Property Leasing Costs and Lease Terms
Most leases will run initially for a 12-month period. After the 12 months, the lease will either be renewed for another 12 months, or revert
to a month-to-month basis. All property managers are different, but generally, if they will be managing your rental property, in addition to
finding tenants, they will take about a month's rent initially. Then each month's management fee will be around 7%-10%. In some areas the
management fee can be higher still, but the different between a great manager and a poor one is worth more than a couple of percent a month.
After the 12-month period, if your tenant renews their lease, your property manager will charge you a releasing fee $50-$100.
Your property manager will hold the tenants security deposit, generally one month's rent.
Section 8 tenants have an ongoing lease, however the property must have a yearly inspection to continue receiving the next years' rents.
For utilities the tenant will generally pay for the electricity and gas/oil heating. Then depending on the lease agreement, the landlord may
have to pay the water/sewer bills. The landlord is also responsible for paying the taxes on the property and the buildings insurance.
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Please Note - The information contained in this section is only my opinion and should not be regarded as legal or tax advice