Los Angeles Property Management companies would say that the most frustrating part of managing an investment property stem from the investor, is reacting to issues instead of being proactive about them. This is the reason why any properly designed management system must start with documenting the process from beginning to end
Renewing A Lease
Los Angeles Property Management companies share that one of the most stable ways to increase your investment return is by keeping great tenants to securing lease renewals. If those great tenants stay, you’ll experience no vacancies and eliminate the need for make ready. Doing so will allow all amounts set aside for those two occurrences to move down to your bottom line and become cash flow, and this is before taxes.
Systematic Advance To Lease Renewals:
- Los Angeles Property Managers discuss 60-90 days before the lease expires, this also depends on the required move out notice that is in the lease agreement.
- Make sure to ask your real estate agent for a listing of comparable rentals that have been leased in the last 6 months, this is to document the market rent for the property you seek.
- It’s important to send a lease renewal email to the tenants. This email will have attach to it the comparable rentals report generated above, be sure to emphasize the benefits of staying in the property, propose a 12-month extension at a preferred rate or if available a month to month extension at a bit of a higher rate. And lastly, let them know that they’ll be receiving a call to discuss everything.
- To inform, you send an email. To influence, call or visit in person. Los Angeles Property Managers know that no one likes to be told that their rent will rise. This tends to lead tenants feeling that the owner is greedy and wants more money.
Explaining Why The Rise In Rent
The owner should explain the reasons for the increase:
- The market rent has risen.
- Property tax and insurance has gone up.
- If the tenant was to move to a different property, more than likely they’ll pay higher rent and would need to move (no one really likes to move).
Reaching Out To New Tenants
Los Angeles Property Management companies know that sometimes tenants decide to move out. Often it is due to outside factors outside of your control. There are times when a Los Angeles Property Manager can’t do anything because the tenant may have decided to purchase a home, in these instances one should congratulate the tenant it’s a big step to purchase a home.
Los Angeles Property Management companies have dealt with tenants moving to a different city or state. As much as Los Angeles Property Management companies will try to keep tenants, nothing you can say or offer will change their decision, especially in these circumstance.
Since Los Angeles Property Management companies are very aware of these situations, your focus should be to secure new tenants while minimizing vacancy. The way Los Angeles Property Management companies have achieved this goal is to enlist the cooperation of current tenants.
Legally speaking, the lease agreement gives you the right to put a lockbox on the property during the last 30 or 60 days of the lease and show the property to potential tenants. Although, if the current tenant does not cooperate, all those efforts will not be worth it.
Old Tenant Moving Out
Los Angeles Property Management companies say that once the new tenant is taken care of and the lease has been signed, one more thing should be taken care of. Time to close the chapter with the old tenant. Move Out Process:
- Documentation of the property condition should be taken again.
- Photos of the property condition.
- Walk through the home with the tenant. No discussions about what should be deducted and what shouldn’t. Let the tenant understand that the decisions on deductions will be made at a later date when the current condition to the inventory and condition report from the time they moved in is compared.
- Deposit refund letter is sent (if applicable). Also send it via email.
During The Process:
Los Angeles Property Management companies say it is critical to build and maintain a network of quality vendors:
- HVAC Specialist
- Cleaning and Carpet Professionals
- Make Ready Helpers
- Tenant Procurement and Screening Assistant
- Attorney (for Evictions and Legal Action)
Los Angeles Property Management companies know too well when dealing with these stages in the Los Angeles Property Management process. In each stage it is important to not only document but eliminate a large percentage of future problems for the next process ahead.
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