You are on a trip.  You were having a wonderful time.  You turn on your phone and you have 15 texts from one tenant.  A description of one leak, 15 times.  You have phone calls to make.... bids to wait for.  You have to make a decision.  But first you wait. 

 

The majority of our clients spend less than they thought they would on management, and for that they no longer have to answer the phone or take time, ever...  Feel what it's like to not have to answer the phone...

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  • We are a full service professional property management company in the South Bay 

  • We will design a management program that fits you.

  • We manage the rental of single family residences, apartment buildings, condominium units and commercial properties 

  • From Long Beach to Manhattan Beach

  • We provide complete accounting transparency including monthly statements 

  • Tenant screening and placement, ongoing communication with tenants

  • Tenants can check on their accounts and make repair requests online 24/7

  • We handle notices between property owners and tenants 

  • Easy coordination of minor repairs and maintenance 

  • We coordinate major repairs for property rehabilitation

  • We protect referring agent's clients for future sales

  • Member of Apartment Association of Greater Los Angeles

  • Member of the South Bay Board of Realtors

  • Member of California Regional Multiple Listing Service

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What is a capitalization rate? 

The capitalization rate, also known as the “cap rate” is a fundamental concept that’s commonly used in commercial real estate. It refers to the return rate on an investment of a real estate property. It’s based on the income you expect the property to generate. This is a measurement that’s used to estimate the potential return of an investor. You can get this value using a cap rate formula:

Capitalization Rate = Net Operating Income / Current Market Value

How to calculate cap rate? 

One look at the formula, you will see that it’s quite easy to calculate the cap rate. A simpler explanation is that it’s the ratio between the property value and the net income. You can manually compute by following these steps:

  • Start by determining the value of your property. For instance, this can be the property’s selling price.

  • Then, determine the gross rental income of your property. This refers to how much money you would get from your tenants annually.

  • The next step is to determine your property’s vacancy rate. Then, decide the percentage of your operating expenses.

  • Before you make the final calculation, you should compute for the Net Operating Income using this formula:

            Net operating income = Gross operating income – operating expenses

  • Once you have all the values needed for the formula, you can start making your manual calculations to end up with the final cap rate.

 

Learn more at https://calculators.io/cap-rate/