Late Fees with a PM Question

[Larry S.]

Hi All,

I'm super excited to be under contract for my first property.  I was reading through a PM agreement from the company I intend to use, it states that the PM keeps all late fees. Is this common practice in the PM industry? I expected it would be along the lines of a 50/50 split, as they are obviously doing additional work to track down the payment so I'd expect they'd earn a portion of it.  Or this could be the norm and something else I'm learning working through my first deal.

Larry