While it might feel like an extra charge to tenants, these packages often provide value that indirectly benefits the property owner as well—like reduced maintenance calls or ensuring the property is better protected.In my experience managing a large portfolio of properties, these fees are becoming more common due to the thin margins in property management.

It adds extra protection for your assets.

@Taylor DaschYou can buy the property in your own name if it's outside the so-called restricted zone.

There is usually extra charges on closing to pay for that service… but it is minimal.All the best!

We purchased this buy and hold historic duplex which faces William Land Park in Sacramento.

In this case, buy something that needs very little work so you don’t deplete all your cash.

I ASSUME you’re talking $400+ in extra expenses for providing water, power, sewer, gas, internet, communal area cleaning, and exterior maintenance.

What are you hoping to get out of the extra time, work and costs of having the LLC?

Class C and D areas/properties will always cash flow better on paper, but on paper things like extra repairs, turnover, evictions and such are often not taken into account. 

So why would we buy the cash flow at a rate of 6%?