property manager looking at plans

Fee Structures for Commercial Property Management

So, a client asks you to manage their commercial property.  What do you do at that point?  How much should you charge for your services?  

So many agents and brokers make mistakes in setting property management fees.  They adopt some formula of a percentage fee taken from the passing income for the property.  

What then happens when the vacancy factors in the property rise or the incentives on a new lease diminish the passing rent?  

Setting Your Fees for Service

The best way to set a commercial or retail property management fee is to look at the tasks involved in a number of categories relating to the property.  

You can then assess the demands of the property and the client on your time, and you can apply a time-based formula to cover your costs of service and make a profit.

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