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.
Feel what it's like to not have to answer the phone...
we'll answer it for you.
I bought an existing property management company in 2021 and established Housz, a C-Corporation with a Real Estate Broker license. I am also a licensed Real Estate Broker and a member of the South Bay Board of Realtors and the CRMLS. An ideal client for my company is someone who is currently managing their property and would like to have more time to themselves.
I also manage Home Owners Associations.
Housz, Inc. provides all the services you will need in a property management company. I keep the area I service small enough to get to all the properties easily. That means managing properties in Redondo Beach, Hermosa and Manhattan Beach, Torrance, Palos Verdes, and along the waterfront of Belmont Shore.
I treat my client's money like my own. I am very careful with repairs and expenses. I recently prepared a condominium that appeared to need a repainting for $7. in supplies. (There are techniques that can be found with some research that produce amazing results).
If you have been telling yourself that it is time to have a property manager you can reach, one that will listen to you, and one that really cares about protecting your investment. give me a call.
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/