Should I Hire a Property Management Company? San Diego Landlord Education

americanheritageproperties • December 8, 2015

Potential clients often ask me if they really need to hire a professional property manager. I always answer that question by asking several of my own.

Marketing and Screening

I ask if they have the time and expertise to market and show the property. I ask if they have the knowledge and resources to screen tenants, and if they know what to look for on an application to judge the credibility of a tenant.

Once you have a qualified tenant, do you know what to include in the lease to protect your property? Do you know what to document in the property prior to a tenant moving in? The process includes taking a lot of pictures and writing a lot of things down.

Maintenance

When the tenant is there, will you be available 24 hours a day and seven days a week for emergencies and maintenance? Things will come up. You also need to know how to properly respond to maintenance requests the tenant will have during the tenancy. Sometimes, tenants will request silly things and sometimes the things they request are habitability related. You need to know how to differentiate between unnecessary things and the things you have a legal responsibility to maintain.

Tenant Relationship

It’s also important to know what to do if a tenant is late paying rent. What’s the best method to encourage tenants to pay on time? What if the tenant stops paying rent completely? Do you know what steps to take and do you have a plan?

If the tenant causes problems during the tenancy and breaks the lease, you need to know how to handle that. What if there are a lot of noise complaints from neighbors? You need to know what to do in that case and how to take the first step. What if the tenant moves out early? What are your legal responsibilities and how do you handle it? About five percent of leases end early because of a tenant leaving. There might be a job transfer or the tenants might buy a house. Maybe there’s a military transfer and a military transfer is going to be different; do you know how?

Security Deposits

When a tenant moves out, there’s a process that needs to be followed. An inspection is required and you have to know how to take back possession. Are you able to determine the difference between tenant damage and normal wear and tear? You’ll be held to high standards when you’re making charges from a tenant’s security deposit. Landlords are professionals and you need to know what to do – you’ll be held to high standards in court. There’s a lot of accountability and responsibility.

Rental Price and Business Decisions

You need to know how much to charge for rent. You can look for the going rate for homes like yours on Craigslist, Zillow.com and Trulia.com, but you have to be careful. These sites can provide ideas, but we rent about 350 properties a year and we know what rents should be, but it’s not always an exact science. You need to be able to go beyond what you find online. People can list property for whatever they want.

An important question to ask is can you make decisions solely based on business instead of emotional and personal factors? In 27 years of property management, this is the biggest mistake we see people make. Those personal thoughts influence business decisions. You might hear a sad story from prospective tenants about poor credit due to an accident or lack of income verification because they’re between jobs. People will use a variety of methods to get into your home. Regardless of the story and your level of compassion, you have to keep your decisions based on business.

These are the most important questions to ask yourself when you’re deciding whether you need a property manager. If you have any questions, please contact us at American Heritage Properties.

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Should I Allow Tenants to Paint my Rental Property?

By 1946674 • April 4, 2025

Considering letting your tenants paint their rental unit? Here’s a breakdown of the pros and cons to help you decide!

Flipping the Script: A Real Estate Investor’s Guide to Mastering the BRRRR Method

By 1946674 • March 27, 2025

You’re not just buying a house—you’re building a system. The BRRRR strategy is more than a catchy acronym; it’s a calculated framework for long-term wealth creation through real estate. But to make the model work, every step must be intentional. From scouting a distressed property with upside potential to getting the refinance terms that keep your momentum going, each move should serve the larger strategy: creating a snowball of cash flow and equity you can roll into the next investment. Buying Smart and Navigating the Financing Maze When you’re buying your BRRRR property , cash is king—but leverage is the game. If you're not buying with straight cash, consider hard money loans for the initial purchase and rehab. These are fast and flexible, even if the rates are higher. Traditional lenders won’t touch most distressed homes, so you’ll need financing that’s built for speed and risk. But the real play is having a solid exit plan from day one—know how you’ll refinance before you even close. Spotting Properties with Built-In Potential Finding the right property to kickstart your BRRRR cycle isn’t about chasing cheap deals—it’s about targeting opportunities that other investors overlook. You’re looking for distressed homes in appreciating neighborhoods, not just anything with a low sticker price. Pay attention to the numbers: after repair value (ARV) should leave enough room for rehab costs and still produce cash flow after refinancing. Drive the area, talk to neighbors, check school zones, and analyze rent comps before pulling the trigger—because the money is made at the buy. Crafting Clean, Clear Leases That Protect Your Property When renting out homes, a well-written lease agreement sets the tone for a smooth landlord-tenant relationship by outlining clear expectations, responsibilities, and protections for both sides. It’s smart to tailor each lease by deleting sections that don’t apply to the specific tenant situation, keeping the document simple, relevant, and compliant with local regulations. Once finalized, save your leases as PDFs—not only for easy sharing, but also for secure digital storage and quick reference during disputes or renewals. If your standard lease includes unnecessary clauses or attachments, you can easily delete pages from a PDF to streamline the final version. Rehab with Returns in Mind You don’t need marble countertops, but you do need durability and mass appeal. Stick to upgrades that improve function, safety, and rentability—new HVAC systems, updated kitchens, clean bathrooms, fresh paint, and LVP flooring are your go-to staples. You want the rehab to raise both the appraised value and the rental income, but without over-improving for the neighborhood. Think like a tenant but act like a landlord: practical, clean, and efficient wins every time. Tenant Screening Is Not a Guessing Game The wrong tenant can ruin your entire BRRRR timeline. You’re not just filling a vacancy— you’re protecting an asset . Run background checks, verify income, and call previous landlords every single time. Create a system that’s consistent, fair, and compliant with local laws so you’re not making decisions on instinct. Good tenants don’t just pay on time—they protect your property and reduce turnover, both of which matter when it’s time to refinance. When It’s Time to Refinance, Timing Is Everything Once the rehab is done and you’ve stabilized your tenant, it’s time to pull the equity out through a refinance . This step resets your capital so you can do it all again, but the key is hitting the loan-to-value (LTV) sweet spot. Lenders typically look for 75% LTV, so your post-rehab appraisal needs to justify the refinance amount. Have clean documentation ready—leases, repair receipts, rent rolls—and don’t wait too long, or seasoning requirements could delay your next move. Stacking Your Wins for the Next BRRRR The beauty of BRRRR is in its repeatability. Once the refinance goes through and your capital is liquid again, don’t sit on it—get hunting for your next deal. Use the lessons from your first property to refine your criteria and streamline the process. Build relationships with wholesalers, stay active in investor groups, and keep your contractor on standby. Every successful BRRRR adds more cash flow and equity, but also more experience—which becomes your unfair advantage. You can’t wing it with the BRRRR model. Every phase—buying, rehabbing, renting, refinancing, and repeating—requires focus, planning, and discipline. But if you stay committed to the process and treat each property like a building block, you’ll create a portfolio that pays for itself and compounds over time. This isn’t get-rich-quick—it’s build-wealth-smart. And once you get it right once, you’ll wonder why you ever considered doing real estate any other way. Discover unparalleled property management services with American Heritage Properties , where our dedicated team ensures your investment thrives.