How Much Should First-Time Landlords In Los Angeles Budget For Repairs?

Most first-time landlords in Los Angeles, California never planned to become landlords. They lived in the home, moved for work or family, and decided to rent it out. Many of those homes are decades old, and the first year often brings costs the owner did not expect.

Jesse Sasomsup, President and Broker of Earnest Homes, says the owners with the smoothest first year are the ones who budget for maintenance from the start. They also know what to expect when a repair request comes in.

Set Aside 9 To 12 Percent Of Gross Rent

Sasomsup recommends reserving 9 to 12 percent of gross rental income each year for maintenance. For a home that rents for $4,000 a month, that works out to roughly $4,300 to $5,800 a year.

With that reserve in place, a plumbing call or a broken appliance does not become a financial surprise. It also makes it easier to approve repairs quickly.

Budget For Turnover, Not Just Repairs

Some of the biggest costs come between tenants. Sasomsup says these are the expenses first-time landlords most often try to skip.

Fresh paint: Earnest Homes recommends repainting at every new move-in. Depending on the size of the home, that typically costs $2,000 to $4,000. “If you don’t paint, you cannot command a premium rent,” Sasomsup says.

Professional cleaning: Some owners plan to clean the home themselves before a new tenant arrives. Sasomsup compares a rental to a hotel room. It needs to be fully clean on move-in day, and a professional crew will get it there in a way most owners cannot on their own.

Carpet: Plan to replace carpet about every seven years.

“A quality property that looks nice and clean will attract quality tenants,” Sasomsup says. Owners who want top-of-market rent need a home that is ready to match it.

Know What Gets Fixed Today And What Can Wait

Earnest Homes defines an emergency as anything that cannot wait until the next day, such as a leak, a fire, or a flood. Those get an immediate response. Routine repairs are typically handled within one to three days.

Most management companies use an auto-approval limit for repairs. At Earnest Homes, anything under $350 is handled right away without waiting on the owner. That covers routine jobs like clearing a clogged drain. Anything above that amount goes to the owner for approval first.

Diagnose First, Then Decide

Not every request needs a vendor. Many tenants are renting a house for the first time after living in an apartment or condo. Before sending anyone out, the team walks the tenant through basic troubleshooting, such as checking the breaker when a light stops working. Safety issues always go straight to a professional.

When a vendor is needed, the cost is usually predictable. Because the team handles common repairs every week, they know roughly what each job should cost before work begins.

For owners who live out of state and prefer fewer calls, Sasomsup suggests raising the auto-approval limit to somewhere between $500 and $1,000, depending on the property. Earnest Homes coordinates this work as part of its full-service property management.

A realistic budget set in the first month makes the rest of the first year much easier.

Earnest Homes is a Sherman Oaks-based property management company serving owners of single-family homes, condos, and apartment buildings across Los Angeles County, including the San Fernando Valley, the Westside, the South Bay, and Santa Clarita. Founded in 2015 and led by President and Broker Jesse Sasomsup, the company provides full-service leasing, maintenance, and day-to-day management for first-time landlords, out-of-state owners, and investors.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.