Building a real estate portfolio requires a focused strategy from the beginning. Before you even buy your first property, you must have a solid understanding of logistics.
Logistics are the operations that grow and manage portfolios, like financing, tenant placement, marketing, and more details.
Every responsibility is crucial, including application fees.
The application process is not a decision to go into lightly. It also ties into marketing, lease management, tenant screening, and other duties.
In this post, you'll learn more about creating an application fee policy tailored to Milwaukee renters.
What Is the Standard Fee In Milwaukee?
If you research online, you'll find that rental application fees run the gamut. However, $25 to $50 is the standard range, according to search data.
The national average is about $30 per application. It's important to note that landlords are limited in what they can charge. Thus, you're not going to find exorbitant application fees for rental homes and apartments.
This fee includes a thorough background check. Rather than charging an extra fee, most landlords include this service in the total application fee. The final amount also includes the processing
Should You Work With a Property Manager?
Deciding how much to charge can be a delicate process. Thus, you should always check with local ordinances first to avoid getting penalized for overcharging application fees. This means you need a solid understanding of Milwaukee's legal statutes on landlords.
For this reason, it may be easier to hire a professional experienced with the city's landlord laws. Property managers are real estate experts who can answer any legal question about property management, including application fees.
You don't even have to worry about drawing up the application yourself. Property managers know exactly how to format applications to screen for the right candidates.
If you work with a property manager, you also have access to their company's website. Both landlords and tenants are provided with online portals where they can manage applications.
Prospective tenants can fill out applications and pay the associated fee online.
What to Include In a Tenant Application
Property managers format applications that prompt applicants to include all critical information, from Government IDs to financial documents.
Your property manager will include fields for the following:
- State IDs and Social Security Numbers
- Birth dates
- All contact information (phone number and email)
- Current address
- Current and previous employers (job title, dates, etc.)
- Financial data (income, assets, and credit score)
- Rental history references (landlords, roommates, etc.)
- Criminal background check
- Any past evictions
A rental application may also request information about pets if the landlord chooses to allow pets in the rental. Should this be the case, applicants will be required to pay a pet deposit if they're chosen to sign the lease. This additional fee can cost anywhere from $100 to $500 on average.
Learn More About Application Fees
Don't overlook the importance of application fees in your property management strategy. Consider the above points when building your rental portfolio.
Performance Asset Management can answer all of your application questions and more. Learn more about our services or call us to speak with property manager.
