Self-Service Property Management Causing Concern in Los Angeles Neighborhoods
DIY property managers are struggling to make the effort due to time, resource and priority demands.
Los Angeles – There’s a pretty funny thing about real estate investing: some people assume it’s the kind of “set it and forget it” investment we all dream about at night. Put some money in, sit back, and let the checks roll in as you get your return. Sadly, it doesn’t work that way in real estate and so in order to mitigate costs and maximize long-term profitability. Instead, many real estate investors simply manage the property on their own, which can lead to a host of problems and issues that were never considered during that set it and forget it stage.
For many property investment owners in Los Angeles, it becomes a matter of priority. DIY property managers often have other jobs (or even other properties) to manage and deal with, making property management just one of their many duties. Because their focus is bifurcated and spread too thin, many cut corners or simply don’t do a good job in keeping up the quality of their properties. It’s certainly not for lack of knowledge or even effort, but even then, people can only do so much.
In addition, DIY property management in Los Angeles can lead to issues with compliance. An astounding 49% of DIY property managers fail to do a simple background and credit check on new tenants. That stat alone says a great deal. When tenants aren’t properly screened, it can lead to high tenant turnover or worse, working with tenants who may have significant difficulties in either payment or legal matters. No investor, whether they are DIY managers or managed by a company, can afford to have tenants with legal problems or issues.
Lastly, because DIY property managers can have a tough time responding promptly to maintenance requests, properties can quickly decline in value and often leave an eyesore in the community, affecting home values. By hiring a valued and reputable property management company, real estate investors can avoid watching their properties deteriorate and instead, focus on building a relationship with the tenants that will lead to long term and beneficial relationships.
Property managers in Los Angeles are urging DIY managers to call for help when they need it and get the help and sophistication they need to run a great property. It will help the property maintain its long-term value and then there really can be a set it and forget it investment. After all, isn’t that what we’re all after?
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