Los Angeles is at the forefront for rent control legislation. Individual cities are now looking to implement their own rent control ordinances more stringent than Los Angeles City's. With the recent enactment of Los Angeles County's permanent rent control and California's Statewide "For Cause" only evictions through AB 1482 multi-family income property ownership and management is getting trickier.
Single Family Residences ("SFR"), Multifamily and Commercial properties all pose different challenges. In managing a portfolio comprised of all three I have found four important principles- organization, documentation, automation and follow-up. Whether you are a property manager or an owner-manager of any portfolio composition, you get the greatest ROI when you have systems in place for income collection, routine R&M, capital improvements, local ordinance compliance, surcharge maximization, CAM Fee tracking, tenant buy-outs and well prepared documentation for evictions.
The DRE places importance on transparency. Trust account discrepancies, mismanagement of client funds and failing to act diligently in handing the management of buildings are the top citations in DRE audits. All property managers should be certain they have at least one level of checks and balances for all trust accounting. I've seen a lot of property managers get fired or complaints against them for failing to pay bills on time, not keeping up with RSO registration requirements and not keeping records of maintenance. Before you get notice of a DRE audit, all property managers should do an internal audit of their operations to assess if they are in threat of non-compliance.
With the right education owning and managing property in Los Angeles can be passive. I offer services to help property managers pre- and post-DRE audit and general operating practices. For owner-managers who want to keep management to themselves but need mild oversight, I offer buy-out negotiations services, ROI consultation, operations consultation on a one time or regular basis and evictions.