One of the top reasons people choose to invest in a rental property in Los Angeles is to create a passive income stream. However, you may find that being a landlord takes more work than expected. If you feel that landlording is taking over your life, you may need a property manager.
Most rental property owners have full-time jobs along with building their real estate portfolios. In fact, 41% of rentals in the US are owned by independent investors. They don’t have time to constantly visit their rental properties, chase tenants down for rent, or make maintenance calls.
If you feel like being a landlord is encroaching on your free time and find yourself wondering if it’s even worth it, you may need a property manager!
What Does a Property Manager Do?
If you’re new to rental property management or have been determined to do it on your own from the get-go, you might see property management companies as unnecessary.
But working with a property manager can be a complete game-changer when it comes to your free time and your ROI.
Property managers are responsible for managing day-to-day tasks in your rental property, including:
- Monthly rent collection
- Routine property inspections
- Communicating with tenants
- Maintenance and repair coordination
- Bookkeeping and accounting
- New tenant placement
- Tenant screening
- Eviction handling
Hiring a property manager frees up your time so you can focus on growing your real estate portfolio and enjoying the profits from your investment!
Signs You Need a Property Manager
You may think you’re managing your rental property just fine. But if you notice these signs, then it may be time to consider finding a reliable property manager.
1. Troublesome Tenants
Unfortunately, troublesome tenants are inevitable when acting as an independent landlord. Whether you’re dealing with constant complaints or late rent payments, difficult tenants can take up a lot of your time and mental capacity.
Constantly communicating with tenants to solve issues or ask that they pay their rent on time is something landlords just don’t have time for!
A property manager can take on these tasks by being the point of reference when it comes to tenant complaints and communication. Plus, they will chase down tenants if they are late with rent payments (or even start the eviction process if necessary).
But when you work with a property manager, these issues aren’t as prevalent because they will thoroughly screen tenants for any red flags that might show they could cause trouble.
2. Vacant Properties
If you have properties in your portfolio that have been sitting vacant for more than 30 days, then it’s a major sign that you need a property manager.
It’s been proven that working with a property manager can cut vacancy rates by 50%!
With innovative marketing tactics and a powerful network, property managers can fill vacant rentals quickly with high-quality tenants. So you don’t lose sleep (and money) over an empty property.
3. Constant Maintenance Requests
Are you constantly receiving maintenance requests from tenants and coordinating repairs? It may feel like every week there is a maintenance issue to solve in one of your properties. Maintaining a rental property takes a lot of work, especially in an older building.
A property manager can take on all of these responsibilities for you!
No more DIY repairs that require you to travel to the hardware store and then the property. Your property manager will handle all maintenance requests through professional contractors and services so you know it’s done right the first time.
4. Challenge to Keep Up with Laws and Regulations
Let’s face it, landlord-tenant laws and regulations (especially in California) can be difficult to keep up with, especially when new resolutions are introduced each year.
You want to maintain a compliant rental property to avoid fines and issues, which sometimes means updating your property or rental licenses. Even tenant screening is regulated in the state of California.
A property manager knows landlord-tenant laws and local rental property regulations like the back of their hand! They’ll ensure you’re following everything to a T.
5. Hassle Traveling to the Property
If you live more than an hour away from your rental property, it can be quite a hassle traveling to it often. Just think, visiting it for just 15 minutes eats up more than two hours of your day!
Finding a local property manager will save you this time. And you know your property is in excellent hands.
6. Disorganized Accounting and Bookkeeping
When you own a rental property in Los Angeles, you must run it like a business. This means keeping track of your revenue and expenses through bookkeeping. Knowing exactly how much you’ve spent and earned will make filing taxes so much easier!
If you don’t have time to keep track of this information or you aren’t consistent, this is a sign you need a property manager. They will organize all of your expenses and income and help you prepare for tax filing.
7. Evictions are Common
If you’ve experienced more than one eviction while managing your rental property, it could be a sign that you need a property manager.
Evictions, while they happen, should be very rare if you find high-quality tenants. Evictions can also be extremely costly and time-consuming, hurting your rental income.
In the rare case that you need to evict a tenant, property managers will go through the process with compliance and speed. They know the routine and can do it quickly and properly.
8. You’re Losing Money
Do you notice that you’re spending more money on your rental property than you’re earning? Your first thought might not be hiring a property manager, but they can actually help you maximize your rental income!
Working with a property manager means pricing your rental to be competitive in the market, reducing operation costs where you can, and maximizing your profit.
9. Lack of Free Time
Are you spending most of your free time attending to your rental properties? Whether it’s texting your tenants, making repairs, or traveling back and forth, being a landlord can take up a lot of your time.
A property manager gives you back all of your free time, so you can actually enjoy the profits from your investment instead of constantly working for them. No more midnight texts from tenants. No more maintenance calls. No more property inspections every few months. Just you relaxing and cashing rent checks.
Let Lotus Property Services Save Your Rental (and Your Free Time)
It’s time to turn your rental property income into fully passive income with Lotus Property Services!
If you are tired of dealing with landlord tasks, then working with a property manager could save your rental (and your free time).
Our expert team of property managers is here to take the burden of landlord responsibilities off your shoulders. We’ll take care of everything while also maximizing your rental income!
Request a free rental analysis to see how much you could be earning from your California rental property today!