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

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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With the real estate market as competitive as it is, many landlords are looking into building an Accessory Dwelling Unit (ADU) or Jr. ADU to improve their bottom line with additional monthly income. While this is a great way to earn more, you need to be sure you’re investing in the right upgrade to your property. Below are some of the key differences between ADUs and Jr. ADUs; this way, you can make the right decision for your property. Differences between Junior ADUs and ADUs On the surface, the primary difference between an ADU and a Jr. ADU is the square footage. However, there are many considerations for each type of ADU , significant differences include costs and build limitations. ADUs are generally seen as a larger and more versatile build when compared to a Jr. ADU. They can be built detached from the main home, converting an existing structure, most commonly the garage. In Long Beach, an ADU can be up to 800 square feet or 50% of the gross floor area of the primary dwelling, whichever is smaller. For reference, an 800 sqft living space can be arranged as a 2-bedroom 1-bath home, though with creative use of the space, many investors have been able to fit 2 bedrooms and 2 bathrooms comfortably. If listing the ADU for rent is the goal, this can produce a higher yield, though at the cost of a higher initial investment. Jr. ADU, on the other hand, can only be a maximum of 500 sqft and must be built attached to the existing single-family home. While you can build an entire new addition to accommodate the Jr. ADU, it's not uncommon for homeowners whose homes are bigger than they need to convert a bedroom into a Jr. ADU in order to have additional income . A Jr. ADU does still require an efficient kitchen. Bathrooms can be shared with the main house, though this can deter some prospective tenants. Additionally, the utilities are oftentimes shared with the main house, which can simplify installation, though it can complicate utility costs with your tenant. When an ADU is Right Being able to build a full ADU provides an entirely separate and private living space, which is more desirable to prospecting tenants. This is the preferred choice for most investors, especially those who have unused space in their property. By being built apart from the main house, an ADU may cause less disturbance to those living in the main house, whether that be yourself or another tenant. In Long Beach, CA. ADUs can’t be listed as short-term rentals on apps like Airbnb; that being said, an ADU can command more in rent because of the aforementioned features. If you’re looking for a long-term investment, ADUs increase your property’s value while generating a consistent cash flow. Finally, if you ever plan on selling your rental property, the additional ADU can improve the appeal of your property to future buyers. When a Jr. ADU is Right While a Jr. ADU doesn’t have the same potential as a full-sized ADU, Jr. ADUs are far more budget-friendly. These are a great option for investors who have limited funds. Since Jr. ADUs generally require less work to be done in less time, allowing you to begin making a return sooner. Finally, if your property doesn’t qualify for a full-sized ADU permit due to the size of the property lot, a Jr. ADU can be built primarily through interior work, which may only require reconfiguring existing interior space. Whether you choose a full-sized ADU or a Jr. ADU, the decision depends on more than just the size of the structure, you’ll have to manage filling the vacancy and managing the new tenant. If you need help choosing which ADU is right for you or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .

Summer is a great time of year where people enjoy a number of outdoor activities. Though for landlords, summer brings with it a list of maintenance items and preventative care for their properties. Below, we’ve gathered three of the most important maintenance items to do before summer starts. Service your HVAC System Southern California summers are getting hotter and hotter, if you want to maintain tenant satisfaction you’ll need to have the HVAC or any A/C or cooling system properly serviced . Filters should be cleaned or replaced, and the ductwork should be inspected. For rentals with window units or mini-split systems should also be thoroughly inspected as well for optimal cooling. Doing proactive maintenance can reduce the risk of the cooling system breaking down during peak usage while also improving the system’s efficiency. This can lower utility costs for your tenants while extending the lifespan of your cooling system, saving you money in the long run. Additionally, consider inspecting your window and door seals for leaks. If the seals are broken, it allows hot air into the living space, this increases the cost associated with cooling while adding more load to the HVAC or cooling system. While not directly a part of the HVAC system, ensuring there aren’t any breaks in the seals helps extend the lifespan of your cooling system which is beneficial to your bottom line. Inspect your Roof The condition of a roof is oftentimes ignored since they tend to last over twenty years, and some property owners may not even be sure when the roof was last replaced . A poorly conditioned roof is one of the primary ways for a rental property to drive up the costs of repairs and tenant complaints. A damaged roof can inefficiently insulate a home, making it harder to keep it cool. It can also lead to water leaks during rainfall, which can lead to water damage, stains, and mold growth. While summers tend to be dry, the coastal cities such as Long Beach may see unexpected shifts in weather, which can bring sudden rainstorms or increased humidity. Fixing a small roof leak is relatively inexpensive, however, leaving said leak to grow can result in an emergency repair can cost thousands especially if a tenant has already moved in. A thorough roof inspection is a great maintenance item to do during a vacancy period especially as this can result in a positive experience with new tenants. This can lead to a long term stay with many lease renewals. Check for Signs of Pests Pest infestations are one of the fastest ways to ruin a tenant’s stay while also damaging a landlord’s reputation. Pests such as ants, cockroaches, other bugs, and rodents are common in many beach cities, especially during the warmer seasons. Being in a city, you’ll likely never truly be rid of pests, though, even a single complaint about an excess of bugs or rodent droppings can lead to bad reviews online, service calls, and in severe cases, lease termination. These pests not only create an unwelcome environment for your tenants, but they can also cause real damage to your investment property. Cockroaches are known to damage small wiring in appliances, ants can ruin food and get in everything, while rodents can chew through walls, plumbing, and even electrical wiring. Landlords should schedule regular ppest inspectionsto check for early signs of pest activity before the hotter season begins. Much like everything in this article, preventative maintenance is significantly cheaper than an emergency call, in this case to an exterminator. If you want to keep your tenants happy and your property well taken care of, preventative maintenance is a must. If you’re unsure about the signs to look for when doing routine inspections or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .