Income properties, otherwise known as landlord-tenant properties, have been a long-standing form of property investment that is far more hands-on than simple real estate investment. It is both that and an income-generator while the property is being held. So, in essence, a property owner realizes two income streams from the property up to the point that it is sold. However, Los Angeles income property management can have its own challenges, notes Steven Taylor LA, property expert; and new investors thinking about becoming a landlord should be prepared to be involved or otherwise retain a management company to do the same. Otherwise, a hands-off approach could very well devalue an investment badly.
Options Exist for Different Property Types
Being a landlord investor isn’t limited to residential apartment management. It’s quite possible to invest in a commercial property with tenants as well as industrial property. The first question is what level of investment does an investor wish to be involved in and what can be afforded. Various celebrities have found great success growing their entertainment income further with commercial real estate in Los Angeles, but it also takes either direct attention or hiring a good manager to do the same. The results are typically expected to be long-term income and retirement nest-building versus immediate cash flow returns.
Affordability
Income properties don’t usually list on the market at a discounted level unless they are in a questionable area that is suffering economically. Most times, income properties hold their value very well, with added on premiums for the rental income they can generate. So, investors, either residential or commercial, need to be prepared to afford the higher cost for such units.
Los Angeles Municipal Codes, Regulations & State Laws
The City is well known for stringent enforcement of much of its code, with entire offices dedicated to just regulation alone. Income properties are particularly susceptible to the same, warns Steven Taylor Los Angeles commercial property analyst, being under either regulations for safe housing and property maintenance or operation as a business property with similar safety and income-oriented activities. These rules can’t be ignored; smart property management keeps track of what is expected from a property owner and stays on the inside curve of such requirements at all times. Familiarity is a must, and most experienced income property owners in Los Angeles are partnered with regular support from a property attorney. Remember, prevention is far less expensive than damage control after the fact, especially in the world of municipal codes and lawsuits.
Being a landlord in Los Angeles can definitely be rewarding in the long run, especially given the demand for tenancy in LA by both businesses and individuals. That said, income property investing is an entirely different level versus straight real estate ownership. And no one would fault a property owner for bringing in expert help for both legal protection and management, especially given today’s City regulatory environment.
