Residual Fee for commercial lease
I am purchasing a commercial property that is being managed by PM. He is charging 6 % of gross rent for managing the property.
Upon reviewing the current P & L statement, I saw a fee call "residual fee", I have never heard that term before. I call the PM to
inquire about the fee, and he explained that when he leases out the unit, on top of agreed flat fee(first month rent), he collects 5 % of rent/month for the duration of the lease. So, here is my question, after I take over the property, am I obligated to continue this commitment from the previous owner? This property is located in Ga.