Question about property management commission- is this typical ?

[Ari Newman]

I've been self-managing my portfolio since I started investing and have decided to hire a property manager for a duplex that I'm purchasing.  I'm reviewing their management agreement and came upon:

Is this a typical compensation clause that most Management/Broker companies include in their agreements?  

[Randy E.]

Originally posted by @Ari Newman:

I've been self-managing my portfolio since I started investing and have decided to hire a property manager for a duplex that I'm purchasing.  I'm reviewing their management agreement and came upon:

Is this a typical compensation clause that most Management/Broker companies include in their agreements?  

 We can all joke about the "or 0.00" part but I think it is a red flag about the property manager.  Don't forget this is the person who will performing your due diligence for your tenant screening, and part of his job is to sign those tenants to leases (contracts.)  If the property manager is so careless that he would provide you with a contract that obviously negatively affects him, what does that say about how he might draft contracts with your tenants?

That mistake would be enough to convince me to perform more due diligence and screening of my own ... of whether or not to use that PM.