Who gets to keep late rental fees? It depends Q:I own a rental property. When my previous property manager received late fees from tenants who were slow in paying their rent, he turned these late fees over to me. The current property manager keeps the late fees, stating that this is her policy. What is the correct procedure regarding who owns the late fees? -- Rose

A: To my knowledge, there is no correct procedure. The prop erty manager should have ad vised you of her policy before you entered in to a property management contract, and this policy should be spelled out in that contract.

I understand the property manager's position. If a tenant is late, the manager has to send out delinquent notices, and often will have one or more phone conversations with the tenant.

This takes time, and the manager should be compensated for this work. But if your contract is silent as to who keeps any late fees, I would take the position that this is your property and that all rental income -- including late fees -- belong to you.