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Property Management Fee - Commercial

Commercial properties include but are not limited to strip centers, retail space, office space, mix-use and industrial space. For this type of properties the Management Fee is calculated based on a percentage of the gross scheduled monthly rent. This percentage varies from 4% to 8%. This fee may change based on the number of properties you may need to be managed, the number of units in each property, the location and condition of the property, and most importantly, what services are included for that fee. Management fees vary from one company to another. One common mistake made by some clients is the failure to identify all the potential fees for property management, as well as not making a true ‘apples-to-apples’ comparison of costs between property management companies. A lower management fee could easily be wiped out by a lot of expensive back-end charges and vice versa. In few words, some managements companies will offer you a very low management fee, which it will most likely make you contract with them, but then, they will charge you extra for services normally included in a company with a higher management fee.

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