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The Difference Between a Property Management Fee & a Leasing Commission

 

While many landlords think their property managers are primarily a conduit to tenants to fill their spaces, property managers can actually add a great deal more value. Management fees cover a number of ongoing services that keep your property occupied and operating well, while leasing commissions pay for just one thing — putting a tenant in a space.

Leasing Commissions

property manaagement agents are professional sales people who market your vacant space, generate interested prospects and conduct tours. Once they find a prospective tenant, they can also assist you in negotiating a lease and its terms, but their role in your property ends after that point. Property management  commissions vary depending on the type of property, the amount of the lease, and the norms of the market. You will typically pay a fee that is some portion of a month’s rent, though. Commercial property leasing fees are more expensive.

Property Management Fees

While many property managers lease properties, they also keep them running. A property manager collects rents, pays bills and coordinates maintenance tasks. In exchange for performing these services, they charge a monthly amount which is typically between 4 percent and 12 percent of the rent collected. This is a key difference from a leasing commission — instead of being a one-time charge and one time-service, management is an ongoing service and an ongoing expense.

by Solomon Poretsky

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.

Call or e-mail us today for more information. We’re ready to get started!

Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can service your area.

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