More advanced fee allocation in the management agreement that considers fixed costs

Example:

• A guest pays $250

• The PM needs $200 to cover costs

• The PM & the Owner split the remaining $50 half and half

The fee would be allocated like this:

• Cleaning fee to the Manager: $225 ($200 fixed + ½ of remaining $50)

• Cleaning fee to the Owner: $25 (other ½ of remaining $50)