Many landlords in Los Angeles, California, decide to manage their own rental property to save on a monthly management fee. Jesse Sasomsup, founder of Earnest Homes Property Management, says that decision often looks smart on paper and expensive in practice. The real comparison is not the monthly fee against zero. It is the monthly fee against the cost of a single mistake.
The Monthly Fee Is Not The Real Comparison
A typical property management fee runs a few hundred dollars a month, which adds up to a few thousand dollars over the course of a year. Sasomsup says owners who self-manage to avoid that cost often do not account for what happens when something goes wrong. A tenant reports a maintenance issue that turns into an uninhabitable living condition claim. That can lead to a relocation payment, a lawsuit, and an attorney bill that runs into the tens of thousands of dollars, wiping out years of savings from not hiring a manager in the first place.
One Mistake Can Cost Tens Of Thousands
Sasomsup put it plainly during a recent conversation about his business: an owner could pay a property manager for three years for around $7,000 total and still come out ahead compared to one lawsuit that costs $20,000 in attorney fees plus another $30,000 in damages or settlement. The math only favors self-managing if nothing ever goes wrong, and in a market with as many notice requirements and disclosure rules as Los Angeles, the odds of an unintentional mistake are higher than most owners expect.
He frames a property manager less like a vendor and more like insurance that pays dividends, since a manager is also doing the ongoing work of screening tenants, keeping up with legal requirements, and handling day-to-day issues rather than only stepping in after a problem has already happened.
Insurance Has Gotten More Complicated Too
Insurance requirements have become increasingly complex for rental property owners. Lawsuits involving a rental property often name both the owner and the property management company, making proper insurance coverage especially important.
Some property management companies offer clients access to additional liability protection or a master insurance program. Depending on the program, this can provide an extra layer of protection for both the property owner and the management company when a covered claim occurs. Owners should review the coverage, limits, exclusions, and costs carefully to understand how it works alongside their existing landlord insurance policy.
What A Good Property Manager Should Guarantee
Cost is only part of the equation. Responsiveness matters just as much, since a manager who is slow to respond to a tenant issue can turn a small problem into a legal one. Sasomsup says Earnest Homes built its service around a 24-hour communication guarantee, though most client emails are answered within four business hours. The company also backs its work with a $5,000 pet damage guarantee and a $5,000 eviction cost guarantee, covering attorney fees and court costs if an eviction becomes necessary. Management fees start at 5 percent per month.
For an owner deciding between self-managing and hiring help, the question is not only what a manager costs each month. It is what a single missed notice, a mishandled maintenance request, or a coverage gap could cost instead.
Earnest Homes Property Management is a full-service property management company serving Los Angeles, managing nearly 700 properties across the Valley, South Bay, and Westside. Founded in 2015, the company specializes in guiding first-time and out-of-state landlords through LA’s fast-changing tenant laws, offering end-to-end services from marketing and tenant screening to leasing, maintenance, and move-out. Earnest Homes backs its service with a 24-hour communication guarantee, a $5,000 pet-damage guarantee, and a $5,000 eviction-cost guarantee, with management fees starting at 5% per month. Jesse Sasomsup, founder of Earnest Homes, is a former contributor to Forbes Business Council.
Disclaimer: 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.
