A property manager in Orange County is uniquely positioned to help manage your property. They know the laws and can help reduce risk on your property. They are insured and have experience handling issues with tenants. They collect rent, maintain the property, and handle any late payments. They are there to answer any questions, interface with the tenants, and handle emergencies.
Simply put, when you work with the right property management company, they can easily manage your property. In this article, we’re sharing what a property manager does, when to consider hiring one, and the benefits of working with one.
What does a Property Manager Do?
There is a mile-long list of things that property managers do for the properties they manage. From administrative tasks to financial tasks to communication tasks, property managers are responsible for everything that goes into managing a rental property.
Property managers are responsible for the daily oversight of rental properties—this includes day-to-day repairs, ongoing maintenance, upkeep of the property, and rent collection. But that is just the first few items on their to-do list.
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Hiring a Property Management Company
As a rental property owner, there may come a time when you may wonder if you’re ready to hire a property manager. It may be before you’ve even listed your first property or after a few months of fielding middle-of-the-night tenant calls.
After ten years in the property management industry, we’ve heard every reason property owners have sought out our services. While everyone has their own reasoning behind hiring a property manager, we’ve found that most people fall into one of seven reasoning categories.
1. You live in Orange County, California
As a property management company operating in Orange County, this one might seem pretty obvious. But the reason why living in Orange County should have you call a property management company is more complicated than simple geography.
In Orange County, landlord-tenant regulations at the federal, state, and local levels overlap, and as a rental property owner, you need to adhere to all of them. Add to that the fact that the laws are changed and updated annually, and it can be a recipe for disaster.
You can run into issues if you don’t know the current laws or don’t stay up-to-date on changes. Because there are so many laws in Orange County, it can be safer to rely on a property management company whose job is to know those laws and regulations inside and out.
2. You have many rental properties
As you add more rental properties to your portfolio, consider hiring a property management company. While the workload may be manageable when you have one or two properties, running the day-to-day operations of five, six, seven, or more properties can quickly become cumbersome.
The more properties you have, the more time, energy, and attention you’ll save by working with a property manager.
3. You don’t live near your rental property
Hiring a property manager can be invaluable if you don’t live within driving distance of your property. It can be difficult to handle emergencies properly, tenant complaints, and issues in a timely manner if you live far from your rental property.
Whether you’re a three-hour drive or a three-hour plane trip away from your property, you should have someone local manage it. A local property manager helps protect your property from unnecessary damage, build a positive relationship with tenants, and manage the property efficiently.
4. Your time is limited
Managing a rental property can be very time-consuming. A rental property is not a “set it and forget it” passive income source when managing it yourself. While your time might not be impacted on a daily basis, there will be tasks that need to be completed each month. And if an emergency occurs, your time may be monopolized by the needs of your tenants.
For example, if you work a 9-to-5 job and manage your rental property, would you be able to drop everything at 12 p.m. when your tenants call because the ceiling is leaking? It may not be feasible for you, but that’s what a property manager is there for.
5. You’re not interested in day-to-day management
Many landlords enjoy the challenges that come with finding the perfect tenant for their property and take pride in maintaining a safe and enticing property. But if your property is solely an investment, and you’d rather be hands-off when it comes to management, hiring a property manager is a great option. They can handle the day-to-day management of your properties while still keeping you in the loop when needed. You don’t have to spend time digging into landlord-tenant laws, lease agreements, or the eviction process—you can trust that work to a property manager with the experience to do this and more.
6. You’re overburdened with management tasks
As your business grows, the amount of administrative tasks you’ll have to complete each month will also increase. When you start to find you need to hire outside contractors to help manage everything properly, it might be time to hire a property management company that can handle every element of your rental.
7. You’re feeling stressed because of your property
Being a landlord can be very stressful—you’re on call 24/7 and can’t predict when you’ll be needed or when an emergency might happen. For some, the stress of the unknown can be too much to handle. For others, it’s the stress of having another thing on their plates to be responsible for.
Suppose your heart skips a beat every time your phone pings with a new message, or you’re losing sleep over evictions, lease agreements, and rent increases. In that case, it may be time to hire a professional property manager to take over the management of your rental property. They free up your time, energy, and attention so you can focus on other elements of your life.
The Benefits of Hiring a Professional Property Manager in Orange County
There are many great reasons to hire a property manager for your Orange County rental. Let’s explore the top five benefits of hiring a professional property manager that you may have yet to consider.
Property managers act as a buffer between you and your tenant
When you manage your property as a landlord, there is a direct line between you and your tenants.
They most likely have your cell number, so you’re on call 24/7. When you work with a property manager, your tenants will reach out to the property manager. The property manager will contact you only when needed. This can reduce stress, free up your time, and give you the space to focus on other aspects of your investment business.
When you operate as the landlord, you also get to know the tenant well. While this isn’t a problem per se, it can cause you to make less-than-desirable business decisions. For example, if your tenant’s child just had their tonsils out, you may be hesitant to raise the rent when it’s time because you know they have additional bills to pay.
Working with a property manager allows you to make better business decisions based on data and market trends.
Property managers can save you money
Yes, you will have to pay a property management company to manage your property, but hiring a property manager can save you money in the grand scheme of things. An experienced property manager can help you reduce vacancy rates, get the highest competitive rent, and ensure rent is collected on time each month.
Beyond that, it’s essential to consider the value of your time to truly understand the real cost of managing your property versus hiring a professional. Your time is valuable, and if you put a dollar amount on your time, you might see that hiring a professional is actually the more affordable option.
You also have to consider the tax ramifications of hiring a property manager. When you hire a professional, the property management fees are tax deductible. Let’s say it costs you $250 a month to hire a property manager, and you pay 35% in taxes. That means your actual cost per month for property management is around $163.
So, if you spend the average of 60 hours each year effectively managing your rental property, that works out to 5 hours a month. Using these numbers and the concept of the value of time, would you be happy to “pay” yourself $32.60 per hour, or would you rather pay a professional to manage your property for that same cost?
For many property owners, the cost-benefit analysis leans heavily towards hiring a property management company.
Read “6 Ways an Orange County Property Management Company Saves You Money” to learn other ways a property manager can help you get the most from your investment.
Property managers have years of industry experience
Depending on which Orange County property management company you choose to use, you can rest assured that they have experience as property managers.
Working with seasoned property managers gives you access to their many years of experience within the industry. They know the landlord-tenant laws inside and out and stay up-to-date on any changes that come down the pipe. They have a network of vendors—from plumbers and electricians to contractors and HVAC specialists—to help when an emergency situation occurs.
They’ve dealt with evictions, rental increases, pet policies, property damage, and so much more. When you hire a property manager, you get access to their knowledge, so you don’t have to become an expert on all things landlord-tenant. Instead, you can rest assured knowing that a professional is managing your rental property.
Property managers can offer you protection
California is a tenant-friendly state with a lot of laws related to rental properties that you must follow. It’s also a very litigious state. While these facts aren’t reasons not to rent your property in Orange County, they are reasons to ensure you have the proper protection when you do so.
A good property manager will have a deep understanding of California landlord-tenant laws and the local and federal laws and regulations that must be followed. They’ll also have access to the proper forms, policies, and procedures to ensure that laws aren’t being broken.
This helps reduce the risk of having an Orange County rental property. You are officially in a rental business once you rent a property to tenants. If you want to stay in business, you need to ensure that you aren’t doing anything illegal or against a city ordinance. Property managers can work to ensure that everything happening at your property is within the letter of the law so you can have peace of mind.
Property managers can get you better results
When you hire a reputable management company, they should be delivering better results. This means you should see a decrease in vacancy rates, better tenants who stay longer, do less damage, and pay rent on time, and maintenance done at cheaper rates. While there are always ups and downs, a professional property manager will provide consistent and positive results.
Make the Most of Your Investment Property
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.
Hiring a Property Management Company FAQs
What are the disadvantages of using a property management company?
The main disadvantages of using a property management company include a lack of control over the day-to-day operations of your rental property and the monthly fee.
How do I choose a property management company?
Selecting a property management company is a personal choice. First, understand what you need from a company, create a list of local companies that meet your needs, and then sit down with each and evaluate their expertise.
What are the benefits of hiring a property management company?
The benefits of hiring a property management company are that they can save you time and money, reduce your risk of litigation through their industry expertise, act as a buffer between you and your tenant, and get you better overall results.
Steve Welty
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