If you're still unsure about investing in a turnkey property in San Diego, CA, here's a stat that would prompt you to do so: landlords here earn a yearly average of $84,389, per ZipRecruiter. Top earners even make up to $160,318 annually!
However, to realize your investment's maximum income potential, you need effective turnkey property management. You have two options: in-house or third-party.
To that end, we here at Investment Safe Property Management put together this guide to help you make a more educated decision. Read on to discover the pros and cons of property management when you do it in-house vs. outsourced.
In-House vs. Third-Party Turnkey Property Management
When you opt for in-house turnkey property management, you, the owner/landlord, will handle all management duties. Some of these responsibilities include:
- Obtaining rental property valuations
- Staying on top of changes to rental laws
- Marketing your property
- Using a compliant and consistent tenant screening process
- Enforcing lease agreements
- Collecting rent
- Ensuring your rental is up to all building and safety codes
- Abiding by California's legal eviction process
If you opt for third-party property management, you can delegate all those tasks to a company specializing in turnkey management. From evaluating your property to complying with all rental laws, placing tenants, collecting rent, and evicting tenants in San Diego, a third-party manager can do all these and more on your behalf.
In-House Management Advantages
The primary advantage of in-house turnkey property management is that you won't have to pay a third-party manager. Since you'll act as the property manager, you can pocket more of the rental payments you collect.
You will also be as involved as possible in running your rental business. You can make all the decisions, provided they comply with all applicable rental laws.
Third-Party Property Management Benefits
Hiring a third-party turnkey property management firm makes more sense if you're too busy to carry out landlord duties. While you'd have to pay them management fees, the cost is worth it, as their primary goal is to keep your property occupied. So, your odds of earning a stable income are higher than if you managed your property yourself.
Also, remember that rental laws continuously evolve, so what you know today can change tomorrow. For instance, last July 01, 2024, several rental changes took effect in California. The Office of the Attorney General reminded tenants and landlords about specific rental deposit limits changing from two months to a month.
Failure to comply with such laws can lead to hefty incomes and severe penalties. The best way to avoid these issues is to have a property manager who understands all legal nuances to handle your property.
Partner With Investment Safe Property Management
While you won't have to pay someone else management fees with in-house turnkey property management, it doesn't automatically mean you'll earn more. You may even spend more on fines (due to non-compliance with rental laws) or legal eviction costs (if you make tenant screening mistakes).
So, why not consider partnering with Investment Safe Property Management? As your full-service property manager, we'll help you avoid all those headaches and losses and help you maximize your rental income instead. We'll use our 25+ years of property management experience and state-of-the-art technology to achieve these goals.
Speak with us today for your free property consultation!