bdemon

I've had this rental property in Austin for three years, managed by a property manager. They recently sent me a new agreement to sign. One of the new items is that I pay 60% of the first month's rent whenever a new tenant signs a lease, 30% going to the broker who referred the tenant, 30% going to the property manager.

Below that is another item saying I'll pay 30% of one month each time the lease is renewed.

In the past I've only paid...I think it was 40% of 1st month's rent to the referring broker, while my manager charges 6% a month.

I emailed the property manager asking about these items and was told I could scratch the 30% renewal part and that the 30% of first month's rent was a new charge on their part.

I was just wondering how other property owners handle agreements like this. Do you pay broker fees for referrals (my apartment is near the university, so I'm told this sort of arrangement is common to be more competitive)? I've been happy with the property manager, they're quick to respond to both me and the tenants. I'm just curious to see what others have going.