What is the management fee allocation in the Property Management Regulations?

Management fee allocation refers to the management fee borne by each property service community to ensure the normal operation of related property services when a property service enterprise manages multiple property projects.

In other words, many property companies now have several property projects under their jurisdiction. When a company receives a project in various ways, it will send a property service team to provide services.

In the previous calculation method, "manager's compensation" refers to the net profit of the property management company in a single project, so the property management company in the form of head office will have a central team (head office) to coordinate the operation in addition to multiple project teams to ensure the normal operation of each project. So where do these costs come from? Obviously, it is unreasonable to pay these costs with the manager's remuneration of each project. Theoretically speaking, the salary system estimates that the property management company has no other income to pay this fee. At this time, the management fee allocation appears, that is, the cost is allocated according to the proportion of each project area.

Legal basis: According to Articles 7 and 15 of the Measures for Supervision and Examination of Property Service Pricing Cost (Trial) issued by the National Development and Reform Commission and the Ministry of Construction (Development and Reform Price [2007] No.2285), its management fee is one of the property service fees.