Downtown San Diego Property Management and FAQ’s
When considering renting your San Diego condo there are a few questions and concerns you should have for the property management firm that you hire. This article is intended to assist with the interview process as well as answer some of your basic questions.
What questions should you ask the Downtown San Diego Property Management Company that you are considering for the job? The following is a list of some obvious questions and maybe some not so obvious questions you should ask.
1) Please explain your experience level with Downtown San Diego Property Management?
The answer your looking for here should make you comfortable that the person or firm that you are hiring has an experience level commensurate with your expectations.
2) What will my condo rent for and why?
I tell all of my clients what I think their condo will rent for because I am confident that I know the market. With that said, I always leave the pricing up to the owner. If I tell you that your condo is going to rent for 4,000 and you want to list it for $4,500, that’s fine. I will take the listing at $4,500. Just keep in mind that you will likely surpass the cost over break-even point during the listing period.
Cost over break even point: When a condo is over-priced, there becomes a time when renting it at a lower rate over the period of the lease will gross more revenue than if the condo actually rents at the over-priced amount. Using the above example, if we take your condo listing at $4,500 when you condo’s market value is really $4,000, then the cost over break-even point for a one year lease is: 45 days
So, if your condo sits on the market for 46 days or more, you’re giving money away each and every day thereafter.
3) Please explain your overall knowledge of Downtown San Diego Condos and Downtown San Diego Development?
The answer you’re looking for here should relate to the managers ability to discuss the differences between your building and the ones in close proximity. The manager should also know what future development may impact your unit both positively and negatively.
4) To build on the previous question, ask the following: What is the difference between my building and…..(ask about three others in close proximity) Any management firm with experience downtown must know the difference in order to price units appropriately and discuss them to potential tenants.
5) How much insurance should I get?
This is an extremely important question. I have seen property owners go bankrupt because they did not have appropriate insurance for their investment.
6) Do you have property management insurance?
The answer you receive to this question will tell you right away if you’re dealing with a professional property manager or just a broker/agent that is trying to make a buck. If you think it’s not important, you could be right. Just hope you don’t have to find out.
7) Do you do professional tenant representation?
Companies that do professional tenant representation, like The Downtown Condo Showroom, have strong data bases of potential tenants and can likely rent your condo quicker than those companies that do not assist tenants.
8) Where do you market properties?
A company may or may not answer this question. Personally, I do not answer this question until I am under contract. Too many times I have gone on interviews only to discover that I was just being used for information from the do-it-yourselfers. With that said, you will want to make sure that it is being listed in the MLS. Many fly by night companies won’t list the property for rent in the MLS because they don’t want to pay the commission. This is a disservice to you, the owner!
9) Do you have an office Downtown?
This could be the very first question you should ask because if the answer is no, then you shouldn’t even bother with the rest. Golden rule #1 in real estate: if you can’t show it, you can’t sell/rent it. Companies outside of downtown are not likely very keen on driving into downtown and dealing with the urban nuances. They are much less likely to accommodate all showings. (refer to golden rule #1)
Downtown San Diego Condo Rental FAQ’s
While the big concern for any landlord is what to do with a tenant that has stopped paying rent and won’t leave, there are many other issues that can arise during tenancy. The firm you hire should have a plan in place for this scenario, also known as an unlawful detainer, as well as the following topics discussed:
What happens if we get a notice of termination of tenancy and the tenant stops paying rent?
Send a three-day notice to pay rent or quit. If they still don’t pay, make every effort to come to a common ground for repayment or move-out. Remember, they still live in your condo. If all else fails, start the eviction procedure. If you find yourself in this situation, we highly recommend using a firm like Kimball, St John, and Tyree that specializes in these procedures.
What steps can I take if a husband and wife or couple submits a restraining order against one of the others but they are both on the lease?
While you should not officially remove their name from the lease you do need to give him or her a copy of the lease and request a copy of the restraining order not allowing the banned party access to the rental.
What happens if tenant gives notice to move out and then for some reason has to extend that time?
If this extension is approved, you should have them sign an extension of the lease so if they failed to vacate you can proceed with eviction notices.
What actions can I take it the tenants don’t agree with the deductions in a security deposit?
So long as your rental or lease agreement is in writing the statute of limitations on lawsuits is four years. If the agreement was verbal it’s only two years. They do need to take action immediately if they wish to argue the deductions.
How reliable am I for a renter or tenant that falls and hurts themselves?
You would need to verify that the negligence was because of your building or something you could have prevented. If the tenant falls on the stairs because of disrepair then you could be liable. It’s best to check with your insurance agent right away.
If the tenant or their guests cause damage to the unit do I have to pay for it?
The resident is liable for any damage to the condo caused by themselves or guests. However the property manager can make repairs and require reimbursement for the cost. This can be either in the monthly rent or the security deposit.
What can I do if a relative or friend needs inside the condo or rental when I don’t have resident approval?
You legally cannot let anyone into the property without resident approval; however, if there is a reason such as death, hospitalization, or imprisonment, you will need written authorization from the resident or power of attorney to allow them to enter the unit.
What actions can I take after tenant has been evicted yet continues to return to the property?
Legally the former tenant is trespassing and you can contact the authorities to have them properly removed.
If a rental potential has been evicted in the past how long do the court records stay in effect?
Credit bureaus delete judgments after about seven years. At this point you may need to trust the honor system and references of the prospective tenant.
If the tenant gives me a 30 day move-out notice, yet they don’t vacate the property until 10 days after the 30 day notice do they owe an entire month’s rent?
The rent should be prorated for the 10 days remaining in the unit and any compensation if the property manager was able to rent the property and yet couldn’t due to the fact that previous tenant was still in the property.
What is the military cause and do I have to accommodate?
This clause is an addendum to the lease agreement allowing active duty military personnel to terminate the lease based on military status if they have a change of station or deployment. The Servicemember’s Civil Relief Act protects military tenants in this case anyway but it’s a good idea to let the property manager know ahead of time.
Being a property manager for San Diego condos, I can tell you that many owners unwittingly put themselves in harm’s way. I have seen inc0me property owners go bankrupt because they did not protect their investment. BE CAREFUL and KNOW THE LAW if you are going to go about it yourself. If you are going to hire a San Diego Property Management Company, make sure they can answer the questions I’ve listed in this article to your satisfaction.
Finally, keep in mind that the minute you decide to rent your Downtown San Diego Condo, your investment becomes a business. I have seen it time and time again when owners bring emotional attachments into the operations of their investment.
If you can’t remove yourself emotionally from the investment, sell it. The stress will just eat you up. We all have enough of that in our day to day lives. If you can make the separation, owning investment property can have an incredible financial return. I work with a wide range of condo owners and there can be a place for everyone with the right mindset and means in this business!
Downtown San Diego Condo Experts
The Downtown Condo Showroom is a real estate firm that specializes in the sales and rentals of Downtown San Diego Condos. Our office is located in the heart of the Ballpark District just outside of the left field gates at Petco Park – 715 J St. Contact us directly at: 877-921-0111 for updates on any listing of condos in San Diego. We can offer private tours of any San Diego Condo area regardless of the listing agent. Find out how affordable condos in San Diego can be. We look forward to talking to you soon.