Although the purpose of property management is to protect your investment in real estate and take the stress and hassle that you would be exposed to in your capacity as the owner out of the equation, it is an investment in and of itself and you may be hard-pressed to decide if it is a step in the right direction for you.
Property management companies La Jolla Village and nearby areas charge fees to perform various services at your property and it is up to you to decide if it is an investment worth your while, and to do that you need to dive deeper into the matter.
So which factors determine these fees? Read on.
What do property management companies do for you?
A full-service property management company will handle every aspect of managing your property or Airbnb by setting up a turnkey system. They will help you attract and shortlist the best tenants to fill vacancies and optimize your revenue, handle tenant relations and evictions on your behalf, keep your property in tip-top shape and coordinate maintenance and repairs, collect rent, keep financial records for tax purposes, etc. Last but not least, they will keep up with applicable real estate regulations to ensure your compliance.
Is having a property management company worth it?
Having a property management company can certainly spare you the stress and headache of having to do all that hard work by yourself, but is it worth it?
To decide, consider the factors that determine the workload and level of maintenance a piece of property can be expected to require on a monthly basis and therefore influence the cost of property management:
- Property size
- Type of property
- Condition of the property
- Location of the property
- Scope and extent of services
Can you negotiate property management fees?
Some property management companies charge flat rates, while others base their fees on a certain percentage of the monthly rate collected. It is important that you understand whether the deal is favorable or not in terms of cost and scope, which is why you need to know what questions to ask your prospective property manager.
That said, here is a breakdown of potential fees:
Initial setup fee
Some companies charge this fee to cover the cost of setting up client accounts and inspecting the property to assess its condition.
Monthly management fee
This fee covers the costs associated with managing a property on a monthly basis. The services covered by the fee should be clearly defined beforehand. Some companies may charge a high fee for monthly maintenance, but the offer may also be more inclusive than that presented by their more affordable competitors, which is why you should discuss this at length with your prospective property management team before you make a commitment.
Maintenance fees can be included in your monthly management fee, although this depends on the specific terms and conditions of your agreement with the company.
Reserve repair fund
There may also be a separate reserve repair fund, which is an account designed specifically for repairs and emergencies. You can ask the company to inform you of any repairs so you can authorize an deduction from the account or at least if the cost of a repair is expected to exceed a certain amount. On the other hand, you can leave the decision-making entirely to your property management company and let them use the account at their sole discretion.
Evictions are unpleasant and it is the job of your property manager to do their job right so as to spare you from ever having to go through the ordeal that is the tenant eviction process. However, if an eviction becomes inevitable, your property management company can handle it for a certain fee.
Early termination fee
If you have already signed a contract with your property management company which you want to terminate prematurely, you may also need to pay an early termination fee.
Some companies may also charge separate tenant placement fees for handling tenant relations from tracking tenants to signing the lease agreement and vacancy fees.
Your full-service property management company in La Jolla Village and the area
Lofty Property Management offers the full continuum of property management services in La Jolla Village, La Jolla and other communities in San Diego to make sure your property is safe and protected and your peace of mind fully restored. Our number one priority is to give you a comprehensive service that will be performed to high professional standards and translate into your outstanding customer experience. Set up your first consultation now and we will do our best to make it count!