Property Management Fee - Gross Rent

[Jon Dorsey]

I have a smaller multi family property and have a PM company that I really like. Our agreement on fees states they get a % “of total gross rental income received on all rental agreements.”

They see that is taking a % of collections at 100%, what could be, whereas I see it as % of what was actually collected that month. Every month there are a few tenants who are late but catch up within the next 2 months. 

My concern is that the PM is taking payment on rents they haven’t collected. 

Two questions:

1) who is correct on gross rent definition?

2) am I making a mistake by addressing this bc the PM goes above and beyond and I eventually get that back rent?