Real Costs of Property Management – Woodland Hills

What is the real cost of property management?

There are hundreds of property management companies that serve the Woodland Hills area, and there are just as many different fees and fee structures they offer. Some of them charge a flat fee, some of them a percentage. Some keep the tenant’s late fees, some will credit them to the property owner.  There is a maze of charges for the home owner to compare who is seeking property management services. However, the real cost of property management cannot be judged by just the monthly management fee. The home owner will have to consider the following factors that will play a bigger part in determining their net profit.

How long does it take to rent your property?

Carnahan Property Management’s  fee is one of the lowest in the business. There may be some that are lower, but not for all the services. there are definitely many that are higher. However, if the property management company does not rent your home in a timely fashion, the cost of their service is even greater. The average time on the market for rental homes in the Woodland Hills area is 45 days. Carnahan Property Management’s average is less than half of that. While you save in $20 a month in management fees, you might be losing $100s in extra vacancies depending on what property management company you hire.

Do they keep the late fees?

When you are interviewing companies to find out what the real cost of property management is, you will learn that many of them keep the late fees they collect from tenants. Property managers believe the late fees are their payment for chasing down the rent. Service Star Realty passes the late fees onto the owner. This promotes finding tenants that are going to pay on time as Carnahan Property Management is not financially rewarded in placing a possibly delinquent tenant. We want to ensure that you get paid on time and get compensated if your money is delayed. We are so confident in our ability to qualify the tenants properly, we extend a 90-day tenant placing guarantee to you.

Does the property manager make a profit on the maintenance calls?

Numerous property management companies have a built in profit margin in their service calls. Many of them use their in-house vendors and do not shop around for the cheapest service on the market. Carnahan Property Management constantly shops for cheaper and better services to save you money.  We negotiate the best rates we can find. Many times we get multiple estimates to look for any possible savings. And most importantly, we do not pad the vendor charges: we charge you what we are charged.

Flat fee versus percentage of rents collected?

If your property is renting for $2000 a month and the property management company charges the common ten percent rate, their management service will cost $200 a month. The same management company will collect only $120 in fees from an owner whose property is renting for $1200. The same amount of effort goes into each one.  The percentages method, we believe, is not fair to the owner. Carnahan Property Management charges an affordable 5% management fee. The fee method is fair because Carnahan Property Management works equally as hard to lease all managed properties as quickly as possible, to save you on maintenance costs, and we are equally as proactive on the collection of rents.

Not all companies provide the same level of service and it is the level of service that will be more of a deciding factor in what the real cost of property management is. When you are considering the monthly fee for a service, you need to consider how long the property will sit vacant, whether you can keep the late fees, and if you are paying padded profits for maintenance calls. Carnahan Property Management’s low fee is fair, and our level of service is designed to save you money at every corner.

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.