Prop. Man. request we pay his fees even if tenants don't pay rent
I just got a letter from my property manager who manages eight single family properties that I own. He is requesting that all owners pay the full fee they would normally pay even if the tenants don't pay rent. Our state (NV) like many have a ban on evictions and late fees due to the Covid pandemic. I think he is afraid that so many tenants will not pay that he is at risk of his business going under. He is the only property manager I have used and he has been managing my properties for nine years. I have been very happy with the job he has done. But I don't think this request is fair. What it is trying to achieve is that he will go on with his income stream intact while the rest of us take a hit. Additionally, since I own single family and many of his tenants own apartments and the fees are a percent of rent, my fees per unit are already double what many pay and I suspect my tenants are a lot less work (always pay on time and turnover is low.) Obviously now is not a good time to shop for a new property manager. What are your thoughts and how would you respond?
Most Popular Reply
Definitely look at the agreement you signed with the prop mgmt company. It should definitely specify when and how the management company gets paid.
I was the sole owner and property manager of a small management company and I received a percent of “rent paid” and that was my incentive to ensure tenants paid and units were filled. I aligned my incentives with those of the owner. Personally, I think that’s the only way to do it.