Blog Post

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 December 19, 2024
If you're properties are suffering from lack of heating this winter, these 3 common issues could be the cause.
By Dustin Edwards December 12, 2024
Although Southern California’s winters are typically mild when compared to other parts of the country, tenants still value a warm home during the cooler months. Taking steps to maintain a comfortable living environment shows your tenants that their needs are being prioritized. This is crucial for tenant satisfaction, especially during the holidays. Below are three methods to help keep tenants warm during the winter season. Maintain Heating System It's required for landlords to provide rentals with a working heating system, however, it's not uncommon for these to fall into disrepair either because of lack of maintenance or negligence. Scheduling regular inspections and maintenance before the coldest weather can help to ensure the heating is reliable and efficient. Cleaning air filters, and checking for cold spots, or irregular noises can help prevent small issues from escalating into expensive repairs. Preventative maintenance can help to reduce the chances of inconvenient calls for emergency repairs. Being proactive with your maintenance can also help you protect your investment while earning goodwill from your tenant. Another factor that can affect your heating system is drafts around windows and doors. These drafts can cause your heating system to overwork which makes the system less efficient, and reliable and ultimately reduces the lifespan of your heating system. You can address this by inspecting the seals around doors and windows for gaps or cold spots. Replace worn-out seals and caulking where it's needed. Offer Smart Thermostats Consider providing your tenants with a smart thermostat for energy-efficient heating. This can not only give tenants control over their comfort, but it's also a great tool to reduce energy usage. By providing this upgrade to your tenant, you show a commitment to your tenant’s satisfaction which can in turn result in a long-term tenant. These kinds of devices definitely benefit your tenants, though they can also contribute to the longevity of your rental property as well. Additionally, you can give your tenant a smart thermostat as a holiday gift . This can show your tenant that you’re not simply collecting rent while protecting your investment. Reverse Ceiling Fans The direction in which a ceiling fan rotates is oftentimes overlooked, and it can have a great effect on the temperature of a home. A ceiling fan is typically seen as a way to cool down a home during the hotter seasons without using the air conditioning . Reversing the spin of a ceiling fan can help to circulate warm air more efficiently during the cold season . This is because warm air rises, and a fan rotating clockwise will push the warm air back down helping maintain warm temperatures. Most fans have a switch on the motor and it is easily accessible for most people with a step ladder. This easy adjustment helps reduce the need for your tenant to use the heating system. Tenants will notice a more consistent and comfortable temperature indoors. This should also help reduce costs on their energy bill. Reversing the rotation of the ceiling fans also takes some of the strain off of the heating system. This helps to ensure it operates efficiently for years by reducing the wear and tear on it. Taking proactive steps this winter season to ensure your tenant’s comfort demonstrates a landlord’s commitment to their tenant’s comfort. A comfortable tenant is a satisfied tenant , which can lead to a long-term tenant and steady rental income. Consider it a small investment for long-term success. If you need help keeping your rental warm or managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards December 5, 2024
Discover 3 Gift Ideas for your tenants this holiday season.
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