The Advantages of Hiring a Property Management Company for Properties that Require On-Site Management 

Effective on-site property management is crucial for property owners looking to maximize their return and maintain livable conditions on properties with 16 units and above. In California, the legal requirements for property management change depending on the property’s asset class and unit count. Managing 1 to 4 residential units is different than how you might manage 5 to 15 units. When you have 16 or more units, California Civil Code requires you to have an on-site property manager. 

 

Cal. Code Regs. Tit. 25, § 42 states, “A manager, janitor, housekeeper, or other responsible person shall reside upon the premises and shall have charge of every apartment house in which there are 16 or more apartments, and of every hotel in which there are 12 or more guest rooms, in the event that the owner of an apartment house or hotel does not reside upon said premises.”* 

 

Cal. Code Regs. Tit. §10131.01 According to, Cal. Code Regs. Tit. §10131.01, On-site resident managers are not obligated to obtain a license in order to negotiate leases or collect rents. However, nonresident property managers are required to hold a valid license as a real estate broker to negotiate rental agreements and perform other property management duties. * 

 

There are several ways you can meet the on-site management requirements of this civil code. Some property owners choose to hire an independent on-site property manager. Others will hire a property management company. It is important to understand the minute differences between the two. To some, hiring an in-house on-site manager seems like an obvious cost savings decision, however, it may end up costing you, the property owner, more in the long run. Is depending on a single person to handle all aspects of managing your property the most sound strategy? Would you feel more comfortable knowing you have an entire team looking out for you, your property and your tenants with built in redundancies? Let’s review the advantages of hiring a property management company vs. directly hiring an on-site manager. 

  

On-Site Manager Challenges 

Sudden turnover of an on-site manager can be a significant challenge for property owners and open you up to major liability. When an independent on-site manager decides to quit unexpectedly, property owners often find themselves in a difficult situation. They may have to step in themselves or scramble to find a replacement, which can disrupt the smooth operations of the property and cause unnecessary stress. 

 

Not only will your sudden loss of an on-site manager cause you stress, but their absence could cause you legal issues! As we mentioned previously, California civil law § 42 states that “a manager, janitor, housekeeper, or other responsible person shall reside upon the premises and shall have charge of every apartment house in which there are 16 or more apartments, and of every hotel in which there are 12 or more guest rooms in the event that the owner of an apartment house or hotel does not reside upon said premises.” If this law is violated, the Penalties could range from a fine up to one thousand dollars ($1,000) and/or imprisonment not exceeding six months. 

 

One of the key advantages of hiring a property management company such as Realicore is their ability to quickly address on-site manager turnover. With an extensive network of professionals, a dedicated team, proven policies and procedures, property management companies have the resources and expertise to promptly provide a suitable replacement.  

 

By relying on a property management company to handle on-site manager replacement, property owners can enjoy convenience and peace of mind. Realicore Property Management takes on the responsibility of finding, screening, and hiring qualified individuals for on-site management positions, saving you valuable time and effort. With a pool of pre-screened candidates and a streamlined hiring process, Realicore ensures that your property remains well-managed even in the face of unexpected personnel changes. 

 

Access to Larger Systems and Programs 

Independent property managers may not have access to certain systems and programs that are utilized by larger property management companies.  

Property management companies are typically able to provide a range of systems that not only streamline processes, but also provide an easy-to-use interface for both the tenants and the owner. These programs include online portals for rent reminders and payments, maintenance requests, and profit and loss statements for the property owner. By offering such programs, property managers strive to improve tenant retention. Our comprehensive approach to tenant satisfaction goes beyond the basic responsibilities of an independent on-site property manager and starts crossing over into the realm of community management. 

 

Community management, while similar to property management, has a much broader scope. Community managers focus less on the individual unit and more on the community as a whole. While they don’t manage the units themselves, they do manage the “Community”. This means they manage projects involving common areas, that could range from hiring a lifeguard, to replacing a whole road in an HOA community. A community manager may also coordinate tenant appreciation events and other related activities. With Realicore, you can rely on our diverse experience to handle all aspects of property and community management with excellent results. 

 

As a full-service property management company, Realicore can take your investing to the next level by offering asset management services. While property management involves the day to day on-site management that must take place to ensure smooth operations of a property, asset management considers ways to maximize the ROI of an investment property or real estate portfolio. 

 

 Property management companies should have established Standard Operating Procedures (SOPs) in place, which are proven systems that govern the day-to-day operations of the property. These SOPs cover various aspects, such as maintenance procedures, lease enforcement, tenant screening, and financial management. By adhering to these standardized processes, Realicore ensures consistency, efficiency, and compliance with local and federal regulations. The implementation of SOPs also minimizes the risk of errors or oversights that can occur when relying solely on an independent on-site property manager.  

 

By accessing larger systems and programs, we ensure that your property operates smoothly, tenants are satisfied, and your investment thrives. Our commitment to utilizing advanced technology, implementing effective SOPs, and offering tenant-focused programs sets us apart from independent on-site property managers.  

 

Risks Associated with Unscrupulous On-Site Managers 

When relying on an independent on-site property manager, there is a level of risk involved in terms of their conduct and behavior. Instances of unscrupulous behavior, such as embezzlement, mismanagement of funds, or unauthorized use of resources, can significantly impact your property's financial health and reputation. You could do your best to avoid these issues by being hands-on when monitoring your independent on-site manager, but then why hire a property manager in the first place if you’ll be doing all of the work? Make things easy on yourself and mitigate those risks by hiring a property management company like Realicore, which provides robust oversight and accountability measures. One way that we keep our property managers accountable is that we require all maintenance tasks to be opened as a ticket through our rental portal. These tickets can only be closed once the maintenance is completed. It keeps a record of the actions leading up to completing the maintenance and it improves communication between, property manager, tenant and the property owner. 

 

Realicore Property Management maintains a professional and diligent approach to on-site management. We have stringent protocols in place to monitor the actions and behavior of our on-site managers. Regular inspections, performance evaluations, and communication channels ensure that our managers adhere to ethical standards and fulfill their responsibilities with integrity. By having an experienced property management team overseeing on-site operations, you can trust that any potential issues will be identified and addressed promptly. 

 

At Realicore, we place a strong emphasis on ethical conduct and compliance with industry standards. Our property managers are held to high ethical standards and undergo thorough background checks before being assigned to any property. We prioritize transparency and accountability in all our operations, ensuring that your property is managed in a professional and responsible manner. By entrusting your property to a property management company, you can have confidence that the highest ethical standards are upheld, protecting both your investment and your reputation. Any Realtors hire on at Realicore are bound by the National Association of Realtor’s code of ethics stating “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their clients.”  

 

By choosing Realicore Property Management for your on-site management, you can reduce the uncertainties associated with independent on-site managers. Our comprehensive oversight and dedication to ethical conduct provide peace of mind, knowing that your property is in trustworthy hands.  

 

Training and Compliance 

Hiring an on-site manager who possesses the necessary skills and knowledge is vital for the smooth operation of your property. An independent on-site manager may not have the training necessary. Proper training equips managers with the expertise to handle day-to-day tasks, address tenant concerns, and navigate various property management challenges. Realicore Property Management recognizes the importance of comprehensive training and invests in ensuring our on-site managers receive the necessary training to excel in their roles. 

 

Property management also involves adhering to a wide range of local and federal regulations. Failure to comply with these regulations can result in legal issues, financial penalties, and reputational damage. Realicore Property Management understands the complexity of these regulations and takes compliance seriously. We stay up-to-date with the latest laws and regulations to ensure that our on-site managers operate within legal boundaries. We pay our property managers and reimburse them for their continuing education because it benefits our clients most of all. By hiring a property management company such as Realicore, you can rest assured that we thoroughly research applicable local and federal requirements regarding property management. 

 

Your Trusted Partner for On-Site Property Management 

When it comes to effective on-site property management, partnering with a trusted and experienced company is essential. At Realicore Property Management, we specialize in providing comprehensive on-site property management solutions. Our team of highly skilled professionals are dedicated to ensuring the smooth and efficient operation of your property. We understand the unique challenges that come with on-site management, and our expertise enables us to address these challenges effectively. From tenant relations to maintenance coordination and financial management, we have the knowledge and experience to handle every aspect of on-site property management. 

 

Don't miss the opportunity to experience the advantages of professional property management. Contact Realicore Property Management today and let us be your trusted partner in optimizing the performance of your property. 

 

*Disclaimer: Realicore is not a law firm and is only providing information. Realicore advises any readers of this article to consult with their attorney before taking any actions based on the information in this article. 

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