deposit forfeiture (by Syl [TN]) May 10, 2010 9:31 AM|
deposit forfeiture (by OPM [OR]) May 10, 2010 9:43 AM
deposit forfeiture (by syl [TN]) May 10, 2010 10:19 AM
deposit forfeiture (by in [IN]) May 10, 2010 1:34 PM
deposit forfeiture (by Gloria [TN]) May 11, 2010 1:00 PM
deposit forfeiture (by Syl [TN]) Posted on: May 10, 2010 9:31 AM
State Specific Question About: TENNESSEE (TN)
My property manager has deducted a management fee from a deposit that was forfeited due to damages to the property. Since this was not rent they are calming all income gets a fee. Can they do that? My other property managers in other states do not.
Thank you, Syl --76.255.xxx.xxx
deposit forfeiture (by OPM [OR]) Posted on: May 10, 2010 9:43 AM
Well the 1st question is what does your mgt agreement say...
typically the fee is a % of income on the property.. and sometimes expressed as a % of the rent recieved or agreed by you and the pm..
Of for smart PM.. is is a fee say at 8%.. and is for representation not tied to occupancy..
Just like you pay and attorney or gardener or plumber.. you pay them for thier service..
So the amount is agreed. but does not rely on the placce being rented..
Let us know what your agreement says..
If they represented you.. they are owed the fee.. under the agreement.. --207.200.xxx.xx
deposit forfeiture (by syl [TN]) Posted on: May 10, 2010 10:19 AM
Thanks for your quick response. The management agreement only states
"For Management 8%". It does not define "management". So I guess they are right in defining this as "income".
deposit forfeiture (by in [IN]) Posted on: May 10, 2010 1:34 PM
How can a deposit be classified as income, it is not yours,to spend but to hold in case of damage, and then it is to be returned...
Which is classified as a refund of a deposit.
It is even to be put in a holding account for the tenant, and is not to be co mingled with other funds. --67.163.xx.xx
deposit forfeiture (by Gloria [TN]) Posted on: May 11, 2010 1:00 PM
I agree, the security deposit is NOT income, it is a deposit to be returned, and damages are not income either, I would be peeved. --208.252.xxx.xx