Buying rental properties can be a great real estate investment strategy – particularly in Anaheim. It can definitely help you earn passive income as it covers a much broader investment spectrum than most people realize.
However, purchasing an investment property to earn rental income can be risky too, especially if you don’t have experts to guide you in the process. Luckily, there are a full set of affordable services that can maximize your cash flow, minimize your expenses, and obtain/retain good income from your rental property etc., and that’s full service property management.
If you’re a real estate owner, you might be considering hiring a manager to oversee your properties. Keep in mind that the amount you end up paying depends on several factors and varies by company. Keep reading to learn more about how much the property management in Anaheim costs, plus the other management fees you need to look out for.
How Much Do Property Managers Charge In Anaheim?
Rates vary by market, but most management companies charge 10% of the monthly rent to manage a single-family home.
On Average, fees often range from 6 to 12 percent of whatever rent is being charged, not including any additional costs. Property managers charge according to how much you are giving them to handle, whether in Anaheim, LA or anywhere else.
For a single home or condo, or only a few units from a building, they will probably charge closer to 12 percent.
For a building with many units, it will be closer to 6 percent.
Per Month Basis / Fixed
The national average cost of property management in California itself is around $99 per month. The price ranges, however, between $69 per month on the low end and $225 per month on the high end:
|National average cost||$99/month|
|Typical cost range||$80-$100/month|
|Low-end cost range||$69-$75/month|
|High-end cost range||$150-$225/month|
The chart below shows some common rates that property management companies charge to manage real estate:
|Total monthly rental income||Average property management costs|
In addition to the monthly fee, management companies may charge management fees such as follows:
- Setup fees – may include inspecting your property, and drafting all agreements and addendums so that you and the property manager can start on the same page.
- Maintenance fees – When a professional is hired to do the work, the property manager may charge a markup on the pro’s services, depending on the project.
- Leasing/ Leasing fees
- Tenant Advertising and Screening – cover marketing, advertising, communicating with potential tenants, interviewing them and vetting them with background checks or informational surveys.
- Vacancy fees – This helps cover the property management company’s expenses. The vacancy fee may be as low as $50 to $75, but not all companies charge it.
- Early termination fee etc.
It All Varies On Type Of Properties
Residential property is never fixed. It always depends on rental income percentage or a mix of percentages and a fixed amount. Residential property management firms in LA charge somewhere around 8-12 percent of the monthly rent and also can charge about $100 per month flat rate (separating percentages for late fees). Commercial rates also are never fixed. Most firms charge a particular percentage of monthly rent.