When individuals become landlords, many choose to manage the rental properties personally. This is a great way to save some money, especially for those who are just getting started. A property management company is often seen as a cost, though it's an investment for those who can take advantage of all their services.
Today, we will review five signs indicating you need a property management company.
A telltale sign that you may need to hire a property management company is if your rental is in disrepair. Many landlords choose to do their repairs or hire acquaintances to deal with repairs they’re incapable of doing. However, when a rental has several problems with maintenance, it can significantly affect your ability to keep a tenant long-term or to fill a vacancy.
This can significantly affect your bottom line in several ways, including the repair cost and the lack of income due to a vacancy. This can be a serious issue in California as a tenant may have the legal right to withhold rent. This is the worst-case scenario and should be avoided at all costs.
One of the worst challenges that affect your bottom line is vacancies. Even if your rental property is in pristine condition, with competitive rent, some landlords may need help finding a qualified tenant.
A property management company can help you market your rental to a broader audience. They can also use their resources to find high-quality tenants through screening and vetting services. This can help you minimize the number of vacancies while filling the units with high-quality tenants.
For most landlords, managing one or two units can be doable. However, when complaints pile up, it may be time to hire a property management company. While some complaints may be due to a lack of timely repairs, others can be more serious, such as pest infestations, mold growths, or lack of communication with the landlord.
A property management company generally will have more resources to manage complaints. This includes being available in the evenings, responding quickly, and providing a repair timeline.
It's common for investors to hire a property management company once their time is short. In many cases, owners would instead invest in a property management company to handle the day-to-day processes of their properties. Especially after expanding their portfolio, many landlords need more time to visit each property to address issues with their tenants or property.
A property management company allows investors the freedom of time. Some may want to spend their time with family and friends. While others may prefer to re-invest their time finding new properties to expand their real estate portfolio.
As a landlord, there are many responsibilities and laws you must be familiar with. Understanding rental laws in California is incredibly important. There are many laws to protect tenants rather than property owners. A simple example is laws regarding door locks. Many landlords state in their lease that tenants cannot change their locks. In California, tenants can change the locks without providing a spare key to the landlord, regardless of what is stated on the lease. Knowing and understanding these changing laws can be difficult for one person. Laws change often and can be different based on location.
When searching for a
property management company, it's a good idea to ensure they’re well-versed in the local laws of the city and county where your rental property resides.
Hiring a property management company may be the right choice for some investors. If you’ve noticed any of the above signs, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.
