Charging Industrial tenants management fees

[Newtoproperty]

I'm new to this having recently come to own a few industrial buildings. With the new tenants there is a line in the ADLS lease outgoing section that allows me to charge for management fees. I'm wanting to know what is a fair or actually more is there just a market wide standard for what is charged here. eg 1-3% of net rental value?

I also have a block of shops but this seems much more standard in retail I think we charge 2.5% of the top of my head.

The thing I have a little problem mentally is that some of the tenants I never hear from much, where as some want there hand held constantly.

Basically is there a market standard here for industrial, how is it calculated or does anyone have an opinion?

Cheers

[King13]

Hi - the percentage you can charge needs to be documented in the lease and agreed to by the tenant. Cheers.

[jcmk]

Hi - we have just set up management agreement with a property management company. As you state there is the clause in outgoings that covers management fees. As explained to me, it is a outgoing that you can claim from the tenant and I believe that fee that is charged is a % of the rent. As long as you are not benefiting financially from the management fees charged, then it is a standard outgoing.