Property management is the operational handling of a multifamily building — tenant relations, rent collection, maintenance, compliance, reporting. LA multifamily management fees typically run 4–8% of collected rent.
Professional property management includes: leasing (unit turnover, new tenant screening), rent collection, maintenance coordination, vendor oversight, compliance (LAHD, RSO registration, capital improvement tracking), tenant relations, and financial reporting. Self-managed owners handle these directly.
For LA multifamily buyers evaluating deals, professional management is nearly always assumed in buyer underwriting — 4-6% management fee is a standard expense line. Seller-managed buildings often exclude this cost from operating statements; adjust accordingly during analysis.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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