Commercial Real Estate Mgt Fees

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Part
01

Florida and Miami County Real Estate Management Fees

After an extensive search through credible sources, we were not able to provide the average commercial real estate management fees in Miami county and in Florida. However, the research team pulled together all the relevant insights/findings about management fees in general. We have presented them below, together with the details of the team's research strategies to find the required information.

HELPFUL FINDINGS

  • Management fees come in two forms: Flat Rate or a Basic Percentage of Rent Fee.
  • The Flat Rate Fee for Miami Property Management Services is the least common method used by property managers. The fee can range from $90-$125 per unit.
  • Commission Based Fee or Percentage Fee is the most widely used method of charging property management fees in Miami. The percentage usually charged ranges between 8%-10%. Most management fees start at 10% and depending on the quantity of the properties being managed, the percentage can go down.
  • Leasing Fee for Tenant Placement is usually the same for all Miami property management companies. The fee charged is equal to one month’s rent. In other words, if the rent being charged is $1,500 then the leasing fee will be $1,500.
  • Solid Property Management Group, CR Property Management, Iron Property Management, Kinetic Property Management, Novel Management, Southeast Property, Empire Property Management Solutions, and Property Management Group are the top commercial real estate management companies in Miami and Florida.
  • The average management fee ranges between 4-12% of the monthly rent depending on the type of property (commercial or residential).
  • The average management fee is derived on the basis of various categories including the number of properties managed, the number of units in each property, the location and condition of the property, and the type of services included for that fee.

Research Strategy:

Since the nature of the requested data for both Miami and Florida was similar pertaining to the average commercial real estate management fees, we deployed similar research strategies to look for the information. We started off by looking at research reports on properties such as real estate consultancies JLL and Cushman Wakefield to check the Information on commercial real estate management fees in Miami and Florida. The reports enumerated the information on the trends and pattern on commercial real estate management companies with no information available specifically for management fees for Miami and Florida.

Next, we looked through news articles and property blogs from websites like iPropertyManagement, Miami Property Management LLC, and Expertise. These sources provided information on types of management fees and also stated that average management fee ranges between 4-12%. But the specific rate for commercial property is not mentioned. They also stated the flat rate fee or commission-based fee for Miami properties. But the amount of fees for commercial properties in absolute or percentage terms was not available for either Miami or Florida region as a whole. We also looked for organizations that operate commercial property associations in Florida in sources such as BOMA Florida, The Central Florida Commercial Association of Realtors, and Florida Gulfcoast Commercial Association of Realtors. These organizations depicted the information on professional expertise and ethical accountability in the field of commercial real estate. But no information was given regarding management fees for commercial properties in the Florida region.

Since there was no precompiled Information available regarding management fees for Miami and Florida, we opted to go for triangulation approach and looked for the top property management companies in Miami and Florida in sources such as Inc., Expertise, Yellow Pages, Angie's List, Thumbtack, and iPropertyManagement. The idea was to check the rate of management fees for some 5 to 7 companies and then calculate their average. After checking the lists, we were able to find the top companies in Miami and Florida region and checked each one of them. All the companies provide commercial real estate management services but no information was given regarding management fees these companies charge.

As the Information could not be derived with all the above-mentioned strategies, we broadened the geographical scope to cover the US instead of Miami and Florida only. Secondly, we also broadened the scope to cover real estate properties in general and the average rent being charged on commercial properties. This strategy was also tried since it was found that the average management fee ranges between 4-12% of the monthly rent irrespective of the type of property. But the information about the average rent was not disclosed as well. The unavailability of this information could be due to the confidentiality of the data for competitive reasons. It is also assumed that fees are only disclosed when customers show interest in the company's services. In the absence of this specific information, we have provided other relevant insights and presented them above.

Sources
Sources

Quotes
  • "Basic fees are usually 6-12 % of the rental property’s monthly rent. These fees can depend on whether it is a commercial or residential property and the property type (i.e. apartment, condo, townhouse, etc.). "
Quotes
  • "The Flat Rate Fee for Miami Property Management Services This is the least common method used by property managers. The fee can range from $90 – $125 dollars per unit. "
  • "Commission Based Fee or Percentage Fee This is the most widely used method of charging property management fees in Miami. The percentage usually charged range between 8% – 10%. Most management fees will start at 10% and depending on the quantity of properties being managed the percentage can go down. "
  • "Leasing Fee for Tenant Placement This fee is usually the same for all Miami property management companies. The fee charged is equal to one months rent. In other words if the rent being charged is $1,500 than the leasing fee will be $1,500."
Quotes
  • "At ASPMG we strive to meet your commercial property management needs and exceed your expectations. We provide responsive customer care service, efficient accounting, effective financial management and build excellent tenant relations."