While purchasing rental property can be an excellent investment as well as a lucrative income opportunity, many individuals are not cut out for hands-on management and being a landlord. Needless to say, investors that own several properties quickly find out how maintaining and managing them can be extremely tedious and time-consuming. Hiring the right Los Angeles property management company will alleviate your burden as well as all the frustration and stress that come with being a landlord.
While it is difficult for some investors to entrust their livelihood to a 3rd party, it will benefit you in a number of different ways including increasing the value of your rental properties and protecting your investment. Here are some helpful tips for selecting the right property management company:
- Choose a company that has a low eviction and tenant turnover rate as well as shorter vacancy cycles or periods.
- Determine if their management fees are reasonable based on the real estate market in your area (NOTE: there is no on-size-fits-all or standard fee).
- Ensure that your property management candidates have placed a termination clause in their agreement or contract for ending your relationship if you find that you are unhappy with their services.
- Examine several of the properties that they currently manage and determine if they are in good condition and if tenants are living comfortably in that particular rental environment.
- Find out if the property management company you are considering has established long-term relationships with maintenance professionals and vendors so that repairs and upkeep are handled in a timely manner.
- Hire a licensed company who has a state-regulated system set up for the collection of late fees, rents, and security deposits.
- It’s extremely important that you read and understand your entire agreement or contract. For instance, you need to know whether or not the company keeps all or a percentage of the late fees or pet deposits.
- Make sure you understand their monthly and yearly accounting procedures. In other words, if a tenant pays their rent in February, will you be paid your portion of that in the same or ensuing month?
- Property management companies should conduct inspections of their properties such as exterior inspections every quarter and indoor inspections every year.
- The company you select to manage your rental properties must be accessible to address your concerns and answer all your questions.
It’s important to remember that the right management company can be a tremendous asset along with the properties they are managing for you. When you hire the right company to oversee the daily operations of your rental properties, you are ensuring that they will be cared for and protected around the clock while their value continues to increase over time until you decide to sell them and realize a return on your investment.