| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #6797 | Closed | public | Multifamily | Les Sparks |
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I have a question concerning managing agent fees. I have a client that has a managing agent that charges basically the agreed upon management fee on all inflows from a tenant. This includes electricity, water, sewer, and natural gas reimbursements, pest control reimbursements and garbage collection reimbursements. From the managing agent handbook I guess you could fit the electricity and natural gas into the heating and cooling category of allowable income for managing agent fees, but the others are not clear. Your thoughts as to whether the managing agent is allowed to charge the management fee on these tenant reimbursements are welcomed. |
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From Les Sparks: The charges listed in 4381.5 (figure 3-1 thru 3-3 make it clear that utilities are only included int he management fee if the project is master metered. Then rent includes utilities. If units are metered individually, then you can only include the utility allowance if the total tenant payment is less than the utility allowance. IN that case you amy also include the utility allowance. Otherwise, the referenced figure remain the guidance. Les |