West Hills Property Management
West Hills Property Management
Calabasas Property Management
Woodland Hills Property Management
Sherman Oaks Property Management
Northridge Property Management
Pricing
An important aspect and consideration in having a property managed is cost. How much is it going to cost to have someone manage our property?
In deciding on a pricing strategy, we understood the importance of making pricing simple. Below is list of expenses a property owner will incur:
Leasing Fee
This fee covers all cost associated with managing make ready items, sign, photos, online advertising, marketing, receipt of application, screening of a qualified tenant, lease agreement, inventory and condition form, pet agreement, collection of rent, deposits and rekeying of property. In addition, if a real estate agent represents the qualified tenant, a commission is paid to the real estate agent. The leasing fee is 70% of the first month’s rent.
Management Fee
This fee covers collection of rent, management of work orders, owner disbursements, financial statements, accounting documents and direct correspondence with the tenant 24/7. The management fee is 5% of the rent collected each month.
Lease Renewal Fee
A lease renewal fee of 1/4 of one months rent consists of a market analysis, to determine whether rental rates have increased or remained unchanged. This information is shared with the property owner and presented to the tenant prior to the expiration of the lease agreement. The term of the lease period may also change based on the tenant situation and may extend another 12 months and/or month-to-month depending on the circumstances. Once agreed, the signed lease renewal document is provided to the tenant and the property owner via online portals.
Here is a list of other common fees a property management company may or may not charge:
- Service fees for managing work orders and property improvement projects
- Administrative fees
Carnahan property management does not charge any service fees or administrative fees.
Late Fees
Collections of late fees from the tenant are passed directly to the property owner. Most management companies retain these late fees and there is really no incentive for the management company to collect rent on time, if they are collecting both the management fee income from the owner and late fee income from the tenant.
Owner Reserve
In addition to the leasing and management fee an owner reserve may be held to maintain a portfolio minimum of $ 300.00. This reserve is held upon receipt of the first month’s rent by the tenant. The purpose of the owner reserve is to cover expenses that are the responsibility of the owner during the lease term (i.e. replacement of a broken garbage disposal).
No fees are collected prior to the tenant occupying the property. The owner reserve, leasing and management fees are collected once the tenant occupies the properties.
If there are any questions regarding our property management fees and other costs associated with managing property, please contact us at 512.377.1486.
