Big Bear City, CA asked in Real Estate Law, Contracts, Banking and Business Law for California

Q: Is it normal for a property management company to charge 20% of gross profit (including cleaning fee)

Then again charge for the cleaning fee separate?

Layered out like this.

Total reservation (including cleaning fee) = $1,500 - total direct deposited into owners account

Property manager charges “20% of gross profit from TPHR” = $300

Cleaning fee $150 = $150 x 2 (Two reservations) = $300

Total charges = $600 To PM company

Owner receives ($900)

Isn’t that double dipping?

1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
  • Newport Beach, CA
  • Licensed in California

A: It would seem to me that since the cleaning fee is charged to occupant separate from rental fee the PM is entitled to the percent times the rental fee and not both, otherwise this is taking the 20% on the cleaning fee twice. But you may have agreed to allow them to do it, look at your contract. Small Claims. If you file, they will probably pay you the diff, b/c not worth the time to go to court.

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