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Business and Property Management Agreements with RMR LLC
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Business and Property Management Agreements with RMR LLC Business and Property Management Agreements with RMR LLC
We have no employees. The personnel and various services we require to operate our business are provided to us by RMR LLC. We have two agreements with RMR LLC to provide management services to us: (1) a business management agreement, which relates to our business generally; and (2) a property management agreement, which relates to the property level operations of our properties that are not senior living communities or wellness centers.
Pursuant to our business management agreement with RMR LLC, we recognized net business management fees of $6,582 and $26,489 for the three months ended June 30, 2019 and 2018, respectively, and $14,301 and $49,813 for the six months ended June 30, 2019 and 2018, respectively. The net business management fees we recognized for the three and six months ended June 30, 2019 include $725 and $1,450, respectively, of management fees related to our subsidiary level management agreement with RMR LLC entered in connection with our joint venture arrangement. Based on our common share total return, as defined in our business management agreement, as of June 30, 2019, no estimated 2019 incentive fees are included in the net business management fees we recognized for the three and six months ended June 30, 2019. The actual amount of annual incentive fees for 2019, if any, will be based on our common share total return as defined in our business management agreement, for the three-year period ending December 31, 2019, and will be payable in 2020. The net business management fees for the three and six months ended June 30, 2018 included $725 and $1,450, respectively, of management fees related to our subsidiary level management agreement with RMR LLC and $17,610 and $31,957, respectively, of estimated 2018 incentive fees based on our common share total return, as defined in our business management agreement, as of June 30, 2018. In January 2019, we paid RMR LLC an incentive fee of $40,642 for 2018. We include business management fee amounts in general and administrative expenses in our condensed consolidated statements of comprehensive income (loss). 
Pursuant to our property management agreement with RMR LLC, we recognized aggregate net property management and construction supervision fees of $3,491 and $2,984 for the three months ended June 30, 2019 and 2018, respectively, and $6,555 and $5,805 for the six months ended June 30, 2019 and 2018, respectively. These amounts are included in property operating expenses or have been capitalized, as appropriate, in our condensed consolidated financial statements.
We are generally responsible for all our operating expenses, including certain expenses incurred or arranged by RMR LLC on our behalf. We are generally not responsible for payment of RMR LLC’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR LLC’s employees assigned to work exclusively or partly at our MOBs, our share of the wages, benefits and other related costs of RMR LLC's centralized accounting personnel, our share of RMR LLC’s costs for providing our internal audit function, or as otherwise agreed. Our property level operating expenses are generally incorporated into the rents charged to our tenants, including certain payroll and related costs incurred by RMR LLC. We reimbursed RMR LLC $3,352 and $3,172 for these expenses and costs for the three months ended June 30, 2019 and 2018, respectively, and $6,726 and $5,951 for the six months ended June 30, 2019 and 2018, respectively. We included these amounts in other operating expenses and general and administrative expenses, as applicable, in our condensed consolidated statements of comprehensive income (loss).