Is Property Management Worth It? Maximize Rental Income & Reduce Stress

The decision to hire a property manager depends on how much time you can dedicate to managing your rental and how involved you want to be in its day-to-day operations. Let’s look at why hiring a property manager could be worth the cost for many property owners in Orange County.

Time-Saving Benefits

Managing a rental can take anywhere from 10 to 20 hours per month, depending on how many tenants you have and how often maintenance issues arise. For example, if you own multiple units, you might spend time responding to tenant requests, fixing leaky faucets, and coordinating repairs. A manager handles these tasks, allowing you to focus on other business or personal activities. Many landlords report that working with a manager cuts their workload by up to 70%, giving them more freedom. According to the National Association of Residential Property Managers (NARPM), professional property management can reduce vacancy rates by 15% and save property owners up to 70% of their time on tenant and maintenance issues.

Maximized Rental Income

Setting the right rental price is essential to keeping your rental occupied and profitable. Management companies use local market analysis to set a competitive rent that maximizes income. In Orange County, the average rent for a one-bedroom apartment is approximately $2,000, but a professional manager can help you increase that by identifying areas for improvement or marketing your rental to attract higher-paying tenants.

Additionally, quick turnaround times for filling vacancies help reduce the loss of rental income. Studies show that rentals managed by professionals have fewer vacancies, with the average vacancy period reduced by up to 15%.

Better Tenant Retention

Each time a tenant moves out, you face costs like advertising, cleaning, and making repairs before new tenants move in. These costs add up, and it can take one to two months of lost rent before a new tenant is found. Rental management companies work to reduce turnover by providing better tenant service. Research shows that responsive management can increase tenant retention by up to 25%, helping you avoid the hassle and costs associated with frequent turnover.

Reduced Legal Risks

In California, rental laws are complicated, and it’s easy to make mistakes if you’re not familiar with them. The Tenant Protection Act (AB 1482) sets limits on rent increases and gives tenants more protection from evictions. Most landlords can’t raise rent by more than 5% plus inflation, or 10%, whichever is lower, within a 12-month period. Also, after a tenant has lived in a unit for 12 months, landlords need to have a valid reason, known as “just cause,” to evict them. Reasons include things like not paying rent or needing to move into the unit yourself.

A property management company helps you follow all the legal requirements, including rent rules and eviction procedures, so you don’t face fines or lawsuits. Handling these legal issues without expert help can be expensive and time-consuming. By using property management services, you ensure that your property stays in line with the law and that you avoid costly mistakes.

Access to Professional Contractors

Rental management companies have established networks of trusted contractors, allowing them to secure better prices for maintenance and repairs. For example, you might spend $500 hiring an independent contractor to fix a plumbing issue, while a management company could have the same repair completed for 20% less due to their long-standing relationships with vendors. This not only saves you money but also ensures that the work is done quickly and to a high standard, keeping your tenants satisfied and your rental in top condition.