We are often asked about the cost of property management in Los Angeles. Of course, there is no fixed cost or industry standard, and what you’ll pay depends on your property and the company that you choose to hire. Most Los Angeles property management companies charge either a fixed amount or a percentage, or there’s a combination of both, based on the rental income.
Management Fees
The most common cost is the property management fee, which is what you pay to your management company every month. This covers the cost of managing your tenant, taking care of your property, and responding to any requests, emergencies, or other situations on your behalf. Most management companies will deduct this fee from your rental income, and you’ll see it reflected on your financial statement every month.
Leasing Commissions
If you use your property management company to lease your rental property in Los Angeles, you’ll also have to pay a commission. This covers the cost of advertising, screening, and placing a qualified tenant in your property.
Additional Fees
There will also be other charges that are not included in the management fee or leasing commission. These might include maintenance fees, charges for office expenses, or project management fees when larger projects need to be managed.
Value and Service
Often, these management fees more than pay for themselves. A Los Angeles property manager can increase income at your property, and reduce expenses. You also want to take a look at what services are being offered. With a full-service company, you’re getting a lot of hours from a professional who is interacting with your tenants and handling a variety of issues. This is a detail-oriented business with professionals who are taking care of what could be your largest investment.
If you have any questions about property management in Los Angeles or property management fees, please contact us at EGL Properties.