When you’re looking for a company to professionally manage your rental property, one of the things you’ll consider is property management fees in Long Beach, CA. Everyone looks for the lowest price when they shop for any product or service, but you have to go beyond what a company charges when you’re looking for value. The quality and scope of service is far more important than any dollar amount, especially when you consider what your investment is worth. Most property management companies have three sets of fees that you’ll need to be prepared to pay.
The Management Fee
The management fee is paid to your property manager every month, and it covers the day to day operations of your rental property. This includes handling any questions or issues that the tenant is experiencing, collecting rent, keeping the property legally compliant, and coordinating maintenance and repairs. In most cases, this is a percentage of the rent that is collected, and it’s deducted directly from your monthly rental payment. In some cases, it may be a flat monthly fee. Look for it on the accounting statement you receive with your rental payment every month.
The Leasing Fee
The leasing fee, which might also be called a placement fee or acquisition fee, covers the cost of turning a vacant property into an occupied property. Your property manager conducts marketing and advertising, manages showings, and collects applications in order to find you a tenant. Then, there’s the screening process and the lease signing. Some property managers charge a flat fee and others will charge you a percentage of the first month’s rent.
If you find a property management company with unusually low management and leasing fees, make sure you look into whether there will be extra costs throughout your relationship. For example, you may face a marketing fee, an inspection fee, a vacancy fee, or court fees when you need to perform an eviction. Talk about these costs before you hire a property manager, and make sure their entire fee structure is transparent and fair.
For help in understanding property management fees, contact Progressive Property Management.