Hiring a property manager is one of the biggest decisions a landlord makes, whether the rental is in a small town or a major city. Jesse Sasomsup helps owners make that decision in Los Angeles, California, a market where local rental rules change often and a misstep can be costly.
Sasomsup is President and Broker of Earnest Homes, and he describes the job in simple terms: “In property management, we’re not actually managing properties. We manage the tenants, and we manage the landlords.” The questions he recommends apply to owners anywhere in the country, and they carry extra weight in a market as regulated as Los Angeles.
Start with staffing. Ask how many properties the company manages and how many people it employs. A well-run company, Sasomsup says, should have roughly one employee for every 50 properties. A company managing 1,000 properties should have at least 20 employees. When the ratio climbs much higher, owners may find it hard to get timely answers, no matter where the property is located.
The complaint Sasomsup has heard most often since starting in the business is that property managers are hard to reach. There is a practical reason for that. Managers spend much of the day in the field inspecting properties, meeting clients, and running showings, which leaves little time for phone calls and email.
Earnest Homes addresses this by splitting work into desk tasks and field tasks. Each property manager is supported by assistants who handle anything that can be done by phone or computer, so clients get answers while the manager is out.
A typical day starts with an 8:30 a.m. team huddle. From about 10 a.m. to 3 p.m., managers are out at properties, timed to avoid Los Angeles rush hour. By 3 p.m., they are back reviewing work orders and answering the emails that need their personal attention.
Owners anywhere can ask a company to walk them through its own typical day. The answer shows a lot about how responsive it will be.
Rental rules vary from state to state and often from city to city. In Los Angeles, Sasomsup says new tenant rules come up every few months. The requirements can also differ depending on when a building was built, how many units it has, and whether it is a single-family home. Items like rental registration, required tenant notices, and interest on security deposits all have to be handled correctly.
“We’re not attorneys, but we have to know the law in order to manage the property,” Sasomsup says.
Ask how the company tracks new requirements, who reviews notices before they go out, and when it brings in an attorney. For more complex situations, such as an owner moving back into a rented home, Earnest Homes typically works with an attorney. Owners outside Los Angeles should ask the same questions about the rules in their own city or county.
Clear expectations help both sides. A property manager handles leasing, tenant relations, maintenance, rent collection, financial reporting, and routine notices. Some requests fall outside that role.
Legal advice: Deeper legal questions require an attorney, just as they would for an owner managing on their own.
Tax advice: Earnest Homes prepares profit and loss statements for owners, but tax planning belongs with a CPA.
Personal errands: Mail related to the property, such as utility bills, can go to the management office. Picking up an owner’s personal mail is a different matter. Earnest Homes will help when asked, for an added fee.
“We do not have a license for those practices,” Sasomsup says. That is why owners should plan to work with outside professionals for legal and tax matters.
Investors with larger portfolios should also know the difference between a property manager and an asset manager. Sasomsup describes the property manager as the operator, focused on tenants, leases, maintenance, rent collection, and compliance. The asset manager is the strategist, focused on financial performance, capital improvements, value appreciation, risk, tax strategy, and long-term planning. For larger buildings, he recommends the two meet monthly around the 10th, once it is clear which tenants have paid.
Owners who want to see what a full-service arrangement includes can review Earnest Homes’ property management services.
Earnest Homes is a Sherman Oaks-based property management company serving owners of single-family homes, condos, and apartment buildings across Los Angeles County, including the San Fernando Valley, the Westside, the South Bay, and Santa Clarita. Founded in 2015 and led by President and Broker Jesse Sasomsup, the company provides full-service leasing, maintenance, and day-to-day management for first-time landlords, out-of-state owners, and investors.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
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