For first-time investors, property management fees can be pretty intimidating – and somehow expensive. But if you’re someone who owns multiple properties in Orange County California, you’ll definitely need a hand on managing your rental investment properties. After all, who would not want to have a group of professionals to take rounds of your properties, plus manage your space while you, earning without walking through the hassle?
As a property owner, whether owning just one or more properties, you are sure to be occupied calculating your rental income, expenses, or even figuring out how to balance the two. Apart from that, you’ll have to go over several duties such as maintenance, inspection, tenant satisfaction and more. Indeed, it is a hectic job. That’s why property managers exist.
To help you understand what property managers do or what property management fees to expect, as well as what to look out for, here are the services you can get signing up in an orange country property management and their charges:
Tenant Screening Services
You can’t just let any prospect tenant live in your rental property without scrutinizing their background. Property Managers do background and credit checks, employment status, current income, and all other screening information that’s essential to let you have peace of mind while your space is rented out.
Property Managers do everything for you, including managing and collecting rents from your tenant. Which means, you need not go over the hassle of notifying your tenant’s due or be stressed if they didn’t pay on time. Property Managers have it all covered.
Advertising and Marketing
If you have signed with property management companies, you need not to worry about who will rent your place. Property managers can let you have your property occupied in a span of days through their listings posted on site or collaterals printed. You’ll definitely give your properties maximum exposure, without you having to lift a finger as they work on advertising and marketing on your behalf.
Repairs and Maintenance
Whatever repairs you need, it is their job to handle it. They’ll have third party contractors and have all your worries about repairs and maintenance get done.
HOW MUCH DO THEY CHARGE?
There are lots of services a property manager can provide. By now you might be eager to hire a property manager but first you need to know how much they charge, especially in Los Angeles. Rates vary by market, but most management companies charge 10% of the monthly rent to manage a single-family home.
On Average, fees often range from 6 to 12 percent of whatever rent is being charged, not including any additional costs. Property managers charge according to how much you are giving them to handle, whether in LA or anywhere else.
- For a single home or condo, or only a few units from a building, they will probably charge closer to 12 percent.
- For a building with many units, it will be closer to 6 percent
IT ALL VARIES ON TYPE OF PROPERTIES
Residential property is never fixed. It always depends on rental income percentage or a mix of percentages and a fixed amount. Residential property management firms in LA charge somewhere around 8-12 percent of the monthly rent and also can charge about $100 per month flat rate (separating percentages for late fees).
Commercial rates also are never fixed. Most firms charge a particular percentage of monthly rent