Wow!! I have been doing this for 34 years and have never heard of such a thing. We strive to gain renewals not push them away. I would move out in a heartbeat if I received something like this.

It would benefit them more to offer a $5 decrease in monthly rent if signed early. A few places in our area have done that with pretty good results.

This is bad. The owner should have to reply to the push-back. The fee should be pro-rated for timing as well. Wait, there should be NO renewal fee. Some people have to learn the hard way, after nobody renews and gives the renewal fee as the reason for vacating. Sounds like a banker move.

We've been in this business since 1948 and I've never heard of or seen any kind of "renewal fee" charged by either a third-party management company or an owner management company. We obviously do see Rental Increases imposed for renewals at the end of the current lease term.

Sounds like usury.

point of order: I've replied on the basis that any building trying this.

I am a Realtor and I would love to see rental buildings do this.
You ask why? it's a rather simple strategy from a marketing point of view and a business.

Any time you charge a fee outside of the years first, you start the thinking of " maybe the grass is greener on the other side let me look at buildings "

Everyone knows rental increase, and that's acceptable. Most people don't accept, or welcome, fee's of any sort.

A rental building that does this would be a target for my local bar advertising in the local area ( believe it or not, bar coasters work ) and I would make sure that it would be part of my presentation if I know the history of the building.

easy pickings.

Without data, we can only assume that retention rates will drop from upper 90's to lower 90's and brand value will diminish. I am also guessing ( I have no data ), that vacancy rates will increase from 2% to 6% or greater.

Some of these new owners have no clue about the multifamily industry and it shows. I completely agree Tina.