A fee charged by the landlord or property manager for administering the property and CAM cost pool, typically calculated as a percentage of gross revenues or total operating expenses. Management fees are frequently capped in commercial leases.
Management fees are typically 3-6% of gross base rents or of CAM costs depending on lease structure. The lease usually specifies the cap explicitly (e.g., "not to exceed 4% of gross revenues"). Some leases also prohibit double-counting management and administrative fees.
A lease caps management fees at 4% of base rents = $32,000 cap. The landlord bills a 5% management fee ($40,000) AND a separate 2% 'administrative fee' ($16,000) totaling $56,000 - 175% of the allowable cap. Both are buried in the CAM pool.
Request itemized CAM statements showing the management fee as a separate line. Confirm the fee base and apply your lease's cap. If there are multiple management or administrative fees, check whether your lease prohibits stacking them. Property managers preparing the reconciliation on the landlord side can use CapVeri.com to allocate management fees per-tenant within the CAM pool automatically.
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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.
