Fee Transparency Policy

Grace Property Management does not own the properties we manage. As a Colorado licensed real estate broker we act as an agent for property owners and landlords, and we provde a full service management experience for tenants renting those properties.

In regard to the costs and charges for renting a property, we are committed to a fair, transparent, legally compliant and full disclosure process for tenants; including in relation to any and all fees charged, and potential security deposit charges at the time of move-out.

Any and all fees or payment obligations charged by Grace Management will be legitimate and reasonable, not misleading, unfair or deceptive. Furthermore, all fees and payment obligations shall be clearly and conspicuously disclosed as is practical and as stated in this document.

The creation and administration of these policies have been designed after reviewing both state and Federal laws, best industry practices, commentary by ‘HUD Fee Policy’, ‘HUD Use of Housing Vouchers’, the Colorado State Attorney Generals Office, the ‘Biden-Harris Administration Takes on Junk Fees in Rental Housing to Lower Costs for Renters’, ‘HR.6542 -No Hidden FEES Act of 2023’, ‘FTC Action Against Invitation Homes For Deceiving Renters’, attorney recommendations, ‘White House Blueprint For A Renters Bill of Rights’, and other resources.

Fee Transparency Policy on Tenant Fees, Payment Obligatins and Secuirty Deposit Withholdings

1. All mandatory fees (fees charge to all  tenancies regardless of the tenants actions or conduct) and payment obligations charged to tenants will be clearly and conspicuously stated and disclosed as follows:

   1. Within each property listing description on the company website (www.RentGrace.com) 

   2. On 3^rd party vacant property syndication sites, as permitted by those syndicators 

   3. On the company pre-application webpage 

   4. On the first page of the Residential Lease Agreement

2. All non-mandatory fees (fees which may be charged to tenancies based on the tenants action, inaction, or other conduct) shall be clearly and conspicuously stated and disclosed within the appropriate sections of the lease agreement in minimum 10 point and bold font.

Below is a list of fees which Grace Management may charge to tenants, a description of the fee, information on where and how the fee will be clearly and conspicuously disclosed to tenants during and after the leasing process, and who the fee is retained by (property manager or owner).

Mandatory Fees (fees charged to all tenancies regardless of the tenants actions or conduct)

1. Rent:

As a third-party property management company and not owning the properties we manage, Grace Management does NOT retain the rent we receive from tenants. Rather those rents are collected on behalf of our property owners and per the terms of the tenant lease agreement. Net funds are then dispersed to the owner-clients per the terms outlined in our Property Management Agreement. Rents are paid out to owner-clients on approximately the 10^th calendar day of each month as part of our monthly trust accounting process.

Disclosure of rent amount:

1. The applicable rent amount shall be clearly stated and disclosed in all direct online property advertising including RentGrace.com and all online syndications as those syndication sites allow.   

2. This rent amount shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property. 

3. This rent amount shall be clearly stated on page 1 of the lease agreement.

Retention of Rent funds:

Tenant rent collected is paid out to third party owner-clients. Grace Management charges a percentage of that rent to the owner-client as part of our full-service property management offering.

2. Lease Administration and Technology Fee:

Grace Management shall charge to all tenants a one-time Lease Administration and Technology fee of $500, plus $25 per month ("LAT Fee"). The $500 shall be due along with the first full months rent, and the $25 shall be due on a monthly basis beginning in month two.

The LAT Fee is based in part on the internal costs incurred by Grace Management for lease administration, including without limitation making the property rent-ready, document preparation (as scrivener), administration and supervision of the leasing and move-in process, providing information that will contribute to a successful leasing transaction, access to technology (including the secure online tenant portal), as well as the ongoing day-to-day operational expenses incurred by Grace Management.

Disclosure of LAT Fee:

1. This LAT Fee amount shall be clearly stated and disclosed in all online property advertising including RentGrace.com and all online syndications as those syndication sites allow.   

2. This LAT Fee amount shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property. 

3. This LAT Fee shall be clearly stated on the company website in 12-point bold font at the top of the webpage listed below, and shall state: Grace Property Management is a licensed Colorado real estate Broker acting as an agent for property owners. We do not own the properties we manage. We offer residents access to our managed property portfolio and we provide a fair, transparent, and full-service renting experience. In addition to rent, residents will pay a one-time Lease Admin and Technology fee of $500, plus $25 per month for this service.   

4. This LAT Fee shall be clearly stated and disclosed on page 1 of the Residential Lease Agreement.

Retention of LAT Fee:

The LAT Fee is retained by Grace Management as remuneration for operational expenses incurred in the leasing process and the day to day operation of the property and resident experience, as well as provision of certain technology, including the secure tenant online portal. This fee is disclosed to owner-clients in section 6.1(j) of the Residential Property Management Agreement

2. Non-mandatory Fees (fees which may be charged to tenancies based on the tenants actions, inactions, or other conduct)

1. Application Fee:

Grace Management shall accept portable tenant screening reports (PTSR) as defined in Colorado Revisted Statute § 38-12-902(2.5). Grace Management provides PTSR submission information to the public and applicants on the weblink below:

https://www.rentgrace.com/portable-tenant-screening-reports

Should applicants provide a PTSR to Grace Management, then NO application fee will be charged to the applicant.

Should an applicant NOT provide a PTSR, but rather apply online, then each applicant over the age of 18 years will complete a rental application and will pay a non-refundable application fee of $50 per adult. The cost of $50 is based on the average expenses of what Grace Management incurs and shall comply with Colorado HB19-1106 found at Colorado Revised Statue § 38-12-903.

Disclosure of application fees:

1. This application fee amount shall be clearly stated and disclosed in all online property advertising including RentGrace.com and all online syndications as those syndication sites allow.   

2. This application fee amount shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property.

One application fee per lifetime policy:

1. Grace Management shall only require one application fee for any adult applicant per the lifetime of that applicant. Once a person has paid an application fee, they may reapply for any property, at any time, without charge.   

2. This policy shall be clearly stated on the Grace Management website resident benefit page. 

3. This policy shall be clearly stated at the beginning of the rental process on the pre-application page.

Retention of Application Fee:

The application fee is retained by Grace Management as renumeration for expenses incurred in the applicant screening process. This is disclosed to owner-clients in section 6.1(j) of the Residential Property Management Agreement

2. Late Fee:

Any late fees charged to the tenant pursuant to the tenant's lease agreement shall be charged in compliance with Colorado SB21-173 found at Colorado Revisted Statute § 38-12-105. The late fee charged shall not exceed 5% of the outstanding rental amount due for the month in question.

Grace Management may, in its sole discretion, waive legally chargeable late fees from time to time should we, in our sole discretion, determine that the tenant is facing a difficult situation and they do not have a history of late payments.  

Disclosure of late fees:

1. This late fee amount shall be clearly stated and disclosed in Section 9 of the Residential Lease Agreement.

Retention of Late Fee:

Any late fees collected are retained by Grace Management as renumeration for company expenses incurred in the collection and accounting process of rent due. This is disclosed to owner-clients in section 6.1(j) of the Residential Property Management Agreement

3. Rent Demand Posting Fee:

Should a rent demand notice be necessary to prepare and physically deliver and serve upon a property, the resident will be charged a posting fee of $50. This fee amount is calculated in part based upon the cost that Grace Management must pay to a third-party notice delivery service company. All demands served shall comply with Colorado HB24-1098.

This demand posting fee shall not exceed $50 even if the demand notice requires two attempts for personal service / delivery or when the expense for this delivery service billed to Grace Management exceeds $50.

Disclosure of rent demand posting fee:

1. This rent demand posting fee amount shall be clearly stated and disclosed in Section 9 of the Residential Lease Agreement.

Retention of Posting Fee:

The posting fee is retained by Grace Management as remuneration for expenses incurred in the engagement of 3^rd party notice service firms. This is disclosed to owner-clients in section 6.1(j) of the Residential Property Management Agreement

4. Other Non Mandatory Fees:

The below listed fees may be charged to a tenant for the reasons stated below.

1. NSF returned check fee: As stated and disclosed in Section 9 of the Residential Lease Agreement:  
   
   “You will pay a charge of $30.00 for each returned check”.
   
   If charged and collected, this fee is retained by Grace Management to offset bank charges and accounting expenses when processing NSF payments.

2. Month-to-month fee: As stated and disclosed in section 22 of the Residential Lease Agreement:

    

   1. “If Tenant holds over and goes month to month, Tenant will be liable for and agrees to pay a month-to-month fee equal to 25% of the current monthly rental rate. This month-to-month fee is not rent or additional rent but consideration paid by Tenant to Landlord for the privilege of being allowed to occupy the Premises on a short-term basis without having to commit to a longer term, and Tenant having the flexibility to terminate the Agreement on notice required by this Agreement.

Customary Property Management Industry Fees NOT Charged by Grace Property Management:

Although sometimes customary to the property management industry, Grace Management shall NOT generally charge any of the below listed fees to our residents as we consider these fees may constitute junk fees.

Note on Pet Fees:

Grace Management recognizes that many Colorado tenants have pets. Although our individual property owners may be involved in setting some of the pet polices specific to the property they own, and although Colorado law specifically allows for some pet fees to be charged, Grace Management shall NOT charge any pet fees, pet rent, or pet deposits.

When applying to rent a property, the applicant will pay a $25 per pet application fee which shall be paid directly to Pet-Screener. Pet-Screener is a third-party screening company and is in no way affiliated with Grace Management.

This pet application fee shall NOT be charged if the applicant / tenant obtains approval for the animal as an assistance animal, meaning a service animal or emotional support animal in complinace with federlal and state Fair Housing laws. No pet application fees shall be charged to process such requests.

Grace Management pet policy for applicants and tenants shall be clearly stated on the company website and shall fully comply with C.R.S 38-12-106.

Security Deposit:

Although tenant security deposits are NOT a tenant fee, because it is money collected from a tenant to be held for potential damanages or charges under the lease, such security deposit money is addressed below:

Tenant security deposits legally belong to the tenant and are NOT considered a fee paid from the tenant to the owner or to Grace Management.

The amount of a tenant security deposit charged on a new move-in shall not exceed one-hundred fifty percent (150%) of the monthly rental rate.

All tenant security deposits shall be held by Grace Management in our security deposit trust account as required by Colorado law.

Individual property owners may NOT hold tenant security deposits without prior approve of the VP of Property Management and this shall be disclosed in Section 6 of the Residential Lease Agreement.

Disclosure of security deposit amounts:

1. Security deposit amounts shall be clearly stated and disclosed in all online property advertising including RentGrace.com and all online syndications as those syndication sites allow.   

2. Security deposit amounts shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property. 

3. This security deposit amount shall be clearly stated on page 1 of the lease agreement.

Security Deposit Withholding:

It is the goal of Grace Management to return the full amount of a tenant’s security deposit at the conclusion of the tenancy, and ONLY withhold for items which are clearly and legally chargeable to the tenant and charged in good faith.

All tenants will be provided a move-in condition report at the time of move in and given 5 days to complete this report and note any items which are damaged or not properly functioning.

At the end of a tenancy, Grace Management will complete a security deposit disposition and return all allowable security deposit money to the tenant. This disposition process, including the inspection of the property after the tenant has moved out and the determination of what charges should be deducted from the tenant security deposit will be completed by the Executive Property Manager assigned to the property. This Executive Property Manager is a licensed Colorado real estate agent and shall receive ongoing training from Grace Management on this process. Generally speaking, the Executive Property Manager will utilize key documentary support for withholdings, including without limitation: (i) the move in checklist completed by the tenant, if any, (ii) a move-out inspection survey, (iii) invoices, receipts, bids or estimates. Such documents will form the basis for security deposit withholdings.

Any retention of tenant security deposit funds shall be described and itemized on the tenant’s security deposit disposition statement and mailed to the tenant within 60 days of vacating a property, as stated in Section 6 of the Residential Lease Agreement.  Any and all security deposit withholdings shall comply with CO C.R.S. 38-12-102 and C.R.S. 38-12-103 as well as all other state requirements.

Tenants will NOT be charged for maintenance, repairs, cleaning, painting or other items related to ‘normal wear and tear’, as defined under Colorado statute. "Normal wear and tear" means deterioration that occurs, based upon the use for which a rental unit or mobile home space, as defined in section 38-12-201.5 (6.5), is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or home owner or members of the tenant's or home owner's household or their invitees or guests.

Tenants shall NOT be charged for any property upgrades or improvements.

Tenants shall NOT be charged for rekeying locks.

There shall be NO standard charges against a tenants security deposit.

Security Deposit Withholding Disputes:

Grace Management acknowledges that the determination of charges against a tenant’s security deposit may sometimes appear to be subjective based on things like the length of the tenancy, and given the before and after condition of the premises. Therefore, Grace Management will provide the tenant an opportunity to dispute any charges to their security deposit.  If a tenant disputes these charges in any form of communication to Grace Management, Grace Management will provide the tenant with a ‘security deposit dispute form’ to complete and return. All submitted dispute forms will be reviewed and responded to by the VP of Property Management.

Conclusion:

We believe that when property management is performed with integrity and transparency, both tenants and landlords benefit.  As a family owned and operated business since 1978, we are committed to serving both tenants and landlords.  As a leader in the Colorado property management space we believe the above policies and practices will help set a standard for property management companies who are dedicated to financial fairness and integrity.

The above statements and polices are made and will be enforced in order to align with the terms of the Property Management Agreement, the tenant Lease Agreement, and all laws governing property management in Colorado. Should any statement or policy in this document contradict the Property Management Agreement, the tenant Lease Agreement, or Colorado state law, those items shall be subordinate.

This policy has been reviewed by Grace Property Management’s legal counsel Tschetter Sulzer Muccio, PC.  2024.12