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ARE management fees part of administrative expenses, or Is a management fee part of administrative expenses. Typically, an aministrative fee is included in a lease that bills tenants for a prorata share of expenses on an annual basis. An administrative fee of 5% to 15% is charged on the total amount of monies spent for the year on expenses; as an administrative fee. The administrative fee is supposed to cover the cost of "administrating the expenses". The management fee would be a percent fee, based on rental income collected for a property (4%-6%) for the work or duties outlined in a management contract between the parties. An administrative fee can include a percent of the management fees if a lease is written with such language.

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Q: Is management fees part of administrative expenses?
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