Common Pitfalls of Self-Managing Your San Diego Rental Property

Perhaps you remember a time when managing your own San Diego rental property was as easy as finding a tenant and collecting rent. Perhaps you think it won’t take more than a few hours a month. 

Unfortunately, a lot has changed in the California rental landscape. Managing your own rental property is riskier and more complicated than ever before. Today, the laws, regulations, and expectations of tenants have become more challenging for owners, especially those who don’t have the time and the experience necessary to effectively lease, manage, and maintain a rental property. 

Making a mistake is easy, even for experienced landlords. 

We encourage you to consider professional San Diego property management when you’re renting out a home or a portfolio of properties. To illustrate why it’s so important, we’re sharing some of the most dangerous pitfalls that landlords find themselves dealing with while managing their own homes. 

Legal Pitfalls for Self-Managing San Diego Landlords

The most complicated and expensive errors are typically a result of landlords not knowing the laws or understanding how they need to be implemented. 

You need to understand a number of federal laws, including the Fair Housing Act, Americans with Disabilities Act, and Fair Credit Reporting Act. You also need to understand the state laws that govern evictions, rental increases, screening, and your rights to enter an occupied property. Security deposits have to be returned lawfully and within a three-week timeline. 

There are trust accounting laws and specific laws that protect people with disabilities and active members of the military. If you don’t know them, you can get into trouble. That trouble will almost always be expensive. 

Losing Money with Self-Management

There’s a misconception that managing your own property will save you money because you won’t have to pay a leasing fee or a monthly management fee. Actually, you have the potential to earn more when you’re working with professional San Diego property managers who have experience maximizing the rental income and long term ROI for their owners. Here’s where the difference in what you earn can be found with professional management: 

• Lower vacancy rates
• Higher rental values
• Rent consistently collected on time
• Competitive maintenance costs due to volume discounts
• Less risk of eviction and property damage
• Higher tenant retention and faster tenant turnovers

You can actually lose money when you manage your own property. You may spend more than you have to, and you’ll risk high vacancy and turnover costs. 

Risking Deferred Maintenance and Property Damage

Another common pitfall to self-management is deferred and unreported maintenance. Minor issues that are ignored by tenants and landlords can quickly become larger and more expensive repairs. You could also be faced with potentially dealing with significant property damage. 

DIY Property Management and Tenant Relationships

What will you do if you run into a conflict or a dispute with your tenants?

Self-managing landlords sometimes have a hard time with tenant relationships. A lot of landlords will be too friendly, and this will lead tenants to think they can get away with things like late rental payments, unapproved pets, and minor lease violations. If you have trouble enforcing your lease because you want to be “nice,” you’re going to find yourself losing money and respect. 

Working with a management company ensures your tenants are well-screened and reliable. You’ll have a professional buffer between you and your tenants and there will be no risk that you’ll become emotionally involved.