When you first purchase a rental property, taking on as much of the property management responsibilities as possible might seem like the easiest way to recoup your investment.
The logic is sound—if you do the work yourself, you can save money by not paying a third party to manage your property.
But the reality is that the time and money commitment involved in managing rental properties can negatively affect your rental property business before you’ve even established yourself in the industry.
You may not only be making things harder for yourself, but you may also be doing yourself a financial disservice by not outsourcing to a property management company. To grow your rental property business into a successful venture, you must consider the benefits of hiring a property management company.
Backed by years of experience and expertise, a reputable property management company can save you time, money, and stress.
How Investing in a Property Management Company in Orange County Can Save You Money
1. Reduce vacancy rates
The most significant expense of owning a rental property is the property itself. Whether you have tenants or not, you will still be responsible for paying your mortgage, taxes, and other associated costs.
So, if your property is vacant, you’re not collecting rent, and this can be a substantial financial burden.
However, the time and money it takes to advertise your property, screen and place tenants, and draft lease agreements can be daunting for property owners.
This is where a property management company can help. The time and money you would typically invest in advertising and finding tenants could be invested in a property manager who is better placed to complete all these necessary tasks.
Good property management companies in Orange County have a network of tenants looking for rental properties. Where it might take months to fill a vacancy, a property management company can have your property leased within a few days or weeks. They can help you reduce vacancy rates and keep rental income coming in.
But it doesn’t stop there—property management companies have the infrastructure to do things that may be out of scope for DIY landlords.
Here are some more ways that property management companies can help you reduce vacancy rates:
- Set competitive rent prices: Property management companies have their fingers on the pulse of real estate. They have the industry know-how to set competitive prices in Orange County that will attract tenants and allow you to get the best return on your investment.
- Professionally market your property: While it may be out of the question for you to stage and professionally photograph your property, this is something that property management companies can take on to help attract qualified tenants.
- Provide outstanding customer service: Proper communication is essential in a landlord-tenant relationship. With a property management company, you work with professionals who provide exceptional customer service to tenants and landlords.
2. Ensure legal issues and evictions are handled properly
There are many federal, state, and local landlord-tenant laws and regulations—it would take an incredible amount of time and effort to learn them all.
But for a property manager, knowing every rule and regulation concerning leasing a rental property is part of the job.
Hiring a property manager eliminates the need to study landlord-tenant law, and you also hire someone up-to-date on all rental property legal compliance. Their knowledge removes the risk of you accidentally breaking a law that ultimately causes a landlord-tenant dispute.
When a property management company operates your rental property, they will cover everything from fair housing and taxes to rental property inspections and anti-discrimination laws.
One of the most challenging legal issues a landlord can face is evicting a tenant.
While no one enters a lease expecting to evict their tenant, it is sometimes a reality. The eviction process in Orange County is complex and can be difficult for landlords to manage on their own. With a property management team handling all legal aspects of your rental property, you can feel confident knowing that someone who understands the law is in your corner.
3. Gain access to less expensive maintenance and repairs
As a rental property owner, it’s your responsibility to manage necessary repairs and maintenance that may arise.
When people decide to become DIY landlords, they often think they’ll be able to handle all the repairs, including ongoing maintenance and emergency repairs. Most quickly realize that they aren’t interested in handling middle-of-the-night phone calls. Not to mention, they may not have access to a network of reliable contractors who are licensed and insured to execute quick, affordable, and quality work.
DIY landlords spend much more time and money on maintenance and repairs than ever imagined.
Working with a property management company removes the stress and hassle of managing repairs and property maintenance. Well-respected property management companies, like Good Life Property Management, have relationships with contractors who can get work done quickly, efficiently, and often at a better price.
So, instead of fielding emergency phone calls at 2:00 a.m., you can sit back and relax, knowing that your property is not only being taken care of by professionals but also saving you time and money.
Your property management team and their Rolodex of capable contractors will keep your property running smoothly, no matter what happens.
Here are some more ways that property management companies can help you with maintenance and repairs:
- Get estimates from multiple contractors: While you may not have the time to get estimates from more than one contractor, property management companies spend the time to get numerous estimates for repairs and maintenance. This can help ensure you get the best price and a reliable contractor.
- Coordinate repairs and maintenance: Most property management companies schedule repairs and routine maintenance at times that are convenient for you and your tenants to minimize disruption.
- Supervise repairs and maintenance: Instead of you needing to be on-site for all repairs and maintenance, your property manager will supervise all repairs and maintenance to ensure they’re done correctly and protect you from potential costly mistakes.
4. Attract high-quality tenants
We discussed how a property management company has the resources to help you reduce vacancy rates. But it’s more than just ensuring your property has a tenant—they help ensure that only the best tenants are leasing your rental.
Property management companies know how to find the right tenants for your rental properties. They understand the market in Orange County, the need for thorough—and legal—background checks, and tenant screening processes. They’re also well-versed in marketing your property in the right places to the right people.
Without the extensive background of a property manager, a property owner may advertise on the wrong platforms—at a higher cost—and potentially attract the wrong tenant pool. You might not know how to properly screen for tenants who can pay, and this can end in an extremely unfortunate situation down the road if your tenants cannot pay their rent.
With a property management company in your corner, these details will be covered, and you’ll be able to focus on other things without all the added stress.
5. Assistance with proper documentation and insurance
Leasing a rental property involves a lot of important paperwork. Everything from lease agreements to insurance policies is essential for you to keep accurate and up-to-date.
Creating and maintaining these documents can be complicated and time-consuming. Any mistakes made can be extremely costly for landlords.
Property management companies in Orange County are paperwork experts. They know everything you need about the paperwork and insurance requirements of owning a rental property.
They can help create and maintain the necessary paperwork and help you find insurance policies that fit your unique requirements.
6. Easy rent collection enforcement
Collecting rent from tenants is the crux of making money from an investment property.
It seems pretty straightforward—tenants sign a lease agreement for a stated amount of rent each month, and you collect payments once a month. However, even with the best possible tenants, collecting rent can still cause issues.
A property management company puts you in the best position to avoid and manage issues if they arise.
Rent collection is easier with the help of a property management company thanks to these reasons:
- Your property manager drafts your lease agreement that clearly outlines everything related to rent collection.
- Your property manager will discuss the rent collection process in-depth with new tenants so they understand their obligations and can ask questions beforehand.
- Your property manager can send reminders and enforce late fees when needed.
- Your property manager will ensure there are convenient ways for your tenants to make monthly payments, including online, check, or cash payments.
- Your property manager will take swift action—as outlined in the lease—if rent is not paid on time.
The Power of a Reputable Property Management Company
It’s clear that a reputable property management company can help you save money and get the most from your investment property. Working with the right property manager gives you more time to focus on building your portfolio, taking a much-needed vacation, or doing anything other than managing lease agreements, rent collection, repairs, and more.
At Good Life Property Management, we believe life should be enjoyed, not spent sweating the small stuff. That’s why we set out to make property management easy. We care about you, your property, and your tenant. And we do it all so you can Live the Good Life.
Schedule a call to speak with one of our Good Life experts.
Frequently Asked Questions
What is the biggest responsibility for property management?
How much do property managers charge in Orange County?
Many property managers in Orange County use a pricing model that charges anywhere from 6% to 8% of the monthly rent. So, if the average monthly rent is $2,000, landlords must pay $140-$200 to a property manager or property management company each month.
Who oversees property management companies in California?
What are the different types of property managers in California?
Do you need a license to be a property manager in CA?
What’s the difference between a property manager and a broker?
What percentage do most property managers take?
What is typically the overall goal of the property manager?
Steve Welty
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