About Rental Fees

A rental fee covers the cost of renting your vacant apartment or house; it is a cost of doing business for a property owner. Also, it is considered a "professional fee" and is allowable as a tax write off. Those costs include listing services and marketing, specific professional software, application and screening prospective tenants, showing the unit, and doing the paperwork. 

A rental fee can equal up to one month's rent. There are, however, good reasons to charge only ½ fee or even no fee at all.

Who is willing to pay a rental fee?

Savvy tenants know that they don't have to pay a full rental fee in specific communities or certain periods. Those folks won't even consider full-fee units instead and instead search online for ½ or no fee units.

Market conditions can also determine whether or not we can charge a full rental fee. But even when a full-fee isn't advisable, it doesn't mean the money is lost. You can charge a little more rent per month if you're willing to accept a ½ rental fee. The funds can be the same in the long run, but it does help occupy units faster.

Keep in mind that location is still a huge factor. The closer to Boston, the apartment or home is, the easier it is to rent. There are fewer apartments available as you get closer to the city.

Who pays the rental fee?

The time of year, the property's location and the market determine who pays the fee. 

In the summer months, tenants pay the rental fee or a portion of it. There are also more prospective tenants looking.

In the winter, it's the landlord. Usually, a winter vacancy can cause stress to a property owner as they must pay to heat the unit and also need to make sure the pipes don't freeze. They also need to worry about shoveling stairs, driveways, etc., for which a tenant would generally be responsible. For these reasons, it is in the best interest to get a tenant as soon as possible. Winter is a reasonable time for a no-fee unit to tenants, and the owners would pay the full rental fee.

During this season of COVID 19, more tenants are venturing out of the city to less densely populated cities and towns. Apartments are still renting, just at a slower pace, and at slightly reduced rents. And rental fees have become harder to collect.

The market is always in flux. That's why it's good to have experienced property management with a finger on the pulse of the market.