Property management fees

[Thomas Fey]

Hi All,

Was recently having trouble with a tenant and noticed that rent has consistently been paid late and in increments. Reached out to the property manager to see if the tenant had vocalized financial hardships, if not to begin incurring the late fees (10% of outstanding balance) as agreed to in lease contract. Came to find out my property management company slid in that the company will retain all late fees collected, whereas the owner receives no portion. Aside from the personal frustration from being careless, is this customary of all property management companies to do? 

Also would appreciate any weigh in on the following property management fees as I thought most were standard and now I am wondering if I am also being taken advantage of:

PM fees:

10% monthly rent

10% surcharge on any repairs facilitated

100% late fee collection and retainment

1st months rent for new lease signing

1/2 months rent for lease renewal

Full obligation of anticipated monthly PM fees for the remaining duration of lease if property management agreement is terminated early.

Again, aside from the personal lesson learned from this experience, would appreciate some feedback and guidance whether this is customary or I should be looking to find a new property manager for my properties. Thanks BP community.

Best,

Tommy

[Theresa Harris]

I get that a PM will say it is extra work to collect late rent, but if that is paid out late to the owner, they also have a cost. If a PM is continually letting a tenant pay late or do partial payments and pocketing all of the late fees, that is a problem.