The fee you see isn't the fee you pay
You compare two managers. One charges a little less each month, so it looks like the easy choice. Then the first year's statements come in, and the cheaper one somehow cost more.
That happens all the time, and it's almost always because of the extras. Here are the fees to look for, what they mean and what to ask about each.
The monthly management fee
This is the main ongoing fee, usually a percentage of collected rent or a flat monthly amount. Around Boise, managers commonly advertise roughly 8 to 12 percent of collected rent.
Ask: Is it a percentage of rent collected, or rent due? If the home is empty or rent isn't paid, do you still charge it?
More on the overall cost in how much property management costs in Boise.
Leasing or tenant placement fee
Charged when the manager places a new tenant. It covers marketing, showings, screening and the lease.
Ask: How is it calculated? If the tenant breaks the lease early, do you re-place them for free or charge again?
Lease renewal fee
Some managers charge a fee each time your existing tenant signs another lease. It can feel strange to pay extra for keeping a tenant you already have.
Ask: Is there a renewal fee, and what does it cover?
Badger doesn't charge renewal fees.
Maintenance markup or coordination fee
Many managers add a percentage on top of every vendor invoice, or charge a flat fee to coordinate a repair. On a year with a water heater replacement and an AC repair, that adds up.
Ask: Do you mark up repairs? Who does the work? Can I see the original invoice?
At Badger, repairs are in-house. Our owner, Cory Hinderager, is a licensed contractor and HVAC tech, and there's no vendor markup.
Setup or onboarding fee
A one-time charge to start service, set up your account and take over an existing tenant.
Ask: What does it cover, and is it charged again if I add another property?
Inspection fees
Some managers charge separately for move-in, move-out or periodic inspections. Inspections are worth doing. You just want to know whether they're included.
Ask: How often do you inspect, and does it cost extra?
Vacancy, advertising and other monthly fees
A few companies charge while the home is empty, or bill separately for listing photos and advertising. Some also charge small monthly technology or admin fees.
Ask: Is there anything billed to me monthly besides the management fee?
Eviction and court fees
If a tenant has to be evicted, there are court costs and often a fee for the manager's time. In Idaho, the process usually starts with a written three-day notice, and the paperwork has specific requirements. Our Idaho eviction guide covers the basics.
Ask: What do you charge if an eviction is needed, and who handles the court filing?
Cancellation or termination fee
This is the one that keeps owners stuck with a company they're unhappy with. Watch for long contract terms, steep fees to leave early and clauses that let the old manager keep collecting on a tenant they placed.
Ask: How long is the agreement, how much notice do I give and what does it cost to leave?
Badger doesn't use long-term contracts. If you're already in one and want out, here's how switching property management companies works.
How to read a fee schedule
When you get a company's fee list, put it next to a normal year for your rental. Twelve months of the management fee, one renewal, a few repairs and an inspection or two.
Then do a second version with a tenant turnover. That's where leasing fees, vacancy fees and turnover charges show up. Comparing both versions side by side tells you far more than the headline percentage.
Fees tenants pay
It's worth knowing what your tenants are charged, too. Idaho law says fees charged to residential tenants have to be reasonable and spelled out in the lease. High or confusing fees can also make your listing less attractive.
For reference, our application fee is $40 per adult, or $30 in Boise. Your manager should be able to tell you every fee your tenants pay.
The takeaway
Ask for a complete fee list, in writing, from every company you're considering. Then compare a full year, not just the monthly percentage.
If you're still in the comparing stage, our questions to ask a property manager and the main guide to choosing a property manager will help. Or ask us to walk you through our pricing for your property.
