What are typical management fees?

Typical management fees are taken as a percentage of the total assets under management (AUM). The amount is quoted annually and usually applied on a monthly or quarterly basis. For example, if you’ve invested $10,000 with an annual management fee of 2.00%, you would expect to pay a fee of $200 per year.

How much is the management fee per month?

This will almost invariably be a set fee, pre-negotiated as part of the contract. Contracts can range from 1-3 years, but are usually on a year to year basis. You can expect to pay roughly $10 to $20 per unit, per month, for management services. Larger communities may be charged lower per door rates because of the way administrative efforts scale.

What does management fee mean?

What Does Management Fee Mean? A management fee is the expense levied by asset managers. This fee allows them to compensate themselves for both their specialized professional skills and abilities, as well as the time spent on managing the assets. The fee may be comprised of the cost of asset administration as well as the investor communications.

What is a reasonable management fee?

What is a reasonable financial management fee? Online advisors have shown that a reasonable fee for money management only is about 0.25% to 0.30% of assets, so if you don’t want advice on anything else, that’s a reasonable fee, O’Donnell says.