Topic: How do you feel about having to 'sell' added fees like security deposit alternatives, package locker fees, etc.?

Hi, Leasing Professionals!
Couple of questions:

1. How do you feel about having to 'sell' added fees like security deposit alternatives, package locker fees, key fob activation fees, that good old mysterious "admin fee", etc.? Are you comfortable with asking for these types of fees? Do you feel you get enough training on how to 'sell' these fees? And do you get pushback from your customers?
2. What different kinds of fees does your property charge?

Thank you in advance!

You are a salesperson for the owner. That is the job. If you not comfortable asking for the sale probably shouldn’t be in leasing. Agree that it is owner responsibility to fully train you on the products you are pushing.

We don’t charge fees often. No application or holding fee. Just deposit and then an occasional, and very reasonable lockout or sublease fee.

In unincorporated Cook County, we only offer a SD alternative, can only charge what the background check costs ($12), no admin or holding deposit. We charge for assigned parking and storage.

We have a $12 monthly admin fee, but otherwise don't charge for extras. Unless additional parking or pool passes are wanted by residents.

Personally, when looking at apartments or doing market survey's, I have seen "community fees" for hallway electricity usage, fitness center electricity usage, wifi in club room etc. It would be around $40-$50 a month on top of paying for residents own electricity, internets, heat, etc. I feel residents should not have to pay for community hallways to be lit, exterior lighting, etc. That should fall on the property.

I both live and worked with a property that had common area electric. It wasn’t really had to sell because I was honest and was like it’s typically between $7-12 a month.

I did speak with a prospect once that was paying over $100 for common area electric. That’s messed up.

I do agree though, residents shouldn’t have to pay for common areas.

We charge a $10 monthly amenity fee, (florida) but we also provide free starbucks coffee, free use of laptops, toner, and other services. After our monthly operating costs to provide these services we literally break even . It's either going to be higher rent or these fees with the added services. Orlando. FL rental rates are the highest in the nation right now, and I don't always agree with the cost of living, but if people pay it, and the market supply/demand allows for it, we will charge it...

Why not just include all fees in rent?

Having different GL codes for 'fees', allows you to track the performance individually for each one.

Perception. All residents are ultimately paying for common expenses. It takes a certain amount of income to operate and residents are the source of that income, so they will be charged in one form or another.
For convenience, let's say you have two communities where the common expenses divided by the number of units works out to $100. Now let's say that identical apartments in each community should rent for $1,000 (which includes the common fees).
One manager is going to advertise the unit for $1,000, rolling the common expenses into the rent. The other manager advertises the rent as $900, and then adds a separate line item of $100 for the common expenses. Either way, the resident will be charged $1,000.
When both properties advertise, which one will generate higher interest? If a potential resident calls the "higher-priced" property, it can be explained that the competition is charging fees that this community has already included. But that conversation never happens if there is no call.
Anywhere there is market competition, it is important to advertise apples-to-apples as much as possible.

This just feels deceitful to me. As a renter, all I care about is the bottom line. Don’t drag me in with a lower advertised priced.

I get it. I prefer bottom-line pricing, too. As my friend advised when shopping for tires, always ask for "drive out" price - because the advertised price never includes valve stems, mounting (because a few customers - small mechanics, perhaps - will mount the tires themselves), tire disposal, etc. It's a lot of extra inconvenience to have to call (or enter numbers into an online calculator) and ask for "the real price" instead of it just being disclosed from the start.
Whatever we may prefer, there are others who have a different preference - not saying right or wrong, as long as the full price is clearly disclosed before there are any signatures - and we all have to find some way to level the playing field, whatever our industry. In this case, the quickest and easiest way to do that leveling is for everyone to advertise without add-on fees.

So it depends on the state. In North Carolina you can only assess late fees and file eviction on unpaid rent. Any other fees must be line Item’ed out and cannot be including in court proceedings or be assessed late fees.

I am Simply stating factor “extras”, i.e. admin fees, in the rent.
Covered parking, pet rent, etc, can be additional charges

The hardest fee that I have is we have an HOA fee. It doesn’t get them anything, it’s not going to our property. It goes to the neighborhood. It’s just when they argue back that “we’re not home owners” and I have to state that the owners of the property disclose that they are charging you back for it. If you don’t like it, then you don’t have to live here. We do have free parking and most communities in our area charge, so they consider that difference and many don’t mind.
I too think that they shouldn’t have to pay that.

Because I am on a much older property, I dont have a lot of "bells and whistles" to charge for. I have prospects walk in every day saying they are moving from their high end "A+" property because they are sick of all the extra fees they are charged. Especially those that dont use the clubrooms, fitness centers and fancy pools.

I think in some states "admin fees" are no longer allowed. I never had 1 time fees, but my biggest pet peeve is people trying to sell a unit at X rent, but when you go see the place it's actually X rent plus A water B electricity C garbage D pet rent etc etc. That advertised rent just went up 200+ and is now out of budget....

If they aren't optional, I include them in the original pricing so there isn't a feeling of an upsell.

At the move in We offer free keys, gate cards, parking stickers, etc…but charge fee for any item to replace

Nickel and diming residents to death is insane. If this keeps up, mark my words, this industry will face regulations like crazy!!!

When I first started in the industry I asked what the purpose was for a non-refundable pet fee. I was told that went towards upkeep of the community, the dog park, etc. I love that explanation until I explained it to someone who had a cat and then it brought up even more questions

For us it depends on the property. With our single family homes it’s really easy and I don’t have any problem selling the extras.
The multi-unit sites it depends on location and quality of the property.

If you don’t like it you don’t have to live here? Very professional.