Property Management

A Florida commercial property manager negotiates a new 5-year lease with a tenant at $18/sq ft/year for 3,000 sq ft. The management fee is 5% of collected rent. What is the monthly management fee?

A$225✓ Correct
B$270
C$300
D$450

Explanation

Annual rent = 3,000 sq ft × $18 = $54,000. Monthly rent = $54,000 ÷ 12 = $4,500. Monthly management fee = $4,500 × 5% = $225. Commercial property management fees vary widely but are often a percentage of collected rents. Understanding fee calculations helps managers properly account for and disclose their compensation.

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