Final answer:
A percentage fee is based on a property's income and varies with the income earned, whereas a flat fee remains the same regardless of the income generated.
Step-by-step explanation:
A percentage fee is based on a property's income, meaning that the fee is calculated as a certain percentage of the income earned from the property. This type of fee varies depending on the income generated. For example, if the percentage fee is 5% and the property generates an income of $10,000, the fee would be $500 (5% of $10,000).
On the other hand, a flat fee does not vary with the property's income. It is a fixed amount that is charged regardless of the income generated. For instance, if the flat fee is $1,000, it will remain the same whether the property generates an income of $10,000 or $100,000. It is important to note that flat fees are not affected by changes in income.