when the property manager keeps the late fees

[C Michael Sundius]

as frustrating as this is. it really brings up an interesting question when the owner doesn't get a share of the late fee.

say the rent is $100 and the late fee is $10. in january the tenant is late but pays $100 rent. who gets how much?

 does the owner get the whole $100? or does the owner get $90 and the pm get $10?

if the owner gets the whole amount.. then what happens in february when the tenant again pays $100 and ignores the late fee?

can the property manager evict for unpaid fees? I don't think so. what is there to keep the tenant from just ignoring the late fee?

Finally. say the tenant ignores the late fee and only ever pays the rent but not the late fee.. (say he's regularly late). then can the owner demand that he is paid his full rent?

mike

[Rodney Sums]

Quote from @C Michael Sundius:

as frustrating as this is. it really brings up an interesting question when the owner doesn't get a share of the late fee.

say the rent is $100 and the late fee is $10. in january the tenant is late but pays $100 rent. who gets how much?

 does the owner get the whole $100? or does the owner get $90 and the pm get $10?

if the owner gets the whole amount.. then what happens in february when the tenant again pays $100 and ignores the late fee?

can the property manager evict for unpaid fees? I don't think so. what is there to keep the tenant from just ignoring the late fee?

Finally. say the tenant ignores the late fee and only ever pays the rent but not the late fee.. (say he's regularly late). then can the owner demand that he is paid his full rent?

mike

 PMs I work with don't take partial payments. So they can't just pay the rent and ignore the late fee.  It's along the lines of what another poster said, if they take some of the money, a judge may not evict because partial payments were taken.  

Most PMs I've dealt with keep all the late fees, arguing they're doing the extra work to collect the rent.  I can appreciate that because as the owner youre not the one drafting letters, sending certified mail, burning gas driving to the property to put notices on the door, making calls etc. You just wait and that does suck. I do have one that gives me some of it.  

They have to make their money somewhere so even if they gave you some or all of the fees, they'd have to offset it by charging higher rates to the owner.