Charges That Property Management Companies Make on Properties

Real estate investors know the value and the worth of having property management companies oversee their real properties. It is taken as part of the assets to have to be successful as an investor and make their income. With having them oversee your properties, you have nothing to bother yourself with as they will take the stress upon themselves in getting tenants and ensuring proper documentation and timely maintenance of your property. The best property management in Bakersfield will ensure that your rental property is occupied all year to increase your investment. Before choosing any of the property management companies in Bakersfield, CA, have a brief overview of their charges.

Property Management fee charges

 Most property management companies have their fee structured into two main categories. Although, there are also additional charges on the property.

1. Percentage of monthly rent: most property management firm do have their charges on the monthly fee of the rent. This fee ranges between 8% to 12% of the monthly rent collected. However, if a property lies vacant for some time, the management company will make fixed charges or a fee that is equivalent to the anticipated monthly rent once it is leased out.
2. Fixed property management fee: some property management firms have a fixed fee structure for property to manage. And this is based on the property type, square footage, and services provided in managing the property. This fee varies according to the market. As an investor, you may find this a good deal but most companies with fixed fee structures may not be motivated as to maximize the rental income of the property.

Aside from these basic charges, management companies do have additional fees that are not all-inclusive in the main charges. Those additional charges may include

• Contract setup fee: this is usually a one-time fee that covers costs such as creating an account for bookkeeping, opening an account for you if necessary, assisting in submitting applications for tax licenses or any required business, initial property inspection, etc.
• Charges for overseeing vacant properties: the vacant property is seen as more labor-intensive than occupied ones. Vacant properties are susceptible to any risk or damages as a result, the manager needs to visit the property often to minimize the risk that may occur.
• Leasing vacant property
• Late payment service charges
• Repairs and maintenance charges
• Routine inspection fees
• Evictions and collections
• Contract termination fees

Conclusion

 Considering the work that property management in Bakersfield does put in place to satisfy investors in managing their properties, the charges being made are worth it. Feeling comfortable with the charges and meeting up with them, you need not get yourself stressed as any of the property management companies in Bakersfield, CA you have chosen will get all things going as due.