Management fees - Posted by Bob

Posted by Bob on October 30, 2002 at 09:27:10:

Thanks Ray for your quick and informative response.
I have been reviewing your posts and site for the last few months and am very impressed.

I am the kind that will take all information available and completely review everything from every angle. Your site is a great tool for me. I am sure I will be using it in the future.

Thanks a million $$

Management fees - Posted by Bob

Posted by Bob on October 30, 2002 at 08:51:34:

Question about management fees. What is the customary managment fee for a commercial property. 10%? 10% of NOI? 10% of gross income?

What do you customarily receive for the service?


Re: Management fees - Posted by ray@lcorn

Posted by ray@lcorn on October 30, 2002 at 09:18:51:


I should note that our company does not perform or hire fee management. We manage our own properties, but just did a mini-survey of management firms in the area due to ongoing changes in our business model.

Management fees vary from one market to the next, and by property type. An average range is 5%- 10%. Fees are normally calculated on gross income.

In my market, most apartment complexes, say 50- 100 units would pay around 7%. Retail shopping centers with a gross of about $200,000 cost about 5%, lower grosses would raise the fee, but we got no quotes above 10% even for small centers.