Property Management
In West Virginia, a property management fee structure that charges a percentage of collected rents incentivizes the manager to:
AAllow long vacancies to reduce workload
BMaximize occupancy and collected rents to increase their own fee income✓ Correct
CCharge the maximum rents regardless of market conditions
DUnderreport collected rents to reduce the owner's tax liability
Explanation
A percentage-of-collected-rents fee aligns the manager's financial incentive with the owner's goal of maximizing rental income — when collections are high, both the owner and manager benefit. This contrasts with a flat fee, which provides no such incentive alignment.
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