I pay a mangement fee each month to a mangement company. I also pay a fee for finding a qualified tenant called a "a leasing fee." Now I am being told that 50% of the "management fee" is for leasing the property each month even though the monthly statement shows that I am paying for a "management" fee and nothing about a leasing fee. Also, with the way they are figuring the "leasing fee" I am paying almost 2X the average leasing fee. I thought the "management fee" was a separate from the "leasing fee."
Country relating to Question: United States
State (if USA): Virginia
Good afternoon,I'm very sorry to hear of your situation.Because the law in VA does not specify what a property management company may call any particular fee that they charge---what might be a separate leasing fee to on company may be absorbed into what is called a management fee in another.The fact that your leasing fee is higher than other advertising management companies is really comparing apples to oranges, and you really need to look at the total management cost to you to determine whether you are getting a good deal or not.Placement fees of $500 and management fees of 10% of the rent a month are fairly close to be standard across the state, give or take some. Whet truly matters is not so much the price that you pay, but what service you get for your money.It sounds as though you are not entirely satisfied with your present management company---and you might consider re-negotiating the agreement next time the contract comes up for renewal---and if appropriate, hire a new management company.I wish you the best in 2012.I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.You may reply back to me using the Reply to Expert link if you have additional questions; and if you do, I ask that you please keep in mind that I do not know what you may already know or with what you need help, unless you tell me. Kindly take a moment to rate my service to you based on the understanding of the law I provided. I have no control over the how the law impacts your particular situation, and I trust that you can understand how it would be unfair for me to be punished by a (negative rating) ----the first 2 stars/faces----for having been honest with you about the law.Thank you,Doug
I am being told that I will always have to pay a "leasing fee" as long as the tenant remains in the property and I can't renegotiate the contract until the tenant leaves. I have great tenants and don't want them to leave just so I can renegotiate the contract. Is that my only option?
Good afternoon,I presume that your contract with the management company does not exceed a year at a time. That is the period of time which the standard management agreement is drafted for. Did you sign a management contract that applies in perpetuity until the tenant leaves? That would be rather unusual---but legally you can contract to do anything you want to with only limited exception.You may have to change management companies if you are not happy with this one---but the laws of the State of Virginia prevent you from forcing the renegotiation of a contract after it has been executed and before it expires.You may reply back to me again, using the Reply to Expert link, if you have additional questions.Would you please rate me highly now, based on my assistance to you in understanding the law.I wish you the best in 2012,Doug
I am a practicing attorney with more than 27 years of experience in the legal field.
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