Property management company is deducting late fees from rent instead of collecting

[Paul Zofsak]

I am dealing with this local property management company for the first time; everything looked great until my tenant stated paying rent five to ten days late every month.  The tenant then pays the rent but nothing extra to cover late fees.  The property management company deducts the late fees from the rent and counts what is left over as my income and takes their standard 10% from that.  For example, rent is $1200, the tenant pays $1200 five days late, the management company deducts $65 from the rent and tells me that my income is $1135, then takes $113.50 from that for management fees.  They keep the late fees per the contract but are doing nothing to collect the uncollected rent; when I pressed the matter they asked if I wanted to proceed with eviction.  The tenant is a good tenant other than paying a little late; that combined with the expenses of re-leasing and carrying costs, it makes no sense to move forward with eviction.  Is it just me or am I paying my property management company to NOT do their job or is this an industry standard?

[Brian Ortins]

I hope the tenant doesn't fall behind more than one month.  You will have to pay extra late fees to the PM.  All joking aside, what is the motivation to collect fees and enforce the rules with your current agreement?  The PM gets paid more when they don't do their job.  I want that job.