Tag: leasing fees Kansas City

What Do Property Managers Charge for Leasing Fees and Renewals in Kansas City?

Posted on by Marcus Painter

Author: Marcus Painter, Founder and Owner | Alpine Property Management Kansas City LLC
Experience: 12+ years managing rental properties in Kansas City | 200+ properties currently managed
Published: December 15, 2025 | Kansas City Metro

Quick Answer

Kansas City property managers typically charge leasing fees ranging from 50-100% of one month’s rent for new tenant placement, and renewal fees ranging from 0-50% of one month’s rent when existing tenants sign new leases. Alpine Property Management charges a 75% lease up fee ($500 minimum) and a 25% renewal fee. These fees cover marketing, showings, comprehensive tenant screening, lease preparation, and renewal negotiations services that directly impact your vacancy rates and tenant quality.

Introduction: Why These Fees Matter More Than You Think

Leasing fees and renewal fees are some of the most misunderstood costs in Kansas City property management. Many landlords see these charges as optional or negotiable without fully understanding what they cover or how they affect long-term returns.

These fees aren’t just administrative charges. They’re directly tied to vacancy rates, tenant quality, and long term property performance. The best property managers in Kansas City structure these fees to align incentives and protect owner income.

Understanding what’s normal in the local market helps landlords make informed decisions and spot red flags before signing a management agreement.

What Is a Leasing Fee and What Does It Cover?

A leasing fee covers the work required to place a new tenant in your property. This is often the most labor-intensive phase of property management and the most critical for your bottom line.

Services Included in Alpine’s Leasing Fee:

  • Professional marketing across Zillow, Trulia, HotPads, and other platforms
  • Quality listing photos and compelling property descriptions
  • All showings and applicant communication
  • Comprehensive tenant screening (credit, criminal, employment, income, rental history)
  • Lease preparation and execution
  • Move in coordination and inspection

Alpine’s Lease Up Fee: 75% of one month’s rent ($500 minimum)

This fee is only charged when we successfully place a tenant. If the property doesn’t lease, you don’t pay.

What Are Typical Leasing Fee Ranges in Kansas City?

While pricing varies, most Kansas City property managers charge one of the following:

  • 50-75% of one month’s rent: Common for established companies with efficient processes
  • 100% of one month’s rent: Often seen with companies offering lower monthly management fees
  • Flat fees ($300-$700): Less common, may indicate limited services

Important: Lower fees aren’t always better. Inadequate screening or weak marketing often leads to higher vacancy and turnover costs later. A company charging 50% but taking 45 days to fill a vacancy costs you more than one charging 75% with a 14 day average.

Alpine’s 14 day average vacancy means our 75% leasing fee is quickly offset by reduced lost rent compared to slower competitors.

What Is a Lease Renewal Fee?

A renewal fee covers the work involved in keeping a good tenant in place. This might seem simple, but proper renewal management directly impacts your rental income.

Services Included in Alpine’s Renewal Process:

  • Market rent evaluation to ensure you’re not leaving money on the table
  • Tenant income re-verification
  • Renewal negotiation and communication
  • Lease compliance review
  • Updated lease preparation and execution
  • Owner consultation on rent adjustments

Alpine’s Renewal Fee: 25% of one month’s rent

Renewals are one of the most important ways to increase rental income without risking vacancy. Every renewal you secure avoids the full leasing fee, turnover costs, and potential vacancy making the 25% renewal fee a smart investment.

What Are Typical Renewal Fee Ranges in Kansas City?

Renewal fees are generally lower than leasing fees:

  • 0% (no fee): Some companies include renewals in monthly management
  • $150-$300 flat fee: Common middle ground approach
  • 25-50% of one month’s rent: Percentage based structure

Property managers who focus on retention often structure renewal fees to encourage long term occupancy rather than frequent turnover. A company with no renewal fee but high turnover may actually cost you more than one charging reasonable renewal fees with strong retention.

How Do These Fees Impact My Rental Income?

The Real Cost of Vacancy vs. Fees

Let’s compare two scenarios for a $1,500/month rental:

Scenario A: Low Fee Manager (50% leasing fee, 45-day average vacancy)

  • Leasing fee: $750
  • Lost rent (45 days): $2,250
  • Total cost per turnover: $3,000

Scenario B: Alpine (75% leasing fee, 14-day average vacancy)

  • Leasing fee: $1,125
  • Lost rent (14 days): $700
  • Total cost per turnover: $1,825

The “expensive” leasing fee actually saves you $1,175 per turnover. Over multiple properties or years, this compounds significantly.

Renewal Fees Protect Your Income

Consider a tenant deciding whether to renew:

  • If they leave: You pay a full leasing fee plus vacancy costs
  • If they renew: You pay only the renewal fee

Alpine’s 25% renewal fee on a $1,500 rental is $375. Compare that to the $1,825+ cost of turnover. Strong renewal management isn’t an expense it’s income protection.

What Warning Signs Should I Watch For?

Red Flags in Fee Structures:

  • High leasing fees with weak screening: You’ll pay again soon when the bad tenant leaves
  • No renewal strategy or rent analysis: You’re likely underpriced and losing income
  • Frequent tenant turnover: Indicates poor tenant selection or management
  • Leasing fees charged even when tenant breaks lease early: Misaligned incentives
  • Hidden fees not disclosed upfront: If they surprise you now, they’ll surprise you later

Green Flags:

  • Transparent fee disclosure before you sign
  • Leasing fee only charged on successful placement
  • Clear explanation of what’s included in each fee
  • Strong tenant retention rates
  • Fees aligned with performance (they make money when you make money)

How Do I Compare Leasing and Renewal Fees Properly?

Step 1: Ask What’s Included

Don’t compare fees without understanding the scope of services. A 50% leasing fee with minimal screening isn’t comparable to a 75% fee with comprehensive verification.

Step 2: Review Tenant Retention Rates

High renewal rates usually indicate strong management. Ask potential managers what percentage of their tenants renew. Alpine’s 96% occupancy reflects our focus on placing and keeping quality tenants.

Step 3: Evaluate Screening Standards

Tenant quality affects maintenance costs, rent collection, and long-term returns. Ask exactly what their screening includes not just “background check” but specific criteria.

Step 4: Calculate Total Annual Cost

One vacancy can cost more than a reasonable leasing fee. Model out the full year including potential turnover, not just the fee percentages.

Step 5: Align Fees With Your Investment Goals

Long term investors should prioritize stability over short term savings. If you’re building a portfolio for decades, tenant quality and retention matter more than saving $200 on a leasing fee.

Conclusion: Transparency and Performance Matter Most

Leasing fees and renewal fees are a normal and necessary part of Kansas City property management. When structured correctly, they protect income, reduce risk, and support consistent returns. The key is transparency and performance.

Alpine’s Fee Structure:

  • Lease Up Fee: 75% of first month’s rent ($500 minimum)
  • Renewal Fee: 25% of one month’s rent
  • Result: 14-day average vacancy, 96% occupancy, 98% rent collection

The best property managers in Kansas City use these fees to drive better outcomes, not just to generate revenue. For landlords focused on growth, understanding these costs is essential to making smarter investment decisions.

Frequently Asked Questions

What is a typical leasing fee in Kansas City? Most Kansas City property managers charge between 50-100% of one month’s rent as a leasing fee. Alpine charges 75% of the first month’s rent with a $500 minimum, which covers marketing, showings, comprehensive screening, and lease execution.

What is a typical renewal fee in Kansas City? Renewal fees typically range from $0 to 50% of one month’s rent. Alpine charges 25% of one month’s rent, which covers market rent analysis, tenant re-verification, renewal negotiation, and updated lease preparation.

Why do property managers charge leasing fees? Leasing is the most labor intensive part of property management marketing, showings, screening, and paperwork require significant time and expertise. The leasing fee compensates for this work and incentivizes managers to place quality tenants quickly.

Are leasing fees negotiable? Sometimes, especially for portfolio owners with multiple properties. However, be cautious about managers willing to drastically reduce fees they may cut corners on screening or marketing that cost you more in the long run.

Should I choose a manager with no renewal fee? Not necessarily. Companies with no renewal fee may have higher monthly management fees or may not invest effort in retention. What matters is total cost and tenant retention rates, not individual fee line items.

When is the leasing fee charged? Alpine charges the leasing fee only when a tenant is successfully placed and moves in. If we market your property but don’t find a tenant, you don’t pay the leasing fee.

How do leasing fees affect my ROI? Leasing fees impact your first year returns on a new tenant. However, the quality of tenant placement (affecting how long they stay and how well they pay) has a much larger long term impact than the fee amount itself.

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