:21:45 GMT
I do taxes for a a woman that rents out two of her condos that she owns. She has a property manager for them. None of the fees you listed are charged to the tenant. They are responsibe for their own renter's insurance. She pays the HOA fee herself, so in a since, that is probably built into the price of the rent.
So why would the property manger charge a $75 application fee as well as your condo chaging a $100 application fee? Or is the the association fee that the condo is charging?
I think all the fees you list could discourage some from wanting to live there.
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pilcas
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Aug 14, 2015 21:47:17 GMT
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Post by pilcas on Oct 19, 2023 17:24:21 GMT
The application fee and fee charged by the condo are fairly standard. The administrative fee paid by the tenant sounds strange to me as the administrator is working for you so you should be the one paying him, not the tenant. The resident fee sounds like a rip off honestly. Who needs monthly filters and where?
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Post by hop2 on Oct 19, 2023 17:27:20 GMT
I hope that those fees are known up front.
I personally think the fees are high. $150+$75+$100just to apply? That’s $325 and I don’t even have the apartment yet? That is a heck no from me. There is no way I’d have paid that. Maybe it’s normal, I don’t know but I did not pay that any time I rented.
Last application fee I paid was $25 - applied to rent if I leased the apt.
$45/month your going to have to get a lot of benefits for that! My renters insurance was well under $20 a month and quarterly air filter changes were included in my rent.
Maybe that’s normal in your area but I think it’s very high.
I hope you find great tenants for your space.
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rodeomom
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Jun 25, 2014 23:34:38 GMT
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Post by rodeomom on Oct 19, 2023 17:34:34 GMT
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Post by mom on Oct 19, 2023 17:46:17 GMT
Goodness. I hope the home will carry these fees. I've seen application fees. I've seen admin fees of like $25. But I have never seen app fees for the property manager, app fees for the condo, admin fees, AS WELL AS resident benefit packages.
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Post by **GypsyGirl** on Oct 19, 2023 18:18:08 GMT
Personally I feel like what you've outlined is very fee heavy and I would pass on looking at your condo. An administrative fee, an application fee AND a condo fee? And this is all before you know if you even have the apartment! I would also balk at the monthly 'resident benefit package'. By letting the property manager obtain the rental insurance I would have no control over the type/quality/amount of rental insurance. You can require a tenant to carry rental insurance (at least here) and provide proof of coverage to the landlord (you). DD is required to do this with her apartment and it works fine. We also required it when we rented out our house twice. As for filters, that is something that the rent should be covering. I understand that one of the fees most likely covers the cost of a background check (or would hope that's not an additional fee!), but it's still way too many fees IMO.
As for the pet deposit and monthly fee, those sound normal to me (in line with what DD is paying). But honestly, if you don't want pets & damage (pretty much a given), then just say No Pets. It's not the end of the world and will help keep your damages in check.
Also, you don't mention, but how much of the monthly rent received are you having to pay the management company? It's been 15 years since I've hired a property manager so things may have changed, but so far this all sounds excessive.
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Post by buddysmom on Oct 19, 2023 18:26:24 GMT
Also, you don't mention, but how much of the monthly rent received are you having to pay the management company? It's been 15 years since I've hired a property manager so things may have changed, but so far this all sounds excessive.
That is the thing--the norm seems to be 10% to the property manager. This one charges 7%, so a 3% difference. On a $2000 rent, that's about $60 per month. So I'm getting about $60 per month more--but the tenant is paying $45 (resident benefit package++) so the property manager is "giving" to me and "taking" about the same amount to the tenant.
Geez with all these weird fees, you'd think they were booking a hotel room or buying a concert ticket.
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Post by cadoodlebug on Oct 19, 2023 18:27:21 GMT
We have rental homes that we manage ourselves. All that we ask is for them to fill out an application and supply a credit report. No other fees involved. We select the renter we want and they move in. We charge below market rent and we maintain the landscaping. We pay the monthly HOA dues, we don't allow pets (we had to evict a longtime tenant after we found out he had a big dog who was previously his mothers.) Our tenants typically stay for a long time because they know they are getting an incredible deal for a nice home.
I think the fees you've outlined are excessive.
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Post by littlemama on Oct 19, 2023 18:36:16 GMT
Those fees are wild, especially the "renters insurance". You are supposed to get your own renters insurance which covers your belongings in the rental. I dont know what the "policy" they claim to provide is, but it cannot possibly be to cover contents as the mgmt company has no ability to know the value of the contents.
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Post by buddysmom on Oct 19, 2023 18:47:11 GMT
The "spin" that the management company puts on the rental insurance is that people will cancel their rental insurance and no one will know about it. They said the insurance covers 100K damage to the condo. Oh, and that "resident benefit package" includes credit building (they report to the credit bureau) and ID protection. (big deal...)
I got their name from someone else in our building that uses them. I'll give it this weekend and then probably drop the price.
And lol-I just got an ad from Life-Lock--I guess from typing ID protection.
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Nanner
Drama Llama
Posts: 5,987
Jun 25, 2014 23:13:23 GMT
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Post by Nanner on Oct 19, 2023 19:02:13 GMT
That's too high. I think I'd be talking to a different management company.
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Post by kkrenn on Oct 19, 2023 19:09:55 GMT
We would pass as those fees are excessive.
There is no way I'd allow someone else to obtain insurance foe MY belongings nor would I pay multiple application fees or extra monthly for filters that only need to be changed every 6 months.
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craftymom101
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Jul 31, 2014 5:23:25 GMT
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Post by craftymom101 on Oct 19, 2023 19:44:09 GMT
Many years ago, my dad was helping me by co-signing on a rental house for me. We applied for a house that charged $50 per application, so I paid the management company $100. A few days later I received an email that said I needed to pay an additional $50 and submit an application for my mom, since my parents were married. I declined, withdrew my application and received a refund for the application fee. $150 to apply for a rental seemed high to me (at the time).
I agree with the majority that the fees listed seem high. As a former renter, paying those fees would be a deal breaker for me when choosing where to rent.
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Post by **GypsyGirl** on Oct 19, 2023 20:04:06 GMT
The "spin" that the management company puts on the rental insurance is that people will cancel their rental insurance and no one will know about it.They said the insurance covers 100K damage to the condo. Oh, and that "resident benefit package" includes credit building (they report to the credit bureau) and ID protection. (big deal...) That's why apartments here require you provide proof of insurance each year. Very common for your insurance company to provide it. Sounds like they just don't want to do the follow up work and take the easy way out. As for the insurance covering damage to your condo, don't you already carry insurance for that? Can they claim on their policy as well as you claiming damages on your policy? Red flag there for me. Also, are they being up front with the renters that the insurance is coverage for the building and NOT for their belongings? Credit building sounds like a scam and ID protection does too. Makes me wonder what types of renters they are vetting for your place that need these services.
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Post by sabrinae on Oct 19, 2023 20:40:25 GMT
It sounds like this “property manager” is scamming residents who rent. Other than the pet fees those are excessive
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Post by myshelly on Oct 19, 2023 20:52:28 GMT
Very excessive fees.
The part about renters insurance feels super scammy to me. I wouldn’t let someone else pick my insurance coverage.
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Post by Basket1lady on Oct 19, 2023 20:55:01 GMT
While dh was active duty for 32 years, we rented. I’ve rented 17 houses/apartments in that time. Never once was I charged a fee for insurance or filters. The claim for “credit building” is nonsense IMO. We have had to provide proof of insurance. I would not have used their insurance and I can quite easily change a filter myself in seconds. But renters insurance covers our property, not the building.
As for the pet fees, I’ve seen (and paid) for them that high. But we generally rented higher end properties that were well upkept. In those 33 years, I got my deposits back each and every time.
As for credit reports, we generally paid about $80 the past few years. We usually just did DH as I haven’t had an income in 20+ years. But that is a way for a couple to hide problems—if there was an issue at one residence that was only under one name, they could just use the other’s name at the new place. Luckily we seems to exude trust, so we never had an issue.
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Post by myshelly on Oct 19, 2023 20:58:19 GMT
The "spin" that the management company puts on the rental insurance is that people will cancel their rental insurance and no one will know about it. They said the insurance covers 100K damage to the condo. Oh, and that "resident benefit package" includes credit building (they report to the credit bureau) and ID protection. (big deal...) I got their name from someone else in our building that uses them. I'll give it this weekend and then probably drop the price. And lol-I just got an ad from Life-Lock--I guess from typing ID protection. They are telling you some very questionable things about the insurance issue. I would ask to see the policy in writing. *You* should have an owners policy that covers damage to the condo and the *tenants* should have a policy that covers their belongings. The manager doesn’t need to be involved in (or charging a fee for) either.
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smartypants71
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Jun 25, 2014 22:47:49 GMT
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Post by smartypants71 on Oct 19, 2023 21:41:28 GMT
Yes, as everyone else has said, those fees are crazy high. Renters insurance is so cheap because it only covers their contents + loss of use and liability. Your insurance should cover the interior structure, and the condo association insurance should cover the outside. This year, my son got a new apartment. We only paid an application fee + a background check (i think?). We then submitted a copy of his renters insurance which is way cheaper than what is quoted above.
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Post by mom on Oct 20, 2023 2:19:12 GMT
The "spin" that the management company puts on the rental insurance is that people will cancel their rental insurance and no one will know about it.They said the insurance covers 100K damage to the condo. Oh, and that "resident benefit package" includes credit building (they report to the credit bureau) and ID protection. (big deal...) That's why apartments here require you provide proof of insurance each year. Very common for your insurance company to provide it. Sounds like they just don't want to do the follow up work and take the easy way out. As for the insurance covering damage to your condo, don't you already carry insurance for that? Can they claim on their policy as well as you claiming damages on your policy? Red flag there for me. Also, are they being up front with the renters that the insurance is coverage for the building and NOT for their belongings? Credit building sounds like a scam and ID protection does too. Makes me wonder what types of renters they are vetting for your place that need these services. I agree. HUGE red flag. Renters insurance covers the renters personal property. Home Owners insurance would cover the actual building/property.
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snyder
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Posts: 4,284
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Apr 26, 2017 6:14:47 GMT
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Post by snyder on Oct 20, 2023 2:54:37 GMT
That's why apartments here require you provide proof of insurance each year. Very common for your insurance company to provide it. Sounds like they just don't want to do the follow up work and take the easy way out. As for the insurance covering damage to your condo, don't you already carry insurance for that? Can they claim on their policy as well as you claiming damages on your policy? Red flag there for me. Also, are they being up front with the renters that the insurance is coverage for the building and NOT for their belongings? Credit building sounds like a scam and ID protection does too. Makes me wonder what types of renters they are vetting for your place that need these services. I agree. HUGE red flag. Renters insurance covers the renters personal property. Home Owners insurance would cover the actual building/property. I think this property management compay is a big red flag, but do think that the insurance thing is confusing for apartment and condos.
The person that owns the place insures the outside of the building, such as roof, siding. A renter is responsible for the inside of the apartment/condo, which includes the walls, fixtures, etc as well as their own personal belonging. There are two insurances for this, one that covers the interior of the rented space and I believe that is what is being covered by the property manager in the op's original post. The renter would still need to obtain renters insurance.
I think the whole thing is being explained to the op in a weird way. With them saying they are giving her this and the renter is giving this, so this happens is bass akwards to me.
Example $25,000 Rent for a year + 100 Applicaiton Fee from Renter $25,100
- 2,500 Management Fees - 2,009 Outside insurance because the op is the owner
- 600 Internal Insurance Cost with or without the "extra" stuff like filters
- 2,400 HOA Fee $17,600 Income to Owner that woudl be reported on taxes.
Should not be any more complicated than this.
ETA, Expenses like repair the plumbing would be dedcuted from the income as well, so that could be less if there are a lot of maintenance issues throughout the year.
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Post by Clair on Oct 20, 2023 4:11:43 GMT
I manage my rental houses myself.
The only fees I charge are:
- credit check cost (sometimes) It’s cheap - collecting the fee is sometimes more trouble than it’s worth. - renters insurance - only for new tenants - I don’t enforce on long term tenants - pet deposit or pet rent -I lean against having pets but I decide on a case by case basis if I allow them. I charge $25 per month or $500 (fully refundable) deposit. I also require a pet lease addendum
Just a tip about your rent being high - charge a fair rent but don’t over charge. Your tenants will be happier and thus make your life easier.
As cadoodlebug said - a better deal will get you l potentially long term tenants which is ideal.
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SweetieBsMom
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Posts: 4,739
Jun 25, 2014 19:55:12 GMT
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Post by SweetieBsMom on Oct 20, 2023 13:12:11 GMT
I manage my rental houses myself. The only fees I charge are: - credit check cost (sometimes) It’s cheap - collecting the fee is sometimes more trouble than it’s worth. - renters insurance - only for new tenants - I don’t enforce on long term tenants - pet deposit or pet rent -I lean against having pets but I decide on a case by case basis if I allow them. I charge $25 per month or $500 (fully refundable) deposit. I also require a pet lease addendum Just a tip about your rent being high - charge a fair rent but don’t over charge. Your tenants will be happier and thus make your life easier.
As cadoodlebug said - a better deal will get you l potentially long term tenants which is ideal. I haven't rented in about 19 years but prior to buying the house we rented for 7 years, a 2 bedroom in a 3 family house, we were the middle apartment. I loved our apartment, my mom actually found it for us (this was back in the days before internet and you had to comb the paper and DH and I were working so she was on top of it for us). It was 2 br, 1bth, big living room, big dining room, & big kitchen. LOVED it. We started renting at $650 and when we moved 7 years later we were paying $950. DH was talking to the upstairs neighbor one day and when he came in he said "you can NOT believe what Kendra is paying for rent!!! She's paying $1,500!!!". I said "please tell me you didn't tell her we're paying $950". He said he played dumb and said the wife handled the finances. He couldn't believe it. I told him it was because we NEVER bothered the landlord and paid our rent on time. In 7 years, I bothered the landlord once: There was honey dripping from the ceiling in the bedroom. It was a super hot summer and we could only run one AC at a time and typically we didn't put the bedroom AC on until we went to bed. Had to call the landlord who had to have someone come in and remove a massive bee hive, the honey was dripping b/c it was so hot. So our landlord kept our rent low to keep us there because he considered us good tenants.
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Post by MichyM on Oct 20, 2023 15:58:36 GMT
I want to clarify insurance for condos.
If I was to rent my condo there would be 3 policies paid by 3 entities.
1. Building coverage by HOA (and part of one’s monthly assessment). 2. Wall and interior features (pipes, lighting, heat, etc) by condo owner. 3. Belongings, paid by renter (renter’s insurance).
If the unit is owner occupied there will be 2 policies as numbers 2 & 3 would be a single policy.
Hope this helps.
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Post by auntkelly on Oct 20, 2023 16:22:40 GMT
If I were a renter, I would balk at the “benefits package” when I saw that they were going to change my filters once a month. That just sounds like an excuse to come in and check up on the renters. I would be especially wary if I were a single female.
On the one hand, I have nothing to hide, but on the other hand I value my privacy. I would only only want the owner or her agents entering the rental premises when there was a genuine maintenance issue.
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mamallama
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Sept 14, 2018 7:30:33 GMT
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Post by mamallama on Oct 20, 2023 16:25:32 GMT
I have never heard of an administrative fee that a renter had to cover and $75 is high for an application fee in my opinion. As someone who has rented in the past in a place where rentals were scarce, you can easily spend $100’s on prospective rentals that over 300 other people have applied for. The chances of getting the rental are slim to none but you won’t even be considered without the fee. I know some states have passed legislation that limits how much a landlord can charge for an application fee. I believe it is $45 max in my state. But $75 application fee then another $100 application fee to the condo? I wouldn’t even bother as a renter.
I think the pet deposit and extra rent are very fair. The condo fees are ridiculous in my opinion. You can get renters insurance for like $10 a month.
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peppermintpatty
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Post by peppermintpatty on Oct 20, 2023 17:16:22 GMT
Very excessive fees. The part about renters insurance feels super scammy to me. I wouldn’t let someone else pick my insurance coverage. It isn't unusal. My son is living in an apartment off campus at college and the leasing office charges $12/month for those who choose not to carry renter's insurance. When you provide the proof of insurance, they remove the charge. We had to carry a certain amount of renter's insurance. It was $60 for the entire year. As for the pet fees, if you don't want a pet there, don't allow pets. Why put it in there and jack up the fees to deter people from having one. Just say no.
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Post by buddysmom on Oct 20, 2023 17:26:57 GMT
Thanks for the replies. I thought the fees were high.
The a/c filters are mailed so no one stops by to snoop. So that's even less work for the property manager. I'm pretty picky about the a/c filter and I only changed it every three months (and took my tenant/relative out to dinner) but that was not your usual tenant/landlord relationship.
The condo and even the HOA where I live have an "entrance fee" so that's pretty standard around here.
I spoke to another owner who uses the same company and he said he has had no problem getting good renters from this company. But I agree, the $45 per month stuff is a money grab. I buy a/c filters for about $10 (and that's per every three months) and renter's insurance is about $15 per month. I have my homeowners/umbrella.
I'll see what happens over the weekend.
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