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Commercial Litigation Landlord Tenant Law Litigation

Management Fees: Make Sure Your Lease Is Clear

There is no uniform approach relating to management fee provisions in leases, and courts will recognize inequities in the charging and payment of management fees when lease terms are ambiguous or a landlord or tenant fails to comply with the terms of its lease.

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Landlord’s management fees are an often-negotiated matter between landlords and tenants. From the landlord’s perspective, having the flexibility to pass through all amounts incurred in the management of the leased property and common areas, whether such management is performed by the landlord or a third party, is essential. Conversely, the tenant desires certainty and limitations with respect to management fees.

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