Application and late fees

[Greg Meyer]

I am negotiating with a property manager to maintain a 30 door investment. Recently, It came to my attention that the manager is charging a $50 application fee, and he would like to keep late fees.

In your area: How much do tenants usually pay for application processing? Who gets to keep late fees? owner or property manager?

Thank you

[Stephen J Davis]

I personally have never heard of that. Incentivizing your PM to have tenants that pay late. Doesn't make much sense to me. A bonus if they all pay on time makes more sense. I have always heard of a flat percentage based on collections. @Steve Rozenberg should weigh in on this.