Accounting
Management fee
What an owner pays a property manager to run a property, often a percentage of collected rent or a flat monthly amount.
Management fees are commonly a percentage of rent collected, a flat fee per unit or door, or a minimum plus a percentage. Agreements often add separate fees for leasing, renewals, lease-up or project supervision.
The fee is calculated each period from the management agreement and deducted before owner distributions. Calculating it on collected rather than charged rent aligns the manager's income with the owner's.
See it on a sample company