Maybe you find yourself energized by change, and maybe you fear it. Everyone is different.
Wherever you happen to land on the change question, there may come a time when you decide it’s necessary to switch San Diego property management companies. How do you know it’s necessary, and what can you do to prepare yourself for such a change?
We’re answering those questions today, starting with how you know it’s time to switch. Hopefully, you have a good relationship with your property managers, and if you are having an issue with them, you’ll be able to have a conversation about what you need and how they can help. But, if you’re not getting anywhere with that type of communication, or they’re failing to provide even the most basic management services, you need to move on.
We’re talking about a very valuable investment, whether it’s one rental home or an entire portfolio. You cannot risk your earnings or your properties by leaving bad management in place.
Here are some of the signs you know it’s time to upgrade your property management partner.
Failing or Faltering Customer Service
There are a lot of things that indicate customer service isn’t where it should be. For example:
- Communication might be terrible. If you’re having trouble getting in touch with your property managers, or phone calls and messages are left unanswered, that’s a problem. It’s an indication that your property manager may be juggling too many responsibilities and cannot give you, your property, or your tenants the attention you need. Or, they simply don’t care enough to communicate, which is another problem. Switch to a management company that’s responsive and available to answer questions and offer support.
- They don’t do what they say they’re going to do. This is a big problem for owners and tenants. If your property manager promises they’ll make a repair or schedule a service or follow up with the landscapers and they just don’t do it, you’re left feeling disappointed. The condition of your property might also be left at risk.
- Turnover is high and tenants aren’t renewing their lease agreements. Avoiding turnover costs is a great way to increase what you earn on your investment property. When you have tenants who are anxious to leave your property, there’s a good chance that your management company is not being responsive to them. You want a property manager who develops good relationships with tenants, provides an outstanding rental experience and manages to retain your best residents.
There’s a lot you can work around when you have problems with a property management company. Customer service is absolutely not one of them. You need a management team that’s responsive to your needs and those of your tenants.
Accounting Isn’t Transparent or Accurate
Your management company isn’t only responsible for your property.
They’re also responsible for your finances.
One of the things a property manager should do well is to provide you with accurate, detailed, and transparent accounting statements and reports. It’s not terribly complicated with the property management software that’s available and the technology we can use to track your money and produce these reports.
Good management companies have the tools and resources to deliver online statements every month when your rent is paid. Expenses need to be just as transparent as your income. You should know exactly what you’re being charged, and when. You should find it easy to review all of the income and expenses associated with your property or your portfolio, and you should have any questions or concerns addressed immediately.
Don’t settle for hidden costs or fees that show up in your accounting statements. Find out why your rent isn’t being paid on time. If your repair bill seems high or you never approved a $1,000 charge that’s showing up in your statement, you want to address these things with your management company. If their response is insufficient or unacceptable, you should look elsewhere for better management.
Lack of Knowledge about California’s Rental Laws
New laws are always going into effect, especially in California. There are federal laws that need compliance, such as the Fair Housing Act, and you might be surprised to know those state fair housing laws are much stricter than federal laws. There are also security deposit requirements, and laws about service animals, and emotional support animals. You need to follow habitability standards and understand the placement of smoke detectors and carbon monoxide detectors.
Does your property manager stay educated on rent control? Just cause eviction? Is your management company aware of the Section 8 requirements when it comes to screening, and do you have language in your lease agreements that are up to date and legally compliant?
These are important questions, and if your property manager cannot protect you against liability when it comes to potential tenant disputes and lawsuits, you need to switch management companies right away.
Vacancies are Longer than Expected
Why is your San Diego rental home not renting?
Your property manager should be able to tell you.
Don’t lose money on long vacancies. When your property is left unoccupied, you aren’t earning any rent. Not only that, you’re paying out-of-pocket for utilities, maintenance, landscaping, pest control, and added security.
Vacant homes are also risky; they can attract attention from vandals and criminals.
When you find your rental property is vacant for weeks and even months, you need to find out why. Talk to your property manager and make sure it’s priced right. A good manager will talk about improving property conditions to attract good tenants. There will be a strategic marketing plan in place.
If your management company has nothing to offer when you ask why your property is still vacant, you should find someone else to lease it. You need a lower vacancy rate and a plan for renting your home quickly.
These are just a few of the more obvious reasons to begin looking for a new property manager. Your San Diego real estate investment needs the best management you can find. That might mean a switch.
We’d love to tell you more about how we manage investment properties like yours. Please contact us at Ann Tasias & Associates. We manage investment homes in San Diego, along the I-15 corridor in communities like Mira Mesa, Scripps Ranch, and Poway.
