When families become financially successful, real estate often forms a part of their portfolio. In fact, older generations often preferred to put their money into properties such as multifamily residential buildings, wisely knowing that these would be an ongoing source of income likely to become even more valuable over the years. They managed these properties themselves, intending to hand them down to their children in time.
Unfortunately, it’s just as common that this handoff doesn’t end up happening as originally planned. When aging parents reach the point that they’re no longer able to keep up with the demands of property management, it may not be possible for their adult children to smoothly take the reins. Families are stuck with a dilemma—somebody must actively manage the property in order for it to retain its value, but if neither parents nor children can, who do you turn to? Rather than prematurely selling, or risking having the building depreciate from neglect, there is a solution that can keep valuable investment property in the family and generate income as intended.
A Commitment of Time and Energy
Managing a multifamily residential property requires a great deal of time and attention. Collecting rents. Finding new tenants for vacant units. Staying on top of regular maintenance. Making sure that needed repairs are made properly and quickly. Paying the mortgage (if any), property tax, and insurance. Responding to tenant concerns. Even for a building with a relatively small number of units, property management can be a full-time job.
Sometimes it isn’t possible for adult children to step into that role in the way their parents once assumed they would simply because they have full-time careers of their own. They may also have their hands full raising their own kids, adding the hectic schedules of school, sports, and activities to their overcrowded professional calendars. And not everybody has the temperament to successfully manage a residential investment property, even when they know the value it has for the family. Adult children can end up harboring resentment over the work involved, or having friction build between siblings trying to juggle the responsibilities together.
Families may not end up confronting the question of how to take over property management from their aging parents until the question has already become urgent. Perhaps their mother or father, who paid every bill faithfully and could name every tenant in the building going back decades, is now forgetting things and letting the maintenance slip. Or maybe physical limitations are making it difficult for their parents to even visit the property. In the meantime, the building is falling into disrepair, or tenants are taking advantage of the confusion to avoid paying rent. In desperation, the children may sell the family property rather than deal with the headache of trying to get the management back in order.
If your family is confronting this problem, there is a third way between doing it all yourself and selling it. Tiao Properties is a full-service boutique real estate management and brokerage company dedicated to helping our clients maximize the value of their investments through professional, proactive management of their properties. We take the stress and work off your plate so your family can benefit from your parents’ long-term investment vision, and your parents can know that the property they worked so hard on will stay in alignment with your family’s goals or be further invested to bring in more income for the parent’s retirement.
Managing Properties Throughout Los Angeles
Our comprehensive property management services keep your investment property running smoothly under the professional guidance of our experienced team. We handle all aspects of leasing, financial reporting, and maintenance, from finding new tenants and collecting rent to providing accounting statements and handling inspection requests. We care about these relationships that the owners have developed over the years and we are invested in the same. We evaluate your property yearly to ensure that it can continue to add value to your portfolio into the future. Our team can provide services in Spanish, Mandarin, and French for the convenience of our multilingual clients.
Don’t let your family investment property turn into a bone of contention between generations—Tiao Properties is your answer for professional, trustworthy property management. To find out more about our services, contact us here.