People who invest in residential properties in San Francisco often wonder why they might need a property management company in San Francisco. The main reason is that real estate is an active investment. No matter where you are buying real estate for investment purposes, you cannot afford to be passive. Investing in real estate is not like investing in the stock market, where you can put a sum of money into a mutual fund and then sit back while it does its work. Real estate investments require a little bit more from the investor. Tenants pay rent and demand maintenance, lease agreements need to be written and negotiated, and regardless of where you are investing, time and attention is required to make your investment work.
In San Francisco, there are a unique set of rules and regulations to pay attention to as a real estate investor. The San Francisco rent control ordinance often makes it more hazardous to be a landlord. While it also creates additional opportunities for smart investors, you need to know what you are doing in order to be successful. These are three of the top reasons you might need a property manager in San Francisco.
1. Managing the rent ordinance. As a landlord, you need to be familiar with this law and you need to manage your property in accordance with it. If you are not willing to become an expert on the rent control ordinance, you definitely need a property manager to help you follow its requirements.
2. Tenants can take advantage of less experienced landlords. Tenants in San Francisco are often smart and very savvy. They know their rights, and there are many places such as the Tenants’ Union where they can get free advice if they feel you are not doing something that they think you should. If your tenants are pushing your buttons, or making you feel like you are doing something wrong, you should get help from a property manager. A good property manager can manage that tenant/landlord relationship and make sure that all parties are satisfied while ensuring you are not taken advantage of.
3. Maintenance issues. Another great reason to use a property manager is for maintenance issues. In San Francisco, navigating the handyman and worker’s compensation rules can be tough. Knowing when to hire a general contractor or when a basic maintenance person will do can be a hard call. Most property managers have a network of maintenance personnel and vendors who they can call and work with. As a landlord, you will not have to worry about scheduling a light fixture change or inspecting a roof.
Not every landlord feels like a property manager is necessary, but if you are worried about your ability to actively participate in your investment, consider using a property manager as a resource. Property managers can take care of all rent control ordinance issues, manage your relationships with your tenants and ensure that the property is being well maintained and taken care of.
As always, if you have any questions, feel free to contact us.