Hidden Tenant Fees: What Property Owners Should Know

We are seeing an alarming trend from accounts we’ve taken over from other companies, and we feel this information should be shared with customers considering property management services. While these charges don’t fall under a single category or name, they can generally be described as fees charged directly to tenants that are not passed on to property owners—and often not disclosed to the property owners at all.

These charges typically fall into two groups: one-time fees and monthly recurring fees.

Examples of Hidden Fees

To make this clearer, here are a few real examples we’ve discovered:

  • Lease Preparation Fee: A one-time fee charged to tenants, usually between $150–$250.
  • Technology Fee: A monthly charge described as covering the use of property management software. We’ve seen this range from $11 to $39 per month.
  • Pet Fee: A recurring monthly fee for tenants with pets, sometimes as high as $100 per month.

At the end of this article, you’ll find a complete list of fees found in a single lease we inherited from another company.

Why This Matters to You as a Property Owner

You might think this setup is a win-win: the tenant covers more costs, and the management fee you pay is reduced. That sounds great in theory. A lower percentage fee increases your cash flow and the profitability of your rental—if everything else remains equal.

But everything else doesn’t remain equal.

Properties are often advertised without disclosing these additional charges, so tenants don’t budget for them. As we know, most people search for rentals at the top of their budget. An unexpected $100+ in monthly fees can be a dealbreaker, especially when combined with high one-time move-in costs.

The result?

  • Fewer interested tenants
  • More wasted time by your management company on unqualified applicants
  • Longer vacancy periods

We’ve personally spoken with tenants who went through the entire rental process and walked away at the very end because of surprise charges.

Are These Fees Justified?

Some of these fees might be reasonable. However, many are burdensome and can negatively affect:

  • The rentability of your property
  • The longevity of tenancy
  • The quality of tenants attracted

Even worse, this system may incentivize the management company to rent to tenants more likely to incur extra fees.

For example, I personally love dogs—but I don’t believe a management company should make more profit by renting to a dog-owning family simply because it’s more lucrative for them.

The most troubling part is that in most cases we’ve seen, owners were unaware these fees even existed.

Fees Found in One Lease (Inherited from Another Company)

Here’s a list of actual charges discovered in a single lease:

  • Lease Prep Fee: $150
  • Tenant Services Fee / Technology Fee: $39 per month
  • Pet Fee: $60 (but could be as high as $100)
  • Weekend Move-In Accommodation: $100
  • Additional Tenant Admin Fee: $52 for the application, $150 due at lease signing
  • Lease Reinstatement Fee: $275

Note: This is charged when a previously evicted tenant pays back rent and wants to move back in. We strongly advise against allowing this at all.

  • Month-to-Month Renewal Term Fee: $50/month

Note: This discourages tenants from choosing a short-term lease renewal, potentially increasing turnover.

  • Lease Violation Admin Fee: $50 per notice
  • Lost Key Admin Fee: $75

Note: We charge only for a second lost key, as we keep two on file.

  • Rekey Admin Fee: $150

Note: This fee applies even if the tenant provides the new key after rekeying their lock.

  • Repair Bill Admin Fee: $50 (plus repair cost)

Note: Includes missed appointments or repairs the company deems to lack “merit.”

  • Denial of Access Fee: $100
  • Holdover Fee: $275

Final Thoughts

If you’re a property owner, you should know exactly what your tenants are being charged. These hidden fees not only affect your tenant experience but may also impact your rental’sperformance in the market. Transparency between the management company, tenant, and owner is essential.

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