Why Skipping the Upfront Tenant Placement Fee Is a Win for Property Owners

For many landlords, the cost of leasing a unit can feel like a gamble, especially when traditional property managers charge large upfront placement fees regardless of how the tenancy turns out. But what if you could avoid that out-of-pocket expense and still get high quality tenants with professional leasing support? At City Roots Properties, we believe in a better approach.

One of the most frustrating surprises for rental property owners is the steep, upfront tenant placement fee. In Chicago, most property management companies and leasing agents charge the entire first month’s rent - averaging around $2,000 - just to place a tenant. That’s a significant hit to your investment before any income starts flowing. At City Roots Properties, we take a different approach. We believe in earning your trust through results, not charging you before we deliver. Here’s why not paying an upfront placement fee is a better deal for you:

1. You Keep More Cash Flow in Your Pocket Upfront

When your property is vacant, you're already covering the mortgage, utilities, and other expenses. Paying a large fee on top of that can strain your cash flow. By eliminating the upfront fee, you can focus on getting the unit leased and income flowing again — without dipping further into your reserves.

2. You Only Pay When Rent Is Collected

With our model, tenant placement fees are completely waived for new clients! This aligns our success with yours. If we do not deliver a qualified tenant, you are not out of pocket.

3. It Reduces Your Risk

Paying upfront means you’re taking on risk before seeing results. But with a performance-based fee model, we take on that risk with you. We are incentivized to move quickly, market effectively, and place a well-screened tenant.

4. It Builds Trust and Accountability

When you pay a placement fee upfront, it is easy to feel like you are left hoping things go smoothly. But when the fee is tied to performance, it promotes transparency and accountability. You can expect consistent updates and clear communication throughout the leasing process.

5. It Shows We’re Investing in the Relationship

We’re not here to make a quick buck off one placement. We’re here to be your long-term partner in managing and growing your investment. Waiving upfront fees shows that we believe in the value we bring and are willing to earn your business — not charge you before delivering results.

Final Thoughts

Tenant placement is one of the most important steps in protecting your investment, and we take that responsibility seriously. By eliminating upfront placement fees, we’re aligning our goals with yours — securing great tenants, minimizing vacancy, and helping you generate income as quickly as possible.

Looking for a property manager who puts your success first? Let’s talk about how City Roots Properties can help you lease your property with confidence — and without the surprise fees.