Late fees-100% to property manager?

[Karen Young]

If your property manager charges a fee for late rent payments, do they keep it all? Should they split it with the owner?

[Joe Splitrock]

I respect that a property management company has overhead and needs to make profit. But what I never understood with property management is these extra fees. Our local PM charge 8%, then also have extra fees for pretty much any tenant contact. They charge to line up service calls. They charge for lease signing. They charge for tenant placement. They take the late fees. They charge for eviction. I struggle to wrap my head around what the 8% fee actually covers? It seems like that covers a trouble free tenant who pays on time. But given that rent collection is all electronic and they use software to manage, it seems 8% is steep. I am probably missing something here?