If you own rental property in Los Angeles, you’ve probably asked yourself:
“Do I really need a property manager?”
After all, how difficult can it be?
Find a tenant. Collect the rent. Call a plumber when something breaks. Renew the lease. Repeat.
That may sound like property management.
But in today’s Los Angeles rental market, collecting rent may be one of the easiest parts of being a landlord.
The real job is everything happening behind the scenes: tenant screening, lease administration, maintenance documentation, vendor coordination, inspections, rent registration, notices, accounting, fair housing compliance, habitability issues, rent restrictions and constantly changing City and State regulations.
And that leads to something many rental property owners don’t consider when deciding whether to hire a professional property manager:
What is the cost of getting it wrong?
Saving a management fee every month may look attractive on a spreadsheet.
One poorly documented maintenance issue, improperly handled notice, missed registration requirement, bad tenant placement or preventable vacancy can potentially wipe out years of those savings.
Welcome to property ownership in Los Angeles.
Being a Landlord and Being a Property Manager Are Two Different Jobs
Owning rental property doesn’t automatically mean you want another job.
But self-managing a rental property effectively gives you one.
You become the leasing agent.
You become the rent collector.
You become the maintenance coordinator.
You become the bookkeeper.
You become the person responding when the air conditioner stops working during a heat wave.
You become the person figuring out whether the tenant or landlord is responsible for a repair.
You become the person documenting what happened.
And increasingly, you become the person responsible for figuring out which Los Angeles and California rental housing regulations apply to your property.
That’s a lot of responsibility attached to an investment that many owners originally purchased to create passive income.
Rental real estate can be an investment. Self-managing rental real estate is a job.
There is an important difference.
The $200 Repair Can Become a Much Bigger Problem
Consider something as ordinary as a tenant reporting a plumbing leak.
The tenant sends a text:
“There’s water underneath the bathroom sink.”
The self-managing landlord is busy and responds:
“I’ll get someone over there.”
A few days pass.
The tenant follows up.
Eventually a handyman comes out, tightens something and leaves.
Three months later, the tenant reports moisture inside the cabinet and discoloration on the wall.
Now everyone remembers the original conversation differently.
When was the leak originally reported?
How severe was it?
Were photographs provided?
Who inspected it?
What exactly was repaired?
Was a licensed plumber needed?
Was there moisture behind the wall?
Did anyone document that the leak had stopped?
Was the tenant told what to monitor?
This is where professional property management is very different from simply “taking care of repairs.”
Good property management creates a record.
Documentation Is One of a Landlord’s Most Valuable Forms of Protection
At Boutique Property Management, we encourage tenants to submit maintenance requests through our property-management system rather than scattering communications across personal text messages, emails and telephone calls.
There’s a reason.
A centralized maintenance record can document:
- When the problem was reported
- What the tenant reported
- Photographs or supporting documentation
- When management responded
- Which vendor was contacted
- When access was requested
- What the vendor discovered
- What repairs were recommended
- What the owner authorized
- When the repair was completed
- Follow-up communication with the tenant
Hopefully, none of that documentation will ever be needed for a dispute.
But if there is a dispute six months later, memories are far less useful than records.
Professional property management isn’t just about solving today’s problem. It’s about documenting how today’s problem was solved.
Los Angeles Rental Properties Can Be Inspected
Many landlords don’t realize the extent of Los Angeles’ rental housing inspection system until they receive a notice.
For qualifying residential properties, the Los Angeles Housing Department operates the Systematic Code Enforcement Program (SCEP).
LAHD conducts periodic inspections as well as complaint-based inspections.
An inspection can involve rental units, buildings and common areas. If violations are identified, the owner may receive an order requiring correction within a specified compliance period.
Failing to resolve violations can lead to additional enforcement.
That means deferred maintenance isn’t simply a cosmetic problem.
It can become a compliance problem.
Preventative Maintenance Is Different From Reactive Maintenance
Many self-managing landlords operate on a simple system:
If the tenant doesn’t complain, everything must be fine.
Unfortunately, properties don’t always work that way.
A slow leak may go unnoticed.
Caulking may deteriorate.
A roof flashing problem may only become apparent during heavy rain.
A water heater may be approaching the end of its useful life.
Smoke or carbon-monoxide detectors may need attention.
Exterior drainage can create problems long before water becomes visible inside.
This is why preventative property management matters.
Periodic inspections and proactive maintenance can help identify problems before a relatively inexpensive repair becomes a major project.
There is another benefit:
You actually know what is happening at your investment property.
For an asset worth hundreds of thousands—or potentially millions—of dollars, that visibility matters.
Your Tenant Can Create a City Inspection With a Complaint
Los Angeles doesn’t rely solely on periodic inspections.
LAHD also conducts complaint-based inspections.
That makes responsiveness especially important.
A maintenance request that sits unanswered isn’t necessarily going to remain a private disagreement between landlord and tenant.
A tenant may contact the City.
Once that happens, the issue can move from:
“Please fix my sink.”
to:
“The City has opened a case involving my property.”
The best strategy isn’t preventing tenants from exercising their rights.
It is having an effective maintenance system so legitimate problems are documented, evaluated and addressed appropriately before they escalate unnecessarily.
Los Angeles Landlords Have Administrative Responsibilities Too
Physical maintenance is only one part of the job.
Los Angeles rental property ownership also comes with administrative requirements.
Depending on the property, owners may have obligations involving:
- Rent Stabilization Ordinance registration
- Just Cause Ordinance registration
- Annual rent registry information
- Systematic Code Enforcement Program requirements
- Required tenant notices
- Rent-increase limitations
- Eviction-notice filings
- Right-to-Counsel notices
- Relocation requirements
- Tenant Habitability Plans for certain major renovations
The specific requirements depend on the property and circumstances.
This is why one of the most dangerous phrases a Los Angeles landlord can use is:
“I’ve always done it this way.”
What worked five years ago may not comply with today’s requirements.
Even Registering a Rental Property Has Become an Ongoing Responsibility
Los Angeles landlords subject to applicable City programs aren’t simply registering a property once and forgetting about it.
Annual registration and rent-registry requirements can require updated information regarding units and tenancies.
Property owners therefore need systems for tracking their properties, tenants, rents and required filings.
That’s manageable when you know what you’re doing.
But it is another example of why modern property management is increasingly administrative.
Being a landlord today requires managing information as much as managing buildings.
Major Repairs Can Trigger an Entirely Different Set of Rules
Here’s another area where owners can unexpectedly encounter problems.
Imagine you own an older Los Angeles apartment building and discover a significant issue that requires extensive construction while the tenant is occupying the property.
Your first instinct might be:
“I’ll hire a contractor, get the tenant out for a few weeks and get it fixed.”
Not necessarily.
For certain work involving qualifying RSO properties, Los Angeles’ Tenant Habitability Program can come into play.
Major repairs may therefore involve much more than selecting a contractor.
There can be requirements concerning the work, tenant habitability and the process followed while repairs are performed.
What began as a construction project can quickly become a property-management and regulatory-compliance project.
A Good Tenant Placement May Be Worth More Than Years of Management Fees
There is another hidden cost of self-management that has nothing to do with government regulation:
Choosing the wrong tenant.
Suppose a rental property leases for $5,000 per month.
The difference between an excellent tenant and a problematic tenancy can be enormous.
Professional tenant screening shouldn’t simply mean looking at a credit score.
A thorough screening process can include reviewing:
- Income
- Employment
- Credit history
- Rental history
- Identification
- Supporting financial documentation
- Prior landlord information
- Application consistency
- Background and eviction history where legally permissible
No screening system can guarantee what someone will do after moving in.
But the goal should be to make the most informed decision reasonably possible before handing someone the keys to a valuable asset.
At Boutique Property Management, we believe tenant selection is one of the most important risk-management decisions an owner makes.
Vacancy Is Expensive
Landlords understandably focus on management fees because they appear every month.
Vacancy can be much more expensive—and it arrives all at once.
Consider a rental worth $6,000 per month.
Every week of unnecessary vacancy represents approximately $1,400 in potential gross rent.
A month is $6,000.
Two months is $12,000.
This is why professional rental marketing matters.
Pricing the property correctly, preparing it properly, using professional photography, presenting it attractively online, responding quickly to inquiries, coordinating showings and following up with prospective tenants can directly affect an owner’s bottom line.
Most prospective tenants will see your rental property online before they ever see it in person.
Your property’s first showing increasingly happens on a screen.
Professional presentation matters.
The Cheapest Vendor Isn’t Always the Cheapest Repair
Self-managing landlords often develop a list of handymen.
There’s nothing inherently wrong with that.
But vendor management involves more than finding someone willing to do the work inexpensively.
Depending on the project, owners should consider:
Is this work appropriate for a handyman?
Does it require a licensed contractor?
Does the vendor have appropriate insurance?
Is a permit required?
Is the diagnosis correct?
Is the vendor fixing the cause or merely covering the symptom?
Should another bid be obtained?
Does the repair affect habitability?
Does it involve water intrusion, electrical, roofing, structural issues or another specialty?
A $250 patch isn’t a bargain if the underlying problem turns into a $10,000 repair.
Professional property management is partly about knowing who to call, when to call them and when a problem requires escalation.
Tenant Communication Matters More Than Most Owners Think
Property management is also communication management.
Consider the difference between:
“I’m busy. I’ll get to it.”
and:
“We’ve received your maintenance request and forwarded it to our vendor. We are currently coordinating availability and will update the maintenance request once the appointment is confirmed.”
The repair hasn’t happened in either scenario.
But the second tenant knows:
Their request was received.
Someone is handling it.
There is a process.
There will be an update.
Professional communication can prevent ordinary maintenance issues from becoming unnecessary disputes.
Owners Need Communication Too
Property management isn’t only about managing tenants.
Owners should know what’s happening with their property.
They should have access to financial reporting.
They should understand significant maintenance expenses.
They should know when their property is vacant.
They should receive updates regarding leasing activity.
They should be able to see income and expenses.
They should receive distributions without having to chase someone down.
Technology has made this considerably easier.
At Boutique Property Management, our owners have access to a property-management platform through both web and mobile interfaces, providing greater visibility into their investment.
Professional management shouldn’t separate owners from their property. It should give them better visibility into it.
Property Management Is Really Risk Management
When people hear “property manager,” they often picture someone collecting rent checks and calling plumbers.
That description misses much of the job.
Modern Los Angeles property management is increasingly about managing risk.
Financial risk: reducing unnecessary vacancy, monitoring rent collection and maintaining accurate accounting.
Property risk: identifying maintenance problems and coordinating appropriate repairs.
Tenant risk: performing thorough screening and maintaining professional communication.
Documentation risk: creating records of maintenance, notices, payments and important interactions.
Compliance risk: helping owners navigate the administrative requirements that accompany Los Angeles rental housing.
A property manager cannot eliminate every risk associated with owning rental real estate.
Nobody can.
But professional systems can help reduce avoidable mistakes.
The Real Question Isn’t “Can I Manage It Myself?”
Of course you can.
Thousands of Los Angeles rental property owners successfully self-manage their properties.
The better question is:
How much of your time, attention and risk tolerance do you want your rental property to consume?
If you enjoy screening applicants, answering maintenance requests, coordinating vendors, documenting repairs, tracking regulations, maintaining accounting records, handling tenant communication and keeping up with Los Angeles rental requirements, self-management may work for you.
But if you bought rental property because you wanted an investment rather than another occupation, professional property management deserves consideration.
Your Rental Property Should Be an Investment, Not a Second Job
A professionally managed rental property doesn’t mean nothing will ever go wrong.
Air conditioners will break.
Plumbing will leak.
Tenants will move.
Appliances will fail.
Unexpected expenses will happen.
The value of professional management is having a system already in place when they do.
Someone receives the request.
Someone documents it.
Someone coordinates the response.
Someone communicates with the tenant.
Someone communicates with the owner.
Someone follows through.
And someone maintains the records.
That’s the difference between simply owning a rental property and professionally operating one.
Looking for a Property Manager in Los Angeles?
Boutique Property Management provides full-service residential property management throughout Greater Los Angeles and Ventura County.
We manage single-family homes, condominiums, duplexes and multifamily rental properties with an emphasis on professional marketing, comprehensive tenant screening, responsive maintenance coordination, detailed accounting, documented communication and hands-on management.
Our goal is straightforward:
Protect your investment. Professionally manage the tenancy. Reduce the amount of time you spend managing problems.
If you own rental property in Los Angeles, Calabasas, Woodland Hills, Encino, Sherman Oaks, West Hollywood, Studio City, Tarzana, Agoura Hills, Westlake Village or surrounding communities, contact Boutique Property Management to learn more about our property management services.
Frequently Asked Questions
Is hiring a property manager worth it in Los Angeles?
That depends on the property and owner. A professional property manager can handle tenant screening, leasing, rent collection, maintenance coordination, tenant communication, accounting and day-to-day administration. For owners who value their time or don’t regularly follow Los Angeles rental regulations, professional management can be particularly useful.
What does a Los Angeles property management company do?
A full-service Los Angeles property management company may handle rental marketing, showings, tenant screening, lease preparation, rent collection, maintenance requests, vendor coordination, property inspections, accounting, owner statements and tenant communication.
How do I choose a property manager in Los Angeles?
Look beyond the management fee. Ask how the company screens tenants, markets vacancies, handles maintenance requests, communicates with owners, documents repairs, performs inspections, handles accounting and keeps its management procedures current.
Does Los Angeles inspect rental properties?
Yes. Certain Los Angeles rental properties fall within the City’s Systematic Code Enforcement Program, and LAHD also conducts complaint-based inspections. Property owners should determine which inspection and registration programs apply to their particular property.
Do Los Angeles landlords have to register rental properties?
Properties covered by applicable Los Angeles RSO and JCO requirements are subject to registration requirements. Owners should verify the status of their particular property and current requirements with the Los Angeles Housing Department.
Can a property manager help with LAHD compliance?
A knowledgeable property manager can assist with the administrative side of operating rental property and maintaining appropriate records. Legal questions or disputes should be referred to qualified landlord-tenant counsel.
Does a property manager handle maintenance?
Maintenance coordination is a major part of full-service property management. This can include receiving tenant requests, evaluating urgency, coordinating vendors, obtaining owner authorization when appropriate, following up on repairs and documenting the process.