Operating a rental property is a full-time job that demands a level of skill and dedication that only a professional can provide. If you’re not sure what to expect from a property management company, here are some of its basic roles and responsibilities.
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What to expect from a property management company in Los Banos, CA
A property management company handles the daily affairs of a rental property and serves as a liaison between real estate investors and tenants. These companies can manage a wide range of properties, including apartment buildings, mobile home communities, vacation rentals, and office and retail spaces. Some property managers also take part in real estate investing, making them highly knowledgeable on the day-to-day concerns of property owners and tenants.
Duties and responsibilities
- Marketing and tenant screening – Property management companies fill vacancies by placing real estate ads on their website, social media, online directories, and other channels. They often have existing clients in search of rental properties, making it easier for them to match tenants with vacant units. They will also take charge of showing vacant units and screening prospective tenants with strict background checks and referrals.
- Tenant management – A property management company can help improve tenant retention by offering a high level of customer service. This includes handling complaints, resolving disputes, and creating a sense of community.
In some cases, a property management company may also have to initiate the eviction process. Experienced property managers know state and federal laws governing the eviction process in California and will ensure compliance, safeguarding your property from legal claims.
- Rent collection – Collecting and keeping track of rental fees can be overwhelming when managing multiple rentals. Property management companies will help ensure the financial health of your real estate investment by enforcing the timely collection of rent and penalties if applicable. They will also make sure that all tenants are compliant with the conditions of their lease.
- Maintenance, repairs, and inspections – When tenants request repairs for leaks, clogged drains, and other issues, property management companies can provide access to an on-call maintenance team. They will also schedule general cleaning, garbage disposal, and regular maintenance checks to make sure that the property is in excellent condition.
- Bookkeeping and documentation – Property management companies keep records of financial information such as payments, receipts, maintenance and repair costs, and tax information. They will also file all the necessary paperwork, such as a 1099-MISC report. These companies will also safeguard legal documents and a history of activity on the property.
Fees
When it comes to management fees, a property manager may charge you a flat fee or percentage fee depending on your agreement. A flat fee is charged to you each month depending on the services, size, type, and overall condition of your rental property. A percentage fee is collected as rent due (which is collected regardless of vacancy) or rent collected (paid rent on occupied units) and covers a percentage of the monthly rent. This percentage usually ranges from 8% to 10% depending on the size, type, and number of units or properties.
Other fees include:
- Leasing/placement fees
- Maintenance fee
- Reserve repair fund fee
- Vacancy fee
- Past payment fee
- Eviction fee
- Early termination fee
- Miscellaneous fees
Contracts
Your contract with a property management company should delineate their roles, duties, and legal liability. It should also include specific dates for the duration of the partnership, including the company’s start date and end date, if this was discussed before contract signing. In many instances, property management companies sign one-year contracts with property owners.
Borelli Real Estate Services specializes in buying, selling, and property management. Call us at 209.752.3667, send us an email, or fill out our contact form to get started. Our company works with seasoned investors and new clients looking to purchase or sell their first rental property in Los Banos and the surrounding areas.