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Administrative fee

A percentage markup a landlord adds to the operating-expense pool to compensate for administering it, charged on top of expenses the tenant is already reimbursing.

An administrative fee is an amount a landlord may add to operating expenses or common area maintenance charges to compensate for managing the property. It is commonly calculated as a percentage of eligible expenses. The lease determines whether the fee is permitted, which expenses it can apply to, and whether it is subject to a cap.

Why it matters

Small percentage differences can become significant across a large portfolio. Teams should confirm:

  • The administrative fee is permitted by the lease.
  • The correct percentage was applied.
  • The fee was only applied to eligible expenses.
  • Management fees or other costs were not charged twice.
  • Applicable CAM caps or exclusions were respected.

How REAL helps

REAL reads the lease alongside landlord statements and supporting financial data to identify administrative fees that do not align with the governing lease terms.

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See how administrative fee is handled across 2,236 leases.

REAL extracts and structures this field from your documents so your team can act on it — no manual abstraction required.

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