At Bell Properties, we like to stay a few steps ahead of the latest market trends. It allows us to prepare for what’s to come and help our rental property owners work through the unique challenges and opportunities that come with every new year and every new quarter. No one expected a pandemic in 2020, and yet here we are. The events over the last year have had a huge impact on the way property management in Los Angeles is delivered. This is still quite a competitive market. Prices remain high, but there’s less growth in population and in property values than we’ve seen in previous years. With challenges come opportunities. We’re taking a look at some of the property management market trends to expect throughout the rest of this year.
Investing in Technology for Los Angeles Property Management
Certain things are here to stay, such as self-showings, contact-free lease signings, and flexibility with collecting rent. Technology has helped us continue to provide outstanding property management services over the last year, and it’s more important than ever to embrace the digital and electronic tools that are available in the property management industry. We can now provide virtual tours to tenants from out of town. We can allow local renters to see a property on their own time with secure digital locks. Our screening processes have grown more detailed and our accounting software can track income and expenses better than ever before. Technology will continue to trend in Los Angeles property management.
Retaining Los Angeles Tenants
There’s now a huge focus on retaining tenants. With so many people continuing to work from home in 2021, there’s less of a demand for apartments and homes in the city, close to work. People can work from anywhere if their job permits it, and that has caused a bit of an exodus from high-cost cities like Los Angeles. Keeping the tenants you have needs to be an important part of your 2021 strategy. Make sure you’re responsive, transparent, and willing to work with residents if they’re struggling to pay the full rent every month. Show your residents that you appreciate and value them. Take care of maintenance issues right away. Share resources that might be helpful to them. Check in from time to time to make sure everything is okay. Keep rental increases low.
Los Angeles Rental Market Supply and Demand
Los Angeles has always had a high percentage of renters. While the growth in population will not be as strong here as in other markets, there’s still a strong tenant pool, and that will likely grow as people prepare to return to work in industries such as entertainment and tourism and hospitality. The existing tenants in Los Angeles will always be looking for well-maintained homes. The sales market is still performing, and interest rates are ridiculously low, so it’s an excellent time to think about acquisitions. This is a market in which buyers will get more for less, and it can be an attractive opportunity for Los Angeles investors who are looking to grow their portfolios.
The pandemic will eventually end and everyone will be moving on. That means home values will continue rising at their usual pace, and more people will be coming to the area to buy, rent, and invest. It’s a good time to make a new purchase and Bell Properties is here to help. We’d love to talk more about what we can expect for 2021. Please contact us at Bell Properties for all your Los Angeles property management needs.