Long Beach, California is an attracting city for real estate due to its port among the world’s largest shipping ports, oil industry, manufacturing sectors in aircraft, automotive parts, electronic equipment, audiovisual equipment, petrochemicals, precision metals & home furnishings. It would be a difficult and tiresome task for you to manage your property at your own, if you are putting up in Long Beach, CA. Hiring a property manager would relieve you of all its messy jobs of renting and maintenance. When looking for Long Beach property management, one factor that needs to consider is cost depending upon the quantum of responsibilities assigned to the property management company.
So, how much does it cost for hiring a professional property management company in Long Beach?
The property owners must be aware of the cost of Long Beach property management depends on the company you choose to work with and the type of properties you have.It is recommended here to choose only professionals who manage your property expertly and proficiently instead of just going with the company at a low rate.To begin with, one should consider how much it saves to choose someone that charges the lowest price in town.It might actually cost you more money, especially if they have hidden charges in some form, or do not have the full market analysis in the form of higher rents, or charge you higher maintenance rates. Further, the cost depends on the type and owning of several homes or apartments, or a mix of multiple residential and commercial units.
This article brings a few guidelines which you must consider before hiring a property management company in Long Beach.
The first thing the Long Beach property investor shave to pay commission for assigning the property maintenance and management tasks to the property management company. These charges may vary with different property managers, either by a fixed percentage or on monthly basis amount. The fee depends upon the quantum of responsibilities given to the property management company. You must deliberate in the agreement the details of jobs in the scope of the property manager and accordingly negotiate with him the fee.
Advertising and Marketing Cost:
You have to pay the property manager to market and advertise your Long Beach property for leasing it. A property manager will advertise your property on several marketing platforms such as classified columns, online marketing or creating a web page, etc. to attract potential tenants and the expenses on the same shall have to be borne by you. If the advertisement is eye-catching, the charges will be more. The important part you should know beforehand whether the mode of advertisement authenticates the fee demanded by the property manager. You must cross check the charges asked by him and never blindly have faith on any property manager.
Screening Tenants Fee:
The property manager hired for Long Beach property will scrutinize the applications received for leasing for your property. He will screen a potential tenant after verification of his credentials and showing him your property. Every property management company charges a fee for this job which is generally upfront one month’s lease money.
Lease Renewal Fee:
Long Beach property management companies will charge you a fee for renewal of lease when the tenant asks him to restore his lease. The fee takes care of the efforts or correspondence, or the time spent between the owner and property manager, and tenant for extending the lease for next year. This fee also covers the supervision of property for another year by the property management company. The lease renewal fee can be a few percents of the expenditure incurred in the renewal, but a nominal one.
Repairs & Maintenance charges:
The property owner can easily manage his property by assigning the maintenance and repair jobs to a property manager. Also, he can ask the property manager to enhance the curb appeal of the property to attract potential tenants. Moreover, it may be cost effective and save time. A property manager shall charge a fee which includes the value of repair or maintenance incurred on the property. In general, the property management company charges a fixed percentage of the invoice of vendors. But it is important that a property owner must keep watch on vendors and their estimated cost of work to check its reason ability and market trends. The owner should make sure that the manager levies no hidden charges.
Value and Service Fee:
The management cost which is charged when the property owner entrusts the property manager to deal with his tenants, providing 24/7 customer support and handling daily issues required to enhance the value of his property. For this purpose, the Long Beach property managers shall have to devote extra hours and efforts and charge a fee for that. The property owner shall have to decide very clearly the responsibilities of the property manager.
The scope of works can vary for different properties. The work may involve administration and legal issues for apartment associations, court cases for disputed properties, etc. Both parties must define the scope of work and fee in the true sense.
Let’s be Accurate:
Now when we have a clearer understanding of the cost of Long Beach property management, we compare rates for the types of properties. On an average level, the price rate often ranges from 6 to 12 percent of the rent being charged, excluding any additional costs. This includes:
Residential property management companies in Long Beach generally charge around 8-12 percent of the monthly rent, excluding any additional expenses.
Commercial Properties :
The cost for managing commercial properties may vary according to the size of the property and most commercial property management companies in Long Beach generally charge a particular percentage from 6 to 12 percent of monthly rent.
Therefore, a reputed property management company in Long Beach, even at higher rates, should be the right choice. RTI Properties, Inc. has maintained relations for three decades with thousands of millions of customers of Long Beach by providing them satisfactory services at a reasonable and affordable fee. You can also benefit from its expertise by partnering with Long Beach Property Management Professionals.