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Management Fees: Single Line Item, Big Problem 

That moment when a bill shows up and something just feels… off. In Commercial Real Estate, that’s often when Tenants meet one of the most misused line items in operating expenses: the Management Fee.

Management Fees can be legitimate when clearly defined and properly calculated. The problem? Many leases provide for Management Fees, but many landlords improperly bill it. CTS routinely sees Management Fees layered on top of Administrative Fees, calculated on the wrong expense base, or expanded to include costs that should already be covered.

Common red flags may include:

• Management and Administrative Fees charged together with no clear distinction 
• Fees calculated on expenses the lease specifically excludes
• ‘Management’ charges that simply repackage internal overhead or related-party costs
• Fees that exceed contractual caps or market rates
  

In short: Tenants often end up paying multiple times for the same oversight. 
 
When Management Fees drift from contractual obligations to routine markups, CTS finds it.  We regularly uncover significant overcharges, even after prior audits or lease admin reviews. This is why nearly half of Fortune 100 and many of the world’s largest law firms trust CTS to protect their bottom line. 

Reach out today for a complimentary review of your locations:

Sara Stanley, MCR Managing Director / SStanley@CTSAudits.com / 310-526-8389