Posted by James Harris on March 29, 2011 at 12:07:57:
That would be the gross. However, you do not to charge
that much, remember, I said up to 10%. The biggest
question you have to ask yourself is “What is your time
worth?” What would you be doing as property manager?
What services will you bring to the table? Will you
have to hire people to help you or contract out the
work? Will you have an office on site? Who’s going to
man the office if you’re out? Are you bonded? What is
the costs for getting bonded? Every thing is up to you
to figure out. I’m just trying to get you to think.
How much do I charge an investor for managing their shopping center property, its a large center about 80,000sqft…what percentage and is it off the gross or net income?
How is the tenant’s rent computed – percentage of gross income, or fixed rent? Are rents triple net, or is management responsible for maintenance and repairs? What is management responsibility for common areas, especially security?
All factor into what would be a reasonable management fee for a commercial retail property.
Posted by James Harris on April 02, 2011 at 08:40:26:
Rents are calculated per square foot per year. Example,
a 800 sq. ft. room could rent for $5 per sq. ft which
equals out to about $4k per year broken down will be
about $334. per month. You could add in for maintenance,
etc