How is a property manager compensated?

A property manager is typically compensated through management fees and potential commissions from leasing. Management fees are often structured as a percentage of the monthly rent collected, which provides a steady income based on the performance of the properties they manage. This fee compensates the property manager for their time and effort in overseeing daily operations, maintenance, tenant relations, and financial management.

Additionally, property managers may earn commissions from leasing new tenants to the properties they oversee. This incentivizes them to fill vacancies quickly, ensuring that the property owner maintains profitability. Commissions are often calculated based on a percentage of the lease value or a flat fee for each lease signed.

The other options involve compensation structures that do not typically align with standard property management practices. Utilities payments and tenant fees are generally considered separate from a property manager's compensation. Relying solely on salary does not reflect the various income opportunities that exist in property management, and profit-sharing agreements are not commonly used in this field. Thus, the combination of management fees and leasing commissions represents the most accurate and prevalent method of compensation for property managers.