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Asset Management Fee
An asset management fee compensates an investment manager or adviser for oversight and management of real estate investment assets.
An asset management fee pays an investment manager or adviser for managing investment assets. In real estate, the services can include property business plans, refurbishment oversight, selection of asset-level service providers and reporting.
The fee describes compensation, while Asset Management describes the work itself. INREV distinguishes asset-level oversight from property administration and notes that asset and fund management fees are sometimes combined. The term alone does not specify a fee rate, calculation base or payment schedule.
Source: INREV Global Definitions Database: Asset management fee.
Frequently Asked Questions
Is an asset management fee the same as a property management fee?
INREV distinguishes asset-level strategic and oversight services from administrative, technical and commercial property management. The service scope and fee arrangement must be read in the relevant agreement; the labels do not establish a universal rate.
More in Asset Management
See all Asset Management terms →Acquisition Fee
In real estate investment, an acquisition fee compensates an adviser or manager for services associated with acquiring and closing a new investment.
Read definition →Appreciation
Property appreciation is an increase in a property's market value over time.
Read definition →Asset Condition Index
Asset Condition Index summarizes documented component condition and, where applicable, functional performance; its method must be stated before scores are compared.
Read definition →Asset Management
Strategic oversight focused on financial maximization, capital allocation, risk management, and long-term asset value growth for property owners.
Read definition →