Cal-Prop has continually come in contact with owners of rental property from eight to fourteen units where the owner has a person on-site managing the property. The on-site manager typically gets a free or reduced rent apartment and then is paid for extra maintenance and/or grounds work performed. Often these managers have been on the property a long time and were probably very effective at one time. What Cal-Prop has seen happen is this: Over time the manager realizes that keeping the rents low makes for less work for him or her. Tough decisions get passed on immediately to the owner and the owner keeps doing more and more of the work necessary. Many aspects of the position are not handled in a professional manner. All of this while paying more for the on-site than an owner would for professional management. The net effect is reduced net income relative to what a property could produce, continual owner hours spent unnecessarily and increased risk for tenant claims due to lack of knowledge of new laws or unprofessional behavior.
Cal-Prop has a solid history of immediately creating better performance after taking over for on-site managers. In 1998 we took over 20 units all in four unit buildings on Chalcedony in Pacific Beach and immediately increased the rents $50,000 per year. In 1999 we took over 14 units on Felspar and immediately increased the rents $25,000 per year. Back in 1989 we took over eight units on Sapphire St and doubled the rents immediately. All of these properties had long-term on-site managers. Often a manager has served you well, but it is time for a change. Call Cal-Prop for a thorough analysis of how your building can perform at its best.