Property Management

A property manager's management fee is typically based on:

AThe square footage of the property
BA percentage of the gross rents collected✓ Correct
CA flat annual fee regardless of performance
DThe appraised value of the property

Explanation

Most property management agreements set the fee as a percentage of gross rents collected (typically 4-12% for residential). This aligns the manager's incentive with maximizing rental income for the owner.

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