Understanding L.A. property management fees can be a frustrating process for many rental property owners. You want to make sure you’re measuring the services you receive, and not just the management fee you’re paying. It’s possible you’ll find a low-cost management company that seems like a great deal. But, once you start working together, you’ll quickly realize that their fee doesn’t include anything that you actually need.
Most of the property management companies you’ll encounter will charge a percentage-based fee for both management and leasing services. Then, there may be a list of additional fees that you’re charged. Whether you want all-inclusive property management or a menu of services you can pick and pay for separately depends on what you’re looking for in a Los Angeles property management company.
Los Angeles Leasing Fees
One of the first fees you’re likely to encounter is a leasing fee, or a tenant placement fee. This covers the cost of finding a good tenant and filling your vacancy. Some management companies will offer this service alone, and others will include it in their comprehensive management services.
Leasing fees are usually a flat fee or a percentage of the first month’s rent. Sometimes, they’re as high as the entire first month’s rent. Some of the things that should be included in your leasing fee include:
- Preparing the property for the rental market and setting a rental price.
- Marketing your home through online advertising.
- Managing showings and questions from prospective tenants.
- Collecting applications and conducting tenant screenings.
- Accepting security deposits and move-in funds.
- Conducting a move-in inspection to document the condition of your home.
- Discussing and signing the lease agreement.
Los Angeles Property Management Fees
While the leasing fee is a one-time fee while your property is vacant, the management fee is paid every month, and it’s usually deducted right out of your rental earnings. In Los Angeles, most management fees are between eight and 12 percent of the rent. In most cases, this fee covers rent collection, lease enforcement, tenant communication, inspections, accounting, reporting, and any of the day-to-day operations of your rental property.
Read the fine print of your management contract before you sign it. If you find a company that charges a dramatically low management fee, there’s probably a reason. Either you won’t receive high quality property management or you’ll end up paying more in the long run with the list of additional fees and extra charges that will apply.
Additional Management Fees
If you’re not getting all-inclusive Los Angeles property management, you may find additional costs like administrative fees, account set-up fees, technology fees, inspection fees, maintenance mark-ups, and accounting fees. A management company may charge you every time you have to serve a notice or contact the tenant.
These can be really cost-prohibitive, and beware of any property manager that isn’t completely transparent about these extra costs in the beginning. All of these fees are unnecessary if you’re providing an outstanding product for a fair price.
Our fees are fair and competitive. We’d love to tell you more about them and about the Los Angeles property management services we provide. Please contact us at Bell Properties.