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Based on the most helpful WSO content, it is not uncommon for operators to allocate 100% of salaries and benefits for corporate-level positions or employees who split time across multiple properties directly to the P&Ls of those properties. This practice can indeed extend beyond payroll to include affiliate vendor upcharges for repairs and maintenance (R&M), supplies, and other expenses. Essentially, this approach allows operators to turn what would traditionally be considered expenses into a form of revenue generation upstream.

While this practice is observed in certain real estate asset classes, its prevalence and acceptance can vary depending on the asset class, market norms, and the operator's business model. For example, in multifamily or commercial real estate, such allocations might be more common, especially when operators are looking to optimize their financial reporting or justify certain cost structures. However, the specifics can differ across asset classes and regions, influenced by regulatory, cultural, and market conditions.

Sources: PERE comp table, AM vs HF: The Business of Our Business, Breaking Into Commercial Real Estate, Commercial Real Estate Broker Compensation, Real Estate Profit Split - Friends and Family - LT Hold