Talking to property management companies. do they get to keep late fees?

[Anna Sam]

Hi I am talking to property management companies to manage a property I own in central florida. 

One of them had a clause in their agreement that they get to keep the late fees. 

I thought that was pretty weird since they are in the business of collecting rent. wouldnt it be like rewarding for goal not achieved?

Hence was wondering. 

If you have any property management companies whom you could refer kindly share. 

kindly share your thoughts/suggestions. Thanks

[Phillip Austin]

Late fee structures will vary from company to company. Most reputable companies are either going to split the fees 50/50 or take 100% of the late fees and it's for the reasons @Clay Lehman mentioned. Tracking down a delinquent tenant takes time, money and resources. 

Furthermore, the larger the management company, the more likely they are to keep 100% of the fees. They have hundreds, maybe thousands of properties and tenants they are tracking down each month which may include multiple calls, emails and possibly posting notices at properties. This becomes a revenue stream for the company that could produce thousands of dollars each year.