Property Management – West Hills – Rental Range Vs Commission

Determining the Rental Range Versus the Charge for Commissions

The first factor to consider when you are debating whether or not to hire a property manager is how much you will be spending out-of-pocket and whether or not the money you spend will take away from your profits. When you choose a property management firm, the firm will either charge a fixed rate for their services or a percentage of the rental rate. While fixed rate commission scales are ideal for high-priced properties, owners who own properties in a lower rental range can benefit from hiring a firm that charges between 6% and 10% to market and manage the property. 

You will need to determine just how much you will be giving up to pass the burden of managing a rental property on to a professional team. If you have a mortgage on the property, you should keep this expense and maintenance expenses in mind when determining whether or not professional property management is practical. 

If the cost of your mortgage, insurance, property taxes, other maintenance expenses and commissions for property management exceed the monthly rents you collect, hiring a property manager may not be in your best interest. If you can cover all of these expenses or even take home a profit, professional property management could be an effective way to maintain your investment properties without having to be a hands-on landlord. This hands-off approach will free up your time, and if your time is money, you must consider the value that property management services can produce for you in terms of your lifestyle. 

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.