Property Management Fees

Commercial or retail property management is quite special; the simple rules of residential real estate do not apply.
Whilst that concept may work in residential property management, the same does not apply in and with commercial or retail property. Commercial and retail property management are just far too specialized and complex to be a 'poor cousin' to anything.
Charge reasonable fees that are reflecting the complex and special tasks of the property management job

So what are the fees for managing commercial or retail property today? Here are some fees to consider in providing your property management services to commercial and retail property:
A base management fee should be set for managing the property on a day to day basis. That will include rent collection, income and expenditure management, tenant and lease management, and maintenance management. Take care when setting a fee for a retail property management and give due regard to your office and staff costs.
So how much profit should you make in running your commercial or retail property management division? Do not discount your property management fees to win the business; a quality service requires a fair and reasonable fee.

The All-Inclusive Fee. The Low Base Fee is just as the name implies... It is a low fee for minimal services. The thing to watch out for with Low Base fee structure is the "Lease Up Fee" or "Leasing Commission" as many refer to it. Most Low Base Fee property managers do NOT include this cost in their fees and they can double your property management fees right off! The all-inclusive fee structure on the other hand, pretty much includes all of these fees in its single fee.

In summary: If you will be performing some of the property manager functions like leasing your own property, paying your mortgage, insurance and property taxes, then, the low-base fee structure may be best for you.

The enigmatic "property management" fee
Property managers keep your property leased with paying tenants, and that's what makes property ownership either profitable or unsustainable. The management fee can be a percentage of the monthly gross rent or a flat fee. It pays for the property manager's time spent showing and advertising units, administering lease agreements, screening applicants and resolving tenant issues.

Administrative management
Collection fees
Maintenance fees

Maintenance fees cover interior and exterior repairs, minor improvements and cleaning.
Other unspecified fees
Property management companies all differ in what they include in their basic management fee schedule and what is considered "extra."

The fees of a property management firm will be distinctly different from other property management firms depending on if they specialize in commercial property or residential property. Other property management fees are the set-up fee and the leasing fee. The amount of this fee typically varies from one company to another.

Does your fee provide incentives for you to locate great tenants?

Do you charge extra fee amounts for showing a specific property? If yes, how much in extra fees?
Additional fees, you should inquire about include: lease renewal fees, advertising fees, maintenance fees, reserve fund fees and eviction fees. Each one of these fees will tend to vary in amount from one property managing company to another.