More than 10% is not in your interest. But 10% is normal for a small property. The larger the property, the smaller the cut the management takes.

We take all rent to ourselves from tenants. Then we take out all deduction before paying the landlord. But we are a management company, not an individual. Having the rent come to us and payable to us makes things a lot more practical for all parties. If rent is late, we take action (5-day notices with problem tenants). If it bounces, we take action. It also insures that we get paid for our services.

If we had to have the checks made to the owners but received them, then mail them out it would be a headache since we manage a large number of duplexes, houses and apartment complexes. Not to mention all the sorting and postage. Just not practical. And if a check were to be a bad one, and sent to the owner, it could be a month before it all gets sorted out.

I would suggest you find a management company larger than one guy. Or someone that manages many properties. What he is asking is not uncalled for, but once you loose trust (and you have by the sound of it) then the relationship is over.

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1991 560 SEL / 185k miles
1992 750il / 17k miles - project car