Is my management company charging too much?

Greetings to all! I just purchased 2 duplexes in the area of Albany, NY. I met a lawyer during the time of closing who’s also managing properties in the area. In fact he’s the seller’s lawyer and he owns some properties. He told me that the management fee is 10% which I understand is the standard. However, he mentioned that 50% of the rent will be charged for new tenants. Meaning each new tenants that he rents the apartment to, he will charge me 50% of the rent for the first month. Is this a standard? Or is it too much. I like him due to the fact that he’s a RE lawyer and he knows the area well. Any advice on this one? Thanks to all!

I have heard of that before. It sucks though. I try to do my best without a Management Company. I hate giving up money.

It’s reasonable, and this is typical of the leasing fees I have paid in several areas of the country.

When you consider that the leasing fee helps offset the costs of showing the property (many times getting a noshow), perhaps advertising the property for rent, taking the tenant application, getting previous landlord references, and then executing a lease on your behalf, 50% of the first full month’s rent seems reasonable.

I have one management company that charges 96%, another charges 60%. A third company I use charges a 50% leasing fee but does not charge the 10% management fee for that month.

These fees only apply when I have tenant turnover. If the existing tenant is just renewing his/her lease, then lease renewal fees have a different fee schedule – anywhere from $50 to as much as 25%.