Management fee is the compensation paid to a property management company for operational services. LA multifamily typical range: 4–8% of collected rent, depending on property size and service scope.
Larger properties command lower percentage fees due to economies of scale — a 100-unit building might pay 3-4%; a 10-unit building might pay 7-8%. Additional fees often charged: leasing fees (one month's rent per new lease), capital project oversight (10-15% of project cost), accounting fees.
LA multifamily management fees are market-determined but negotiable. For sellers preparing for sale, ensure management fees in operating statements reflect what a typical professional manager would charge — not owner-operator self-management credits.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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