Here in the Antelope Valley a change is taking place. Just a few short years ago, property values were climbing at an astronomical (or comical) rate. You could literally buy a property that would be worth $50,000 more by the time that you made your first six payments. Ahhh... the good old days right? Of course, with homes flying off the market as fast as they were put on, several vultures spotted an opportunity to make a kill. "Realtors" began popping up left and right who had no real interest in the profession other than to make a quick buck by utilizing their substandard work and ethics to prey on those who trusted them.
Market crash - cue dramatic music: Alas! The market was as fickle as those vultures who capitalized on its good fortune. The tide changed and suddenly homes were no longer selling as well as they should. The "quick-buck" Realtors were gone, stampeding on to greener pastures, while leaving their poor clients to trudge through their manure!
In the chaos that followed, lenders began to go out of business, standards were tightened, and it was no longer easy to buy a house without a substantial down payment. It was at this point that a new breed of vulture spotted an opportunity. Due to the fact that lending standards were revised and tightened, more and more people began to look towards renting to meet their housing needs. These new vultures swooped in and began to offer themselves as property managers. Several new companies were hastily formed here in the Antelope Valley...several of which have already gone under. Their clients are now stuck with bad tenants, and no one to clean up the mess left behind (which is, ironically, a vulture's job).
Some people might say that these guys won't be around for long and pose no real threat. However, the truth is that they can pose a very serious threat to those who end up trusting them with their money and homes. I spoke with an owner a couple of months ago who told me that he had trusted a guy that said he would manage his newly purchased property and take care of any repairs that needed to be made. Unfortunately, the vulture ended up skipping the country. He flew to the Philippines without letting the owners know he was leaving and took all of their repair money with him. The problems went on from there. While "managing" their property, he moved several people into the 12 units and neglected to run any kind of background checks, save applications, or even get a lease signed.
Now, obviously this scenario was pretty horrible. However, the fact remains that there are people out there who may not skip the country, but may not have the experience and knowledge to manage a home either. A few weeks ago, I attended one of the weekly MLS breakfasts for the Realtors of the Antelope Valley. During the announcement portion of the breakfast, a local (Big Shot) Realtor made the following statement.
"...and just to let you all know, I have recently begun managing properties. I know...I know. The things we'll do for money when the market sucks, right?"
Hmmmmm... Based on a statement like that, would you want to hire this guy to manage your home??? He obviously takes no pride in that line of work. It comes across fairly clearly that he thinks property management is somehow beneath him. It is that kind of guy that home owners really need to watch out for. This is the type of guy who will sound like he knows what he is doing because he knows the lingo. Unfortunately, knowing the lingo does not necessarily mean that he actually knows how it works.
In the next few blogs, I will go over the characteristics that you should be on the lookout for when choosing your property management company. The rules that apply here in the Antelope Valley are universal. Stay tuned!
For more information on how on how to avoid the vultures, or for other solutions for today's Antelope Valley rental market, please check out our website by clicking on the logo to the right!
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