Administrative Fees

I've never worked for a company that charged administrative fees to applicants. What do you tell applicants they are for? Is there a way to calculate how much to charge?

Who can give me the "low-down" on this?

Thanks!

Are you asking about application fees or is this something in addition to that?

The administrative fee is in addition to the application fee.

It's usually the non refundable part of a deposit.

I am a real estate appraiser specializing in apartments, and we refer to these as FU fees. It is simply an additional fee that owners charge when the market is willing to accept it. There is no relationship between this fee and any specific expenses incurred by the property.

My property requires an admin. fee for all applicants. I always tell them it's sort of a "filing fee", if they are approved there is a lot of paperwork that is involved and we rent the Xerox so I always use that an example, as well as rental verifications. We have been asking for this fee for about 2 years now and I've never had anyone complain after I explain that to them. Of course if they are not approved that is completely refundable.

The Administration Fee is a fee that is paid to take a specific apartment off the market during the application process.

I don't charge Admin. Fees at my current community (FHA 223 loan), but when I was at a property that did I always said (if asked) that it would help us pay for the costs incurred in processing leasing paperwork, setting up utilities in the resident's name, and preparing the apartment for move-in (not to be confused with the turn) for them.

I think I only had to talk about it twice in three years.

Can u please tell me what is that fee for

Great question, Sharon. Previously, I had said this:

Jay Koster wrote: When I was at a property that did I always said (if asked) that it would help us pay for the costs incurred in processing leasing paperwork, setting up utilities in the resident's name, and preparing the apartment for move-in (not to be confused with the turn) for them.

I think I only had to talk about it twice in three years.

For the most part, the Administrative Fee goes toward office-based preparation and time.

So is this a one time fee or should you be charged a monthly fee? Everyone keeps saying to process paperwork once you take it off the market, guess I'm not understanding?

Isn't that what their salary is for? Sounds like an extra fee just because. Moving is already expensive. Why make it even harder.

These fees are nothing more than a hustle.. An applicant's deposit is what takes the property off the market. Any paperwork entailed with the rental process is ACTUALLY the natural responsibility of the renter/property owner as such relates to the transaction. That fee pays them extra for doing their job, when they have already made their profit through your app fee, the deposit, as well as first month's rent...