Hi, there! Joe White here from Grow Property Management, your trusted property management company in Philadelphia.
Corey asked me about my thoughts on "property management junk fees," a term often used to criticize additional charges imposed by property management companies. As someone who owns a property management company, I have strong opinions on this topic.
Firstly, I believe the term "property management junk fees" may have been popularized to vilify landlords and property managers unfairly. It implies that these fees are arbitrary or excessive, targeting tenants who may already be financially strained. However, from my perspective, these fees serve a necessary purpose in maintaining the integrity and profitability of rental properties.
In our company, we refer to these charges as "behavioral fees." They are clearly outlined in our lease agreements and property management contracts. These fees are applied when tenants or property owners fail to adhere to the terms outlined in the lease. For instance, late rent fees are common and justified because they cover expenses such as mortgage payments and property taxes that landlords rely on for their own financial obligations.
Behavioral fees are not meant to be punitive but rather to ensure accountability and encourage responsible behavior among tenants and property owners alike. Take smoking inside a rental unit as an example. Despite clear prohibitions in our lease agreements, if a tenant disregards this rule, it can result in significant expenses for cleaning and restoring the property. Charging a fee in such cases isn't about penalizing tenants but about covering the costs incurred due to their actions.
Other examples of behavioral fees include charges for bounced checks, violating HOA rules (if applicable), or causing damage beyond normal wear and tear. Each fee is carefully detailed in the lease to ensure transparency and to inform tenants of potential consequences if the terms are breached.
I firmly believe these fees are fair and necessary. They incentivize compliance with lease agreements and protect landlords from financial losses caused by tenant negligence or misconduct. Moreover, they are typically avoidable if tenants fulfill their obligations under the lease.
It's crucial for tenants to thoroughly review the lease agreement before signing to understand their responsibilities and potential liabilities. This transparency helps prevent misunderstandings and disputes down the line.
Finally, while the term "property management junk fees" may carry negative connotations, these fees play a vital role in maintaining a fair and sustainable rental property market. They ensure that both landlords and tenants uphold their respective responsibilities, fostering a mutually beneficial relationship. As a property manager, my priority is to manage properties efficiently while promoting fairness and accountability for all parties involved.
Happy investing!!!
