Owning rental property in Los Angeles can be a highly lucrative venture and is an attractive goal for the right real estate investor. Rentals are in high demand, and vacancies are low: what could possibly go wrong?
But even though LA is a high-earning city, getting the right tenants isn’t always a piece of cake. And when you have great tenants, you need to ensure you take care of them—and the property—so it continues to be a desirable place to live.
A lot goes into managing a residential property; not all building owners are hands-on landlords. In many cases, the property management job is contracted to a residential property management company, which will take on all day-to-day aspects of running the property, collecting rent, and ensuring compliance with local tenancy laws.
Good property management can make a community thrive vs. one that struggles to stay afloat. Truth be told, the job isn’t as simple as it sounds.
Los Angeles has one of the most diverse populations in the Southland. The demographic between Highland Park, Panorama City, and West Hollywood is so vast you’d almost think it was three different states. In other words, what works in one neighborhood might not work in another.
A good property management company can strike that balance and maintain solvency and consistency, helping the property build a reputation as a great place to live.
Without the right management in place, so many things could go wrong. Tenants who can’t afford the rent will leave the building in financial distress. The building or grounds could fall into disrepair leading to unsafe conditions in the building, which could put owners at risk of litigation or insolvency. Either way, the owner’s investment and property value would be at risk as good, stable tenants wouldn’t likely want to live there.
While nothing is ever perfect, the right management approach can make life better for everyone—tenants, employees, and owners alike.
Today’s article will dive into the core responsibilities of property management companies in Los Angeles. We’ll discuss not just what they do but also how a good property management company differs from one that is, maybe, not so great.
Property Management Laws in Los Angeles
Renter’s rights are protected under the Landlord Tenant Protection Act (TPA) and various other codes. All building owners, property managers, and landlords must adhere to these rules, as must tenants. The overarching goal is to ensure safety, fairness, and compliance.
However, in addition to the TPA, Los Angeles has its own set of ordinances that property managers must know. Having a good grasp of relevant laws helps to avoid unnecessary disputes regarding rent increases, lease agreements, security deposits, rent control, and eviction processes.
Some of the high points of these ordinances include:
- Health and safety is governed by the Los Angeles Housing and Community Investment Department (HCIDLA). They send out inspectors regularly to ensure properties meet the established standards.
- Fair housing ensures equal opportunity and prohibits discrimination based on gender, race, familial status, religion, ethnicity, nationality, and disability.
- The Rent Stabilization and Tenant Protection Ordinance (RSTPO) laws cap rent increases to a certain percentage and protect tenants from evictions without just cause.
- Limiting the amount and scope of security deposits and when they must be returned to the renter.
- The mandatory retrofit ordinance mitigates risk from structural deficiencies during earthquakes.
Failure to comply with any of the above indicates that the residential property management company is not doing its job. The owners could face legal action initiated by the tenants, fines from the city, and tenants withholding rent, impacting cash flow and undoubtedly leading to tenant turnover. After all, if a landlord favors illegal or unfair practices, there is little chance they will find good long-term tenants or any tenants at all.
Responsibilities of Property Management Companies
As you can imagine, a property management company’s job is much more than just collecting the rent and ensuring the units are livable. Property managers are solely responsible for the day-to-day running of the property, which includes:
- Marketing the property to potential tenants to keep the property fully occupied.
- Screening new tenants to assess risk, including credit and background checks, eviction history checks, and criminal background checks, where applicable. The property manager must obtain consent before performing these checks, but they are within the remit if it does not violate fair housing laws.
- Manage disputes and resolve complaints between tenants and management, overseeing eviction processes and dealing with defaulters.
- Overseeing contracts and leases, ensuring all agreements are fair, legal, and compliant.
- Property maintenance, ensuring the building, grounds, and all common and shared amenities are safe and in good repair.
- Financial management to oversee daily expenses and ensure there is enough in reserve for bigger projects, taxes, etc. Property managers must also provide owners with reports and statements to keep them informed.
- Communicating with tenants and other stakeholders to inform everyone of maintenance or events that may impact their daily lives.
Final Thoughts
While there is always a high demand for rental property in Los Angeles, a good residential property management company can set certain buildings and communities apart from the rest. In today’s competitive rental market, a well-managed property stands out and will always be in high demand.
Understanding the diverse needs of the neighborhood and its renters is just one aspect. Property managers must also skillfully navigate local policies and ordinances to ensure they operate within legal guidelines while meeting tenant needs for safety, security, and a great place to live.
Whether you are a property owner looking to improve your bottom line or an investor looking to build a legacy, working with Belwood Properties is a way to achieve the stability, consistency, and excellence you seek. Get in touch today; we’d love to show you how we can help.
