Handling Three ‘Real Tricky’ Fee Objections (5 minutes)

Dealing with fee objections from property owners can be a challenge, especially when they compare your services to cheaper agents in your area.

Here's how you can effectively handle some of the most tricky objections, ensuring owners understand the value you bring to the table.

The insights shared here are typical of what you’ll find in our ‘PM Fee Scripts Secrets’ book.

If you haven't grabbed your copy yet, head over to IGTCentral.com where the book is available for free (just cover the shipping).​

When a property owner says they can't afford your services, they may not fully grasp the cost of going with a cheaper alternative. Here’s how you can respond:

Script:

"Mr. Smith, I sense that perhaps you’ve never had a property managed before. We've had owners who thought they were saving money by choosing a cheaper agent.

But those agencies often can’t afford to pay their staff properly, resulting in high turnover and poor service.

In fact, I had an owner come back to us last week who faced issues with their cheap agent—it ended up costing them $2,000 more than the $312 a year they thought they were saving."

At this point, emphasise the peace of mind your services offer: "For your peace of mind, it's worth paying a little more.

After all, the difference between us and the cheaper agent down the road is about 1%.

That’s just $6 a week—a cup of coffee. If that’s too much, I'll even buy you one each week if you’d like." (Tongue in cheek, of course.)

This objection occurs when the property owner is testing how low you’re willing to go. Here's how to respond while reinforcing your negotiation strength:

Script:

"Mr. Smith, if you’re asking us to lower our fees, what does that say about our ability to negotiate?

When a tenant wants to negotiate your rent, would you want a property manager who's quick to drop their fees?

If we’re easy to negotiate with, it doesn’t speak well of our ability to stand firm on your rent should a tenant request a discount.

That’s why we need to maintain our fees in full—so you can have full confidence knowing that we’ll stand our ground as well and negotiate the best rent for you."​

When an owner acknowledges your superior service but highlights your cost, it’s crucial to break down what ‘expensive’ really means:

Script:

"Mr. Smith, when you say we're more expensive, are we really just talking about the 1% difference in the management fee? That’s typically all it is—a cup of coffee per week.

For $6 more, you’re getting a significantly better service. Is a cup of coffee too much to pay for peace of mind?"

At this point, it’s helpful to share a real-life horror story like this: "Last week, an owner came back to us after choosing a cheaper agent.

They thought they were saving money, but ended up in a world of pain because their agent couldn’t afford to hire quality property managers.

The result? A revolving door of inexperienced staff, leading to $2,200 in extra costs."​