Understanding What Property Management Companies Charge

Dustin Edwards • December 7, 2022

Why Do Property Managers Charge Money?

When choosing to invest in a rental property, many first-time landlords attempt to manage their Long Beach rental property on their own as a means to save money. They may need to realize that property management companies are an asset. 


A great full-service
property management company will help keep your rental properties occupied, and well-maintained, and give you the freedom of time to prioritize improving your investment in Long Beach real estate.


Below is a simple breakdown of what property management companies charge.


Monthly Fees

Most property management companies charge a percentage of the rent or a flat fee. Some firms have additional fees. If your rent is $1,800, the property management company will charge between $144 - $216 for that rental.


Other monthly fees may include managing vacant properties or units. This is often more laborious for property management companies. Often utilities need to remain on during the time a rental is vacant. With no tenant living in the home, they won't be discovered for days if there are plumbing or electrical malfunctions. Vandalism and break-ins are also possible, especially when the property is vacant for extended periods. For this reason, a property management company would have to inspect the property about once a week.


Additional Fees

When looking for property management companies, it's essential to understand that not all of them only charge the monthly rent charged percentage fee. Many include additional fees for what you may have thought was included in the monthly fees.


Many other property management companies often have many one-time fees when contracting them. They claim these fees cover items such as creating an account for bookkeeping, Initial property inspection, or contract preparation and lease execution. However, this isn’t the case for all property management companies.


Some property management companies try to “nickel and dime” their clients. They may have additional fees for evictions, collections, contract terminations, inspection, and maintenance fees. For this reason, you need to shop around and find the property management company that suits your best interests and needs.


Fees Offset Directly to the Tenant

Only some fees are collected from the percentage of the rent charge. The tenant pays any fees. Many fees are offset or paid by the tenant. Many landlords adjust the rent to cover the percentage cost of a property management company. Though with preparations, your property management company will be capable of.


 Most commonly, a tenant would be responsible for the fees incurred during a credit check. When renting a property with pets, tenants need to get their pets a profile and score to see if they qualify to live in your Long Beach rental property.


Though managing your property may be tempting to do yourself,  As the saying goes, “time is money,” and a property management company can free up an unimaginable amount of time for you. If you are still unsure about hiring a property management company, consider asking for a sample invoice. This should give you a breakdown of every fee they will be charging, allowing you to make an informed decision. If you have more questions about what property management companies charge or would like a sample invoice from us, consider calling us at (562) 888-0247, or feel free to fill out our
free rental analysis to see what your rental could yield today.

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By Dustin Edwards May 8, 2025
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