Three primary fee structures (on-site; shared; hourly; Pricing Variables)
Trimark is a professional services firm. Our property management professionals are knowledge workers, similar to lawyers, accountants, and architects. These professionals have accumulated their knowledge from years of training, ongoing continuing education, being mentored and hands-on experience.
Fees for third-party commercial property management services are usually structured in three ways. First, management fees for rental or investment properties are most often computed as a percentage of the gross rental income. For example, if the total annual rental income of a property was $1,000,000, the management fee would be $40,000 per year if the fee was four percent (4.0%). Second, management fees for headquarter buildings often have cost-plus structures. If a property manager is on-site and is only responsible for that property, 100% of her salary would be paid by the client (i.e., the “cost” component). In addition, her company would receive an additional amount for administration, overhead, and profit (i.e., the “plus” component). A third type of management fee structure is a fixed fee. A fixed fee would be appropriate for a condominium property that is too small to warrant a full-time, on-site property manager. That condominium property would most likely require a portfolio property manager who manages multiple properties, and would spend only part of her time working for that property.