60. A landlord hires a property manager to manage an apartment complex. The fee paid to the property manager may be determined
Answer: D
Fees for property management can be determined on a fixed, hourly, or percentage basis if both parties agree.
The fee paid to the property manager can be established through various methods, including a fixed fee, hourly rate, or a percentage of the gross or net income, provided that both the landlord and the property manager reach an agreement.
A) only on an hourly basis for actual work performed on behalf of the landlord, because any other method is unfair to the landlord
This option is incorrect as it limits the fee structure to only hourly compensation, disregarding other valid arrangements such as fixed fees or percentage-based fees that can also be fair to the landlord when both parties agree.
B) only on a fixed fee because any other method is unfair to the property manager
This choice is flawed because it restricts the compensation methods to only fixed fees, which does not take into account the flexibility that can exist in agreements between landlords and property managers, including hourly and percentage-based options.
C) on any basis agreeable to both, other than a percentage of the gross or net income from the property, because percentage computation of fees is illegal
This statement is incorrect since it erroneously claims that percentage-based fees are illegal, which is not true. Property managers and landlords can agree on percentage fees, making this option inaccurate.
D) on a fixed or hourly fee or percentage of the gross or net income, if agreeable to both the landlord and the property manager
This option is correct as it acknowledges that the fee structure is flexible and can include various methods, including fixed, hourly, or percentage-based fees, as long as both parties consent to the arrangement.
Conclusion
Option D is the only choice that accurately reflects the legal and practical realities of fee arrangements between landlords and property managers. It encompasses the full range of permissible compensation methods, while all other options either impose unnecessary restrictions or incorrectly state the legality of certain fee structures. Thus, D is the definitive answer in this context.