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Property Management – Canoga Park – Why Hire A Property Manager

CANOGA PARK PROPERTY MANAGEMENT

Why Hire a Property Manager

To conduct business in California as a property manager acting on behalf of others for a fee, an individual must hold a valid California real estate broker’s license. [Calif. Business and Professions Code 10130, 10131 (b)]

Many owners have their properties managed by a friend or relative. Be careful, as there are very specific laws and requirements relating to such activities. There are exceptions; an ‘immediate’ family member can manage your property, as can a tenant-manager hired as your employee. There will be tax and insurance requirements with an employee position; there will also be employee rights and employer responsibilities. As an employer, you will need a federal identification number or if you are a sole proprietor you can use your Social Security number. The IRS considers the manager’s compensation, whether in the form of payments or reduced rent, as taxable income. You must deduct state and federal taxes, turn over withheld funds each quarter to the IRS and the California Franchise Tax Board, and give the manager a wage and tax statement (W-2) at the end of the year.

A property management company acts as an independent contractor, not an employee. Compared to a tenant-manager or a family member, management company personnel develop a more professional, less emotional relationship with tenants, and are usually informed about the law. The paperwork associated with being an employer is also eliminated. When you contract with a property management company as an independent contractor, they hire the contractors to do work and repairs; and you don’t have to worry about Social Security, unemployment or workers’ compensation. Make sure the person or company managing your property is familiar with the basics of landlord-tenant law.Your first encounter with many of the laws and requirements may be when you are being sued by a tenant, usually over a security deposit disposition. If you find yourself in court, you or your manager will be expected to know the legal rules associated with the management of rental property. Any activity by you or your manager that might be construed by your tenant as illegal, threatening, humiliating, abusive or invasive of his privacy can potentially be grounds for a law suit. It is important that you or your manager know California Civil Code and the California Code of Civil Procedure, as they set out a landlords’ rights and responsibilities. The Business and Professions Code is also necessary to understand and abide by.

To read California statutes online, see the Website maintained by the Legislative Counsel at www.leginfo.ca.gov.

You shouldn’t wait until a problem occurs to educate yourself about the law. Hire a qualified, professional property management company; you can rest assured that you, your property and your tenant will be in good hands

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.