Property Management Questions (Placement Fees, % of Rent)

[Laura H.]

Still in the early stages of this, but wanted to ask a few questions that have been nagging me...

We have a property management company in Springfield, MO that charges 10% of rent plus $10 per door for a duplex. They only get the 10% rent if the place is rented (Q1: Is this common - to only get paid when it's occupied?), so they have quite an incentive to get the place rented when it's vacant. There are no other fees; just maintenance costs marked up a certain percent (I forget what it is at the moment). Always seemed like a pretty good deal.

I'm seeing that it is common practice for companies (especially around Kansas City where I'm looking now) to charge fees for tenant placement, lease renewal, eviction, etc. So if the company is getting 50-75% of the first month's rent for a new tenant, (Q2) what's the incentive for them to find good long-term tenants in the first place? (Q3) With all of the fees they get, wouldn't they just want a revolving door of crappy tenants to gobble up as much of the landlord's money as they can get?

[Steve Ipock]

I manage property in the Kcmo area. I get 50/door flat fee. Larger complexes are negotiable. I get 25/hour for maintenance. 15/hour for a helper if one is needed. Bid make ready units & rehab projects.