Owning a single piece of property is difficult enough, but how do you begin to tackle the challenge of maintaining multiple properties?
If you rent out to different families or businesses, then you have to listen to and deal with any of their complaints. You’re responsible for fixing problems with their plumbing and HVAC systems. The property owner also has to collect rent every month and figure out where to invest their income.
Instead of burdening yourself, try out a property management company.
How much do property managers charge in San Diego, though? And what exactly is their role?
Why Consider Hiring a Property Manager?
Most investors agree that real estate is one of the best options around. However, the problem with investing in multiple properties is that you need to keep them well maintained for them to retain their value. That’s where a property management company comes in.
A property management service handles most of your responsibilities so you can focus on other investments and your daily life. Your job will be looking at the big picture while the property manager deals with things like rent collection, property maintenance, and listening to complaints by renters.
One of the benefits of using property management is that it turns your investment into a form of passive income. Since you aren’t tied down to a specific location, you can invest in properties outside of your city. You can feel free to travel and even work a full-time job while your property generates income.
Additionally, a property manager can help secure your investment by installing and overseeing security measures. They’ll screen new tenants, monitor who comes in and out, and adjust rent prices according to market trends.
Property Manager Tasks
Property managers don’t just exist to handle the busy work otherwise associated with owning property. They improve on your overall investment by bringing years of experience managing properties as well as systems made for property management.
Some of a property management company’s services include:
- Automatically finding new tenants to fill in vacant units
- Screening potential tenants to lower the risk of frequent tenant turnover
- Inspecting newly vacant rental spaces and organizing repair and cleaning services
- Handling complaints by tenants
- Collecting rent and adjusting it according to the current market
- Overall property maintenance
One of the most important roles of a property manager is that they’ll stay up-to-date with the changing laws regarding landlords and tenants. This can prove especially important if you own property in another city or state.
Cost of Property Managers in San Diego?
San Diego is California’s second largest city and one of the United States’ largest. There are a lot of business opportunities here, which means it costs more to invest in properties in the area. As a result, you can expect property management companies to charge more for their services.
The fee to hire a property management service is usually a flat percentage of the total collected rent. In San Diego, that average falls between 7 and 10 percent. However, prices may differ between companies based on the types of services offered.
For example, most companies offer tenant placement, maintenance, inspections, rent collection, and bill payments. Others may also include the installation and maintenance of security cameras, wireless Fob locks, and other similar systems.
Common Fees and Things to Avoid
Not all property managers charged solely based on a percentage of your collected rent. Some apply different fees based on varying factors such as their specific services and whether or not pets are allowed.
Some of the most common fees are for hiring them, leasing, late payments, and evictions. You’ll also see additional fees based on early cancellations.
There are other fees that are not as common and may serve as warning signs. They may charge extra for maintenance, fees for services provided, and for returned checks. A property manager may want a sales commission if they help to facilitate the sale of your property.
Avoid property management companies that charge fees based on expected rent, lease renewals, or vacancies. They should only collect a percentage of rent that is paid – not what is due. That also means they shouldn’t charge you extra based on a vacant property if they’re the ones currently responsible for filling it.
Compare Property Manager Costs
When comparing property management costs, you have to consider the services offered. The most common services are maintenance and repairs, followed by rent and fee collection. Least common are property sales and outdoor services.
Companies that provide property sales services often expect a percentage of your sales. They may also charge a flat fee to advertise and market it.
Consider what kind of care your properties need and what a service offers. See if they have a more affordable package that excludes certain services, such as lawn maintenance.
Offsetting the Cost of Property Managers
Even though a property management company is in charge of hiring contractors for repairs and renovations, they don’t cover the costs. The landlord will almost always have to pay for the cost of repairs and supplies before they make the call.
If you want to avoid overreliance on your property managers, there are some ways to reduce expenses.
First of all, look into sustainability solutions. Lowering energy usage can save you big on utility costs.
Invest in routine maintenance to prevent damage to your property. If it isn’t broken, then you won’t have to pay for repairs.
If you want to avoid renter turnover, try to establish a line of communication with your renters. One option is to have your property management company forward any messages they receive. You may also want to visit your properties in person from time to time.
That way, you maintain responsibility for your property while leaving the daily operations to your property manager.
Take Care of Your Property
How much do property managers charge in San Diego? The easiest way to find out is by researching your local service providers.
Find the ones that offer the types of services you need and look at their pricing online. You should also read up on recent reviews to see if they’re worth the amount you’d have to pay.
Giving Tree Property Management is one such service that offers customized support from our real estate experts. We help with tenant placement and maintenance coordination, and we also provide 24/7 emergency response services. Contact us to learn more and get started.