The RMR Group Inc. (RMR) 10-Q 6 Feb 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2019	Feb. 05, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-37616
Entity Registrant Name	RMR GROUP INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	47-4122583
Entity Address, Address Line One	Two Newton Place
Entity Address, Address Line Two	255 Washington Street
Entity Address, Address Line Three	Suite 300
Entity Address, City or Town	Newton
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02458-1634
City Area Code	617
Local Phone Number	796-8230
Title of 12(b) Security	Class A common stock, $0.001 par value per share
Trading Symbol	RMR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001644378
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Current Fiscal Year End Date	2020
Document Fiscal Period Focus	Q1
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,300,302
Class B-1 Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,000
Class B-2 Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 385,695	$ 358,448
Due from related parties	76,264	93,521
Prepaid and other current assets	5,013	5,848
Total current assets	466,972	457,817
Property and equipment, net	2,315	2,383
Due from related parties, net of current portion	9,001	9,238
Equity method investment	6,561	6,658
Equity method investment accounted for under the fair value option	5,120	3,682
Goodwill	1,859	1,859
Intangible assets, net of amortization	312	323
Operating lease right of use assets	36,899
Deferred tax asset	25,302	25,729
Other assets, net of amortization	150,789	153,143
Total assets	705,130	660,832
Current liabilities:
Accounts payable and accrued expenses	94,944	90,989
Total current liabilities	94,944	90,989
Deferred rent payable, net of current portion		1,620
Operating lease liabilities, net of current portion	34,467
Amounts due pursuant to tax receivable agreement, net of current portion	29,950	29,950
Employer compensation liability, net of current portion	9,001	9,238
Total liabilities	168,362	131,797
Commitments and contingencies
Equity:
Additional paid in capital	103,994	103,360
Retained earnings	266,906	257,457
Cumulative common distributions	(78,389)	(72,194)
Total shareholders’ equity	292,542	288,654
Noncontrolling interest	244,226	240,381
Total equity	536,768	529,035
Total liabilities and equity	705,130	660,832
Class A Common Stock
Equity:
Common stock	15	15
Class B-1 Common Stock
Equity:
Common stock	1	1
Class B-2 Common Stock
Equity:
Common stock	$ 15	$ 15

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	31,600,000	31,600,000
Common stock, shares issued (in shares)	15,301,767	15,302,710
Common stock shares outstanding (in shares)	15,301,767	15,302,710
Class B-1 Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	1,000,000	1,000,000
Common stock shares outstanding (in shares)	1,000,000	1,000,000
Class B-2 Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	15,000,000	15,000,000
Common stock shares outstanding (in shares)	15,000,000	15,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Revenue	$ 159,892	$ 280,313
Expenses:
Compensation and benefits	30,197	28,012
Equity based compensation	1,582	1,811
Separation costs	260	6,397
Total compensation and benefits expense	32,039	36,220
General and administrative	7,046	7,320
Other client company reimbursable expenses	97,975	98,076
Transaction and acquisition related costs	796	184
Depreciation and amortization	256	255
Total expenses	138,112	142,055
Operating income (loss)	21,780	138,258
Interest and other income	1,875	1,526
Equity in earnings of investees	255	35
Unrealized gain (loss) on equity method investment accounted for under the fair value option	1,438	(2,769)
Income (loss) before income tax expense	25,348	137,050
Income tax expense	(3,724)	(18,970)
Net income (loss)	21,624	118,080
Net income attributable to noncontrolling interest	(12,175)	(65,871)
Net income attributable to RMR Inc.	9,449	52,209
Other comprehensive loss:
Foreign currency translation adjustments	0	(4)
Other comprehensive loss	0	(4)
Comprehensive income	21,624	118,076
Comprehensive income attributable to noncontrolling interest	(12,175)	(65,869)
Comprehensive income attributable to The RMR Group Inc.	$ 9,449	$ 52,207
Weighted average common shares outstanding - basic (in shares)	16,177	16,120
Weighted average common shares outstanding - diluted (in shares)	16,177	16,131
Net income attributable to The RMR Group Inc. per common share - basic and diluted (in dollars per share)	$ 0.58	$ 3.22
Total management and advisory services revenues
Revenues:
Revenue	$ 48,122	$ 168,364
Management services
Revenues:
Revenue	47,275	47,488
Incentive business management fees
Revenues:
Revenue	0	120,094
Advisory services
Revenues:
Revenue	847	782
Total reimbursable costs
Revenues:
Revenue	111,770	111,949
Reimbursable compensation and benefits
Revenues:
Revenue	13,795	13,873
Other client company reimbursable expenses
Revenues:
Revenue	$ 97,975	$ 98,076

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common sharesClass A Common Stock	Common sharesClass B-1 Common Stock	Common sharesClass B-2 Common Stock	Additional Paid In Capital	Retained Earnings	Cumulative Other Comprehensive Income	Cumulative Common Distributions	Total Shareholders' Equity	Noncontrolling Interest
Balance beginning at Sep. 30, 2018	$ 434,661	$ 15	$ 1	$ 15	$ 99,239	$ 182,877	$ 82	$ (49,467)	$ 232,762	$ 201,899
Increase (Decrease) in Shareholders' Equity
Share grants, net	1,569				1,569				1,569
Net income	118,080					52,209			52,209	65,871
Tax distributions to Member	(8,037)									(8,037)
Common share distributions	(10,180)							(5,680)	(5,680)	(4,500)
Other comprehensive loss	(4)						(2)		(2)	(2)
Balance ending at Dec. 31, 2018	536,089	15	1	15	100,808	235,086	80	(55,147)	280,858	255,231
Balance beginning at Sep. 30, 2019	529,035	15	1	15	103,360	257,457	0	(72,194)	288,654	240,381
Increase (Decrease) in Shareholders' Equity
Share grants, net	634				634				634
Net income	21,624					9,449			9,449	12,175
Tax distributions to Member	(3,830)									(3,830)
Common share distributions	(10,695)							(6,195)	(6,195)	(4,500)
Other comprehensive loss	0
Balance ending at Dec. 31, 2019	$ 536,768	$ 15	$ 1	$ 15	$ 103,994	$ 266,906	$ 0	$ (78,389)	$ 292,542	$ 244,226

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities:
Net income	$ 21,624	$ 118,080
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	256	255
Straight line office rent	35	54
Amortization expense related to other assets	2,354	2,354
Deferred income taxes	427	(76)
Operating expenses paid in The RMR Group Inc. common shares	634	1,569
Equity in earnings of investees	(255)	(35)
Distributions from equity method investments	352	0
Unrealized (gain) loss on equity method investment accounted for under the fair value option	(1,438)	2,769
Changes in assets and liabilities:
Due from related parties	16,007	(161,939)
Prepaid and other current assets	835	5,910
Accounts payable and accrued expenses	1,089	85,137
Net cash from operating activities	41,920	54,078
Cash Flows from Investing Activities:
Purchase of property and equipment	(148)	(170)
Equity method investment in TravelCenters of America Inc.	0	(8,382)
Net cash used in investing activities	(148)	(8,552)
Cash Flows from Financing Activities:
Distributions to noncontrolling interest	(8,330)	(12,537)
Distributions to common shareholders	(6,195)	(5,680)
Net cash used in financing activities	(14,525)	(18,217)
Effect of exchange rate fluctuations on cash and cash equivalents	0	2
Increase in cash and cash equivalents	27,247	27,311
Cash and cash equivalents at beginning of period	358,448	256,848
Cash and cash equivalents at end of period	385,695	284,159
Supplemental Cash Flow Information:
Income taxes paid	165	332
Supplemental Schedule of Non-Cash Activities:
Fair value of share based payments recorded	948	1,316
Recognition of right of use assets and related lease liabilities	$ 39,746	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The RMR Group Inc., or RMR Inc., is a holding company and substantially all of its business is conducted by its majority owned subsidiary The RMR Group LLC, or RMR LLC. RMR Inc. is a Maryland corporation and RMR LLC is a Maryland limited liability company. RMR Inc. serves as the sole managing member of RMR LLC and, in that capacity, operates and controls the business and affairs of RMR LLC. In these financial statements, unless otherwise indicated, “we”, “us” and “our” refer to RMR Inc. and its direct and indirect subsidiaries, including RMR LLC. As of December 31, 2019 , RMR Inc. owned 15,301,767 class A membership units of RMR LLC, or Class A Units, and 1,000,000 class B membership units of RMR LLC, or Class B Units. The aggregate RMR LLC membership units RMR Inc. owns represented 52.1% of the economic interest of RMR LLC as of December 31, 2019 . We refer to economic interest as the right of a holder of a Class A Unit or Class B Unit to share in distributions made by RMR LLC and, upon liquidation, dissolution or winding up of RMR LLC, to share in the assets of RMR LLC after payments to creditors. A wholly owned subsidiary of ABP Trust, a Maryland statutory trust, owns 15,000,000 redeemable Class A Units, representing 47.9% of the economic interest of RMR LLC as of December 31, 2019 , which is presented as a noncontrolling interest within the condensed consolidated financial statements. Adam D. Portnoy, one of our Managing Directors, is the sole trustee of ABP Trust, and owns all of ABP Trust’s voting securities. RMR LLC was founded in 1986 to manage public investments in real estate and, as of December 31, 2019 , managed a diverse portfolio of publicly owned real estate and real estate related businesses. RMR LLC provides management services to four publicly traded real estate investment trusts, or REITs: Diversified Healthcare Trust (formerly known as Senior Housing Properties Trust), or DHC, which owns medical office and life science properties, senior living communities and wellness centers; Industrial Logistics Properties Trust, or ILPT, which owns and leases industrial and logistics properties; Office Properties Income Trust, or OPI, which owns office properties primarily leased to single tenants and those with high quality credit characteristics, including the government; and Service Properties Trust, or SVC, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties. Until December 31, 2018, RMR LLC provided management services to Select Income REIT, or SIR. On December 31, 2018, SIR merged with and into a subsidiary of OPI (then named Government Properties Income Trust, or GOV), or the GOV/SIR Merger, which then merged with and into OPI, with OPI as the surviving entity. The combined company continues to be managed by RMR LLC pursuant to OPI’s business and property management agreements with RMR LLC. DHC, ILPT, OPI, SVC and, until December 31, 2018, SIR, are collectively referred to as the Managed Equity REITs. RMR LLC also provides management services to other publicly traded and private businesses, including: Five Star Senior Living Inc., or Five Star, a publicly traded operator of senior living communities, many of which are owned by DHC; Sonesta International Hotels Corporation, or Sonesta, a privately owned franchisor and operator of hotels, resorts and cruise ships in the United States, Latin America, the Caribbean and the Middle East, many of whose U.S. hotels are owned by SVC; and TravelCenters of America Inc., or TA, an operator and franchisor of travel centers along the U.S. Interstate Highway System, many of which are owned by SVC, standalone truck service facilities and restaurants. Hereinafter, Five Star, Sonesta and TA are collectively referred to as the Managed Operators. In addition, RMR LLC also provides management services to certain related private companies, including Affiliates Insurance Company, or AIC, an Indiana insurance company, ABP Trust and its subsidiaries, or collectively ABP Trust, and RMR Office Property Fund LP, or the Open End Fund. RMR Advisors LLC, or RMR Advisors, is an investment adviser registered with the Securities and Exchange Commission, or SEC. RMR Advisors is a wholly-owned subsidiary of RMR LLC and is the adviser to RMR Real Estate Income Fund, or RIF. RIF is currently a closed end investment company focused on investing in real estate securities, including REITs and other dividend paying securities, but excluding our Client Companies, as defined below. In December 2019, RIF announced its intention to convert from a registered investment company to a commercial mortgage REIT. Tremont Realty Advisors LLC, or Tremont Advisors, an investment adviser registered with the SEC, was formed in connection with the acquisition of certain assets of Tremont Realty Capital LLC, or the Tremont business. Tremont Advisors is a wholly owned subsidiary of RMR LLC that manages Tremont Mortgage Trust, or TRMT, a publicly traded mortgage real estate investment trust that focuses primarily on originating and investing in first mortgage whole loans secured by middle market and transitional commercial real estate and, as of December 18, 2019, Centre Street Finance LLC, or Centre Street, a private fund focused on originating and investing in mortgage loans. Centre Street is a direct wholly owned subsidiary of ABP Trust. TRMT, together with Centre Street, are referred to as the Tremont Advisory Clients. The Tremont business also acts as a transaction originator for non-investment advisory clients for negotiated fees. In these financial statements, we refer to the Managed Equity REITs, the Managed Operators, RIF, TRMT, AIC, ABP Trust, the Open End Fund, Centre Street and the clients of the Tremont business as our Client Companies. We refer to the Managed Equity REITs and TRMT collectively as the Managed REITs. The accompanying condensed consolidated financial statements of RMR Inc. are unaudited. Certain information and disclosures required by U.S. Generally Accepted Accounting Principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, or our 2019 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Reclassifications have been made to the prior year’s condensed consolidated financial statements to conform to the current year’s presentation. Preparation of these financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that may affect the amounts reported in these financial statements and related notes. The actual results could differ from these estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases , as amended, or ASU No. 2016-02, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. On October 1, 2019, we adopted ASU No. 2016-02 along with certain allowable practical expedients using the modified retrospective transition approach. We elected to apply the guidance to each lease that had commenced as of the adoption date. We also elected a package of practical expedients that allowed us not to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) the recognition requirements for initial direct costs for any expired or existing leases. Additionally, we elected to account for the lease and non-lease components as a single lease component. The adoption of ASU No. 2016-02 did not affect our condensed consolidated statements of comprehensive income and cash flows. See Note 10, Leases , for further information regarding the adoption of ASU No. 2016-02. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , or ASU No. 2016-13, which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 will become effective for fiscal years beginning after December 15, 2019. The effective date for us is the first day of fiscal year 2021 (October 1, 2020). We are continuing to assess this guidance, but we have not historically experienced credit losses from our Client Companies and do not expect the adoption of ASU No. 2016-13 to have a material impact on our condensed consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2019
Revenue Recognition [Abstract]
Revenue Recognition	Revenue Recognition Base Business Management Fees—Managed Equity REITs We earn annual base business management fees from the Managed Equity REITs by providing continuous services pursuant to business management agreements equal to the lesser of: • the sum of (a) 0.5% of the historical cost of transferred real estate assets, if any, as defined in the applicable business management agreement, plus (b) 0.7% of the average invested capital (exclusive of the transferred real estate assets), as defined in the applicable business management agreement, up to $250,000 , plus (c) 0.5% of the average invested capital exceeding $250,000 ; and • the sum of (a) 0.7% of the average market capitalization, as defined in the applicable business management agreement, up to $250,000 , plus (b) 0.5% of the average market capitalization exceeding $250,000 . The foregoing base business management fees are paid monthly in arrears. For purposes of these fees, a Managed Equity REIT’s assets under management do not include shares it owns of another Client Company. For the three months ended December 31, 2019 and 2018 , we earned aggregate base business management fees from the Managed Equity REITs of $27,391 and $28,271 , respectively. Incentive Business Management Fees—Managed Equity REITs We also may earn annual incentive business management fees from the Managed Equity REITs under the business management agreements. The incentive business management fees, which are payable in cash, are contingent performance based fees recognized only when earned at the end of each respective measurement period. Incentive business management fees are excluded from the transaction price until it becomes probable that there will not be a significant reversal of cumulative revenue recognized. The incentive fees are calculated for each Managed Equity REIT as 12.0% of the product of (a) the equity market capitalization of the Managed Equity REIT, as defined in the applicable business management agreement, on the last trading day of the year immediately prior to the relevant measurement period and (b) the amount, expressed as a percentage, by which the Managed Equity REIT’s total return per share, as defined in the applicable business management agreement, exceeded the applicable benchmark total return per share, as defined in the applicable business management agreement, of a specified REIT index identified in the applicable business management agreement for the measurement period, as adjusted for net share issuances during the period and subject to caps on the values of the incentive fees. The measurement period for the annual incentive business management fees is defined as the three year period ending on December 31 of the year for which such fee is being calculated, except for ILPT, whose annual incentive business management fee is based on a shorter period from its initial public offering on January 12, 2018 through the applicable calender year end. On December 31, 2018, RMR LLC’s business management agreements with ILPT and OPI were amended to provide that, for periods beginning on and after January 1, 2019, the SNL U.S. Industrial REIT Index and the SNL U.S. Office REIT Index will be used by ILPT and OPI, respectively, rather than the SNL U.S. REIT Equity Index, to calculate the benchmark return per share, as defined, for purposes of determining the incentive management fee, if any, payable thereunder. For the three months ended December 31, 2019 and 2018 , we recognized aggregate incentive business management fees earned from the Managed Equity REITs of zero and $120,094 , respectively. Management Agreements—Managed Operators, ABP Trust, AIC and the Open End Fund We earn management fees by providing continuous services pursuant to the management agreements from the Managed Operators and ABP Trust equal to 0.6% of: (i) in the case of Five Star, Five Star’s revenues from all sources reportable under GAAP, less any revenues reportable by Five Star with respect to properties for which it provides management services, plus the gross revenues at those properties determined in accordance with GAAP; (ii) in the case of Sonesta, Sonesta’s revenues from all sources reportable under GAAP, less any revenues reportable by Sonesta with respect to hotels for which it provides management services, plus the gross revenues at those hotels determined in accordance with GAAP; (iii) in the case of TA, the sum of TA’s gross fuel margin, as defined in the applicable agreement, plus TA’s total nonfuel revenues; and (iv) in the case of ABP Trust, revenues from all sources reportable under GAAP. These fees are estimated and payable monthly in advance. Until June 30, 2019, we earned fees from AIC pursuant to a management agreement equal to 3.0% of its total premiums paid under active insurance underwritten or arranged by AIC. AIC’s property insurance program expired on June 30, 2019 and was not continued. As a result, we have not earned any management fees from AIC since that date. We earn fees from the Open End Fund by providing a continuing and suitable real estate investment program consistent with the Open End Fund’s real estate investment policies and objectives pursuant to an administration services agreement. We earn fees equal to 1.0% of the Open End Fund’s net asset value, as defined, annually. These fees are payable quarterly in arrears. For the three months ended December 31, 2019 and 2018 , we earned aggregate fees from the Managed Operators, ABP Trust, AIC and the Open End Fund of $6,679 and $7,395 , respectively. Property Management Fees We earn property management fees by providing continuous services pursuant to property management agreements with certain Client Companies. We generally earn fees under these agreements equal to 3.0% of gross collected rents. Also, under the terms of the property management agreements, we receive additional fees for construction supervision in connection with certain construction activities undertaken at the managed properties equal to 5.0% of the cost of such construction. For the three months ended December 31, 2019 and 2018 , we earned aggregate property management fees of $12,525 and $11,770 , respectively. Advisory Services and Other Agreements RMR Advisors is compensated pursuant to its agreement with RIF at an annual rate of 0.85% of RIF’s average daily managed assets. Average daily managed assets includes the net asset value attributable to RIF’s outstanding common shares, plus the liquidation preference of RIF’s outstanding preferred shares, plus the principal amount of any borrowings, including from banks or evidenced by notes, commercial paper or other similar instruments issued by RIF. RMR Advisors earned advisory services revenue of $811 and $733 for the three months ended December 31, 2019 and 2018 , respectively. Tremont Advisors is primarily compensated pursuant to its management agreements with TRMT and Centre Street at an annual rate of 1.5% of TRMT’s and Centre Street’s equity, respectively, as defined in the applicable agreements. Tremont Advisors may also earn an incentive fee under these management agreements for TRMT and (beginning the first full calendar quarter of 2021) Centre Street. In June 2018, Tremont Advisors agreed to waive any business management fees otherwise due and payable by TRMT pursuant to the management agreement for the period beginning July 1, 2018 until June 30, 2020. In addition, no incentive fee was paid or will be payable by TRMT to Tremont Advisors for the 2018 or 2019 calendar years, respectively. Tremont Advisors earned advisory services revenue of $36 and $49 for the three months ended December 31, 2019 and 2018 , respectively, in each case net of the fee waiver referenced above, as applicable. The Tremont business earns between 0.5% and 1.0% of the aggregate principal amounts of any loans it originates. For the three months ended December 31, 2019 and 2018 , the Tremont business earned fees for such origination services of $680 and $52 , respectively, which amounts are included in management services revenue in our condensed consolidated statements of comprehensive income. Reimbursable Compensation and Benefits Reimbursable compensation and benefits include reimbursements, at cost, that arise primarily from services we provide pursuant to our property management agreements, a significant portion of which are charged or passed through to and were paid by tenants of our Client Companies. We recognize the revenue for reimbursements when we incur the related reimbursable compensation and benefits and other costs on behalf of our Client Companies. For the three months ended December 31, 2019 and 2018 , we realized reimbursable compensation and benefits of $13,795 and $13,873 , respectively. Included in reimbursable compensation and benefits are shared services fees we earn from TRMT for compensation and other costs related to the operation of the Tremont business. We earned shared services fees from TRMT of $346 and $336 for the three months ended December 31, 2019 and 2018 , respectively. Reimbursable compensation and benefits include grants of common shares from Client Companies directly to certain of our officers and employees in connection with the provision of management services to those companies. The revenue in respect of each grant is based on the fair value as of the grant date for those shares that have vested, with subsequent changes in the fair value of the unvested grants being recognized in our condensed consolidated statements of comprehensive income over the requisite service periods. We record an equal offsetting amount as equity based compensation expense for the value of the grants of common shares from our Client Companies to certain of our officers and employees. We realized equity based compensation expense and related reimbursements of $948 and $1,316 for the three months ended December 31, 2019 and 2018 , respectively. Other Client Company Reimbursable Expenses Other client company reimbursable expenses include reimbursements that arise from services we provide pursuant to our property management agreements, a significant portion of which are charged or passed through to and were paid by tenants of our Client Companies. We have determined that we control the services provided by third parties for our Client Companies and therefore we account for the cost of these services and the related reimbursement revenue on a gross basis. We realized other client company reimbursable expenses reflecting corresponding amounts in revenue and expense of $97,975 and $98,076 for the three months ended December 31, 2019 and 2018 , respectively.

Investments

Investments	3 Months Ended
	Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investments	Investments Equity Method Investments As of December 31, 2019 , Tremont Advisors owned 1,600,100 , or approximately 19.4% , of TRMT’s outstanding common shares. We account for our investment in TRMT using the equity method of accounting because we are deemed to exert significant influence, but not control, over TRMT’s most significant activities. Our share of earnings from our investment in TRMT included in equity in earnings of investees in our condensed consolidated statements of comprehensive income for the three months ended December 31, 2019 and 2018 was $255 and $35 , respectively. Equity Method Investment Accounted for Under the Fair Value Option As of December 31, 2019, we own 298,538 , or approximately 3.6% , of TA’s outstanding common shares. We purchased these shares on October 10, 2018 for $8,382 . We account for our investment in TA using the equity method of accounting because we are deemed to exert significant influence, but not control, over TA’s most significant activities. We elected the fair value option to account for our equity method investment in TA and determine fair value using the closing price of TA’s common shares, which is a Level 1 fair value input. The market value of our investment in TA as of December 31, 2019 and September 30, 2019 , based on quoted market prices, was $5,120 and $3,682 , respectively. The unrealized gain (loss) in our condensed consolidated statements of comprehensive income for the three months ended December 31, 2019 and 2018 related to our investment in TA was $1,438 and $(2,769)

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are the sole managing member of RMR LLC. We are a corporation subject to U.S. federal and state income tax with respect to our allocable share of any taxable income of RMR LLC and its tax consolidated subsidiaries. RMR LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, RMR LLC is generally not subject to U.S. federal and most state income taxes. Any taxable income or loss generated by RMR LLC is passed through to and included in the taxable income or loss of its members, including RMR Inc. and ABP Trust, based on each member’s respective ownership percentage. For the three months ended December 31, 2019 and 2018 , we recognized estimated income tax expense of $3,724 and $18,970 , respectively, which includes $2,777 and $13,842 , respectively, of U.S. federal income tax and $947 and $5,128 , respectively, of state income taxes. A reconciliation of the statutory income tax rate to the effective tax rate is as follows: Three Months Ended December 31, 2019 2018 Income taxes computed at the federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 3.6 % 3.0 % Permanent items 0.2 % (0.1 )% Net income attributable to noncontrolling interest (10.1 )% (10.1 )% Total 14.7 % 13.8 % In December 2019, the Internal Revenue Service and Department of the Treasury released regulations expanding the applicability of limits on executive compensation deductions to more taxpayers, including executive compensation allocated to publicly held corporations by a partnership. The expanded application of these regulations result in the effective tax rate of RMR Inc. increasing to 14.7% for the full fiscal year. ASC 740, Income Taxes , provides a model for how a company should recognize, measure and present in its financial statements uncertain tax positions that have been taken or are expected to be taken with respect to all open years and in all significant jurisdictions. Pursuant to this topic, we recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent the “more likely than not” standard has been satisfied, the benefit associated with a tax position is measured as the largest amount that is greater than 50.0% likely to be realized upon settlement. As of December 31, 2019, we had no uncertain tax positions.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments As of December 31, 2019 and September 30, 2019 , the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties and accounts payable and accrued expenses, were not materially different from their carrying values due to the short term nature of these financial instruments. Recurring Fair Value Measures On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. ASC 820, Fair Value Measurements , establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3). A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Level 1 Estimates The following are our assets and liabilities that all have been measured at fair value using Level 1 inputs in the fair value hierarchy as of December 31, 2019 and September 30, 2019 : December 31, September 30, 2019 2019 Money market funds included in cash and cash equivalents $ 384,400 $ 357,526 Current portion of due from related parties related to share based payment awards 3,563 4,814 Long term portion of due from related parties related to share based payment awards 9,001 9,238 Current portion of employer compensation liability related to share based payment awards included in accounts payable and accrued expenses 3,563 4,814 Long term portion of employer compensation liability related to share based payment awards 9,001 9,238

Related Person Transactions

Related Person Transactions	3 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions Adam D. Portnoy, one of our Managing Directors, is the sole trustee of our controlling shareholder, ABP Trust, and owns all of ABP Trust’s voting securities and a majority of the economic interests of ABP Trust. As of December 31, 2019, Adam D. Portnoy beneficially owned, in aggregate, (i) 144,502 shares of Class A common stock of RMR Inc., or Class A Common Shares; (ii) all the outstanding shares of Class B-1 common stock of RMR Inc., or Class B-1 Common Shares; (iii) all the outstanding shares of Class B-2 common stock of RMR Inc., or Class B-2 Common Shares; and (iv) 15,000,000 Class A Units of RMR LLC. Adam D. Portnoy and Jennifer B. Clark, our other Managing Director, are also officers of ABP Trust and RMR Inc. and officers and employees of RMR LLC. Matthew P. Jordan, our Executive Vice President, Chief Financial Officer and Treasurer is also an officer of ABP Trust and an officer and employee of RMR LLC. Adam D. Portnoy is also the chair of the board of trustees of each of the Managed Equity REITs, the chair of the board of directors of each of Five Star and TA, a managing trustee or managing director of each of the Managed REITs, Five Star, RIF and TA, a director of AIC and the majority owner and director of Sonesta. Jennifer B. Clark, our other Managing Director, is a managing trustee of DHC and RIF, president and chief executive officer of AIC and a director of Sonesta. As of December 31, 2019 , Adam D. Portnoy beneficially owned, in aggregate, 35.3% of Five Star’s outstanding common shares ( 6.3% as of January 1, 2020), 1.1% of SVC’s outstanding common shares, 1.2% of ILPT’s outstanding common shares, 1.5% of OPI’s outstanding common shares, 1.1% of DHC’s outstanding common shares, 4.0% of TA’s outstanding common shares (including through RMR LLC), 2.3% of RIF’s outstanding common shares, and 19.5% of TRMT’s outstanding common shares (including through Tremont Advisors). The Managed Equity REITs and AIC have no employees. RMR LLC provides or arranges for all the personnel, overhead and services required for the operation of the Managed Equity REITs and AIC pursuant to management agreements with them. All the officers of the Managed Equity REITs, AIC and the Open End Fund are officers or employees of RMR LLC. TRMT has no employees. All the officers, overhead and required office space of TRMT are provided or arranged by Tremont Advisors. All of TRMT’s officers are officers or employees of Tremont Advisors or RMR LLC. Many of the executive officers of the Managed Operators are officers or employees of RMR LLC. All of RIF’s officers are officers or employees of RMR Advisors or RMR LLC. Some of our executive officers are also managing directors or managing trustees of certain of the Managed REITs, the Managed Operators and RIF. As of December 31, 2019, ABP Trust owned 100% of Centre Street, 14.3% of AIC and 206,300 limited partner units, or 100% , of the Open End Fund and RMR LLC owned no limited partnership units, but has committed to contributing $100,000 to the Open End Fund. The general partner of the Open End Fund is a subsidiary of ABP Trust and is not entitled to any compensation for services rendered to the Open End Fund in its capacity as general partner. Additional information about our related person transactions appears in Note 8, Shareholders’ Equity , below and in our 2019 Annual Report. Revenues from Related Parties For the three months ended December 31, 2019 and 2018 , we recognized revenues from related parties as set forth in the following table: Three Months Ended December 31, (1) 2019 2018 $ % $ % Managed Equity REITs: DHC (2) $ 43,557 27.2 % $ 85,979 30.7 % ILPT 16,341 10.2 8,460 3.0 OPI (3) 64,883 40.6 56,243 20.1 SIR (2) (3) — — 47,843 17.1 SVC (2) 19,124 12.0 66,395 23.7 143,905 90.0 264,920 94.6 Managed Operators: Five Star 2,276 1.4 2,413 0.9 Sonesta 625 0.4 757 0.3 TA 3,445 2.2 3,853 1.4 6,346 4.0 7,023 2.6 Other Client Companies: ABP Trust 3,317 2.1 3,335 1.2 AIC 91 0.1 60 — Open End Fund 3,996 2.5 3,477 1.2 RIF 811 0.5 733 0.2 TRMT 697 0.4 695 0.2 8,912 5.6 8,300 2.8 Total revenues from related parties 159,163 99.6 280,243 100.0 Revenues from unrelated parties 729 0.4 70 — $ 159,892 100.0 % $ 280,313 100.0 % (1) Revenues from related parties for the three months ended December 31, 2019 and 2018 include (i) reimbursable compensation and benefits of $13,795 and $13,873 , respectively, and (ii) other client company reimbursable expenses of $97,975 and $98,076 , respectively. (2) The amounts for the three months ended December 31, 2018 include incentive business management fees of $40,642 , $25,817 and $53,635 , which RMR LLC earned from DHC, SIR and SVC, respectively, and which were paid in January 2019. (3) SIR merged with and into a subsidiary of OPI on December 31, 2018 , which subsidiary then merged into OPI, and SIR’s separate business and property management agreements with RMR LLC were terminated. The combined company continues to be managed by RMR LLC pursuant to OPI’s business and property management agreements with RMR LLC. This table presents the management services, reimbursable compensation and benefits and other client company reimbursable expenses revenues from SIR separately as they relate to periods prior to the merger with OPI. Amounts Due From Related Parties The following table represents amounts due from related parties as of the dates indicated: December 31, September 30, 2019 2019 Managed Equity REITs: DHC $ 25,197 $ 25,505 ILPT 7,748 10,630 OPI 34,717 39,233 SVC 10,988 18,933 78,650 94,301 Managed Operators: Five Star 181 136 Sonesta 13 37 TA 618 392 812 565 Other Client Companies: ABP Trust 2,338 2,580 AIC 7 7 Open End Fund 2,647 4,567 RIF 39 75 TRMT 772 664 5,803 7,893 $ 85,265 $ 102,759 Leases As of December 31, 2019 , we leased from ABP Trust and certain Managed Equity REITs office space for use as our headquarters and local offices. We incurred rental expense under related party leases aggregating $1,433 and $1,287 for the three months ended December 31, 2019 and 2018 , respectively. Tax-Related Payments Pursuant to our tax receivable agreement with ABP Trust, RMR Inc. pays to ABP Trust 85.0% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that RMR Inc. realizes as a result of (a) the increases in tax basis attributable to our dealings with ABP Trust and (b) tax benefits related to imputed interest deemed to be paid by us as a result of the tax receivable agreement. As of December 31, 2019 , our condensed consolidated balance sheet reflects a liability related to the tax receivable agreement of $32,061 , including $2,111 classified as a current liability that we expect to pay to ABP Trust during the fourth quarter of fiscal year 2020. Under the RMR LLC operating agreement, RMR LLC is also required to make certain pro rata distributions to each member of RMR LLC quarterly on the basis of the estimated tax liabilities of its members estimated quarterly, subject to future adjustment based on actual results. For the three months ended December 31, 2019 and 2018 , pursuant to the RMR LLC operating agreement, RMR LLC made required quarterly tax distributions to holders of its membership units totaling $7,993 and $16,722 , respectively, of which $4,163 and $8,685 , respectively, was distributed to us and $3,830 and $8,037 , respectively, was distributed to ABP Trust, based on each membership unit holder’s respective ownership percentage. The amounts distributed to us were eliminated in our condensed consolidated financial statements, and the amounts distributed to ABP Trust were recorded as a reduction of its noncontrolling interest. We used funds from these distributions to pay certain of our U.S. federal and state income tax liabilities and to pay part of our obligations under the tax receivable agreement. Separation Arrangements David J. Hegarty, Mark L. Kleifges, Bruce J. Mackey Jr., Thomas M. O’Brien and John C. Popeo, each a former Executive Vice President of RMR LLC, retired from and resigned their RMR LLC officer positions between November 29, 2017 and December 31, 2018. We entered into retirement agreements with these former officers in connection with their retirements. Pursuant to these agreements, we made various cash payments and accelerated the vesting of unvested shares RMR Inc. previously awarded to these retiring officers. We also enter into separation arrangements from time to time with other nonexecutive officers and employees of ours. There remains no further substantive performance obligations with respect to any such arrangements, and we in turn recognized all applicable provisions in our condensed consolidated statements of comprehensive income as separation costs. In December 2019, we entered into a retirement agreement with TA and a former executive officer of RMR LLC, Andrew J. Rebholz. Mr. Rebholz was also a managing director and chief executive officer of TA. Pursuant to his retirement agreement, Mr. Rebholz will continue to serve as an employee of RMR LLC through June 30, 2020. Under Mr. Rebholz’s retirement agreement, consistent with past practice, RMR LLC and TA will continue to pay Mr. Rebholz his current aggregate annual base salary of $375 until June 30, 2020 and RMR LLC and TA paid him an aggregate cash bonus in respect of 2019 of $1,250 in December 2019. RMR LLC and TA also agreed to pay Mr. Rebholz a combined cash payment of $1,250 in 2020, subject to certain conditions. Pursuant to the retirement agreement, TA has paid or will pay 80.0% of the above referenced amounts to Mr. Rebholz and RMR LLC has paid or will pay the remaining 20.0% , including any payroll taxes due. In addition, in January 2020, our Equity Plan Committee approved the acceleration of all 7,300 unvested shares owned by Mr. Rebholz of us as of his retirement date, June 30, 2020. We expect to record approximately $324 of equity based separation costs related to the acceleration of these shares in the quarter ending March 31, 2020. For the three months ended December 31, 2019 and 2018 , we recognized cash and equity based separation costs as set forth in the following table: Three Months Ended December 31, 2019 2018 Former executive officers: Cash separation costs $ 260 $ 5,312 Equity based separation costs — 1,074 260 6,386 Former nonexecutive officers: Cash separation costs — 11 — 11 Total separation costs $ 260 $ 6,397

Shareholders_ Equity

Shareholders’ Equity	3 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Shareholders’ Equity	Shareholders’ Equity Repurchases In December 2019, we withheld and repurchased 133 of our Class A Common Shares valued at $45.67 per share, the closing price of our Class A Common Shares on Nasdaq on the date of purchase, from one employee of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the issuance of awards of our common shares. The aggregate value of the withheld and repurchased shares was $6 . In connection with the acquisition of these Class A Common Shares, and as required by the RMR LLC operating agreement, RMR LLC concurrently acquired an identical number of Class A Units from RMR Inc. Distributions During the three months ended December 31, 2019 and 2018 , we declared and paid dividends on our Class A Common Shares and Class B-1 Common Shares as follows: Declaration Record Paid Distributions Total Date Date Date Per Common Share Distributions Three Months Ended December 31, 2019 10/17/2019 10/28/2019 11/14/2019 $ 0.38 $ 6,195 Three Months Ended December 31, 2018 10/18/2018 10/29/2018 11/15/2018 $ 0.35 $ 5,680 These dividends were funded in part by distributions from RMR LLC to holders of its membership units as follows: Distributions Per Total RMR LLC RMR LLC Declaration Record Paid RMR LLC RMR LLC Distributions Distributions Date Date Date Membership Unit Distributions to RMR Inc. to ABP Trust Three Months Ended December 31, 2019 10/17/2019 10/28/2019 11/14/2019 $ 0.30 $ 9,391 $ 4,891 $ 4,500 Three Months Ended December 31, 2018 10/18/2018 10/29/2018 11/15/2018 $ 0.30 $ 9,369 $ 4,869 $ 4,500 The remainder of the above noted dividends that were paid were funded with cash accumulated at RMR Inc. On January 16, 2020 , we declared a quarterly dividend on our Class A Common Shares and Class B-1 Common Shares to our shareholders of record as of January 27, 2020 , in the amount of $0.38 per Class A Common Share and Class B-1 Common Share, or $6,194 . This dividend will be partially funded by a distribution from RMR LLC to holders of its membership units in the amount of $0.30 per unit, or $9,390 , of which $4,890 will be distributed to us based on our aggregate ownership of 16,300,302 membership units of RMR LLC and $4,500 will be distributed to ABP Trust based on its ownership of 15,000,000 membership units of RMR LLC. The remainder of this dividend will be funded with cash accumulated at RMR Inc. We expect to pay this dividend on or about February 20, 2020 .

Per Common Share Amounts

Per Common Share Amounts	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Per Common Share Amounts	Per Common Share Amounts Earnings per common share reflects net income attributable to RMR Inc. divided by our weighted average common shares outstanding. Basic and diluted weighted average common shares outstanding represents our outstanding Class A Common Shares and our Class B-1 Common Shares during the applicable periods. Our Class B-2 Common Shares, which are paired with ABP Trust’s Class A Units, have no independent economic interest in RMR Inc. and thus are not included as common shares outstanding for purposes of calculating our net income attributable to RMR Inc. per common share. Unvested Class A Common Shares granted to our employees are deemed participating securities for purposes of calculating earnings per common share because they have dividend rights. We calculate earnings per share using the two-class method. Under the two-class method, we allocate earnings proportionately to vested Class A Common Shares and Class B-1 Common Shares outstanding and unvested Class A Common Shares outstanding for the period. Earnings attributable to unvested Class A Common Shares are excluded from earnings per share under the two-class method as reflected in our condensed consolidated statements of comprehensive income. The calculation of basic and diluted earnings per share is as follows: Three Months Ended December 31, 2019 2018 Basic EPS Numerator: Net income attributable to The RMR Group Inc. $ 9,449 $ 52,209 Income attributable to unvested participating securities (73 ) (353 ) Net income attributable to The RMR Group Inc. used in calculating basic EPS $ 9,376 $ 51,856 Denominator: Weighted average common shares outstanding - basic 16,177 16,120 Net income attributable to The RMR Group Inc. per common share - basic $ 0.58 $ 3.22 Diluted EPS Numerator: Net income attributable to The RMR Group Inc. $ 9,449 $ 52,209 Income attributable to unvested participating securities (73 ) (353 ) Net income attributable to The RMR Group Inc. used in calculating diluted EPS $ 9,376 $ 51,856 Denominator: Weighted average common shares outstanding - basic 16,177 16,120 Dilutive effect of incremental unvested shares — 11 Weighted average common shares outstanding - diluted 16,177 16,131 Net income attributable to The RMR Group Inc. per common share - diluted $ 0.58 $ 3.22 The 15,000,000 Class A Units that we do not own may be redeemed for our Class A Common Shares on a one -for- one basis, or upon such redemption, we may elect to pay cash instead of issuing Class A Common Shares. Upon redemption of a Class A Unit, the Class B-2 Common Share “paired” with such unit is canceled for no additional consideration. If all outstanding Class A Units that we do not own had been redeemed for our Class A Common Shares in the periods presented, our Class A Common Shares outstanding as of December 31, 2019 , would have been 30,301,767 . In computing the dilutive effect, if any, that the aforementioned redemption would have on earnings per share, we considered that net income available to holders of our Class A Common Shares would increase due to elimination of the noncontrolling interest (including any tax impact). For the periods presented, such redemption is not reflected in diluted earnings per share as the assumed redemption would be anti-dilutive.

Leases

Leases	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	Leases We enter into operating leases, as the lessee, for office space and determine if an arrangement is a lease at inception of the arrangement. Operating lease liabilities and right of use assets are recognized based on the present value of the future minimum lease payments over the lease term using our estimated incremental borrowing rate. Operating lease expense associated with minimum lease payments is recognized on a straight line basis over the lease term and was $1,603 for the three months ended December 31, 2019 . Minimum lease payments for leases with an initial term of twelve months or less are not recorded on our condensed consolidated balance sheet. Lease expense for leases with an initial term of twelve months or less was $15 for the three months ended December 31, 2019 . As of December 31, 2019 , our operating leases expire on various dates through 2030 , the weighted average remaining lease term was 9.6 years and the determination of the present value of the remaining lease payments utilized a weighted average discount rate of 3.1% . The following table presents the undiscounted cash flows on an annual basis for our operating lease liabilities as of December 31, 2019 : 2020 $ 3,916 2021 5,272 2022 5,343 2023 4,708 2024 4,205 Thereafter 21,283 Total lease payments (1) 44,727 Less: imputed interest (6,173 ) Present value of operating lease liabilities 38,554 Less: current portion of operating lease liabilities (4,087 ) Operating lease liabilities, net of current portion $ 34,467 (1) Excludes $1,052 of lease payments for signed leases that have not yet commenced.

Segment Reporting

Segment Reporting	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting We have one reportable business segment, which is RMR LLC. In the tables below, our All Other Operations includes the operations of RMR Inc., RMR Advisors and Tremont Advisors. Three Months Ended December 31, 2019 All Other RMR LLC (1) Operations Total Revenues: Management services $ 46,595 $ 680 $ 47,275 Advisory services — 847 847 Total management and advisory services revenues 46,595 1,527 48,122 Reimbursable compensation and benefits 12,702 1,093 13,795 Other client company reimbursable expenses 97,975 — 97,975 Total reimbursable costs 110,677 1,093 111,770 Total revenues 157,272 2,620 159,892 Expenses: Compensation and benefits 27,275 2,922 30,197 Equity based compensation 1,567 15 1,582 Separation costs 260 — 260 Total compensation and benefits expense 29,102 2,937 32,039 General and administrative 6,125 921 7,046 Other client company reimbursable expenses 97,975 — 97,975 Transaction and acquisition related costs 49 747 796 Depreciation and amortization 244 12 256 Total expenses 133,495 4,617 138,112 Operating income (loss) 23,777 (1,997 ) 21,780 Interest and other income 1,720 155 1,875 Equity in earnings of investees — 255 255 Unrealized gain on equity method investment accounted for under the fair value option 1,438 — 1,438 Income (loss) before income tax expense 26,935 (1,587 ) 25,348 Income tax expense — (3,724 ) (3,724 ) Net income (loss) $ 26,935 $ (5,311 ) $ 21,624 Total assets $ 654,196 $ 50,934 $ 705,130 (1) Intersegment revenues of $2,075 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements. Three Months Ended December 31, 2018 All Other RMR LLC (1) Operations Total Revenues: Management services $ 47,436 $ 52 $ 47,488 Incentive business management fees 120,094 — 120,094 Advisory services — 782 782 Total management and advisory services revenues 167,530 834 168,364 Reimbursable compensation and benefits 13,308 565 13,873 Other client company reimbursable expenses 98,076 — 98,076 Total reimbursable costs 111,384 565 111,949 Total revenues 278,914 1,399 280,313 Expenses: Compensation and benefits 26,425 1,587 28,012 Equity based compensation 1,784 27 1,811 Separation costs 6,397 — 6,397 Total compensation and benefits expense 34,606 1,614 36,220 General and administrative 6,385 935 7,320 Other client company reimbursable expenses 98,076 — 98,076 Transaction and acquisition related costs 184 — 184 Depreciation and amortization 242 13 255 Total expenses 139,493 2,562 142,055 Operating income (loss) 139,421 (1,163 ) 138,258 Interest and other income 1,373 153 1,526 Equity in earnings of investees — 35 35 Unrealized loss on equity method investment accounted for under the fair value option (2,769 ) — (2,769 ) Income (loss) before income tax expense 138,025 (975 ) 137,050 Income tax expense — (18,970 ) (18,970 ) Net income (loss) $ 138,025 $ (19,945 ) $ 118,080 Total assets $ 625,063 $ 62,862 $ 687,925 (1) Intersegment revenues of $848 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases , as amended, or ASU No. 2016-02, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. On October 1, 2019, we adopted ASU No. 2016-02 along with certain allowable practical expedients using the modified retrospective transition approach. We elected to apply the guidance to each lease that had commenced as of the adoption date. We also elected a package of practical expedients that allowed us not to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) the recognition requirements for initial direct costs for any expired or existing leases. Additionally, we elected to account for the lease and non-lease components as a single lease component. The adoption of ASU No. 2016-02 did not affect our condensed consolidated statements of comprehensive income and cash flows. See Note 10, Leases , for further information regarding the adoption of ASU No. 2016-02. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , or ASU No. 2016-13, which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 will become effective for fiscal years beginning after December 15, 2019. The effective date for us is the first day of fiscal year 2021 (October 1, 2020). We are continuing to assess this guidance, but we have not historically experienced credit losses from our Client Companies and do not expect the adoption of ASU No. 2016-13 to have a material impact on our condensed consolidated financial statements.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of reconciliation of the statutory income tax rate to the effective tax rate	A reconciliation of the statutory income tax rate to the effective tax rate is as follows: Three Months Ended December 31, 2019 2018 Income taxes computed at the federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 3.6 % 3.0 % Permanent items 0.2 % (0.1 )% Net income attributable to noncontrolling interest (10.1 )% (10.1 )% Total 14.7 % 13.8 %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	The following are our assets and liabilities that all have been measured at fair value using Level 1 inputs in the fair value hierarchy as of December 31, 2019 and September 30, 2019 : December 31, September 30, 2019 2019 Money market funds included in cash and cash equivalents $ 384,400 $ 357,526 Current portion of due from related parties related to share based payment awards 3,563 4,814 Long term portion of due from related parties related to share based payment awards 9,001 9,238 Current portion of employer compensation liability related to share based payment awards included in accounts payable and accrued expenses 3,563 4,814 Long term portion of employer compensation liability related to share based payment awards 9,001 9,238

Related Person Transactions (Ta

Related Person Transactions (Tables)	3 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Schedule of related party transactions	The following table represents amounts due from related parties as of the dates indicated: December 31, September 30, 2019 2019 Managed Equity REITs: DHC $ 25,197 $ 25,505 ILPT 7,748 10,630 OPI 34,717 39,233 SVC 10,988 18,933 78,650 94,301 Managed Operators: Five Star 181 136 Sonesta 13 37 TA 618 392 812 565 Other Client Companies: ABP Trust 2,338 2,580 AIC 7 7 Open End Fund 2,647 4,567 RIF 39 75 TRMT 772 664 5,803 7,893 $ 85,265 $ 102,759 For the three months ended December 31, 2019 and 2018 , we recognized revenues from related parties as set forth in the following table: Three Months Ended December 31, (1) 2019 2018 $ % $ % Managed Equity REITs: DHC (2) $ 43,557 27.2 % $ 85,979 30.7 % ILPT 16,341 10.2 8,460 3.0 OPI (3) 64,883 40.6 56,243 20.1 SIR (2) (3) — — 47,843 17.1 SVC (2) 19,124 12.0 66,395 23.7 143,905 90.0 264,920 94.6 Managed Operators: Five Star 2,276 1.4 2,413 0.9 Sonesta 625 0.4 757 0.3 TA 3,445 2.2 3,853 1.4 6,346 4.0 7,023 2.6 Other Client Companies: ABP Trust 3,317 2.1 3,335 1.2 AIC 91 0.1 60 — Open End Fund 3,996 2.5 3,477 1.2 RIF 811 0.5 733 0.2 TRMT 697 0.4 695 0.2 8,912 5.6 8,300 2.8 Total revenues from related parties 159,163 99.6 280,243 100.0 Revenues from unrelated parties 729 0.4 70 — $ 159,892 100.0 % $ 280,313 100.0 % (1) Revenues from related parties for the three months ended December 31, 2019 and 2018 include (i) reimbursable compensation and benefits of $13,795 and $13,873 , respectively, and (ii) other client company reimbursable expenses of $97,975 and $98,076 , respectively. (2) The amounts for the three months ended December 31, 2018 include incentive business management fees of $40,642 , $25,817 and $53,635 , which RMR LLC earned from DHC, SIR and SVC, respectively, and which were paid in January 2019. (3) SIR merged with and into a subsidiary of OPI on December 31, 2018 , which subsidiary then merged into OPI, and SIR’s separate business and property management agreements with RMR LLC were terminated. The combined company continues to be managed by RMR LLC pursuant to OPI’s business and property management agreements with RMR LLC. This table presents the management services, reimbursable compensation and benefits and other client company reimbursable expenses revenues from SIR separately as they relate to periods prior to the merger with OPI. For the three months ended December 31, 2019 and 2018 , we recognized cash and equity based separation costs as set forth in the following table: Three Months Ended December 31, 2019 2018 Former executive officers: Cash separation costs $ 260 $ 5,312 Equity based separation costs — 1,074 260 6,386 Former nonexecutive officers: Cash separation costs — 11 — 11 Total separation costs $ 260 $ 6,397

Shareholders_ Equity (Tables)

Shareholders’ Equity (Tables)	3 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Dividends Declared	During the three months ended December 31, 2019 and 2018 , we declared and paid dividends on our Class A Common Shares and Class B-1 Common Shares as follows: Declaration Record Paid Distributions Total Date Date Date Per Common Share Distributions Three Months Ended December 31, 2019 10/17/2019 10/28/2019 11/14/2019 $ 0.38 $ 6,195 Three Months Ended December 31, 2018 10/18/2018 10/29/2018 11/15/2018 $ 0.35 $ 5,680 These dividends were funded in part by distributions from RMR LLC to holders of its membership units as follows: Distributions Per Total RMR LLC RMR LLC Declaration Record Paid RMR LLC RMR LLC Distributions Distributions Date Date Date Membership Unit Distributions to RMR Inc. to ABP Trust Three Months Ended December 31, 2019 10/17/2019 10/28/2019 11/14/2019 $ 0.30 $ 9,391 $ 4,891 $ 4,500 Three Months Ended December 31, 2018 10/18/2018 10/29/2018 11/15/2018 $ 0.30 $ 9,369 $ 4,869 $ 4,500

Per Common Share Amounts (Table

Per Common Share Amounts (Tables)	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method	The calculation of basic and diluted earnings per share is as follows: Three Months Ended December 31, 2019 2018 Basic EPS Numerator: Net income attributable to The RMR Group Inc. $ 9,449 $ 52,209 Income attributable to unvested participating securities (73 ) (353 ) Net income attributable to The RMR Group Inc. used in calculating basic EPS $ 9,376 $ 51,856 Denominator: Weighted average common shares outstanding - basic 16,177 16,120 Net income attributable to The RMR Group Inc. per common share - basic $ 0.58 $ 3.22
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method	Diluted EPS Numerator: Net income attributable to The RMR Group Inc. $ 9,449 $ 52,209 Income attributable to unvested participating securities (73 ) (353 ) Net income attributable to The RMR Group Inc. used in calculating diluted EPS $ 9,376 $ 51,856 Denominator: Weighted average common shares outstanding - basic 16,177 16,120 Dilutive effect of incremental unvested shares — 11 Weighted average common shares outstanding - diluted 16,177 16,131 Net income attributable to The RMR Group Inc. per common share - diluted $ 0.58 $ 3.22

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Schedule of undiscounted cash flows of operating lease liability and reconciliation of operating lease liabilities	The following table presents the undiscounted cash flows on an annual basis for our operating lease liabilities as of December 31, 2019 : 2020 $ 3,916 2021 5,272 2022 5,343 2023 4,708 2024 4,205 Thereafter 21,283 Total lease payments (1) 44,727 Less: imputed interest (6,173 ) Present value of operating lease liabilities 38,554 Less: current portion of operating lease liabilities (4,087 ) Operating lease liabilities, net of current portion $ 34,467 (1) Excludes $1,052 of lease payments for signed leases that have not yet commenced.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of segment reporting information	Three Months Ended December 31, 2019 All Other RMR LLC (1) Operations Total Revenues: Management services $ 46,595 $ 680 $ 47,275 Advisory services — 847 847 Total management and advisory services revenues 46,595 1,527 48,122 Reimbursable compensation and benefits 12,702 1,093 13,795 Other client company reimbursable expenses 97,975 — 97,975 Total reimbursable costs 110,677 1,093 111,770 Total revenues 157,272 2,620 159,892 Expenses: Compensation and benefits 27,275 2,922 30,197 Equity based compensation 1,567 15 1,582 Separation costs 260 — 260 Total compensation and benefits expense 29,102 2,937 32,039 General and administrative 6,125 921 7,046 Other client company reimbursable expenses 97,975 — 97,975 Transaction and acquisition related costs 49 747 796 Depreciation and amortization 244 12 256 Total expenses 133,495 4,617 138,112 Operating income (loss) 23,777 (1,997 ) 21,780 Interest and other income 1,720 155 1,875 Equity in earnings of investees — 255 255 Unrealized gain on equity method investment accounted for under the fair value option 1,438 — 1,438 Income (loss) before income tax expense 26,935 (1,587 ) 25,348 Income tax expense — (3,724 ) (3,724 ) Net income (loss) $ 26,935 $ (5,311 ) $ 21,624 Total assets $ 654,196 $ 50,934 $ 705,130 (1) Intersegment revenues of $2,075 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements. Three Months Ended December 31, 2018 All Other RMR LLC (1) Operations Total Revenues: Management services $ 47,436 $ 52 $ 47,488 Incentive business management fees 120,094 — 120,094 Advisory services — 782 782 Total management and advisory services revenues 167,530 834 168,364 Reimbursable compensation and benefits 13,308 565 13,873 Other client company reimbursable expenses 98,076 — 98,076 Total reimbursable costs 111,384 565 111,949 Total revenues 278,914 1,399 280,313 Expenses: Compensation and benefits 26,425 1,587 28,012 Equity based compensation 1,784 27 1,811 Separation costs 6,397 — 6,397 Total compensation and benefits expense 34,606 1,614 36,220 General and administrative 6,385 935 7,320 Other client company reimbursable expenses 98,076 — 98,076 Transaction and acquisition related costs 184 — 184 Depreciation and amortization 242 13 255 Total expenses 139,493 2,562 142,055 Operating income (loss) 139,421 (1,163 ) 138,258 Interest and other income 1,373 153 1,526 Equity in earnings of investees — 35 35 Unrealized loss on equity method investment accounted for under the fair value option (2,769 ) — (2,769 ) Income (loss) before income tax expense 138,025 (975 ) 137,050 Income tax expense — (18,970 ) (18,970 ) Net income (loss) $ 138,025 $ (19,945 ) $ 118,080 Total assets $ 625,063 $ 62,862 $ 687,925 (1) Intersegment revenues of $848 recognized by RMR LLC for services provided to our All Other Operations segment have been eliminated in the condensed consolidated financial statements.

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
	Dec. 31, 2019shares
RMR LLC
Related Party Transaction [Line Items]
Ownership percentage	52.10%
Class B membership units
Related Party Transaction [Line Items]
Membership units (in units)	1,000,000
Class A Common Stock | Class A membership units
Related Party Transaction [Line Items]
Membership units (in units)	15,301,767
Capital Unit Redeemable Class A Units | ABP Trust
Related Party Transaction [Line Items]
Membership units (in units)	15,000,000
Ownership percentage	47.90%

Revenue Recognition - Managed E

Revenue Recognition - Managed Equity REITs (Details) - Managed REITs - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Management and Incentive Fees
Business management fees as a percentage of transferred real estate assets	0.50%
Business management fees as a percentage of average invested capital below the threshold limit	0.70%
Maximum threshold amount for calculating the business management fees	$ 250,000,000
Business management fees as a percentage of average invested capital above the threshold limit	0.50%
Minimum threshold amount for calculating the business management fees	$ 250,000,000
Business management fees as a percent of average market capitalization below the threshold limit	0.70%
Business management fees as a percent of average market capitalization above the threshold limit	0.50%
Aggregate base business management fees	$ 27,391,000	$ 28,271,000
Contingent incentive business management fee percentage	12.00%
Aggregate incentive business management fees	$ 0	$ 120,094,000

Revenue Recognition - Business

Revenue Recognition - Business Management Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Managed Operators, ABP Trust and AIC
Related Party Transaction [Line Items]
Business management fee percent based on management agreements	0.60%
Aggregate business management fees	$ 6,679	$ 7,395
AIC
Related Party Transaction [Line Items]
Business management fee percent based on total premiums paid	3.00%
Open End Fund
Related Party Transaction [Line Items]
Management fee as a percent of NAV	1.00%

Revenue Recognition - Property

Revenue Recognition - Property Management Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred Revenue Disclosure [Abstract]
Property management fee percent based on gross collected rents	3.00%
Property management fee percent based on the cost of construction	5.00%
Aggregate property management fees	$ 12,525	$ 11,770

Revenue Recognition - Advisory

Revenue Recognition - Advisory Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Revenue	$ 159,892	$ 280,313
Tremont Advisors
Related Party Transaction [Line Items]
Business management fee percent based on management agreements	1.50%
Minimum | Tremont Advisors
Related Party Transaction [Line Items]
Advisory fee percentage based on aggregate principal amounts of loan originate	0.50%
Maximum | Tremont Advisors
Related Party Transaction [Line Items]
Advisory fee percentage based on aggregate principal amounts of loan originate	1.00%
Advisory services
Related Party Transaction [Line Items]
Revenue	$ 847	782
Management services
Related Party Transaction [Line Items]
Revenue	$ 47,275	47,488
RIF
Related Party Transaction [Line Items]
Advisory fee percent	0.85%
RMR Advisors and Tremont Advisors | Advisory services
Related Party Transaction [Line Items]
Revenue	$ 811	733
Tremont Advisors | Advisory services
Related Party Transaction [Line Items]
Revenue	36	49
Tremont Advisors | Management services
Related Party Transaction [Line Items]
Revenue	$ 680	$ 52

Revenue Recognition - Reimbursa

Revenue Recognition - Reimbursable Payroll Related and Other Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 159,892	$ 280,313
Shared service fees	346	336
Equity based compensation expense and related reimbursements	948	1,316
Reimbursable compensation and benefits
Disaggregation of Revenue [Line Items]
Revenue	13,795	13,873
Other client company reimbursable expenses
Disaggregation of Revenue [Line Items]
Revenue	$ 97,975	$ 98,076

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Oct. 10, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Sep. 30, 2019
Schedule of Equity Method Investments [Line Items]
Equity in earnings of investees		$ 255	$ 35
Equity method investment accounted for under the fair value option		5,120		$ 5,120	$ 3,682
Unrealized gain (loss) on equity method investment accounted for under the fair value option		$ 1,438	(2,769)
Tremont Mortgage Trust
Schedule of Equity Method Investments [Line Items]
Ownership percentage		19.50%		19.50%
Equity in earnings of investees		$ 255	$ 35
TA
Schedule of Equity Method Investments [Line Items]
Ownership percentage		4.00%		4.00%
Tremont Advisors | Tremont Mortgage Trust
Schedule of Equity Method Investments [Line Items]
Number of shares owned (in shares)		1,600,100		1,600,100
Ownership percentage		19.40%		19.40%
RMR LLC | TA
Schedule of Equity Method Investments [Line Items]
Ownership percentage		3.60%		3.60%
Shares post reverse stock split (in shares)				298,538
Purchases from related party	$ 8,382

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,724	$ 18,970
Federal income tax expense	2,777	13,842
State income tax expense	$ 947	$ 5,128

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Rate (Details)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income taxes computed at the federal statutory rate	21.00%	21.00%
State taxes, net of federal benefit	3.60%	3.00%
Permanent items	0.20%	(0.10%)
Net income attributable to noncontrolling interest	(10.10%)	(10.10%)
Total	14.70%	13.80%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Recurring basis - Level 1 - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Schedule of assets and liabilities measured at fair value
Money market funds included in cash and cash equivalents	$ 384,400	$ 357,526
Current portion of due from related parties related to share based payment awards	3,563	4,814
Long term portion of due from related parties related to share based payment awards	9,001	9,238
Current portion of employer compensation liability related to share based payment awards included in accounts payable and accrued expenses	3,563	4,814
Long term portion of employer compensation liability related to share based payment awards	$ 9,001	$ 9,238

Related Person Transactions - N

Related Person Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Jan. 01, 2020
Five Star
Related Party Transaction [Line Items]
Ownership percentage	35.30%
SVC
Related Party Transaction [Line Items]
Ownership percentage	1.10%
ILPT
Related Party Transaction [Line Items]
Ownership percentage	1.20%
OPI
Related Party Transaction [Line Items]
Ownership percentage	1.50%
DHC
Related Party Transaction [Line Items]
Ownership percentage	1.10%
TA
Related Party Transaction [Line Items]
Ownership percentage	4.00%
RIF
Related Party Transaction [Line Items]
Ownership percentage	2.30%
TRMT
Related Party Transaction [Line Items]
Ownership percentage	19.50%
ABP Trust | Centre Street
Related Party Transaction [Line Items]
Ownership percentage	100.00%
ABP Trust | AIC
Related Party Transaction [Line Items]
Ownership percentage	14.30%
ABP Trust | Open End Fund
Related Party Transaction [Line Items]
Ownership percentage	100.00%
Shares owned (in shares)	206,300
ABP Trust | Class A Common Stock
Related Party Transaction [Line Items]
Common stock shares outstanding (in shares)	144,502
ABP Trust | Class A Units
Related Party Transaction [Line Items]
Common stock shares outstanding (in shares)	15,000,000
RMR LLC | TA
Related Party Transaction [Line Items]
Ownership percentage	3.60%
RMR LLC | Open End Fund
Related Party Transaction [Line Items]
Shares owned (in shares)	0
Open End Fund | RMR LLC
Related Party Transaction [Line Items]
Committed capital	$ 100,000
Subsequent Event | Five Star
Related Party Transaction [Line Items]
Ownership percentage		6.30%

Related Person Transactions - R

Related Person Transactions - Revenues from Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Revenue from related parties	$ 159,163	$ 280,243
Revenue from unrelated parties	729	70
Total revenues	$ 159,892	$ 280,313
Percentage of revenues from related parties	99.60%	100.00%
Percentage of revenues from unrelated parties	0.40%	0.00%
Percentage of revenue from related parties, net	100.00%	100.00%
Managed REITs
Related Party Transaction [Line Items]
Revenue from related parties	$ 143,905	$ 264,920
Percentage of revenues from related parties	90.00%	94.60%
DHC
Related Party Transaction [Line Items]
Revenue from related parties	$ 43,557	$ 85,979
Percentage of revenues from related parties	27.20%	30.70%
ILPT
Related Party Transaction [Line Items]
Revenue from related parties	$ 16,341	$ 8,460
Percentage of revenues from related parties	10.20%	3.00%
OPI
Related Party Transaction [Line Items]
Revenue from related parties	$ 64,883	$ 56,243
Percentage of revenues from related parties	40.60%	20.10%
SIR
Related Party Transaction [Line Items]
Revenue from related parties	$ 0	$ 47,843
Percentage of revenues from related parties	0.00%	17.10%
SVC
Related Party Transaction [Line Items]
Revenue from related parties	$ 19,124	$ 66,395
Percentage of revenues from related parties	12.00%	23.70%
Managed Operators
Related Party Transaction [Line Items]
Revenue from related parties	$ 6,346	$ 7,023
Percentage of revenues from related parties	4.00%	2.60%
Five Star
Related Party Transaction [Line Items]
Revenue from related parties	$ 2,276	$ 2,413
Percentage of revenues from related parties	1.40%	0.90%
Sonesta
Related Party Transaction [Line Items]
Revenue from related parties	$ 625	$ 757
Percentage of revenues from related parties	0.40%	0.30%
TA
Related Party Transaction [Line Items]
Revenue from related parties	$ 3,445	$ 3,853
Percentage of revenues from related parties	2.20%	1.40%
Other Client Companies
Related Party Transaction [Line Items]
Revenue from related parties	$ 8,912	$ 8,300
Percentage of revenues from related parties	5.60%	2.80%
ABP Trust
Related Party Transaction [Line Items]
Revenue from related parties	$ 3,317	$ 3,335
Percentage of revenues from related parties	2.10%	1.20%
AIC
Related Party Transaction [Line Items]
Revenue from related parties	$ 91	$ 60
Percentage of revenues from related parties	0.10%	0.00%
Open End Fund
Related Party Transaction [Line Items]
Revenue from related parties	$ 3,996	$ 3,477
Percentage of revenues from related parties	2.50%	1.20%
RIF
Related Party Transaction [Line Items]
Revenue from related parties	$ 811	$ 733
Percentage of revenues from related parties	0.50%	0.20%
TRMT
Related Party Transaction [Line Items]
Revenue from related parties	$ 697	$ 695
Percentage of revenues from related parties	0.40%	0.20%

Related Person Transactions - F

Related Person Transactions - Footnotes to Revenue from Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Revenue	$ 159,892	$ 280,313
Reimbursable compensation and benefits
Related Party Transaction [Line Items]
Revenue	13,795	13,873
Other client company reimbursable expenses
Related Party Transaction [Line Items]
Revenue	$ 97,975	98,076
DHC
Related Party Transaction [Line Items]
Aggregate incentive business management fees		40,642
SIR
Related Party Transaction [Line Items]
Aggregate incentive business management fees		25,817
SVC
Related Party Transaction [Line Items]
Aggregate incentive business management fees		$ 53,635

Related Person Transactions - A

Related Person Transactions - Amount Due from Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019
Related Party Transaction [Line Items]
Due from related parties	$ 85,265	$ 102,759
Managed REITs
Related Party Transaction [Line Items]
Due from related parties	78,650	94,301
DHC
Related Party Transaction [Line Items]
Due from related parties	25,197	25,505
ILPT
Related Party Transaction [Line Items]
Due from related parties	7,748	10,630
OPI
Related Party Transaction [Line Items]
Due from related parties	34,717	39,233
SVC
Related Party Transaction [Line Items]
Due from related parties	10,988	18,933
Managed Operators
Related Party Transaction [Line Items]
Due from related parties	812	565
Five Star
Related Party Transaction [Line Items]
Due from related parties	181	136
Sonesta
Related Party Transaction [Line Items]
Due from related parties	13	37
TA
Related Party Transaction [Line Items]
Due from related parties	618	392
Other Client Companies
Related Party Transaction [Line Items]
Due from related parties	5,803	7,893
ABP Trust
Related Party Transaction [Line Items]
Due from related parties	2,338	2,580
AIC
Related Party Transaction [Line Items]
Due from related parties	7	7
Open End Fund
Related Party Transaction [Line Items]
Due from related parties	2,647	4,567
RIF
Related Party Transaction [Line Items]
Due from related parties	39	75
TRMT
Related Party Transaction [Line Items]
Due from related parties	$ 772	$ 664

Related Person Transactions -_2

Related Person Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Lease expense, rental expense	$ 15
ABP Trust and Managed REIT
Related Party Transaction [Line Items]
Lease expense, rental expense	$ 1,433
Rental expense		$ 1,287

Related Person Transactions - T

Related Person Transactions - Tax Related Payments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 4,163	$ 8,685
ABP Trust | RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 3,830	8,037
ABP Trust | Up C Transaction
Related Party Transaction [Line Items]
Tax receivable agreement, percent of payment	85.00%
Liability related to Tax Receivable Agreement	$ 32,061
Current portion of liability related to Tax Receivable Agreement	2,111
ABP Trust and Managed REIT | RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 7,993	$ 16,722

Related Person Transactions - S

Related Person Transactions - Separation Arrangements (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended			12 Months Ended
	Jan. 31, 2020	Dec. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Jun. 30, 2020
Related Party Transaction [Line Items]
Equity based separation costs				$ 1,582	$ 1,811
Separation costs				260	6,397
Former Executive Officer
Related Party Transaction [Line Items]
Cash separation costs				260	5,312
Equity based separation costs				0	1,074
Separation costs				260	6,386
Former Nonexecutive Officer
Related Party Transaction [Line Items]
Cash separation costs				0	11
Separation costs				$ 0	$ 11
Andrew J. Rebholz | Forecast | Former Executive Officer
Related Party Transaction [Line Items]
Aggregate annual base salary							$ 375
Equity based separation costs			$ 324
Subsequent Event | Andrew J. Rebholz
Related Party Transaction [Line Items]
Number of accelerated vesting shares (in shares)	7,300
Cash bonus | Andrew J. Rebholz | Former Executive Officer
Related Party Transaction [Line Items]
Related party transaction, amount		$ 1,250
Cash bonus | Andrew J. Rebholz | Forecast | Former Executive Officer
Related Party Transaction [Line Items]
Related party transaction, amount						$ 1,250
Percentage of Executives' Cash Compensation Paid by Managed Operators | Andrew J. Rebholz | Tremont Advisors
Related Party Transaction [Line Items]
Related party percentage		80.00%
Percentage of Executives' Cash Compensation Paid by Managed Operators | Andrew J. Rebholz | RMR LLC
Related Party Transaction [Line Items]
Related party percentage		20.00%

Shareholders_ Equity - Distribu

Shareholders’ Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 16, 2020	Nov. 14, 2019	Nov. 15, 2018	Dec. 31, 2019	Sep. 30, 2019
Class A Common Stock
Class of Stock [Line Items]
Shares repurchased (in shares)				133
Shares repurchased (in dollars per share)				$ 45.67
Shares repurchased during period				$ 6
Common stock shares outstanding (in shares)				15,301,767	15,302,710
Class A and B-1 common shares
Class of Stock [Line Items]
Dividends paid (in dollars per share)		$ 0.38	$ 0.35
Value of dividends		$ 6,195	$ 5,680
ABP Trust | Class A Common Stock
Class of Stock [Line Items]
Value of dividends		4,500	4,500
Common stock shares outstanding (in shares)				15,000,000
RMR LLC | Class A and B-1 common shares
Class of Stock [Line Items]
Value of dividends		$ 4,891	$ 4,869
RMR LLC | RMR LLC
Class of Stock [Line Items]
Dividends paid (in dollars per share)		$ 0.30	$ 0.30
Value of dividends		$ 9,391	$ 9,369
Subsequent Event | Class A and B-1 common shares
Class of Stock [Line Items]
Dividends paid (in dollars per share)	$ 0.38
Value of dividends	$ 6,194
Common stock shares outstanding (in shares)	16,300,302
Subsequent Event | ABP Trust | Class A Common Stock
Class of Stock [Line Items]
Value of dividends	$ 4,500
Subsequent Event | RMR LLC | Class A and B-1 common shares
Class of Stock [Line Items]
Dividends paid (in dollars per share)	$ 0.30
Value of dividends	$ 4,890
Subsequent Event | RMR LLC | RMR LLC
Class of Stock [Line Items]
Value of dividends	$ 9,390

Per Common Share Amounts - Sche

Per Common Share Amounts - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income attributable to The RMR Group Inc.	$ 9,449	$ 52,209
Income attributable to unvested participating securities	(73)	(353)
Net income attributable to The RMR Group Inc. used in calculating basic EPS	$ 9,376	$ 51,856
Denominator:
Weighted average common shares outstanding - basic (in shares)	16,177	16,120
Net income attributable to RMR Inc. per common share - basic (in dollars per share)	$ 0.58	$ 3.22
Numerator:
Net income attributable to The RMR Group Inc.	$ 9,449	$ 52,209
Income attributable to unvested participating securities	(73)	(353)
Net income attributable to The RMR Group Inc. used in calculating diluted EPS	$ 9,376	$ 51,856
Denominator:
Weighted average common shares outstanding - basic (in shares)	16,177	16,120
Dilutive effect of incremental unvested shares (in shares)	0	11
Weighted average common shares outstanding - diluted (in shares)	16,177	16,131
Net income attributable to RMR Inc. per common share - diluted (in dollars per share)	$ 0.58	$ 3.22

Per Common Share Amounts - Addi

Per Common Share Amounts - Additional Information (Details)	3 Months Ended
	Dec. 31, 2019shares	Dec. 31, 2018shares
Class of Stock [Line Items]
Weighted average common stock shares outstanding diluted (in shares)	16,177,000	16,131,000
Class A membership units
Class of Stock [Line Items]
Antidilutive securities (in shares)	15,000,000
Conversion ratio	1
Weighted average common stock shares outstanding diluted (in shares)	30,301,767
Class B-1 Common Stock
Class of Stock [Line Items]
Conversion ratio	1

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease expense associated with minimum lease payments	$ 1,603
Lease expense for leases with an initial term of twelve months or less	$ 15
Weighted average remaining lease term	9 years 7 months 6 days
Weighted average discount rate	3.10%

Leases - Cash Flows of Operatin

Leases - Cash Flows of Operating Lease Liability and Reconciliation of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 3,916
2021	5,272
2022	5,343
2023	4,708
2024	4,205
Thereafter	21,283
Total lease payments	44,727
Less: imputed interest	(6,173)
Present value of operating lease liabilities	38,554
Less: current portion of operating lease liabilities	(4,087)
Operating lease liabilities, net of current portion	34,467
Leases that have not yet commenced	$ 1,052

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)
Segment Reporting
Number of reportable business segments | segment	1
Revenues:
Revenue	$ 159,892	$ 280,313
Expenses:
Compensation and benefits	30,197	28,012
Equity based compensation	1,582	1,811
Separation costs	260	6,397
Total compensation and benefits expense	32,039	36,220
General and administrative	7,046	7,320
Other client company reimbursable expenses	97,975	98,076
Transaction and acquisition related costs	796	184
Depreciation and amortization	256	255
Total expenses	138,112	142,055
Operating income (loss)	21,780	138,258
Interest and other income	1,875	1,526
Equity in earnings of investees	255	35
Unrealized gain (loss) on equity method investment accounted for under the fair value option	1,438	(2,769)
Income (loss) before income tax expense	25,348	137,050
Income tax expense	(3,724)	(18,970)
Net income (loss)	21,624	118,080
Total assets	705,130	687,925	$ 660,832
All Other Operations
Revenues:
Revenue	2,620	1,399
Expenses:
Compensation and benefits	2,922	1,587
Equity based compensation	15	27
Separation costs	0	0
Total compensation and benefits expense	2,937	1,614
General and administrative	921	935
Other client company reimbursable expenses	0	0
Transaction and acquisition related costs	747	0
Depreciation and amortization	12	13
Total expenses	4,617	2,562
Operating income (loss)	(1,997)	(1,163)
Interest and other income	155	153
Equity in earnings of investees	255	35
Unrealized gain (loss) on equity method investment accounted for under the fair value option	0	0
Income (loss) before income tax expense	(1,587)	(975)
Income tax expense	(3,724)	(18,970)
Net income (loss)	(5,311)	(19,945)
Total assets	50,934	62,862
Intersegment Eliminations
Revenues:
Revenue	2,075	848
RMR LLC | Operating Segments
Revenues:
Revenue	157,272	278,914
Expenses:
Compensation and benefits	27,275	26,425
Equity based compensation	1,567	1,784
Separation costs	260	6,397
Total compensation and benefits expense	29,102	34,606
General and administrative	6,125	6,385
Other client company reimbursable expenses	97,975	98,076
Transaction and acquisition related costs	49	184
Depreciation and amortization	244	242
Total expenses	133,495	139,493
Operating income (loss)	23,777	139,421
Interest and other income	1,720	1,373
Equity in earnings of investees	0	0
Unrealized gain (loss) on equity method investment accounted for under the fair value option	1,438	(2,769)
Income (loss) before income tax expense	26,935	138,025
Income tax expense	0	0
Net income (loss)	26,935	138,025
Total assets	654,196	625,063
Total management and advisory services revenues
Revenues:
Revenue	48,122	168,364
Total management and advisory services revenues | All Other Operations
Revenues:
Revenue	1,527	834
Total management and advisory services revenues | RMR LLC | Operating Segments
Revenues:
Revenue	46,595	167,530
Management services
Revenues:
Revenue	47,275	47,488
Management services | All Other Operations
Revenues:
Revenue	680	52
Management services | RMR LLC | Operating Segments
Revenues:
Revenue	46,595	47,436
Incentive business management fees
Revenues:
Revenue	0	120,094
Incentive business management fees | All Other Operations
Revenues:
Revenue		0
Incentive business management fees | RMR LLC | Operating Segments
Revenues:
Revenue		120,094
Advisory services
Revenues:
Revenue	847	782
Advisory services | All Other Operations
Revenues:
Revenue	847	782
Advisory services | RMR LLC | Operating Segments
Revenues:
Revenue	0	0
Total reimbursable costs
Revenues:
Revenue	111,770	111,949
Total reimbursable costs | All Other Operations
Revenues:
Revenue	1,093	565
Total reimbursable costs | RMR LLC | Operating Segments
Revenues:
Revenue	110,677	111,384
Reimbursable compensation and benefits
Revenues:
Revenue	13,795	13,873
Reimbursable compensation and benefits | All Other Operations
Revenues:
Revenue	1,093	565
Reimbursable compensation and benefits | RMR LLC | Operating Segments
Revenues:
Revenue	12,702	13,308
Other client company reimbursable expenses
Revenues:
Revenue	97,975	98,076
Other client company reimbursable expenses | All Other Operations
Revenues:
Revenue	0	0
Other client company reimbursable expenses | RMR LLC | Operating Segments
Revenues:
Revenue	$ 97,975	$ 98,076