Real estate investments can be lucrative. Buying an investment property in Los Angeles can help you generate a consistent passive income for generations to come.
Los Angeles’ real estate is unique in many ways. Whether you enjoy skyscrapers, oceans, entertainment, Mediterranean climate, or ethnic and cultural diversity, LA has it all!
Here the economy is one of the world’s most diverse. It excels in almost every regard, from the high-tech industry to advanced transportation to a world leading creative economy.
For these and many more reasons, Los Angeles real estate is one of the most sought after in the nation.
That said, if you’re just starting out, following insider tips can make all the difference. You’ll be able to know what exactly to do to minimize risks and maximize your return on investment.
When you’re hiring a Property management company in Los Angeles, you’ll need to learn about their experience, their credentials, and their process for managing what might be one of your largest assets. Read on to know more about how the industry works and what questions to ask when you are narrowing down a Property management company for your investment!
· Licensure
While looking at various companies, make sure you ask if they are licensed. The state of California requires all real estate property management companies to have a broker’s license and also a general contractor’s license. This is a n issue we encounter quite a bit.
Though real estate agents have exceptional sales skills, effectively managing a property requires more than that.
· Trust Accounts
Ensure that the manager is operating a trust account. These trust accounts are audited regularly by the Bureau of Real Estate. They are really the key to management because they protect your investment and your funds, so make sure you’re working with Los Angeles property management company that has those accounts set up properly.
· Maintenance
Questions always come up about maintenance and how it is handled. A reputed property management company will have parameters about how much they can spend before they have your written approval. You want to know their structure so maintenance is not a runaway train and you have control over it. No one wants surprises on your financial statement at the end of the month.
· Communication
Clear communication and access to your manager through cellphones, email and text is crucial and an essential element. Your relationship with your property manager depends on communication. You need to understand what’s happening at your property, so find out how a manager you are going to work with will communicate.
· Insurance
Every property owner needs to have the right insurance in place, and you should expect no less from your property management company. Every manager should have liability insurance, errors and omissions insurance, auto insurance and worker’s compensation insurance. You must make sure they can show you copies of those so you and your rental property in Los Angeles are protected.
· Technology
Your property manager should be up to date with technology. They should have an online presence, and make sure your tenants can pay rent online. Online portals in today’s era are also valuable, so you can conveniently view your finances 24/7. You may also want to ask who will be assigned to your property. Find out how much experience they have with your type of property and in your local market.
Conclusion
Finding the right property manager depends on you, your property, and they type of service you want them to provide. If you are a very experienced investor that likes to be hands-on with your investments, you might want control over the maintenance of your property. Some property management companies in Los Angeles will let you do it and others won’t.
You might want to have your hand held by your property manager because this is your first investment and you are nervous. Then a smaller company with more time resources might be a better fit. Thus, hiring a property management company in Los Angeles is one of the most important decisions as an investor you make.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
