Property Manager charges Owner non-collected late fees

[Dmitry Semenov]

Hello BiggerPockets,

I am separating with Property Manager and they now are charging me late fees that they didn't collect from the tenants. Is it common for property managers?

Property management agreement says:

"Fees Paid By Tenant – Manager may charge and collect fees to Tenant(s) in addition to the base rent in the lease agreement. These fees will be paid to the manager and not shared with the owner."

[James Wise]

Originally posted by @Dmitry Semenov:

Hello BiggerPockets,

I am separating with Property Manager and they now are charging me late fees that they didn't collect from the tenants. Is it common for property managers?

Property management agreement says:

"Fees Paid By Tenant – Manager may charge and collect fees to Tenant(s) in addition to the base rent in the lease agreement. These fees will be paid to the manager and not shared with the owner."

 It's common for property managers to retain all late fees collected from the tenants. I haven't ever seen a property management company charge late fees to the owner though. That's definitely odd and in my opinion not market competitive.