A leasing fee is a one-time fee a property manager charges for finding a new tenant and signing the lease. It is usually half to one month of rent.
How it works
The leasing fee pays for the work between two tenants: advertising the rental, showing it, screening the applicants, writing the lease and doing the move-in inspection.
It is charged once, when the lease is signed. Most managers take it out of the first rent they collect, so you do not pay it up front.
What it costs
Most property managers charge between half and one month of rent. Some charge a flat amount instead.
| Leasing fee | On a rent of $2,000 |
|---|---|
| 50% of the first month | $1,000 |
| 75% of the first month | $1,500 |
| One month of rent | $2,000 |
What to check
- The guarantee. If the tenant leaves or is evicted in the first months, a good contract places the next one at no charge.
- Your own tenant. Ask whether the fee applies when you find the tenant yourself.
- What it includes. Photos and advertising are sometimes billed apart.
Leasing fee, management fee or renewal fee
| Fee | When you pay it |
|---|---|
| Leasing fee | Once, when a new tenant signs. |
| Management fee | Every month the unit is rented. |
| Lease renewal fee | When the same tenant signs again. |
Frequently asked questions
Is a leasing fee the same as a management fee?
No. The management fee is paid every month the unit is rented. The leasing fee is paid once, when a new tenant signs.
Who pays the leasing fee?
The owner, under the management agreement. It is separate from any application fee paid by an applicant.
Can I negotiate a leasing fee?
Yes, mainly with several units or a longer agreement. Ask what happens if the tenant leaves in the first months before you discuss the amount.