Los Angeles property management and construction go hand in hand even though the industries are very different.
Though a Los Angeles property management company handles completely different tasks than a general contractor, they still go hand in hand. How is a Los Angeles property management company and general contractor alike?
The two are alike in the sense that as a Los Angeles property management company will have tenants calling about maintenance and repairs. Most of the time these calls will be for minor things like a clogged toilet, door handle not working properly, etc. Now, a Los Angeles property management company doesn’t need to have a general contractors license to handle these small maintenance and repair requests, but what if they did have a license and had a extensive understanding of general contracting, material and labor costs and building codes?
TGN Property Management is a Los Angeles property management company that doesn’t have a general contractors license, but we have an extremely deep understanding of the construction industry. TGN Property Management began as a Los Angeles property management company AND investor/flipper in the market crash of 2008. We flipped REOs (buy, fix up, sell for profit) from 2008 – 2014 and flipped close to 50 properties. Every property we purchased was an REO straight from the bank asset manager. Every house was dilapidated and needed minimum $30,000 worth of work. You can learn a lot from flipping one house, we flipped close to 50 over a 6 year period.
The team at TGN knows what material and labor costs SHOULD be for any given job. We also know how a specific job is to be done correctly. We can look at a job and tell you instantly if it was done properly. Not only that, we understand building codes, permits, city fees, etc. extremely well. We pulled permits on every house we flipped, so we got very familiar with the permit buying process and inspections.
How does a Los Angeles property management company with construction experience benefit their clients?
We never get ripped off by vendor pricing. If a new vendor comes in we can vet them by their bid price for a job. I had a guy give me a price to fix a small drywall patch for $2,000. We hired him immediately! That’s sarcasm right there. Needless to say, I never called the guy again.
If your Los Angeles property management company isn’t getting ripped off by vendors that means the owner saves money. Unless the property management company has their own in house contracting company. Be very cautious with Los Angeles property management companies that have in house contracting companies. It’s an easy way for them to up-charge you on repairs/maintenance.
Another benefit of having a Los Angeles property management company with construction experience…
If major repairs or rehab is needed at your rental property, rest assured TGN Property Management can handle the ENTIRE process from pulling permits to contracting to management to inspection sign offs. Don’t deal with a single aspect of a rehab or remodel. Let us do that for you. We provide pictures for draw approvals.
What is a draw?
A draw is term your Los Angeles property management company SHOULD know. A draw is a portion of the bid price a contractor is given to complete a rehab or remodel job. Some people give contractors 50% up front and then 50% when the job is done. In my experience, most contractors are not good at money management and is smarter to break up the money into 6 – 8 draws. A draw is given when pictures are approved by the owner of the property. Owners defer to our experience as well.
Questions to ask your Los Angeles property management company:
- Do you have construction experience?
- Do you know building codes aside from rentals?
- Have you ever flipped houses from dilapidated to diamond?
- Do you know how to handle permits, permit issues, zoning and inspections?
If you would like more questions to ask your Los Angeles property management company, please give us a call at 310 623 2704.
Stay connected with TGN Property Management’s blog at http://www.TGNPropertyManagement.com. We update the blog on a daily basis. Stay up to date with the latest news and information for the real estate industry. We specialize in Los Angeles property management but also have extensive experience flipping properties and buying non-performing notes.