LRS Realty & Management, Inc has been in the property management business for close to 33 years. Changes to the industry have come at us at speeds never before realized. Laws at the State, Federal and local levels are changing rapidly. The Pandemic did not create this situation, it has however, accelerated some issues. California residents are struggling to pay their bills including the rent. AB (assembly bills) for this, and another AB for that. Attorney's disagree on how to interpret these changes from "Sacramento."
As owners of properties, it can feel as though you don't have decision making powers over the investments you have worked for all of your life. There seems to be no end in sight. May I make a suggestion? Keep your properties fixed and in good repair. Regardless of the circumstances, you do have control of your properties. Do not decrease services, continue to create a quality product, "Make readies" should reflect the current market. This enables you
to lease to the best
possible new resident.
Current tenants
maintenance requests
should be handled in a proactive manner regardless of the rent they pay. Exterior properties need to be cleaned frequently, perhaps more so now than ever before. Stairs, parking lots, laundry rooms, common areas cleaned, gardeners need to do their job, you might consider adding an extra day per month or trim the trees, etc. There are many reasons for doing this, but let's explore a couple of these.
We all know there will come a day when, despite our best efforts, certain residents will turn into evictions. Further we are all aware of the "habitability defense" (often used as an excuse). Remove the excuse in no uncertain terms. Be able to show through pictures, invoices, etc that during this uncertain time, you the landlord, continued to give good service and in fact in some cases increased monies spent to make sure your residents felt cared about. This will not only help with eviction proceedings, but can make it much more difficult if someone "takes you on" from a legal perspective.
Great residents:In decades of managing properties, we have found that the ability to present to a potential resident an exceptional product, goes a long way to attracting the best. Increasing your services, sharpe make readies, friendly service (that's our dept.), will create a climate now and into the future of tenancy that pays the rent, sometimes a high rent, and become more long term. Homes\apartments are rented faster for higher rent prices. Increases are easier when it is appropriate. Word of caution, at the core of rent increases is high value and more income. However, the question will always be, when should the rent go up and when is it better not to...
Conclusion:Take a positive approach to your investment, realize that most of the time that the extra money spent is in yours and the residents best interest.
