Property Management

A Tennessee property manager receives a rent payment from a tenant that includes a $50 late fee. The manager should:

AKeep the late fee as additional compensation
BAccount for the late fee according to the property management agreement terms✓ Correct
CImmediately refund the late fee to the tenant
DDeposit the late fee in the tenant's security deposit account

Explanation

How late fees are handled depends on the property management agreement. Typically, they go to the property owner unless the agreement specifies otherwise.

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