A charge separate from (or in addition to) the management fee, ostensibly for administrative overhead associated with managing the CAM cost pool. Administrative fees are sometimes used to circumvent management fee caps.
Administrative fees are not standard in all leases and are not always distinguished from management fees. If the lease caps management fees but is silent on administrative fees, landlords may argue the two are distinct - though courts are split on this.
A lease capped the management fee at 4% of CAM. The landlord charged 4% management fee + 10% administrative fee for a total of 14% overhead. The tenant's lease only contemplated one fee.
Scrutinize any fee labeled "administrative," "overhead," "coordination," or "supervision." If your lease mentions only a management fee, question whether an administrative fee is permitted.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
