PROPERTY MANAGEMENT IS NOT PERSONAL

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

As owners of anything we tend to take what we possess and defend it as it is ours and being so comes under the realm of boundaries involving permissions and protections. Your family, car, job, personal possessions etc. need looking after some things more than others. Owning is just the beginning of responsibilities that can last a lifetime of commitment. Lets look at investments through these eyes

MY PROPERTY

Let's start with our home. Known as a place of rest, a persons castle & even sweet we come & go from it & delight in it when we do. It is so personal and rewarding that it drives not only the American dream but roots in mankind that go back to our dawn. We must have & need a place to call our own renting included

MANAGEMENT of HOME

Our homes reflect what we delight in & care for & become even fun once we start decorating & adding those personal touches that bring us added pleasures & distractions too. From entertaining to BBQ we tend to our personal Real Estate. Notice how we protect & defend those property boundaries too (fencing)

OTHER REAL ESTATE

When it comes to owning rentals or commercial property where income is involved we do not take the personal approach as much as we do with our homes. In fact, another dynamic shows itself. We want this investment to pay-off & perform according to expectation & what should govern it is dollars & sense math

WHY WE HIRE MANAGEMENT

We not only want to maximize our investment but to protect it & have it perform accordingly. Most personal relationships with tenants are subject to risk when owners get involved. Why? Simply put because owners take it personally when something happens to their property. The key word is THEIR property?

YOU FORGET WE LEASED/RENTED IT OUT

The tenant in possession is now sitting in the owners seat and has paid a good price to do so. It is governed by agreement and the majority of problems are now under the direct control of the lessee/tenant/renter. What you cannot outsource, waive or dismiss are certain city, state and federal rules that must be obeyed

QUIET and PEACEFUL ENJOYMENT

The persons in possession of the the rental property are promised by law to be able to enjoy and use the property similar to being the owner but subject to boundaries and limitations as set forth. Once in possession the renter becomes a type of owner & as such has a undisputed powerful and protected position

WHAT CANNOT BE WAIVED

Habitability meaning the basics of a property & its existence/performance must comply with all regulations including having roofing, sewer, safety & insurance for same plus be in good working order. The city will pursue owner of record for all violations. Owner after that can pursue contracted obligations

COMMON ISSUES EXAMPLE

If plumbing gets stopped up this can cause a health issue. Health department requirements override contract agreements for remedy. If there is an agreement for the tenant to remedy than they will or should. But if they don't, the owner is responsible to cure. Pursuing a breach of contract is another matter separately 

MOLD & MILDEW

When this is present it must be cured and contracts govern as to how to go about this. However it cannot be waived by owner. The same thing applies to plumbing, roofing and electrical. You can have agreements that call for remedy by the lessee/tenant but if they fail the owner cannot. All City rules apply constantly

LEASING vs RENTING

Commercial leasing is different than apartment renting in the relationship between owner/renter not only in contract but application as well. In commercial leasing the ones in possession treat the property as their own and respond and correct automatically to any issues without being told. Not so much with personal rentals

RENTED OUT APARTMENTS & HOMES

When a tenant causes an issue like a plumbing stoppage or puts a hole in the roof or ruins the furnace, appliances etc. they may be tempted to stop paying rent until these items are corrected. Refusing to pay rent is a personal assault to owners who often over-look or dismiss the why behind it all. Its a common reaction

DISPUTES

Landlord tenant law is complicated and many times it favors the tenant. Offsetting and regulating potential disputes is the rental agreement between the parties. Enforcing an agreement can be expensive and time consuming making selecting a good tenant a priority. Handling disputes is also part of this importance too

PROFESSIONAL MANAGEMENT MATH

I have spent over 20 years in the courts in regards to contractual disputes in the landlord tenant realms. The one thing that stands out is to avoid court at all times if possible. Why? Its expensive, time-consuming, stops rental income & puts the investment property at risk. That's why it is important to have the following

PROFESSIONAL PROPERTY MANAGEMENT 

As a property manager I have a fiduciary to my client (the owner) but I also treat all others fairly and honestly plus promote contact, availability and resolution to existing and potential problems. I often look at the big picture as well as the one in the moment too. Let me share a little math common sense approach

THE PROPERTY IS PAYING OFF

The owner is getting a monthly premium called income and at the same time is getting appreciation over time for the asset. A performing property puts out a yield and has a budgeted for expense allowance. Keeping everything moving consistently protects the investment short and long term. Here is the point

DON'T GET INTO PETTY DISPUTES

A professional manager that is seasoned knows the values to all involved and acts accordingly. If one has to spend a few dollars to protect the many dollars let common sense prevail and not contractual obligations if at all possible. Each situation is unique granted. However at no time should any of it become personal

close

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Topic:
Real Estate Best Practices
Tags:
income
property management
expenses
litigation
return on investment
proactive
solving problems
disputes
lawsuits
remedy
landlord tenant laws
habitability
short term gain
long term gain

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Rainmaker
3,360,748
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Richie - there is a big difference between one's personal home and an investment.  Nicely organized post.   Quite thoughtful.  

Oct 05, 2019 09:16 AM #1
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Michael Jacobs ...how good of you to visit and lend a comment thank you

Oct 05, 2019 09:52 AM #2
Ambassador
3,899,360
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

HI Richie- so well said!!!  It's business but as always you have to look at the bigger picture. Is it worth nitpicking over everything at the risk of losing a tenant who faithfully pays and maintains the property?

Oct 05, 2019 01:58 PM #3
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The wole post summed up in your decent commenting Kathy Streib thank you

Oct 05, 2019 02:53 PM #4
Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                

Oct 05, 2019 07:14 PM #5
Rainmaker
2,943,357
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Richie.

I know I've said this before, but I would not be a good landlord.  I've seen what people can do to a home in a short time frame. 

Oct 06, 2019 01:50 AM #6
Rainmaker
441,707
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

I tried property management for about six months! I don't have the patience for it. I not sure which is more trouble owners,or renters. 

Oct 06, 2019 06:19 AM #7
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Kathy Streib ...I'll meet you at Kathy's Kafe.....

Hello James Dray ...so be it as we are all just passing through

Hello Tom Bailey ...both remain a handful Tom....

Oct 06, 2019 06:22 AM #8
Ambassador
1,867,335
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi Richie, this is well organized, as Michael pointed it. You have done a great job explaining the differences in renting versus home ownership. We used to rent out an investment property, but realized we weren't the right folks to deal with tenants and sold it. It was like a weight off of our shoulders. Ha. 

Oct 06, 2019 07:54 AM #9
Rainer
408,508
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

As always..... a delight in reading your breakdown of real estate related topics, and this is a very important one.  Simple common sense and following the rule of law, always prevails in the end.  Thanks  , for a well thought out posting!!

Oct 06, 2019 09:53 AM #10
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hi there Debb Janes EcoBroker and Bernie Stea JD ...your comment counts

Hello Dan Hopper ...so good of you to lend yourself to the posting Dan...best

Oct 06, 2019 09:56 AM #11
Ambassador
4,012,112
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Richie:

I now a number of people who own rental property and most have decided to hire a property management company rather than take it on themselves - although some tried for a while - even the properties that are local to them. Wise choice in my opinion. It's a good business decision, with the right property management company!

This is a well-thought out post on issues to keep in mind.

Jeff

Oct 06, 2019 11:50 AM #12
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Jeff Dowler, CRS ...your comment enhances the posting thank you Jeff

Oct 06, 2019 12:22 PM #13
Ambassador
3,350,993
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Kudos to you for doing what you do, Richie! I manage my own investments and it's not easy by any stretch of the imagination - especially when you're working with BOTH (the landlord & the tenant). 

Wonderful summary that definitely hits the major points for the parties involved in using property managers.

Have a great week ahead!

Oct 06, 2019 09:38 PM #14
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Pleasure accompanies this woman wherever she goes this Debe Maxwell, CRS 

Oct 07, 2019 06:48 AM #15
Rainmaker
406,407
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Good morning Richie, a great post. Keeping your emotions in check with your real estate transactions will make the process less stressful. 

Oct 08, 2019 03:55 AM #16
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I like the way you put it Matthew Klinowski, PA 

Oct 08, 2019 06:37 AM #17
Rainer
341,377
Jim Smith
The Property Management Company - Round Rock, TX
Broker,CRS,GRI,RMP,CNE,TRLP

Agents work with home buyers to find a lifestyle; We work with investors who are looking for bricks-and-sticks to create a cash-flow.  often, we must educate a homeowner who is turning their 'home' into an investment rental.  A professional Property Manager understands the difference of homes VS investments; and, takes the time to counsel the client accordingly.

Oct 11, 2019 07:33 AM #18
Rainmaker
2,464,109
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Jim Smith ...nicely shared and thank you J. S.  

Oct 11, 2019 07:52 AM #19
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