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5 Questions to ask any property management company before you sign

Dustin Edwards • March 27, 2020

Ask the Questions to Help You Find the Best Property Management Company

Interview Property Management
Your first rental property is a big deal and the first time you hire a property management company is another milestone. You have made a leap into becoming the landlord and it’s something to be proud of and it can also be scary when you are considering letting someone else take care of your asset on your behalf. We have discovered over the years that many first time owners don’t ask as many questions as more seasoned landlords. For many it is because they aren’t sure what questions they should ask. It is after all their first time.  

Whether you ultimately decide to engage with Beach Cities Property Management or you decide on another local property management we want you to be prepared to ask questions. A local property management is charged with taking care of one of your largest assets and that means you certainly are empowered to ask as many questions as possible to help you feel confident in the relationship.

To help jump start the interview process as you consider which property management would be best for your property in Long Beach, we invite you to consider the following:

Can you share with me what my monthly statement would look like based on the fees you are proposing?

While the most common form of marketing property management services is that of a % of the monthly rent (i.e. 6% of the monthly rent is due to the property management company) you want to make sure this is truly the fee that will be charged during the engagement with the company. For example do they have other charges such as:
  • Tenant placement fee?
  • Renewal fee?
  • Advertising fee?
Just because they have additional fees beyond the property management fee doesn’t mean they won’t be a match for you; however, it is important to understand every possible fee and get it in writing prior to signing an agreement. Having a proper net income on your rental comes down to the true cost of ownership and the management fees will impact your overall costs. If you see a fee in the marketing or in their presentation packet keep asking questions to ensure you understand all of the fees.

How many properties do you have under management? How many properties within [your city] do you manage?

Understanding whether a company has <10 properties under management or >800 properties under management will give you perspective on the level of systems they have developed and even the service you can expect.  

Smaller companies (i.e. <100) are often operated by individuals and that can mean you get their full attention...or it could mean they are stretched a bit thin and you might have trouble getting a hold of them. If the company has less than 100 units under management ask them to share with you what their daily schedule looks like to give you an idea of what you can expect.

Property management companies with >500 units generally have staff, a physical office location, and have set up systems that allow them to stay in clear communication with tenants and property owners. Of course not all >500 unit firms are created equal and one area you will want to explore is how many properties each manager has under their purview. You can even dig deeper and ask how they delegate work to see how your property will be handled.

Asking specifically how many properties they have under management within your city (or better within your neighborhood) will help you to understand their knowledge of the local market. Rents in Long Beach can vary by more than 10% with a difference of just a few streets and having a company that understands that will benefit you in the long run.

What is your process for fixing something small at the property (i.e. like a clogged sink)?

One of the biggest reasons people hire a property management company is because they don’t want to get the late night phone call “my sink is clogged, what are you going to do?”. As you are interviewing property management companies ask them how they handle the small challenges that inevitably arise from a property. Do they have a handyman on-staff? Do they have a process for calls that come in after 9pm? What happens if the owner of the company is on vacation? Dig deep to make sure that one of the answers isn’t “well they could call you” as it truly is the property manager’s job to make sure the smallest of details are handled.

What is your process for replacing or repairing something larger at the property (i.e. like a roof or mainline)?

If properties only had the small challenges of “my sink is clogged” then life would be much easier but we all know that isn’t the case. Even the best maintained properties will have something major occur such as the need for a new roof or mainline. When something major occurs how does the property management company handle it? How many proposals do they gather? How do they work with the tenant to minimize disruption? When do they seek your approval? Major repairs can be stressful and it is important to understand before an event occurs what will happen to alleviate your fears.

How many people are on your staff? Can you explain their job roles?

The size of a property management company’s staff is usually inline with the number of units they manage (i.e. larger number of units and a larger staff). A larger staff doesn’t always mean that they are the best fit for your goals and that’s why we recommend asking what the job roles are for each of the staff members. Companies that are well managed have specific job titles and roles defined for each team member because that results in better service for the client and better operational efficiency (a true win-win).  

Finding the right property management company for your Long Beach rental means taking the time to interview a few companies. We are happy to be interviewed to see if we are the right match for you and your Long Beach rental. We can answer any of the above questions and we can even answer questions about how much your property could rent for when you request our Free Rental Analysis.

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By Dustin Edwards November 18, 2024
Be aware of these 3 common issues when the rainy season arrives at your rental property.
Cold weather can come fast and strong so it's best to ensure your property is ready for this climate
By Dustin Edwards November 12, 2024
It's important to prepare your rental properties for the colder weather. Although we don’t need to prepare for snow and freezing temperatures, we do need to prepare for the cold and rain. By ensuring your rental is cozy inside and prepared for the fall season , you can not only reduce energy costs for your tenant but also maintain your rental property value. Today, we’ll go over three signs your property is ready for this upcoming cold weather.  Sign #1 Proper Weatherproofing During the colder seasons, it's much easier for a tenant to notice any cold spots in your rental. Well-insulated doors and windows can not only help maintain the warm temperature but also prevent it from lowering. It can also prevent cold spots and drafts, which can help with tenant satisfaction . Doors and windows should be properly sealed and insulated to prevent drafts and maintain proper temperatures. A visual inspection of the weatherstripping around doors and windows to ensure they’re intact is a great place to start. If damaged, consider replacing them, as trying to seal gaps can be tricky and rarely lasts. Other seals should also be checked, as well as any areas that need to be caulked in order to keep cold air out. Insulation during the summer helps keep the cool air in, and during the winter, insulation in the halls and attics helps retain desired heat. Hot air rises, and if there isn't adequate insulation in the ceiling, heat will continually be lost. Luckily, adding insulation to an attic is not uncommon and typically only requires a day or two for installation. Sign #2 Energy Efficiency Measures During the winter, it's not just the cold you need to keep in mind. As days are much shorter, there is less sunlight to keep the rental warm and more hours of darkness. For this reason, it's a good idea to keep energy efficiency in mind when preparing for the cold weather. Energy-efficient lighting or smart lighting helps reduce overall costs since your tenant will likely use electricity to keep warm. Ensure your outdoor lighting is rated for external use, as this can provide crucial illumination during longer nights. Draft guards on doors and windows help reduce the load on your rental’s HVAC system which can significantly improve its lifespan. This is also a great time to replace filters and clean the ductwork in your rental to improve energy efficiency. Additionally, consider installing an insulative film on older windows, which helps retain heat and keep rooms warmer without the need for extra heating. If your rental has a programmable thermostat, ensure it’s in working order, as this can help tenants manage an energy-efficient heating schedule more easily. Sign #3 Property Exterior Southern California is a great place to settle down, and while we don't need to worry about snowfall or deep freezes, ensuring the exterior of your rental property is ready for the cold weather is important. With our cold season mainly bringing with it rain, inspect your rental property’s rain gutter system . Remove debris from drains and check for leaks or signs of wear and tear. Walkways should be clear of debris and well-lit. This may require you to prune and trim trees and bushes that may leave behind leaves. When combined with rainfall, a single wet leaf can cause someone to slip and hurt themselves. Consider adding non-slip mats or tape to areas where people may have tripped in the past. Much like during the hotter weather, it's important for your rental to be ready for fall and winter. By keeping your property ready for any weather Southern California has to offer, you ensure your rental property and tenants will provide steady rental income every month. If you need help preparing your rental for the cold weather or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards November 4, 2024
Owning a rental property in a beach city like Long Beach, CA , offers a number of advantages, like great weather and a strong real estate market. However, the cold ocean breezes can pose some challenges for landlords and tenants, making it convenient for property managers . Although the weather is generally great, these ocean breezes can sometimes make properties drafty and uncomfortable during the fall and winter seasons. Today we’ll go over four measures that can improve tenant comfort and protect your investment from the cold ocean breezes. Weatherproofing Againsts Drafts Drafts are caused by gaps between doors and windows which can make a rental feel colder than it is. This leads to unnecessary energy use and tenant discomfort. Sealing these gaps is not difficult and quite doable for a landlord who doesn’t mind getting their hands dirty. Replacing worn weatherstripping and adding fresh caulking to seal minor gaps blocks air from permeating the property. For additional protection from drafts, you can provide your tenant with inexpensive door sweeps. Improve Heating Efficiency Having efficient heating is crucial to countering the cooler ocean breezes while keeping costs low. Schedule regular maintenance for your HVAC system , such as replacing filters, cleaning vents, and cleaning the compressor to keep it running smoothly. This not only provides more efficient heating, it also extends the life of your HVAC system. Installing a smart thermostat is another way for tenants to adjust heating schedules efficiently. Protect Outdoor Spaces Outdoor areas such as patios, balconies, and even porches can oftentimes be exposed to the coastal breezes. This can be an issue in the long run, especially for rentals next to the beach , as the wind can carry sand and salt, which can accelerate the deterioration of metals, wood, and paint. This can be mitigated by adding windbreaks to the property, such as lattice panels or outdoor curtains, to create a more comfortable and functional outdoor space. Exterior finishes will require more frequent maintenance. This includes resealing wood and metal surfaces. As well as repainting is important to protect against wear from salt, sand, and moisture. Wind Mitigating Landscaping Much like with the curtains and lattice previously talked about, the landscaping can also be used as a windbreak. For example, planting wind-resistant shrubs or trees alongside exposed areas creates a natural barrier. This helps reduce the impact of the gusts of wind hitting the property. Many native plants thrive in coastal climates while also requiring minimal maintenance. While expensive, the results can greatly improve your rental’s longevity and curb appeal. Alternatively, you can strategically place planters to provide protection. Durable Furniture Furniture and fixtures exposed to the cold coastal breezes need to be able to withstand that wear and tear. Choose resilient materials such as treated wood, powder-coated metals, and outdoor-rated plastics. These are less prone to being damaged by the salt or wind. Furniture that is lightweight should be secured or anchored in place to prevent it from being blown away. By investing in durable furnishing, you can provide tenants with a comfortable and functional outdoor space for years to come. Protecting your beach city property from the cold ocean breeze doesn't necessarily require extensive renovations or investments. Try to focus on any relevant feedback from your tenant, this can help you pinpoint what part of your rental needs attention. If you need additional help protecting your rental property from the cold ocean breezes or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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