• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Twitter
  • YouTube

Owner Login | Tenant Login | Get a quote: 323-255-9400 ext. 4

Los Angeles Property Management Group logo

Los Angeles Property Management Group

Property management in Los Angeles & the Valley, done right.

  • Residential
    • Services Provided
    • Single Family Residence
    • Luxury Property Management
    • Tenant Selection
    • Maintenance
    • Video Marketing Your Property
    • On-Site Managers
    • Agent Referral Program
  • Commercial
    • Services Provided
    • Maintenance
    • Agent Referral Program
  • Why Choose LAPMG
    • Mission Statement
    • Recent Reviews
    • Awards and Recognition
    • Why May 12th Matters
    • True Property Management Horror Stories
    • Video Resources
  • Articles
    • David Crown in Forbes
    • Q & A with CEO David Crown
    • LAPMG Talks
    • Case Studies
    • FAQ
    • Featured Article of the Month
    • Featured Elsewhere
    • Industry Blog
  • Areas Served
    • Burbank
    • Culver City
    • Glendale
    • Hawthorne
    • Inglewood
    • Los Angeles
    • North Hollywood
    • Pasadena
    • San Fernando Valley
    • Santa Monica
    • Sherman Oaks
    • Studio City
    • West Hollywood
  • Contact
    • Our Team
    • Portal Logins
    • Prospective Tenants
    • Employee of the Month
    • Careers
    • Privacy Policy

Rental Property Basics: Part 2

November 2, 2018

Rental Property Basics: Part 2

Rental Property Basics: Part 2

Welcome to Rental Property Basics: Part 2. Let’s pick up where we left off!

Owning a rental property does not always result in benefits, there are some disadvantages as well. For instance, it leads to the concentration of assets which is not diversified at all. Investment on a rental property must be in a specific city, in a specific neighborhood, on a specific block. Therefore, this means owning a rental property is tying yourself to a local real estate market, should anything unfortunate happen, the insurance won’t be able to cover your losses. The concentration of assets is never a wise decision for investment, when you have a substantial number of rental property in different locations the less this issue becomes a factor.

The more the number of rental property owned, the more they become a diversification tool.  There is also the risk of tenants. There is never a guarantee that tenants will pay their rents on time regardless of their social and economic situations. This makes the revenue stream far from being guaranteed. Some tenants have the tendency of causing more damage to the property than others. However, sometimes you can get a good tenant who pays rent on time, follows the rules and maintains the property, but it is not always a guarantee.

When you have a rental property you will have to face the cost of insurance on the property, property taxes, and the homeowners association fees. These bills will always have to be settled regardless of whether there are people renting your property or not. It is clear, this will always have a negative impact on your finances especially when you do not have tenants on your property.  To make it worse, these costs are usually about 25% higher compared to those of normal homeowners’ policy and property taxes.

It is always important to acknowledge that investment on rental property is always a good option for some people and one of the many options on the table for most people. It is advisable that you consider your personal strength, financial state, your interests and decide whether investing in rental property ownership is the right choice for you.

 

Filed Under: Commercial Properties, Projects, Property Management Education, Residential Properties Tagged With: landlord tips, property management los angeles, property management tips, rental units

Primary Sidebar

    PROPERTY OWNERS: CONTACT US FOR A FAST FREE QUOTE

    (This space is not for tenant contact)








    Loading...

    Footer

    Award-winning management means:

    Best property management in Los Angeles - Our Awards

    • Maximum profits.
    • Responsive service.
    • Vacancies filled quickly.
    • Accurate understandable monthly reports.

    Proud Members of:

    AAGLA AOACA AIR Commercial Real Estate Association Member BOMA 2022 Member of Forbes Real Estate Council

    Contact Information

    
    

    YouTube LAPMG   Facebook LAPMG   Twitter LAPMG

    Los Angeles Property Management Group
    10960 Ventura Boulevard Second Floor
    Los Angeles, CA 91604
    Phone: 323-255-9400
    Contact Us

    Los Angeles Property Management Group is registered with the California Bureau of Real Estate License #01931033.
    Kyle Crown License #01936385
    David Crown License #01157354

    © 2023 Los Angeles Property Management Group · Privacy Policy
    10960 Ventura Boulevard Second Floor, Los Angeles, CA 91604 · Phone: (323) 255-9400
    LAPMG is committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone and applying the relevant accessibility standards. If you have any issues, please contact dcrown@lapmg.com.