If you're a new landlord, then you'll have hundreds of decisions to make—big and small. What is your pet policy, how long are your leases going to be, and will you opt into the Section 8 program? These are only a small fraction of the things you're going to need to think about.
Another big consideration is the financial aspect. Aside from how much rent you're going to charge, there could be many different kinds of rental fees associated with your property. You need to decide what you're going to charge for and how much you want to charge for it.
Read on for a comprehensive list of all of the possible fees your tenants might need to pay. If you're confused about what to charge don't worry—we cover that too.
Rental Application Fees
Starting at the very beginning we have the rental application fee. This is a fee you charge prospective tenants to submit an application to rent your apartment. If you're looking to attract more exclusive clientele and you want to cut down the number of applications you receive this can be a great way to achieve this.
First, you will need to check local laws to make sure it's legal to charge these fees and to see whether there's a maximum fee allowed by law. In Albuquerque, you can charge whatever you like and this fee is non-refundable. Usually, this fee will be between $35 and $75.
The purpose of taking a security deposit from tenants is to reduce the risk that they're going to damage your property in some way. A security deposit should cover any damage done to your property (beyond normal wear and tear) or your expenses if your tenant fails to pay rent.
Usually, a security deposit will be equal to one month's rent. You can adjust this fee based on what your competitors are charging or on a tenant's screening results.
Often landlords charge cleaning fees to cover the costs they incur from cleaning an apartment at the end of a tenancy. This is distinct from a security deposit which is intended to cover more serious damage.
You can either give your tenant the fee retroactively after you've had cleaners service the home or charge a flat rate. Usually, this will be somewhere in the region of $100 to $200.
Aside from these main rental fees, there are many other types of fees you can choose to charge. If the unit comes with a parking spot for example it's common to charge parking fees. If you say yes to pets it can be a good idea to charge a pet fee.
The price you charge for these fees will vary depending on where your property is located, the rent you're charging, and what your competitors have chosen to charge.
Your Ultimate Guide to Rental Fees
It's important to think long and hard about the rental fees you choose to charge. Once you lock them in they can be difficult to change for a number of reasons.
If you need help deciding on, setting, or collecting rental fees for your properties, we can help. Get in touch with Albuquerque Property Management today.