A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
The big mistake Landlords make.
When I am talking to a potential new client, they of course
are always concerned about the cost of my Property Management service and that
is very reasonable, but the mistake they make is wanting to reduce the
commission when I need to find a new Tenant. I charge ½ of one month’s rent to find
and place a new Tenant and as any Property Manager knows, that is not much
money, especially when you consider that I offer ½ of that commission to other
Agents from the MLS.
Let’s look at what it takes to find a new Tenant. I have to admit,
that advertising cost are minimal due to the fact that I use the MLS, which
puts my property on many websites including Realtor.com, I also use my website
which also puts the property on many other web sites. I also get many of my
potential renters from the sign outside the home, so the cost of advertising is
not an issue. But the big issue is if I allowed the commission to be cut, that
would cut the amount I could offer other Agents who have clients that may be a
good fit for the property. I am not a Broker who will offer $100 on the MLS
just to get my property on the MLS and other websites; I actually want my
property to be shown by other agents. If I offer less than $500.00 the chance
of that property being shown by another other Agent is remote at best, and that
can lengthen then the time the property is vacant.
Let’s also look at the time an Agent has to put into the
process of finding and placing a new Tenant. First you need to prepare the
property for a new Tenant, and then you need to find a new Tenant. After a
Potential Tenant submits an application, a Realtor needs to run the credit,
make all the proper calls to check on the credibility of the applicant. If all
checks out, a Realtor needs to write up a lease and get all parties to sign.
Then you need to do the walk through with the new Tenant. Once all that work is
done and unless the property rents for a huge amount of money, that ½ of the
first month’s rent may add up to a few dollars per hour, not a big profit for a
Realtor.
In my business of Property Management in Orange County
California, I have in the past negotiated that commission, but experience has
taught me that to do that not only hurts my business, but it hurts the client,
so I do not negotiate the commission anymore, in fact I highly recommend that
the Landlord may want to add money to the commission for other Agents who bring
a Tenant to the property. Just like in selling a home, the better the
commission, the more showings your property will get.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.