Renaming “management fees” to “rent collection fees” could be more accurate and transparent because it would reflect the specific service that is being provided by the property manager.
Property management fees typically cover a range of services beyond just rent collection, such as property maintenance, tenant screening, lease preparation, and handling of legal issues. However, the largest and most time-consuming task that property managers undertake is collecting rent from tenants.
By calling it “rent collection fees,” property managers are clearly indicating that this is the primary service they are providing and that the fee is directly related to the effort required to collect rent. This would help tenants and property owners understand exactly what they are paying for and could potentially reduce confusion and misunderstandings about the scope of property management services.
However, it’s important to note that some property management companies may still include other services in their “rent collection fees,” so it’s important to review the details of the fee structure carefully before making any decisions.