Upon signing a lease with a new tenant, the property manager is required to charge this fee. A tenant placement fee, which is also known as a leasing or vacant unit fee, can range from 25 to 75 percent of the first month’s rent, but it can also be a flat rate. This fee covers the costs of advertising, testing, viewing the unit, drafting leases, and conducting move-in audits. This fee is sometimes used by businesses to pay a commission to a real estate agent for bringing in a new tenant. If a tenant defaults on their rent or is evicted, some property managers offer a prorated or full refund.
If a rental home is unoccupied, the property manager may charge a fixed fee or one month’s rent until a new tenant assumes the property. Since empty rental properties are riskier, they necessitate more effort on the part of the manager. For instance, if a manager wants to avoid break-ins and intruders, he or she should inspect the property every week.