Want to become a millionaire landlord? Hire a property management company to help you. No, seriously. If you own multiple properties in Burbank, chances are, you’d be busy calculating rental income, expenses and how to balance the two. Apart from that, you also need to take rounds of your properties to know their statuses. It is a hectic job, and someone’s got to do it. That’s where property managers come in. Property managers can provide a range of services which include the following:
Advertising and Marketing
Got a property to put on rent? Marketing property managers can post listings on various websites. They take the reins from you and advertise locally as well as utilize some signboards to give your properties maximum exposure, without you having to lift a finger.
Tenant Screening Services
They do background and credit checks, employment status, current income, and all other screening information required before you decide to give your property to tenants, or sell them. Hiring a property manager will help you to thoroughly screen applicants so you don’t have to worry later on.
Repairs and Maintenance
This is a bit self-explanatory. Whatever repairs you need, it is their job to handle it. When they cannot perform them, it is their responsibility to search for a third party contractor and get it done through them. Handy if you’re not available locally, or have several properties to let, or sell.
Property Investment Consulting
Property managers are knowledgeable and know exactly what you need based on your requirements. They can provide you with decent advice on how to proceed when prepping your property for various occasions; invest in certain commercial building for lease; or advise you to go for crowdfunding real estate, or not etc. It’s good to have someone reliable to back you up on your property investment decisions.
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. For that, it is important to first discuss the average going rates.
On a basic level, fees often range from 6 to 12 percent of whatever rent is being charged, not including any additional costs.
It is more about how much you are giving them to handle. Property managers charge according to it, whether in LA or anywhere else. If you give them a single home or condo, or only a few units from a building, they will probably charge somewhere closer to the 12 percent area. If you give them a large portfolio or a building with many units, then it will be closer to 6 percent. Here at LAPMG, we never charge more than 5.
Let’s Be Precise
We can get a clearer understanding of the rates in Los Angeles if we compare rates for a variety of properties.
As with any firm, rates are never fixed. They are always dependent upon a percentage of the rental income or a mix of percentages and a fixed amount. Residential property management firms in LA will charge somewhere around 8-12 percent of the monthly rent. This is separate from other expenses.
LA property management firms can also charge about $100 per month flat rate. They may have separate percentages for late fees.
Same as residential, the rates are never fixed for commercial properties and most firms charge a particular percentage of monthly rent. Large commercial properties follow the situation described in the average rates. If a property management company is given a smaller area to take care of, they will usually charge a higher rate whereas if they are given more to take care off, they’ll cut down the percentage.
The price differences between companies in this regard may be a representative of the quality of the service they provide. Therefore, it might not always be a good idea to go for a firm charging less.
The Smart Thing
Ultimately speaking, it is a good idea to read up on the reviews of various companies before selecting one. Call them for an appointment to discuss with them about your commercial or residential property requirements. See for yourself the kind of expertise they offer and how responsive they are towards you. It’s better to compare and evaluate in advance than suffer later on when they are in charge of your property.