Misc. Owner Fees
AS OF MARCH, 2018
1. Oversee “Between Tenants” Checklist:
A. $300 – $500 first time clients.
B. $200 existing clients
2. First time leasing is $0. Subsequent leasing fee: $495
Almost all property managers charge both a first-time leasing fee and subsequent leasing fee of 50% of first month’s rent. PMI charges no first-time leasing fee. There will be a $795 leasing fee after that. when those tenants move out and new tenants need to be procured. This fee will partially cover all marketing, showing, screening, leasing and administrative costs.
3. Tenant Take-Over Fee: $95
This fee would be charged to a new owner coming into PMI that already has an existing tenant. It is always necessary to start from the beginning with that tenant and implement them into the system with a new lease agreement, renters’ insurance, a home walk-through, tenant portal set up, and general on boarding procedures. This fee covers these start-up costs.
4. Rehab Projects over $2,000: 7 – 10% Vendor Oversight Fee
This fee is charged if we are tasked with overseeing rehab of a property (paint, floors, lights, appliances, bathrooms, etc.). There are always multiple walk throughs involved, constant communication with vendors and owners, the selecting and ordering of items, billing, and follow up needed to ensure the job is done correctly, on time and on budget. Unlike other property managers, PMI does not mark up the estimates from vendors and charge a management fee but rather charges this one-time oversight fee.
5. Additional Inspection Fee: $85
Our management service provides for one annual inspection of the owner’s home. This is where detectors are checked, furnace filters are changed, tenant care is noted, and any deferred maintenance is reported. If additional inspections are requested by the owner and agreed upon by the tenant, the above fee will apply.
6. Maintenance Over-sight Fee: $20
There are two reasons for this nominal fee:
A. We employ a full time Maintenance Manager who first determines with every maintenance request whose responsibility it is…the owner or the tenant. He is also skilled at assisting tenants in resolving many maintenance issues themselves. i.e. disposal reset, tripped breaker, clogged sink. This saves time and money for our owners.
B. Our vendors (handymen, plumbers, electricians, etc.) all give PMI a sizable discount on the work they perform at our owner’s properties (20 – 25%). Unlike other property managers, PMI will always pass this discount straight to the owner.
7. Pet fee of $500 is split 50/50 with owners
Typically, we charge the tenant a onetime $500 pet fee for an authorized pet. This involves PMI providing pet screening, a pet addendum, it’s 3,000 pet guarantee and managing pet behavior during the term of the lease. The pet fee is split with the owner.
8. Lease Renewal Fee: $95
60 days prior to the expiration of the tenant lease, a rental analysis will be performed to determine if a rent adjustment is required. After that, a notice will then be sent to the tenant preparing them for a lease renewal. 15 days prior to the lease expiration, a new one-year lease will be signed with the tenant. The owner fee for this renewal process is $95 and will be charged the following month.
9.Annual IRS Compliance Fee: $25
There is an Annual $40 Tax Preparation Fee to cover the costs of administration associated with preparation and electronic delivery of the required IRS form 1099 each year. This fee is collected annually in March.
10. Court Appearance: $100 per hour
This charge applies to evictions, and/or lawsuits where we are asked to appear in court on behalf of the owner. This includes case, preparation, travel time as well as court time.
11. Landlord Exit Fee: $100
Upon completion or termination of PMI agreement, owners will incur a $100 charge for turning over all documentation, accounting for all funds and forwarding any information required to the owners and/or the tenants. In addition, all files and accounting are required to be archived by for seven years. A portion of this fee is meant to cover that liability as well.
12. First 30 Days Termination Fee: $500
We realize that while rare, there are circumstances that cause an owner to change their mind about renting their property. To cover administrative, advertising, and marketing costs, PMI will charge owner $500 if this happens within the first 30 days from the signing of management agreement.
Real Estate Services
PMI is the only property management company in the entire East Bay that does not sell real estate. In fact, almost all East Bay property managers sell real estate as their primary business and manage property as a side business. Only PMI is totally focused on property management 100% of the time. Having said that, we recommend Tom Connolly of Connolly Real Estate for any questions or needs regarding:
- The sale of your rental home
- The purchase of another rental property
- 1031 Exchange
- CAP Rate Analysis of your home
- Market analysis of your home