Prop. Man. request we pay his fees even if tenants don't pay rent

[David Jay]

I just got a letter from my property manager who manages eight single family properties that I own.  He is requesting that all owners pay the full fee they would normally pay even if the tenants don't pay rent.  Our state (NV) like many have a ban on evictions and late fees due to the Covid pandemic.  I think he is afraid that so many tenants will not pay that he is at risk of his business going under.  He is the only property manager I have used and he has been managing my properties for nine years.  I have been very happy with the job he has done.  But I don't think this request is fair.  What it is trying to achieve is that he will go on with his income stream intact while the rest of us take a hit. Additionally, since I own single family and many of his tenants own apartments and the fees are a percent of rent, my fees per unit are already double what many pay and I suspect my tenants are a lot less work (always pay on time and turnover is low.)  Obviously now is not a good time to shop for a new property manager.  What are your thoughts and how would you respond?

[Christine Mulkins]

Definitely look at the agreement you signed with the prop mgmt company. It should definitely specify when and how the management company gets paid. 

I was the sole owner and property manager of a small management company and I received a percent of “rent paid” and that was my incentive to ensure tenants paid and units were filled. I aligned my incentives with those of the owner. Personally, I think that’s the only way to do it.