If you are an aspiring investor thinking of buying a rental property in Los Angeles, you must be aware of the roles and responsibilities that you are required to fulfill. Here are some important things that you need to be aware of before you can undertake this responsibility efficiently.
How much time you would be required to invest
For many people, buying a rental property is a great way of earning a steady stream of income month after month. Of course you will be earning money by renting out your units to multiple tenants but it also requires investment of time and effort on your part. You simply cannot hope to get the rent from your tenants on time without looking after their requirements or the repair and maintenance of your property. You will also need to do bookkeeping and pay your taxes on time. Some cities like W. Hollywood and Santa Monica also have a different set of rules and laws.
What resources you will need
You may not be prepared for this, but what will you do when you get a call from a tenant at the middle of the night who is facing an emergency because of burst pipeline? You need a team of skilled and experienced vendors and handymen who can reach the premises and fix the problem by simply making a call.
Your time and effort is proportional the number of properties
You can look after your property on your own easily by making a schedule. But when the number of properties increases, you may run out of time to manage the affairs in all your properties. This is when you would need help and assistance from a professional property management company. With this modern day, most companies are equipped with software to help you can track work orders, expenses, and rent payments.
Do you need to live close by?
Common sense says that you can take care of your rental property much better if you live in the city or in close proximity to Los Angeles. You can reach the premises in quick time in case of an emergency. You will also find it easier to carry out surprise inspections of your property if you live within a few miles of your rental property. However, in these days of fast means of communication, you can still manage your property if you remain connected and handle the issues with the help of a property manager.
Your success as a landlord depends upon how well you take the stress resulting from handling all the issues related to your property and the tenants.
Jesse Sasomsup is an owner and CEO of PMI Golden State, a property management company located in Sherman Oaks, CA. PMI is one of the largest property management network with over 200 offices worldwide.