# What is the average property management fee for commercial properties?

Contents

## What percentage do commercial property managers take?

Commercial real estate management percentages tend to start around 1.75%. Nevertheless, it makes good sense to kick that number up to 3% when underwriting a commercial property during your due diligence. There will be other fees.

## What is a fair property management fee?

As a baseline, expect to pay a typical residential property management firm between 8 – 12% of the monthly rental value of the property, plus expenses. Some companies may charge, say, \$100 per month flat rate.

## What is the difference between property management fees and leasing fees?

Management fees cover a number of ongoing services that keep your property occupied and operating well, while leasing commissions pay for just one thing – putting a tenant in a space.

## What does a commercial property manager do?

A commercial property manager handles non-residential properties like offices, retail spaces, storage facilities, shopping centers and industrial buildings. Like residential property management, commercial management encompasses the tasks and responsibilities of operating an income-producing property.

## How do you calculate management fees?

Calculate the Fees

Calculate the management fee by multiplying the percent with total assets. The standard percentage management fee charged ranges from 0.5 percent to 2 percent per annum. For example, if the fund has \$1million in assets and fee charged is 2 percent, \$20,000 goes toward your fund management.

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## How are rental management fees calculated?

That said, ongoing property management fees in NSW are usually 5.5% – 6.6% (including GST) of the rent received. So, say you’ve leased your property for \$2,800 per month and your agent charges 5.5%. This would mean you’d pay \$154 (\$2,800 x 5.5% = \$154) a month – or \$1,848 a year – in management fees.

## How are property management fees calculated?

In Sydney and NSW this generally equates 1-2 weeks rent. The management fee is usually a percentage of the weekly rent, payable for the day-to-day management of the lease, and in NSW can vary from approximately 5-12%.

## What is included in property management fee?

For the actual management of your property, there’s the monthly management fee, which includes property inspection and maintenance, handling emergency maintenance, collecting rent payments, and other day-to-day tasks.

## Are property management fees tax deductible?

In the eyes of the IRS, landlords are like any other business owner and need to pay taxes on their profits. Luckily, costs associated with the property, including property management fees, are tax-deductible.

## What can be included in management fee?

The management fee is intended to compensate the managers for their time and expertise for selecting stocks and managing the portfolio. It can also include other items such as investor relations (IR) expenses and the administration costs of the fund.