Hiring a professional property manager to lease, manage, and maintain your investment properties might seem like an extra expense that’s only going to cut into your rental income and your long-term ROI.
While it’s true you will pay a property management fee every month, you will also receive a tremendous amount of value in exchange for that fee. In fact, you will earn more than what you pay for your property management services.
Here’s what smart investors will tell you: You’ll actually lose money by not working with a professional management partner. There’s a huge opportunity cost to managing your own rental property. You’ll also find that you lose money on longer vacancies, higher turnover costs, and maintenance that’s more expensive than it needs to be.
Let’s take a look at how property management pays for itself.
Avoiding and Limiting the Cost and Risk of Vacancy
Vacancies require an investment of time, energy, and money. Slow turnover is lost cash flow. There is more of an effort when it comes to marketing, scheduling, and managing showings. The screening process may require more resources than you have, and if you did not price your property correctly, you’ll find it’s going to take longer to even get prospective tenants interested in seeing your rental home. Alternatively, if you price your property too low you leave cash on the table.
When it takes longer to find a good tenant, you might begin to feel desperate. That could lead you to place any tenant, even an unqualified tenant. This is a dangerous and expensive mistake.
Professional property managers in San Diego understand the local rental market, and that helps owners like you when it comes to:
- Pricing your rental property.
- Marketing your home to highly qualified tenants.
- Screening those tenants and applications.
The entire leasing process can be managed more efficiently with the expertise, technology, and tools that property managers possess. We find good tenants quickly, reducing your vacancy costs.
We know what competing properties are renting for. Our data is precise and current.
We understand the trends and the tenants in the rental market, which are always shifting.
With the right rental value, your property will rent faster and to better tenants. Strategic marketing with professional management means well-qualified tenants will see your listing and get in touch to schedule a showing and complete an application.
Faster turnovers will save you money, too. Professional tenant turnovers limit your vacancy to a matter of days instead of weeks or even months.
You’ll find that property management is well worth the money when you’re trying to lease your home and you can’t seem to find good tenants who are interested in renting it.
San Diego Property Management and Lower Maintenance Costs
Maintenance costs have gone up, as you have likely noticed. Finding a vendor to do reliable work in a timely manner often seems impossible.
These increases are not specific to the real estate industry. Costs are rising due to increased demand and higher prices for everything from lumber to labor. If your maintenance costs are high or the condition of your home is deteriorating quickly because of deferred or unreported repairs, you will definitely need some professional help.
Routine maintenance is an expected cost of owning rental property. But, it’s never fun to pay large invoices to plumbers, HVAC technicians, and roofers. Emergency maintenance is especially expensive, and usually requires you to be available to your tenants around the clock.
This is an area where property management more than pays for itself. We cannot stop the rising costs. We cannot make maintenance free. But, we can contain the costs. We leverage internal resources and network of expert vendors and contractors to keep costs affordable and complete the work in a timely manner.
At Cal-Prop we have a full time maintenance team with licenses for general contracting and plumbing. We work with preferred local vendors and contractors who are licensed, insured, and reliable. The relationships we have in place with vendors provide us with discounted pricing, keeping your repair work cost-effective. We are available 24 hours a day to handle every emergency.
Avoiding Risk and Liability in California’s Complex Legal Landscape
A fair housing claim could result in a $16,000 penalty. Security deposit disputes could have you paying your tenant three times the amount of the deposit.
Those expenses are much higher than any property management fee.
If you’ve ever had a dispute with a tenant and found yourself in court, you know that professional property management is worth the money. Protecting your property is the main job of any good property manager. We will also protect you from liability and risk.
The rental laws in California are challenging and always changing. We are now working around some pretty strict tenant protections that involve:
- Rent control
- Just cause eviction
- Section 8 tenants
- Habitability issues
- Rights to privacy
- Security deposits
- Service and companion animals
- Trust accounting
We make it a point to stay on top of all the laws and regulations that property owners and investors must follow when renting out a property. This saves you a lot of money on court and legal fees.
Time is Money and San Diego Property Management Saves Time
Most of the investors we talk to aren’t interested in having a second full-time job. This isn’t why you are investing in real estate and renting your property.
However, investing can feel like a second job when you’re trying to balance the needs of your rental property with the needs of your family, your career, and your passions. Property managers allow you to take your time back. When you leave us to do what we do best, you free up more time to do what you do best.
Decide whether you are a landlord who wants to manage every detail of the rental process or whether you’re an investor who knows that investing in property management is well worth the money.
And let’s not forget the tax breaks. Your property management fees are likely deductible.
Professional San Diego property management gives you back your time and protects you from the growing headaches and hassles that come with real estate investing. More importantly, it allows you to spend less and earn more on your investment.
At Cal-Prop we ensure a steady cash flow, fast and affordable property maintenance, and quick turns with high-quality tenants. We save you time and money.
Please contact us at Cal-Prop Management. We work with investors in San Diego and the surrounding areas, including La Mesa, El Cajon, Encinitas, San Marcos, and Rancho Bernardo.
