As an owner or investor of multifamily properties in Orange County, Los Angeles, and beyond, the property manager or property management firm you choose to work with is critical to your real estate portfolio’s success. This is especially true if you have a growing portfolio of properties in or around Southern California. Instead of trying to do everything yourself, you should seek a local expert to assist you with your real estate property management and investing needs. This is especially important if you are seeking to limit liability and generate substantial income from your real estate portfolio. While many factors go into hiring the right property manager for your properties, the most important thing to remember is to pick a manager or management firm with local expertise in the market where your properties are located.
Below we will discuss the top five reasons why having an experienced local manager property is essential for your real estate investing business’s growth.
They Have Specialized Experience In Your Local Market
Property management, in itself, is a complex industry. This is especially true in larger, multifaceted housing markets such as Southern California. Therefore, you want to ensure that you pick a property manager or property management firm with a proven track record and who also understands the current federal, state, and local laws that may affect your properties. Additionally, you may want to consider hiring an experienced manager who has managed comparable properties in your local market. Say, for example, the majority of the properties in your portfolio are residential multifamily properties. In that case, you should look for and select a property manager who has a proven track record in that niche. To facilitate this process, you should ask potential hires how long they have managed these types of properties and if they have any case studies or examples of how their firm has successfully managed properties of this type and caliber.
They Typically Hold Professional Licenses
When choosing a Southern California property manager or management company, they should provide you with their full credentials, including their licensing and professional certificates. You should ask the property manager or firm if their managers have broker’s licenses. Likewise, ask them what other real estate certificates they hold. Frequently, property managers who are experts in their markets hold various professional licenses and are also a part of their local real estate professional groups and organizations. This typically means that they are the first to know about upcoming changes in the local market, including legal changes. Additionally, some professional licenses require continuing education courses, which means that your property manager is frequently updated and educated about your local market.
They Can Save You Money
An experienced property manager who’s been overseeing rental units for multiple years has likely learned a thing or two along the way, such as effectively dealing with delinquent and problem tenants. To that point, a local expert is more than likely familiar with how to navigate your local housing court system. This expertise can save you a substantial amount of legal expenses and fees.
Additionally, experienced property managers know how to negotiate with contractors when drafting maintenance agreements and getting emergency repairs done on short notice. As such, It’s crucial to find a property manager with substantial experience overseeing properties in general and in your area. That way, they are likely to have a comprehensive list of professional contractors to perform work on your building.
They Understand How To Advertise Your Property
Typically, experienced property managers in your area understand your local market’s ins and outs and the renters within that market. This means they know how to advertise, show apartments, and screen applicants to reduce the amount of time that your property is vacant. Fewer vacancies increase your ROI and increase your passive income. Overall, an experienced property manager will understand the local rental market and be well equipped to strategically advertise your property when available units need to be rented out fast or repaired.
They Can Provide Investment Advice
If you are considering purchasing a new property in a target market (like Southern California), having a property manager who is an expert in the area could come in handy. Specifically, suppose you know nothing about the local market. In that case, it’s a great idea to have your property manager walk through any property that you are considering purchasing and provide you with their expert feedback. In general, experienced property managers view the potential property from an operational standpoint and point out things you may miss due to your inexperience. For example, let’s say the multifamily property you are considering purchasing is comprised mostly of three-bedroom units. A property manager who has experience in that market can advise you on whether three-bedrooms units are in demand. Similarly, they can advise you on the fair market value of three-bedroom apartments as well as the optimal rents for all your properties in that market. Lastly, experienced property managers can educate you about your competition in the area and any upgrades required to compete in your market.
Overall, being a landlord of a single family, multifamily, or commercial property quickly becomes a full-time job for landlords who only want to enjoy “passive income” from their investments. There are usually emergency calls at the most inopportune times. Similarly, maintenance, upkeep, and accounting can be time-consuming and expensive. As such, hiring a property manager who has local expertise in your area can save you a lot of time and money all while limiting your lability and allowing you to live your life.
We Would Love To Represent You
By following these suggestions, you can easily create an amazing experience for your potential tenants by doing small but impactful things. If you are busy or you own several properties and it has become difficult for you to manage, hire an experienced Los Angeles and Orange County property manager like AllView Real Estate. Give us a call and let us show you how to get the most out of your property. You can reach us at 949-400-4275 or send us an email at firstname.lastname@example.org.