Midlands Property Management | Why Midlands Property Management Companies Charge Application Fees
Midlands Property Management | Application fees are a touchy subject when it comes to landlord/tenant relationships. Tenants certainly don’t like the extra expense, and Charleston property management companies certainly don’t enjoy having to collect and process all the fees. However, application fees are necessary for quite a few reasons.
1. Checks Cost Money- Midlands property management companies, have to purchase software or pay subscription fees to conduct proper credit and background checks. Each time a background check is done on a potential renter, it costs the company money. Imagine if all the applications came back unapproved, and the Midlands property management has to cover all of those charges themselves? They’d be out of business.
2. Shows Tenant Dedication- There’s a good chance that a landlord will have to show a vacant home many times before the right tenant comes along that wants to fill out the application. When you charge an application fee, only tenants who are serious about moving in will fill out the forms, so no one’s time is wasted.
3. Shows Tenant Has Income- Charging a small application fee helps you to know if your tenant will be able to afford to pay rent. If a prospective tenant is unhappy about paying a small application fee, it’s probably not realistic to expect them to pay a deposit and first month‘s rent if their application is approved.
4. Income for the Company- Tenant application fees are retained by Charleston property management companies and can produce a little bit of extra income for the company that can be put into marketing, hiring, and general business expenses. Some Midlands property management companies also invest in homes themselves in addition to having homeowners and investment property clients they are working for.