Blog Post

Understanding What Property Management Companies Charge

Dustin Edwards • Dec 07, 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 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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