The Los Angeles market is a challenging and highly rewarding place for real estate investors; it’s fast moving, expensive, and competitive. With limited inventory and high demand, investing in Los Angeles requires knowledge, capital, and at least a basic understanding of the market and how it works.
Whether you’re new to investing or building a large and diverse portfolio, success requires relationships. You need access to the resources that are available, and you also need to surround yourself with professionals who can help you identify the right opportunities and close the most lucrative deals.
The LA market is complex and large. To effectively capitalize on Los Angeles real estate, you need as much help as you can get. Let’s take a look at some of the most valuable insights and top local resources that are available to help you make the most of your real estate investments in Los Angeles.
Professional Associations and Networks
If you’re interested in learning more about best practices and asset protection (and you should be), you can learn a lot from professional associations such as the local chapter of the National Association of Residential Property Managers (NARPM). Look for your local CAL-NARPM group and get linked in with some of the smartest and most innovative property managers in our market. You don’t have to be a property manager to join. You’ll find networking opportunities with other investors, vendors, tech providers, and professionals in service industries that impact and support real estate investing.
There are also groups such as the California Association of Realtors. California Apartment Association. The Los Angeles County Real Estate Investors Association of Real Estate Investors. Look around for the groups and associations that will help you grow your own investment portfolio. You’ll learn a lot, meet new like-minded people, and find opportunities that you might not otherwise have had access to.
Joining a local investing group is a good idea for your current investment goals and those you may have in the future. You’ll network. You’ll gain some good experience. You’ll even make some deals, especially if you stick around long enough and show a willingness to participate.
Local and State Resources
You’ll need to keep up with laws, regulations, ordinances, and city requirements. Stay in the know by following agencies such as the Los Angeles Housing + Community Investment Department (HCIDLA). This agency is full of resources, and because it’s responsible for enforcing code and regulatory compliance, it’s a good way to stay up to date on what you need to do when you’re renting out your investment properties. You’ll find foreclosure records and other lists, and there’s also an entire section on the HCIDLA website dedicated to rental property owners.
The California Eviction Help Center can be a great resource for investors who find themselves needing to evict a tenant. Bell Properties California always recommends not evicting without the help of an attorney or a Los Angeles property manager. It’s riskier than ever to evict, and it’s likely to take longer and be more expensive than you expect. But, a good starting place is this agency, which can provide some information to owners who are dealing with tenant disputes, nonpayment of rent, lease violations, and other issues that might lead to a lease termination and eviction.
The Housing Rights Center is your best resource for fair housing information. This agency serves both Los Angeles County and the city. You can find counsel on how you screen, market, and lease to tenants. Fair housing mistakes are expensive and bad for your reputation. Avoid them by leveraging all of the resources and information available here.
Resources around Rent Control
The statewide rent stabilization laws have been in place for a few years now, and most investors have become accustomed to what they mean and how they apply. However, there are always nuances. There are always exceptions. There are always different ways that the courts might interpret the law. New legislation is always being proposed. How can real estate investors keep up?
Outside of the state laws, there are also local laws around rent control in Los Angeles. Los Angeles residential real estate is subject to a Rent Stabilization Ordinance (RSO) locally. This should not necessarily be a deterrent to investors; most rental property owners would tell you that it’s easy to work with. You do have to be aware of what it means for you and your investment properties, however. Understanding the RSO's impact on your investments (and how to manage it) is essential for a successful rental business. Make sure you’re getting your information directly from the city or a trusted Los Angeles property manager.
Property Management Resources for Smarter Investing
As you think about maximizing your Los Angeles investment potential, you need to think about the partnerships that can help you succeed. As you’re thinking about your long term and your short term investment goals, smart investors will tell you that the best way to strengthen and protect your investment portfolio is with the help of a local LA property manager.
Yes, you rely on your property manager to place residents, establish the right rental value, collect rent, and respond to maintenance. But, we can do much more for you when you’re willing to tap into our expertise. We can help you build a strong investment portfolio. Here’s how:
Higher Income and Returns
When you think about leaning into the opportunities in the LA market, you might think this means adding to the number of properties you currently own. Certainly, this is one way to do it. But, it’s not the only way. You can also increase the size and strength of you portfolio by making the properties you currently own more valuable.
Property management helps you earn more rent. This starts with pricing your property both competitively and for profit. Property managers know the market better than you do as an independent investor. We have unique strategies for understanding the rental values and evaluating the competing properties. At Bell Properties California, we follow the changing demands and preferences of residents.
All of this expertise and all of our tools and technology helps us establish a rental price that doesn’t leave you playing catch-up. That leads to a stronger position inside this competitive market.
Protecting your Los Angeles Investment
Property managers are also a great resource for investors because of the asset protection that’s provided.
The role of your property manager in keeping costs down cannot be overstated. Making mistakes is risky and expensive. Overpaying for maintenance, placing bad tenants, forgetting a fair housing law…all of those errors can cost you money and time. Protecting you from risk and liability is an important part of a property manager’s role in helping you succeed as an investor.
Expect your property manager to provide the sort of protection and risk management that is difficult for independent landlords and investors to access on their own. We understand all of the local, state, and federal rental laws that pertain to your property. We understand how to properly return a security deposit and what to do when a resident doesn’t pay rent.
Bell Properties, protects you from unqualified residents and expensive legal mistakes. This is essential to maintaining and growing a strong portfolio. Property managers are an invaluable resource because we save you money on:
Vacancy and turnover
Cleaning, landscaping, pest control, and other services
Evictions and legal risk
Maintenance Vendors and Contractors are Invaluable Resources
Another great resource that any real estate investor needs is a preferred network of vendors and contractors. Maybe your property manager provides this for you. Maybe you have your own. However you come by these skilled professionals, make sure you know who to turn to when you need rehab work done, preventative maintenance, or cosmetic turnover work.
A good maintenance team is critical when you invest in Los Angeles real estate. There are going to be repairs that are needed, and those repairs will occur while a tenant is in place and between the tenants who are leaving and arriving. You’ll need a list of preferred vendors and contractors who can work quickly.
Things will inevitably break at your rental property, no matter how new the home is, and no matter how great your unit’s condition is. There will always be normal wear and tear and general deterioration that occurs during your tenancies.
There’s maintenance and then there are also improvements. If you find yourself dealing with longer vacancy periods, you may want to take those opportunities to make some upgrades and updates. Those renovations will increase the rental value of your property and help you attract good tenants. They may also be necessary to compete with other seasonal rentals in the market.
If you’d like to leverage the resources we can provide you, we’re happy to share them. Please contact us at Bell Properties, and we will help you capitalize on the LA real estate market with everything we know.