Maintenance Archives - Management One

The 5 Secrets to Always Have Money for Rental Property Repairs

Honey, we received the rent payment from our residents. All the bills are paid this month, let’s take the kids and go to Disneyland this weekend.” Not so fast……

STOP! And let’s see if that’s in your rental property plan.

Don’t fall into this habit. As landlords, it’s easy to use the money that comes from your rental property to fund other stuff. This is setting yourself up for stress when your rental property needs repairs or a new roof $15,000.

Rent Payment

Here are the 5 Secrets for success and to always have money for repairs.

1) Set up a rental checking savings account. This account is separate from your personal checking account.

* If you own more than one rental property you can combine them all in one account.

Rental Account

2) When you open the checking account, open it with $1,000 to $5,000. At minimum enough to make your mortgage payment from it.

Repair Reserve

3) Use this account to pay mortgages, property taxes, insurances, and repairs for the rental properties.

4) Have the rental payments deposited directly into this account. Avoid sending it to your personal account to prevent second thoughts on transferring the funds.

Rental Deposit

5) When your taxes are completed, ask your accountant how much you got back because you own a rental property. Whatever the amount is, transfer it from your personal account into the rental checking savings account.

As rents come month after month, year after year, they go directly into that account. The account grows. Before you know it, you have enough money in the account to pay for the new roof and take a vacation.

Treat this rental checking account as your IRA and don’t touch it.

Roof Replacement

Myth Buster:

“If I raise the rent, the resident will leave.”

We’ve proven this myth wrong. Over the last five years, we’ve been actively raising rental rates to compete with the current rental market.

Annually, we raise rents on approximately 500+ properties. In 2024, 8 residents moved due to rental increases. That’s only a 1.6% turnover. We are not price gouging; we are bringing properties up to the current market value within the amount allowed by law.

For example, one property was rented for $1,425 in 2021. In 2022, we raised the rent by $269, in 2023, we raised the rent by $125, and in 2024 we raised the rent by $200. Now, the property is closer to market value.

Annual Rent Review

With that said the laws have changed on the amount you can increase. We can still accomplish the same thing, but just use a different strategy the law gives us.

Now to get your rent up to market rental rate before the law passes on rent control, we do the following.

If your rent is more than $500 below market rate, we would use a process thar raises your rent up to market rate immediately and then raise it each year thereafter on what the law allows.

Enjoy the Journey as you buy several properties over time

Your rental property should be funding itself. If it’s not, then let’s talk. We are happy to review your situation and see what’s working and what’s not.

Residents today will pay for value; they are not the residents of 30 years ago. We know we’ve rented over 11,000 houses.

Rental Growth

Maybe you’ve been a softy and not raised the rent like you should. Sometimes, we get so caught up in our everyday life and the grind that we forget to stop and evaluate things.

Just like you must have insurance on your property, you have to properly manage the cash flow of your rental property, which we just went over.

Over the last forty years, we have helped thousands of people with their journey of owning rental properties.

Our goal is for all our landlords to enjoy the journey of owning a rental property or properties. Have less stress, more fun, and build generational wealth for you and your kids. We can help, give us a call.

Rental Portfolio Plan

This chart breaks down how rents compound over the years and you can see how quickly you can accumulate cash in your rental checking account. Call for appt now!

Chart breaks down how rents compound over the years

By mgt1stg|2026-04-01T08:42:14-07:00February 4, 2026|Landlord Education, Maintenance|Comments Off

Know The Many Secrets To Having The Money When You Have Major Repairs and Vacancies

For most landlords, property maintenance can be one of the most frustrating aspects of owning a rental property. It’s not just about the hassle of coordinating repairs or scheduling vendors—it’s the financial impact. With rising contractor costs, inflation in materials, and increasing liability risks, maintenance expenses can quickly erode your cash flow if not managed strategically. The key is understanding how to manage these costs wisely and proactively.

The Rising Cost of Repairs

It’s no secret that repair costs have climbed significantly up some 65% in recent years. Labor shortages, supply chain challenges, and overall inflation have all pushed up vendor pricing. A simple plumbing job that might have cost $150 five years ago can easily cost $250 or more today. Roof repairs, appliance replacements, and HVAC servicing have all followed the same upward trend.
This means landlords are faced with a choice: absorb the higher costs, pass them along in rental increases (when legally allowed), or find ways to reduce unnecessary repairs. The reality is, while you can’t control the market, you can control how well your property is cared for and that has a direct impact on long-term expenses.

Preventive vs. Reactive Maintenance

One of the biggest mistakes landlords make is waiting until something breaks before addressing it. This reactive approach almost always ends up costing more in the long run.

Take HVAC systems, for example. A routine $125 service call to check the filter, clean the coils, condenser line, and inspect the unit can extend the life of your system by years

and void water intrusion that can cost tens of thousands and possibly a vacancy. While insurance might cover the cost, your premiums will likely skyrocket or your policy will be canceled. Why take the chance?

The same principle applies to plumbing, roofs, and appliances:

· Plumbing: A $200 drain cleaning can prevent a $2,000 flood and drywall repair.

· Roofing: A $350 inspection and roof tune-up can prevent a $15,000 replacement sooner than you want and prevent water intrusion due to water dam

age that I just spoke about above.

· Appliances: Regular servicing keeps them running efficiently and reduces emergency replacements.

Preventive maintenance creates predictability in your expenses, helps avoid costly emergencies, and preserves your property’s value. In contrast, reactive maintenance often involves rush fees, after-hours charges, and higher costs for urgent vendor availability.

Liability Risks of Deferred Maintenance

Beyond financial savings, preventive maintenance also protects landlords from legal and liability issues. Deferred maintenance can quickly become a lawsuit waiting to happen.

For example:

· Roof leaks not only damage ceilings and drywall but can also lead to mold growth, which opens the door to health-related claims from residents. Over the last 4 years, we’ve seen a significant increase in water intrusion due to roof leaks.

Smoke detectors: Failing to regularly test or replace smoke detectors can leave a property owner exposed to serious liability if a fire occurs and safety equipment does not function properly. That’s why, during our annual inspections, we ensure both smoke detectors and carbon monoxide sensors are in good working order.

The importance of this cannot be overstated—according to national fire data, 2,890 lives were lost in residential fires in 2023 alone. Properly maintained safety devices save lives, reduce risk, and protect you as the property owner.

· Trip hazards from cracked sidewalks or broken steps can result in personal injury lawsuits, which are far more expensive than the cost of timely repairs.

In many jurisdictions, including those in Southern California, landlords are legally required to provide safe and habitable housing. Failing to address known issues in a timely manner can be interpreted as negligence, putting your investment at serious risk. We spent four years on one case with an owner; don’t let it be you.

Protecting Your Cash Flow and Investment

The smartest landlords understand that maintenance is not just an expense—it’s an investment in stability, value, and peace of mind. When you view upkeep as part of your long-term financial strategy, you avoid unnecessary surprises, reduce costly emergencies, and protect both your rental income and the property itself. Here are several best practices that successful landlords rely on:

1. Budget for Maintenance Annually

One of the most common mistakes landlords make is treating rental income as “extra cash” without setting aside a reserve for inevitable repairs. Instead, create a dedicated rental property checking account. Deposit all rent into this rental account, and pay all property expenses from it. By doing so, you maintain transparency, simplify accounting at tax time, and ensure you’re financially prepared for maintenance costs. Think of it as future-proofing—stop robbing Peter to pay Paul, and start letting the property pay for itself.

2. Conduct Regular Inspections

Problems left unchecked always cost more in the long run. That’s why annual inspections are highly recommended. Inspections allow you to:

· Identify minor leaks before they turn into water damage.

· Ensure residents are complying with lease terms (yard care, smoke detectors, no unauthorized pets)

· Catch safety issues, like faulty outlets or loose steps, before they create liability. A structured inspection program protects your investment, reduces tenant complaints, and minimizes emergencies.

3. Work with Trusted Vendors

Your property is only as safe and well-maintained as the professionals who service it. Always ensure vendors are licensed, bonded, and insured. Hiring unlicensed contractors might seem cheaper in the moment, but it exposes you to enormous liability if work is done improperly or if an accident occurs on-site. Licensed professionals also understand building codes and safety regulations, ensuring your property remains compliant. Ultimately, using trusted vendors protects not only your property but also your residents and your reputation.

4. Document Everything

Good record-keeping is both a financial tool and a legal shield. Maintain detailed logs of:

· Dates and results of inspections.

· Copies of invoices, receipts, and contractor licenses.

· Notes on conversations with residents regarding repairs.

This documentation does more than help you at tax time—it also provides legal protection if disputes arise. Should a tenant ever claim that maintenance was neglected, your records prove the opposite. It also helps you track spending trends, allowing you to anticipate future expenses more accurately.

Bottom line: Treat maintenance as part of your investment strategy because it is. We have managed thousands of houses over 40 years, and we find that, on average, basic repairs cost around $ 1,500 a year, or $125 a month. And when you have a vacancy that can run in the thousands between repairs, no rent coming in, Landlords should allocate $200 a month minimum to budget for this.

By mgt1stg|2026-04-03T06:06:33-07:00October 6, 2025|Maintenance|Comments Off

A $30 Device That Could Save a Life—And $25 Million

According to the U.S. Fire Administration, residential fires claimed 2,890 lives and injured 10,400 people in 2023 alone, with an estimated 344,600 residential fires reported nationwide. A staggering 60% of home fire deaths occurred in properties without working smoke detectors—a preventable oversight with tragic consequences.

For landlords, this statistic carries serious implications. While many assume that providing a working smoke alarm at move-in fulfills their responsibility, the reality is far more complex. Landlords often rely on residents to replace batteries and report malfunctions, but that assumption can be dangerously optimistic.

At Management One, we proactively remind our residents—via monthly newsletters—to change their smoke detector batteries twice a year. If a landlord has opted into our annual inspection service, our team physically tests smoke detectors using a smoke-emitting tool and also checks carbon monoxide alarms. It’s not uncommon for us to discover disconnected or chirping detectors tossed in drawers, forgotten and ignored. In these cases, our inspectors educate residents on the importance of keeping alarms installed and functioning—and to report any issues immediately.

Many landlords are unaware that some smoke detectors have a 10-year expiration date. The National Fire Protection Association (NFPA) and the U.S. Fire Administration both recommend full replacement of the unit at that point due to dust accumulation and sensor degradation. Today’s newer models feature sealed 10-year batteries, meaning the entire unit should be replaced before it expires.

Legal Obligations in California

California law is clear. Under Health and Safety Code Section 13113.7, landlords are responsible for the installation and maintenance of smoke alarms. Alarms must be operable at the start of a tenancy and must be repaired or replaced as needed. Residents are legally required to notify the landlord if an alarm stops working.

Per California Residential Code R314, smoke detectors must be installed in:

Every bedroom
Hallways adjacent to sleeping areas
Every level of the dwelling, including habitable attics and basements

Real-World Cases: When Things Go Wrong

A quick internet search reveals numerous lawsuits where landlords faced devastating legal and financial consequences for failing to provide or maintain smoke detectors:

Akron, Ohio: Four lives were lost in a house fire due to missing smoke detectors. The landlord was sued for $25 million. The case settled for $360,000.

Clinton, New York: Two landlords were charged with second-degree manslaughter after a mother and her one-year-old daughter died in a fire. Investigators found the home lacked functional smoke detectors. The criminal case is ongoing.

Los Angeles, California: Residents sued New Hampshire Apartment, Inc. for widespread habitability violations—including non-functional smoke detectors. Their insurer refused to provide coverage, citing a breach of the policy’s safety warranty. The residents were ultimately left without compensation due to the voided policy.

Gulfport, Mississippi: A tragic fire claimed the lives of a six-year-old and a newborn. Investigators determined the smoke detectors were obsolete and non-functional—a clear violation of building codes. The lawsuit is still pending.

Our Experience at Management One

When Management One recently acquired a portfolio of 123 rental properties, we uncovered a common theme: most homes lacked the proper number of working smoke detectors and some properties had none. In nearly every case, landlords were unaware of the issue.

Key Takeaways for Landlords:

Test smoke and carbon monoxide detectors annually and document results.
Replace expired units (typically every 10 years).
Install detectors in all required areas.
Don’t rely on residents to maintain critical safety devices.
Verify insurance coverage and ensure compliance with safety requirements.

Smoke detectors are not optional. They are life-saving devices—and a critical legal safeguard. Overlooking something as simple as a $30 alarm could result in a lawsuit, the loss of your property, or even criminal charges.

At Management One, we go a step further by using specialized smoke and carbon monoxide emitters to test each device. This ensures the entire system is functioning properly—not just that the battery works. Our testing confirms that smoke can enter the sensing chamber and that the alarm responds appropriately, providing a more thorough and reliable safety check.

By mgt1stg|2026-04-03T06:43:13-07:00June 3, 2025|Landlord Education, Maintenance, Property Ownership, Resident Education|Comments Off

Avoid losing $40,000 like one landlord did.

Insurance, Insurance, Insurance!

This Landlord’s Insurance agent had him underinsured. There was a fire, and it cost the Landlord $40,000 out of his pocket. Insurance companies have no obligation or liability to keep your coverage adequate.

This is a critical topic, and I wholeheartedly believe in discussing it at least once a year.

“Why,” you might ask. I never want an accident to happen and a client of mine to say, “No one ever told me about this coverage.”

Since November 2023, we’ve had 57 water intrusion events. Whether from heavy rains on roofs, slab leaks, broken pipes, etc., water entered the property and caused massive damage. Damages range from collapsed ceilings to buckling flooring to mold.

Proper insurance for such events gives you peace of mind, knowing you will have coverage to mitigate the damages.

In addition to primary liability coverage, all landlord insurance policies should include four essential elements. These elements are:

1) Malicious Intent,

2) Fire,

3) Loss of Rents,

4) Vandalism.

Malicious Intent

Malicious Intent happens when the resident renting your home intentionally damages the property above and beyond “normal wear and tear.” We are talking about destroying the carpet to the point it must be replaced, holes in the walls, windows, and more.

While we don’t see these things very often, we do see them. So when it does happen, landlords are left scrambling to secure the funds to return the property to a rentable condition. This scenario is precisely why ensuring you have Malicious Intent in your policy is important. ( Note all insurance companies have different names for this coverage, just make sure your policy covers this type of damage.)

Equally important is ensuring the resident has Renter’s Insurance so you can recoup the cost from their policy and not affect your premiums. YES, this coverage enables you to sleep at night. The best part is that most insurance companies don’t charge extra for this coverage.

Fire

Your fire policy will only rebuild part or all of your rental home, so this is pretty straightforward. Just make sure that you increase the replacement cost of the rental home each year. In the last two years, building materials went up 39.2%. Most insurance companies will not adjust for inflation. As the policyholder, you have the responsibility, so call your agent once a year.

Loss of Use

Now, let’s start thinking like an investor; you are all investors if you own a rental property. Your business is to make money with an investment/rental property! But what happens if the property burns down, or has so much water intrusion that the resident has to vacate the property, which happens, or the resident causes so much damage to the house that it will take six months to be fully repaired?

You still have a mortgage, taxes, HOA, and Insurance to pay, right? That payment doesn’t stop just because the home is vacant or distressed. Don’t worry! If you have Loss of Rents or Loss of Use coverage in your landlord’s insurance, you may sleep like a baby because you don’t have anything to worry about.

Loss of rent or, in some cases, Loss of Use will cover up to 12 months of the rental income! Some companies include this coverage in your policy for no additional fees, while others charge for it… IT IS WORTH IT! It might be a few more bucks a month but how much is your peace of mind worth?

What a great feeling to know that you will receive money while your property is being repaired.

Vandalism

Let’s say you are about to rent out the property, and a few days before your resident moves in, someone breaks in, and the property gets vandalized!

Again, homeowner’s insurance might not cover you, but the landlord’s insurance will! However, once your property is vacant for more than 30 days, your insurance will not cover you, so always get a 60-day vacancy policy. One stolen Air Conditioning unit could cost you $6,000 or more. You can activate your vandalism coverage in this case!

Something important to mention is that some mortgage companies require you to have a homeowner’s insurance policy while you have an active loan with them! Be sure to ask them if this is the case before canceling your homeowner’s coverage and only getting landlord’s insurance.

Liability

Though not listed in the top four items, liability is the primary focus of the insurance policy. After all, why have a policy if it doesn’t provide basic liability coverage? You may consider increasing the liability coverage to one million or more if your property has a pool or spa, since those are added risks.

For example, your resident has a small soiree, and a kid gets injured because he was running around the pool! We all know, unfortunately, the first thing that comes to some people’s minds is… LAWSUIT! Well, again, here is where you may be able to use your landlord’s insurance liability coverage, since this helps you pay for your expenses if you are found legally responsible after someone is injured on your property or if you are required to pay for damage done to someone else’s property. I carry $1,000,000 liability coverage on my properties.

Renter’s Insurance

We require our residents to carry a renters’ insurance policy. All new residents must provide a copy of their insurance prior to moving into the rental property, and all current residents must provide a recent copy of their declaration page before they renew their lease. We do this to protect not only the resident but also you.

Two recent fires were caused by residents. One resident had current insurance, and one had let their policy lapse. The condo flooded when a contractor working on the unit above hit a water line.

Thankfully, all parties are safe and no one was injured, but you never know when something might happen. People react differently when the pressure is on them.

If you are unsure about your policy, make time this week to talk with our insurance company and confirm your policy. You will be glad you did if you ever have to use it.

By mgt1stg|2026-04-03T06:07:49-07:00March 31, 2025|Landlord Education, Maintenance, Property Ownership|Comments Off

The 5 Secrets to Always Have Money To Pay For Repairs or Vacancies

Honey, we received the rent payment from our residents. All the bills are paid this month, let’s take the kids and go to Disneyland this weekend.”

STOP! And let’s see if that’s in our rental property plan.

Don’t fall into this habit. As landlords, it’s easy to use the money that comes in your rental property to fund other stuff. Setting yourself up for stress when your rental property needs repairs or a major repair for $15,000, like a new roof.

Here are the 5 Secrets for success and always having money for repairs.

1) Set up a rental checking savings account. This account is separate from your personal checking account.

* If you own more than one rental property you can combine them all in one account.

2) When you open the checking account, open it with $1,000 to $5,000, at minimum, enough to make your mortgage payment.

3) Use this account to pay mortgages, taxes, insurance, and repairs for rental properties.

4) Have the rental payments deposited directly into this account. Avoid sending it to your personal account to prevent second thoughts on transferring the funds.

Myth Buster:

“If I raise the rent, the resident will leave.”

We’ve proven this myth wrong. Over the last four years, we’ve been actively raising rental rates to compete with the current rental market.

Annually, we raise rent on approximately 500+ properties. In 2024, 8 residents moved due to rental increases. That’s only a 1.6% turnover. We are not price gouging; we are bringing properties up to the current market value within the amount allowed by law.

For example, one property was rented for $1425 in 2021. In 2022, we raised the rent by $269, in 2023, we raised the rent by $125, and in 2024 we raised the rent by $200. Now, the property is closer to market value.

We put another $3,228 into the owner’s rental checking account in the first year alone. In the second year, we added $1500, plus the $3228 from the year before, to their rental checking savings account. In two years, we added $4,728.00 to their rental checking account. In year three, we added another $2,400. That’s a total of $7,128 a year.

Year one $3228 extra

Year two $3228+$1500= $4728

Year Three: $3228+$1500+$2400= $7,128

Over 10 years, that’s an extra $71,280 in the owner’s rental checking account from just rent.

Not considering the amount you saved on your taxes from owning a rental property.

The average is $2,500 a year, so an additional $7,500.

So, in just 3 years, they now have $14,628 for repairs, vacancies, etc.

The residents are still in the home, loving the home, and the owner has additional funds to do any repairs and even consider some improvements to the property.

It’s important to point out that raising the rent yearly comes with some responsibility on behalf of the landlord. As you are increasing the rents, if you want to keep your resident, you must also put back into the property.

If your property were built in the early 1990s, it would likely have a wooden patio cover. The California sunshine beats up the wood; add the rain, wind, and termites, and that patio cover is probably on its last leg. Use some of the money from the rent increases to change the patio cover to an aluminum cover.

Paint the exterior of the home to maintain its integrity. Putting back into the home shows the residents that you care about the home and value them as a resident in your investment property.

Enjoy the Journey

It’s not all about business. You need to take time to enjoy the journey as well. Once you’ve established your rental checking account and have the funds from the property going to that account. You are no longer robbing yourself of your personal finances.

Your rental property should be funding itself. If it’s not, then let’s talk. I am happy to review your situation and see what’s working and what’s not.

Residents today will pay for value; they are not the residents of 30 years ago. We know we’ve rented over 11,000 houses.

Maybe you’ve been a softy and not raised the rent like you should. Sometimes, we get so caught up in our everyday life and the grind that we forget to stop and evaluate things.

Just like you must have insurance on your property, you have to properly manage the cash flow of your rental property, which we just went over.

Over the last forty years, I have helped thousands of people with their journey of owning rental properties. If you’d like to schedule a time to speak with me, contact Kristan Pennington at support@mgtone.com or 951-289-4828, and she will schedule a time for us to speak.

My goal is for all our landlords to enjoy the journey of owning a rental property or properties. Have less stress, more fun, and build generational wealth.

By mgt1stg|2026-04-03T06:03:59-07:00January 30, 2025|Landlord Education, Maintenance, Property Ownership|Comments Off

Secure Your Rental Property and Save on Turnover Costs with a Smartkey Lock and PVC Pipes

Vacancies can be stressful, especially with the risk of squatters gaining access to your property. Unfortunately, squatters’ rights can complicate the eviction process, often taking months and incurring significant costs. As a property management company, we’re here to help protect your investments with simple and effective security upgrades: Kwikset SmartKey Locks and PVC pipes for sliding doors.

Why Choose Kwikset SmartKey Locks?

SmartKey locks are an innovative, cost-effective solution for maintaining security between tenant turnovers. Here’s why they’re worth considering for your properties:

1. Quick and Affordable Rekeying

Kwikset SmartKey locks allow you to rekey a property without hiring a locksmith. This can be a game-changer for high-turnover properties, saving both time and money. For example, our preferred contractors offer SmartKey lock installation for approximately $390 for four doors. After this initial installation, each rekeying service costs only $75, a significant savings over the $300 minimum charge typical for locksmith visits every time you have to do this.

2. Enhanced Security for Added Peace of Mind

SmartKey locks are designed with advanced technology that protects against break-in tactics such as lock bumping and picking. This means that only the current resident has access, adding a critical layer of security for your property and helping to deter unauthorized entry during vacancies.

3. Streamlined Key Management

With SmartKey locks, you can rekey multiple locks to a single key, reducing the hassle of managing numerous keys. For landlords, this simplifies access across multiple units and ensures smooth transitions between residents.

Why PVC Pipes are a Superior Alternative for Sliding Door Security

PVC pipes are a low-cost, practical solution for sliding doors, providing a more robust barrier than traditional thumb locks. Here’s how they stack up:

1. Enhanced Security

A PVC pipe cut to fit the length of the sliding door track creates a secure, physical barrier that prevents the door from being opened, even if the thumb lock is bypassed. Unlike thumb locks, which can be tampered with, PVC pipes offer a reliable layer of security for both you and your residents.

2. Cost-Effective and Easy to Install

PVC pipes are inexpensive and require minimal installation effort — simply place them in the door track. Our preferred contractors can install PVC pipes on all sliding doors and windows for just $61.79, making it a budget-friendly way to enhance security across multiple units.

3. Durable and Low Maintenance

Thumb locks can wear out or become difficult to operate over time. PVC pipes, however, are durable and easy to replace if necessary. With no moving parts, there’s minimal risk of malfunction, providing a long-lasting security measure.

Are the Benefits Worth the Cost?

At Management One, we believe the investment in SmartKey Locks and PVC pipes is well worth the peace of mind and long-term savings. Recent experiences highlight the importance of these security upgrades:

Case Study #1

A property on Spruce St. in Riverside, which opted out of both PVC pipes and SmartKey locks, was left in disarray by squatters, delaying the new tenant’s move-in. Every day a rental property is vacant, an owner averages a $100 loss per day.

Case Study #2

A property on Lewisia in Moreno Valley experienced two incidents where squatters gained access through an unsecured sliding door. Because this property had Smartkey locks, our inspector could quickly rekey, locking out the squatters and saving the landlord locksmith expenses.

Case Study #3

A property on Delano in Riverside without PVC pipes or a Smartkey lock was broken into through a window. Squatters caused over $500 in locksmith fees and $300 in cleaning costs to restore the property.

The Long-Term Benefits

By incorporating Kwikset SmartKey locks and PVC pipes, you’re enhancing property security, reducing turnover costs, and saving time during vacancies. This small investment brings lasting benefits, helping to protect your property and maintain its value.

Meanwhile, here’s another informative article on Air Conditioning Maintenance in California: Tenant or Owner Responsibility?

By mgt1stg|2026-04-03T06:04:47-07:00December 2, 2024|Landlord Education, Maintenance, Property Ownership|Comments Off

Air Conditioning Maintenance in California: Tenant or Owner Responsibility?

In the sweltering heat of Southern California, rental property air conditioning maintenance is not just a matter of comfort—it’s a critical issue of habitability and resident satisfaction.

While there may be debate over who should bear the legal responsibility for maintaining these systems in rental properties, there are compelling reasons why landlords should take the lead. For owners, not only is it a matter of resident satisfaction and retention, but it is also a consideration around property preservation and, ultimately, keeping down expensive air conditioning unit replacement costs.

In this article, we’ll look at the legal, financial, and practical benefits of landlords maintaining air conditioning units, ensuring their properties remain safe and comfortable. At the same time, we’ll identify the importance of resident responsibility around basic maintenance tasks such as regular filter changes.

Legal Obligation for Habitability: In California, landlords are legally required to provide and maintain a habitable living environment. In regions like Southern California, where temperatures can soar, functional air conditioning systems are essential to ensure the property remains habitable. Failure to maintain these systems could lead to violations of Fair Housing standards, exposing landlords to legal risks.
Resident Satisfaction and Retention: A well-maintained cooling system significantly contributes to resident comfort, especially in Southern California’s hot climate. When landlords take responsibility for maintenance, it fosters good resident relations, leading to higher satisfaction, fewer complaints, and longer tenancy, which reduces turnover.
Preservation of Property Value: Regular cooling system maintenance helps preserve the property’s value by preventing damage caused by overheating, water intrusion from plugged lines, mold, or other issues that can arise from poorly maintained AC systems. Landlords who invest in regular upkeep protect their long-term investment and avoid costly repairs or replacements down the line.
Energy Efficiency and Cost Savings: Proper cooling system maintenance ensures AC units operate efficiently, reducing energy consumption and lowering utility bills. While all residents in Management One properties pay utility bills, an energy-efficient system can be a selling point for prospective residents and reflects positively on the property’s overall management.
Liability and Risk Management: If a cooling system fails due to lack of maintenance and results in property damage or health issues for residents, landlords could be liable for negligence. Landlords mitigate these risks by assuming responsibility for maintenance and avoiding potential legal disputes and insurance claims.

Management One’s Approach to AC Maintenance

Ten years ago, we implemented a policy that during vacancies properties under went a heating and cooling system tune-up. The vendor services the whole system, including changing out the AC filters. We’ve found this policy has paid great dividends for landlords and residents alike. Before making this change, 8 out of 10 residents would move in, and there would be an issue with the AC or heater. There is nothing more disheartening than moving into a new home in the middle of summer and finding out the AC unit isn’t working correctly. Ensuring property habitability and a new resident’s comfort goes a long way in establishing trust and long-term harmony.

Owners’ AC Maintenance Responsibilities

Effective September 1, 2024, Management One implemented a new program to help ensure the longevity of heating and cooling systems. Once a year, during the annual inspection, we will have the AC and heating system tuned up, and the AC filter changed. This tune-up includes cleaning and servicing the inside and outside units. The basic cost to the landlord is $110, with any required repairs beyond the tune-up, at an additional cost. This provides our owners the peace of mind that comes with knowing the ongoing status of their property’s cooling system and the ability to plan for future replacement costs.

Residents’ AC Maintenance Responsibilities

You might be asking yourself doesn’t the resident have any responsibility for helping to maintain the AC units and their comfort? The answer is, yes, they do! Their lease agreement requires them to change the AC filter every 90 days. Having a professional company service the system annually and giving it a once-over benefits landlords. We can prevent a burnt-up compressor from a dirty filter or loss of all the freon due to a leak. The inspector will also report to us if the resident has kept up with filter changes. If they haven’t the resident will be fined $100 for a first violation and $200 the second time. They will also be subject to their lease not being renewed.

In conclusion, it’s to their own benefit that landlords be responsible for maintaining air conditioning systems in Southern California rental properties. By ensuring these systems are adequately maintained, landlords fulfill their legal obligations around habitability, enhance resident satisfaction, and reduce the risks associated with system failures, protecting their property investments. Ultimately, proactive maintenance of cooling units is a wise and necessary practice that benefits both landlords and residents, fostering a positive rental experience and ensuring the property’s long-term success.

Below is a List of our Top Picks for Air Conditioning Companies in Orange County, CA.

By mgt1stg|2024-09-04T14:53:02-07:00September 4, 2024|Landlord Education, Maintenance, Resident Education|Comments Off

Repairs…The Necessary Evil of Owning a Rental Property

Owning a rental property comes with its share of benefits and some pitfalls, and repairs fall into the latter category. But I think repairs tend to get a bad rap, or the resident gets accused of being too needy or picky. And while that might be the case sometimes, it’s not the case most of the time.

Much like you or I, we desire a nice place to live in, one that is maintained, one that we are proud of; most residents desire the same thing. They are not out to nickel and dime you or to live in the Taj Mahal, even though sometimes it might seem that way.

Do I have to Complete this Repair?

Understanding where the requested repair falls might help you determine if the repair is necessary. Generally speaking, repairs fall into one of four categories:

Habitable
Safety
Cosmetic
Operational

Lets look at the characteristics of repair type and what they entail.

Habitable Repairs

Habitable repairs are repairs that are needed to make sure the home is livable per Fair Housing. An example of this is fire damage to a home. A resident can’t live in a home that has fire damage, so mitigation must be done right away. Plumbing, electrical, and locks must be working on the property.

Safety Repairs

Safety repairs are repairs that are needed to ensure the safety of your residents and their guests or even the general public. An example of this type of repair is a buckling driveway. The buckling in the driveway is a tripping hazard. Should a resident report the matter and you opt not to have it repaired, then the resident or someone else is injured, you are opening yourself up to ligation. In cases like this, a resident also has the right to report you to Fair Housing and even move out, leaving you with a mortgage and a rehab to make the property rent ready for the next person.

Cosmetic Repairs

Cosmetic repairs are repairs that would improve your property but don’t affect someone’s ability to live in the home. An example of a cosmetic repair is the exterior painting of the home. Painting your home that hasn’t seen paint for 15 years or more and has taken a beating from the Southern California sunshine is a good idea to maintain your home, but it has no bearing on the resident living in your home. These types of repairs will come up, and that’s why it’s important to budget for them. That is why I highly recommend setting up a Rental Property Piggybank. Click here to see how to set one up and why you must have one.

Operational Repairs

Operational repairs are repairs that need to be repaired because the home was rented with the item in working order and is part of the lease agreement. An example of an operational repair is an oven. The oven might be completely broken, or it might work so, so. It might warm up a pizza, but it won’t roast a turkey since the home was rented with a fully functioning oven; you are required to replace it. Other examples would include a dishwasher; if you rent the home with a dishwasher and it breaks down, you must replace it.

Exceptions

Having said all that, there are exceptions to the rule when it comes to repairs. Case in point, carpet most of the time falls into the cosmetic category. However, there are times when the carpet really should be replaced; no one wants kids playing on the stained and smelly carpet. Nor do you want to walk on a carpet that is “clean” but looks dirty because of the stains that are so embedded in the fibers that no matter how much you clean the carpet; they are still visible. Carpet is one repair that you can quickly recoup your costs on. For example, the resident is requesting carpet and its lease renewal time, agree to replace the carpet in turn request that the resident signs a two-year lease. The rental increase of $100/per month each year over the two years will help offset the cost along with your tax write-offs on the carpet replacement. Let’s face it, if you don’t replace the carpet or make minor repairs, your residents will move out, and you will face rehab and a vacancy. Your biggest enemy in rental property is vacancy more than anything else because you face months without any rent coming in and putting out cash to repair, paint and clean it for the next resident which averages about $3900 nationally.

Reality

Most Residents take excellent care of your rental property, their home. And they appreciate owners that take care of the home as well and don’t view them as “the renter.” The reality is most residents would love to own a home, but in today’s market, it’s hard to come up with a down payment, etc. and so they are in a situation of having to rent a home. Sure, there are a few that rent because they don’t have to make the repairs, pay property taxes, etc. but that is the minority, not the majority. In a recent survey conducted by the National Association of Residential property managers, 60% of residents say that “lack of maintenance and poor customer service” is the number one reason they move from a property, it’s not raising the rent. What residents are saying is, they will stay in a property longer if the owner is willing to maintain the home and they will also be okay with a moderate rent increase each year. That’s a win-win for all properties involved.

Benefits

As the owner of a rental property, you receive tax benefits for owning rental property; repairs are a tax write-off along with your management fees. You benefit from the appreciation of your home value, and someone else paying off your mortgage. We have several owners whose residents have been in the property for 10, 15, and even 25+ years. Some even own the property free and clear because rents have increased over the years each year, and they have now paid the mortgage off.

Two-way Street

Maintenance is a two-way street. It is the responsibility of both the landlord and the property management company. It’s our job to make sure you are not nickeled and dimed and that repairs are completed correctly. For this reason, we operate off a pre-set price list, which controls costs for you. We dictate the prices contractors are paid. These prices are set based on 100’s of hours of research by shopping local repair stores, negotiating prices with suppliers directly, providing discounts for items purchased in bulk. We shop local tradespeople and receive estimates for painting, roofing, etc. All to provide you with the best prices and provide the residents with timely service.

Additionally, we contact each resident after the repairs are completed to ensure the repair was completed, and all is well. By calling the residents, it holds contractors accountable knowing someone is checking on the repair afterward, and helps ensure your residents stay longer in your investment property. This scenario is a win-win for all parties.

Next Time…

So, the next time the phone rings, and it’s our maintenance department advising you of a major repair needed, like new carpet or exterior paint…or you receive your monthly rent check, and you see a repair was made during the month…keep some of these things in mind as it’s our goal to keep your property in good condition, raise your rents moderately each year so you have money to pay for those repairs and keep your resident staying in your property.

By mgt1stg|2024-08-19T09:00:09-07:00August 19, 2024|Maintenance, Property Ownership|Comments Off

Income Property Investments: A Strategy to Make Them Pay for Themselves

Are you a landlord who robs their piggy bank innocently on your rental property and struggles to have money for repairs or vacancies?

That dreaded phone call from Management One, “Hello, we need money for a repair”, and what runs through your mind is “Ugh, there goes my summer vacation”, and “This rental property is draining me.”

If there is one thing I learned in the last 39 years of managing properties, it’s this: there’s a secret to always having money for repairs and vacancies on your rental property when you need it.

A Rental Property Checking Account: Keeping Rental Income Separate from Personal Finances

When a person rents out their first property, they typically use a personal checking account. Most think, “Hey, I only have one property; it’s not like I’m Warren Buffet. I don’t need a separate checking account.”

But in actuality, you do. As we raise your property’s rent, additional money goes into your personal checking account. Guess what happens? It gets innocently spent a little at a time. It just gets eaten up for personal things, like groceries, family vacations, braces for the kids, etc.

This is when you begin to feel like you’re always robbing your personal checking account to pay for repairs on your rental property, right? Over time that starts to wear on you, and you begin to wonder why you have the rental property in the first place.

How would I know this? I know because I have lived this for over 30 years – both personally and with thousands of our clients.

Here’s the simple secret to having all the money you need: You set up a separate checking account and name it “Rental Property Checking Account.” (If you have multiple properties, you can combine them all in one account).

To start, I recommend you deposit a minimum of $1,000-$5,000 from your personal savings to your new “rental checking/savings account.” If you must start with less, even $100, do it anyway because you must begin immediately. Then, ensure all the rental income is deposited to the Rental Checking Account. All mortgage(s) payments, taxes, insurance, and repairs are then paid out from this account. Your personal checking account is now out of the picture.

Why a Dedicated Rental Property Checking Account Works

As rents increase slightly almost yearly, extra rent will build this new rental checking account, like compounding interest.

Here’s how it works: When the rent increases by just $50 a month each year for 6 years (which is only a 2.9% rise in rent on average) and it gets deposited into your rental checking account, in 6 years, you will have $12,600. If the rent increases $100 a month you’ll see $25,200 in your new rental property checking account after 6 years. Because the money is siloed in its own account, you will now have the funds available for those unexpected rental property repairs or maintenance costs. You haven’t used it for daily life or earmarked it for personal purchases.

Independent studies have shown that 80% of residents do not move because you raised their rent moderately. They move because landlords don’t promptly take care of needed repairs, maintain the property, or make improvements. In other words, most landlords do these things when it’s convenient for them rather than their resident.

Also, ask your CPA (or whoever does your income taxes) to show how much Federal and State taxes your save each year because you own that rental property or properties. When you get your tax refund check each year transfer that saved tax total from your personal account and into your rental property checking account. .

On average, landlords save about $2400 a year in their income taxes based on a single-family home rental property. Over 6 years, that’s another $14,400 you’ll have accrued in your new rental property checking account. If you didn’t have that rental property, you would have paid the Feds and State $14,400 more in income taxes over 6 years!

So, you can see by merely managing your cash flow, raising rents moderately, and putting whatever you’re saving on income taxes because of that rental property in your rental property checking account, you will have over $25,000 to $40,000 in that account over 6 years.

This makes you love owning rental property because it’s structured and paid for by the resident and the IRS, not YOU.

30 Years of Experience Proves it Works..

I have several properties today that I own free and clear. They are paying me today every single month, and what a great feeling it is. The properties are worth, on average, 7-9 times what I paid for them 15 and 30 years ago. Plus, I still write off my management fees, repairs, taxes, insurance, etc., on my income taxes, offsetting the rental income I get each month.

Using this strategy with a rental property checking account allows you to enjoy the journey while building wealth toward retirement. You will buy more rental properties because it’s exciting, and paying for repairs becomes painless. It becomes your very own real life Monopoly game. You benefit financially and, as some of our current clients have, teach your kids how to make real estate work for them. What a gift that sets them up for success! Your next step is to open up your rental property checking account TODAY and start enjoying owning rental properties.

Management One Client Shares Their Real-Life Success

Recently, I received a call from my clients, Gene and Betty, whom I started doing business with back in 1977, 42 years ago, in Riverside, California when they bought a home for $35,000.

Now living in Georgia, Gene said he was calling to say “thank you”. He said we were reviewing their financials while doing their taxes and he wanted to let me know “we are now worth over 1.7 million dollars primarily due to you, Ron, on all our investments with you. We are set for life with all our income coming in. We are traveling and enjoying life.”

Gene and Betty are great, regular, ordinary people not big investors, who started small and ended up big. Gene said, “All those people who didn’t believe in you and your strategy way back then, Ron, are not having the life we have today, and that’s sad. I wish more people would have followed your strategy”.

In closing, I wish this all for each of you in that you, too, will end up big like Gene and Betty. There is still time to get started; it doesn’t matter if you recently purchased a rental property or have owned it for 20 years.

Bonus: Mrs. Solter another client of mine for 38 years shares her story in a short video, you don’t want to miss this. Click here

By mgt1stg|2024-06-06T17:44:32-07:00June 6, 2024|Landlord Education, Maintenance, Property Ownership|Comments Off

Best Air Conditioning Companies in Orange County CA (Reviews/Ratings)

The temperature is skyrocketing, and just when you least expect it, your worst nightmare becomes a reality – the AC decides to take a vacation! This is no laughing matter in sunny Southern California, where the sun can turn up the heat to a blistering 100 degrees plus during the summer. But hold your phone, don’t dial Ghostbusters just yet! The real challenge is finding a dependable savior in the form of a vendor or contractor who can rescue you from this sweltering ordeal.

As a homeowner, your mission is clear: you need top-notch quality work without breaking the bank. Over the past eight years, I’ve been on an epic quest, scouring the digital realm, venturing into Home Depot and Lowes, all in pursuit of that elusive contractor who can swiftly respond to a work order, guarantee exceptional customer service, deliver impeccable craftsmanship, and all at a price that won’t leave you feeling like you’ve been swindled.

Do your Homework

Whether you’re a property management company overseeing numerous homes or a vigilant homeowner, the importance of diligent contractor research cannot be overstated. Before entrusting them with any work on your property, ensure the contractor is licensed, bonded, and adequately insured. Surprisingly, not many people are aware that if a contractor sustains an injury while working on your property, you could potentially be held legally liable – a can of worms best left unopened.

In today’s digital age, conducting a comprehensive background check on an air conditioning company in Orange County, California, is a breeze. Thanks to the vast resources of the World Wide Web, you can effortlessly access valuable insights. A quick search on platforms like YELP Reviews, Google Reviews, or Angi dedicated to air conditioning companies in Orange County will yield instant results. Investing the time to scan these reviews is well worth it, as it ensures you receive top-notch customer service and competitive pricing. Your peace of mind is worth the effort, so dive into the online realm of information to make informed choices.

Choosing the Right Air Conditioning Contractor

Selecting the perfect contractor can feel like hunting for a needle in a haystack, especially when your home resembles a sauna at a sweltering 80 degrees or more. At the same time, the merciless sun beats down with temperatures soaring beyond 100 degrees. It’s a desperate situation that calls for some creative solutions!

Why waste precious time and endure needless frustration? We’re here to swoop in and rescue you from the scorching dilemma. Behold, we’ve painstakingly curated a list of Orange County, CA’s Top when it comes to air conditioning companies. Our impressive journey spans over three decades, during which we’ve crossed paths with over 200 contractors – some fantastic, others not so much.

Our list isn’t just any run-of-the-mill compilation; it’s a treasure trove of trusted and proven companies. These are the champions of customer follow-up, the masters of fantastic pricing, and the epitome of integrity in their work. While it may not cover every gem out there, it’s a solid foundation upon which you can build your quest for the ideal contractor. So, let’s embark on this journey together and keep your cool intact!

Below is a List of our Top Picks for Air Conditioning Companies in Orange County, CA

Empire Appliance

Despite its name, Empire Appliance offers a wide array of services beyond just appliances. A dedicated father and son team runs this family-owned business in the Inland Empire. With over 30 years in the industry, they have served numerous homes and established themselves as trusted experts. Empire Appliance recently marked 25 years as a preferred vendor for Management One.

Their exceptional customer service is a point of pride, earning accolades from our residents who appreciate their punctuality, thorough follow-up, and competitive pricing. While you won’t find a website for now, Empire Appliance is the go-to professional for AC unit repairs, Heaters to Refrigerators, Dishwashers, and appliance servicing.

Empire Appliance’s impressive track record and commitment to excellence make it an indispensable resource. Whether it’s your air conditioner or household appliances needing repair, they are the team to call. We’re confident you’ll be delighted with their service.

Staycool Airflow A/C & Heating Cooling

Established in 2012, Staycool Airflow A/C & Heating has been your trusted partner for all things HVAC. Stay Cool Airflow A/C & Heating is your go-to source for reliable heating, ventilation, and air conditioning services, available 24 hours a day! Whether you’re a residential homeowner or a business owner, including restaurants, your HVAC needs are covered. Stay Cool Airflow A/C & Heating is fully licensed, insured, and bonded, ensuring peace of mind with every service.

Its offerings span emergency assistance, routine inspections, and maintenance checks to keep your AC and heating systems in shape. Stay Cool Airflow A/C & Heating’s technicians are experienced and licensed to install, maintain, repair, clean, and inspect your units.

Stay Cool Airflow A/C & Heating believes in creating a comfortable environment for its customers by enhancing their lives through HVAC solutions and preventative maintenance services. They proudly serve Riverside and its surrounding areas and even extend its reach to Orange County. Count on Stay Cool Airflow A/C & Heating for reliable, professional, and round-the-clock HVAC support – ensuring indoor comfort, no matter the season!

Superior Plumbing Heating and A/C

Superior Plumbing Heating and A/C is a family-run business offering residential and commercial plumbing, heating, and air conditioning services. The business has origins that go back to 2003. They’re a service provider and your partner in creating the perfect indoor climate for your home or business.

They are skilled in various services, from A/C diagnosis and repair to complete replacements and new installations. Superior Plumbing Heating and A/C offers whole-house air filtration systems, air duct cleaning and replacement, ductless air conditioners, and attic insulation and ventilation solutions. At Superior Plumbing Heating and A/C, they service all major brands, including Carrier, Payne, and Bryant, for which they are an authorized dealer. Superior Plumbing Heating and A/C is based in Riverside CA, and extends its services to San Bernardino Counties and Orange County.

Its commitment to excellence is like no other as Superior Plumbing Heating and A/C consistently strives for 100% customer satisfaction. Superior Plumbing Heating and A/C provides top-notch quality work at fair prices, ensuring your comfort and peace of mind are top priorities. Experience the Superior difference – enjoy superior comfort, service, and value!

What Makes a Preferred Vendor

At Management One, we firmly believe our contractors are integral to our team – they are an extension of our team. They serve as our on-ground representatives, engaging with families in their homes daily. Trust is the cornerstone of this relationship, and we emphasize their commitment to treating everyone with respect. Additionally, we hold our contractors to high standards, including providing punctual service and competitive pricing and being fully licensed, bonded, and insured. We leave no stone unturned when verifying their credentials, subjecting them to probation, and maintaining diligent follow-ups for each service call they handle.

We diligently administer surveys for every work order initiated through our office to ensure we maintain our high standards. These surveys are a meticulous check to confirm the completion and accuracy of all work performed. Our management and corporate teams actively monitor these surveys and are ready to address any concerns promptly. Our commitment to our vendors and maintenance is essential, a responsibility we take seriously.

You may be interested in our related post, How Maintenance is Handled If You Use a Property Management Company to Manage Your Property

By mgt1stg|2026-04-07T09:07:38-07:00September 23, 2023|Maintenance|Comments Off

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STOP! And let’s see if that’s in your rental property plan.

Here are the 5 Secrets for success and to always have money for repairs.

Myth Buster:

Enjoy the Journey as you buy several properties over time

Talk to Us About Your Property Needs

Still uncertain about property management? Give us a call to see if we can help.

Orange County

Riverside County

Talk to Us About Your Property Needs

Talk to Us About Your Property Needs

Still uncertain about property management? Give us a call to see if we can help.

Still uncertain about property management? Give us a call to see if we can help.

Orange County

Riverside County