What are the Requirements for Being a Property Management Company in Los Angeles?

Rental Agreement in Los AngelesReal estate is always a safe investment. People will always need a place to stay and companies will always need a space to conduct their business affairs. Putting your money into commercial or residential building or complexes will in the long-term yield a steady and significant return. However, you need not trouble yourself with the management and administration of your property. This is best done by a company that specializes in the management of properties. All the various tasks, duties, responsibilities, and day-to-day operations that are required to effectively manage a property are beyond the ability of individuals without experience and expertise in the field. If you own a property in Los Angeles, you can count on the competence of property managers who operate in the city.

What is Property Management?

Property management consists of leasing, collecting rent, and conducting building maintenance and repair. It is one of the most regulated industries in California.

Who Can Become a Property Manager?

The law requires that anyone managing property have a real estate broker’s license or work under someone who does. To get such a license, the applicant must document their experience and training in the field before being allowed to take a state licensing exam. Indeed, candidates can only apply for the exam after they have attended a set number of state-authorized courses in the subject. They must pass this exam to receive a broker’s license.

The Duties and Responsibilities of Property Managers in Los Angeles

The property managers that you hire will be qualified brokers or work under the supervision of them. The brokers in management companies are subject to the suspension or revocation of their license if they fail to uphold laws and standards in the execution of their duties. These include:

  1. The Enforcement of Minimum Habitability Standards
    The management company you hire must ensure that the condition of the building complies with health, safety, and building codes. It must be free of all hazards to the well-being of the occupants.
  1. Collect Security Deposits
    Security deposits can be no more than twice the monthly rent for an unfurnished apartment. The money should be given to the property manager before the tenant moves in. The latter can, before departure, request an inspection at which time any issues that will reduce the amount of money to be returned can be pointed out. Managers must either document discrepancies as justification for such reductions or return the money in full. This must be done within 21 days of the move-out date. Copies of invoices or receipts from repair or cleaning services must be given to the tenant.
  1. Adhere to Rent Control
    Certain parts of Los Angeles are subject to rent control. This is a form of legislation that restricts rent increases and limits evictions. The management company you employ must comply with all such rent control laws. Not doing so can result in costly litigation.

Why You Need a Property Manager

Even if you have the time to manage the property you have purchased or invested in, you are unlikely to have the expertise to do so effectively. Knowing the law that governs and regulates tenant-landlord relationships is important. If you mistakenly violate any of these statutes or fail to properly execute the contract you have with your tenants, you can be sued. The best way to avoid falling into such a bad situation is to entrust your property to those who have the qualifications and credentials to properly manage it. Hiring the right property managers can ensure that your real estate investment becomes a source of wealth generation and profit rather than trouble and conflict.

If you would like to discuss how our property management team can manage your property for you please contact us at (310) 945-5155 or send us a message online by clicking here.