What is the standard fee for commercial property management and the standard scope of services?

In Property Management - Asked by Dean A. - Aug 11, 2010
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Answer(s)

Gary T.
Owner/Investor
Albany, CA

Any real estate saleperson/broker talking about fee is in violation of the anti-trust law. Check the law book.

Aug 11, 2010
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Rob B.
Chandler, AZ

Dean.....
Negotiate, negotiate, negotiate..... that is what we do in our business. I believe your question had to do with "commercial" management fees. I believe you will be very hard pressed to get above 5% for any meaningful commercial account. In fact think 3.5% and you may be more in the market.
The scope of responsibility is negotiable. However, keep in mind that as a service company, you want to provide as much meaningful service to owners as possible. Know how much cost there is to what you are doing to how much fee you are charging. The spread is called "profit". This remains a capitalistic business and all in the property management contract must be in balance so it is a win for owners, service vendors and property managers.
Unless, I am totally off base in my 35 years of commercial RE experience, unless you own the property, I absolutely believe you need a RE Broker's license or work for a RE Broker to offer property management services in California.
Rob Baird, CA RE Lic. #544165 (One of the oldest, active licenses in CA)
951 515-5855

Aug 12, 2010
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