Meaning & use
management fee
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Meaning
nouncountablebusinessfinance
A charge paid to a person or company for looking after and running something for you, such as property or an investment fund.
Grammar: Often followed by of or for: a management fee of two percent.
Patterns
- a management fee of an amount
- a management fee for something
The agency charges a management fee of ten percent of the rent.
The fund's management fee is deducted from your returns each year.
Ask whether the management fee is included in the price.
Word forms
| plural | management fees |
|---|
Common combinations
- charge a management fee
- Most landlords' agents charge a management fee.
- annual management fee
- The annual management fee is one percent.
- pay a management fee
- Owners pay a management fee to the building company.
- waive the management fee
- They waived the management fee for the first year.
- flat management fee
- He prefers a flat management fee to a percentage.
Synonyms and how they differ
- service charge
- Service charge usually covers maintenance of shared parts of a building, while a management fee pays for the act of running it.
- administration fee
- An administration fee covers paperwork and is often a one-time charge.
- commission
- Commission is paid per sale or result, not for ongoing running of something.
Word family
- manage verb
- to control or look after
- management noun
- the act or people in charge of running something
- manager noun
- a person who runs something
- fee noun
- money paid for a service
Commonly confused: management fee or commission?
management fee vs commission
A commission depends on a deal or sale, while a management fee is for ongoing work.
Practice
An agent collects the rent and fixes problems for you, charging 8 percent. That charge is the ______.
Choose one answer.
A management fee pays someone to run something for you. An entrance fee, stamp duty and interest rate are different charges.
Make it your own
Write a sentence using “management fee”, then check it and compare it with the examples above.