How is a Property Manager Paid

Property owners can employ a property manager directly or employ him indirectly through a contract with a property management agency. A property management’s fees are usually percentage fees, and sometimes a flat fee. Percentage fees are a good incentive to the manager to improve the income of the building. A flat fee is usually more appropriate when the property is a condominium complex.

Regardless of the type of fee structure, a written agreement between the property owner and the manager is very important, as the manager will be responsible for the owner's real estate. The contract should include the following items:

• List the responsibilities of the manager
• List the responsibilities of the owner
• State the fees and rental commissions
• Include the date of the agreement
• List the authority of the manager
• Specify the length of time of the contract
• Must be signed by both of the parties