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Using A Property Manager |
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Dear Edith: I have two questions I have not seen addressed in your column.I am a out-of-state landlord, using a real estate company to manage my property.The questions are: 1. Is it legal for a real estate company to charge 50 percent of the first month’s rent, when they are finding a new tenant, even though I pay all the expenses for the advertisement and other costs, and I am charged 10 percent management fee? 2. If the current tenant decided to buy the house, do I have to pay any commission to the real estate company, as finder's fee, though I have only used them for renting the house? |
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The amount you pay a property manager is not set by law. It depends on the agreement between you and the management company.If you didn’t like their charges, you could have hired someone else. Whether a commission is due if the property is sold to a tenant, is again a matter for negotiation between you and your manager. Perhaps it's set out in your management contract; take a look. If it isn’t mentioned there, and if you haven’t used the manager to negotiate the sale, I don’t see why you’d owe a commission. |
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Edith
Originally published on January 6, 2006 |
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