Investing in high-end Los Angeles rental properties is a great idea if you want to earn high monthly rents and cater to sophisticated, high-needs clientele. This type of investment strategy is not for everyone. You need to know how to effectively lease, manage, and maintain a high-end home. You need to know what your tenants will expect from you and the property, and you need to be ready to deliver.
Investing in high-end homes, while challenging, can easily be done, even if you don’t have a lot of experience in real estate and property management.
Investing from out of state, however, is a bit more challenging. When you don’t live near your Los Angeles rental home, you cannot respond to the wishes and needs of your tenant-clients right away. And one thing we can tell you as experienced Los Angeles property managers is this: those high-end tenants will have a lot of wishes and needs.
What you need, when you’re renting out such a property from afar, is an experienced and sensitive property manager. You need a management partner with experience leasing high-end homes.
Here’s how you can invest with peace of mind and profitability, even if you don’t live in Los Angeles.
Look for Los Angeles Property Managers who Invest in Communication and Technology
Communication is a huge concern for out-of-state owners and investors, especially when we’re talking about high-end homes that are worth millions of dollars. This is understandable. You’re miles and miles away from your rental properties, but you want to know they’re safe, occupied, and in good condition. You can’t drive over there yourself.
This is why it’s so important to work with a management company that’s experienced with owners who live out of state or even out of the country.
We place a lot of value in communication, and we’re responsive when you call and send messages. We will include photos in all our inspection reports so you can get an accurate look at how your property is performing. We offer online portals so you can easily access accounting statements, maintenance invoices, and other documents.
We also invest heavily in technology. This ensures that you can get in touch with us whenever you need to. There’s no game of endless phone tag. Send us a quick message on your portal, and we’ll respond right away.
We use our technology to make the investment and rental process easier. We use it to hold ourselves accountable and to communicate better with you and your upscale tenants, who may trend towards being more demanding.
Protecting the Value and Condition of Your Asset
The condition of your property is important to you; it impacts the value of your asset and the experience your tenants are having. When you’re renting out a high-end home, you have several thousands of dollars coming in every month as a rental payment. You want to keep that income consistent.
This requires a great maintenance plan and a strategy for protecting your asset. Here’s what we recommend:
- Frequent and detailed inspection and walk-through reports.
- A strict tenant screening process.
- Preventative maintenance and responsive routine repairs.
- 24-hour accessibility for emergencies.
- Concierge services for your tenants so they feel comfortable and treat your property well.
The value of your asset depends on the tenants living there treating it well. We conduct a thorough screening process, and we keep in touch with your tenants throughout the lease term. Close relationships with residents ensure that your property is never in danger.
You Need that Rent Collected on Time
Rent collection is important no matter what type of home you’re renting out. When you’ve got a high-end home on the rental market, however, on-time payments are critical. You need that money for your own financial peace of mind. And when you’re out of state, you can’t exactly show up at the door and collect a check for the monthly rent.
This is where your local property manager can be a resource. Payments should be made via ACH or wire transfer. You may not even be collecting it directly from the tenants; it’s likely coming in from their CPA or accountant. This requires coordination, and if you’re living elsewhere, it’s best handled by your trusted property manager.
Find out how rent will be paid and when you can expect to see it in your own account every month.
Keeping High-End Los Angeles Rental Properties Occupied
When you’re investing in property from out of state, the vacancy period can be especially stressful. You’re not there to take a look at your home, to update the security features, to make sure it’s safe. You’re relying on your property manager to do this instead.
Vacancy is dangerous. Not only does it cut into your rental income and ROI, it also makes your property vulnerable. Keeping your property occupied is always a concern, but when you’re outside of the area, it seems to take on a new urgency. Vacant properties are a potential target for criminals who see an unoccupied home as an opportunity. Unoccupied luxury homes are especially attractive.
An out-of-state owner will want to know their rental property is being protected even while it’s vacant. This might mean an additional security system, upgraded exterior lighting, and the occasional drive-by or visit from your Los Angeles property manager.
Work with Property Managers Who Understand California Rental Law
You don’t have to live in California to know that the state has some of the most restrictive laws when it comes to rental properties.
This is a tenant-friendly state, and many owners who don’t live here but do own rental property here are concerned about the recent laws that impact how the rent is raised and when tenants are evicted. You want to make sure you have a Los Angeles property management team that keeps up with all the new laws as well as the changing to existing laws such as tenant screening, Section 8, fair housing, and security deposits.
Thanks to technology, it’s easier than ever to invest in Los Angeles real estate from out of state. The challenge, of course, is that high-end properties come with special needs and considerations. You need to make sure your property management partner is a local expert and industry leader. You need someone who has done this before.
That’s us, and we’d be happy to talk more with you about how to invest from wherever you are. Contact our team at Earnest Homes.