Mesa Properties, Inc.

2024 Year In Review:

There have been a lot of changes this past year and we want to give you a quick summary of what has happened in the Southern California rental market. We also want to update you on how our business is adapting and what we are focusing on as we enter 2025.

What Happened To The California Rental Market In 2024?

The 2024 rental market has been very stable and after several years of rent increases the market has plateaued. Owners who have a low interest rate from a few years ago are deciding to keep their properties as rentals instead of selling them. This means the supply of rental properties has grown and as a result, residents have more options. Properties are no longer renting in a few days like they used to.

Increased competition means residents expect lower prices and higher quality properties. If your property has a kitchen from the 1970s, consider spending money on a more extensive rehab when the property goes vacant. High quality residents want upgraded properties at a reasonable price. See this video for more information on how to get your property ready for rent.

Mesa Properties End Of Year Statistics:

This year we are on track to:

Achieve a 4.6/5 star satisfaction rating on all work orders.
Receive full rent payments from more than 99% of the residents we've placed.

It’s been an amazing year here at Mesa and we can't say "thank you" enough for your support!

Legislative Update:

California rental laws remain among the most complex in the nation. Here’s a quick overview of the most impactful changes for landlords in 2024:

AB 12: A new cap on security deposits means some landlords can only collect 1 month of rent. See our full breakdown of AB 12 here.

SB 567: Updates to existing rent control laws (AB 1482) add new protections for residents, including stricter just-cause eviction requirements.

AB 2801: Creates stricter rules around handling and returning security deposits. This adds another layer of complexity for landlords.

SB 267: Changes how applicants on government assistance are screened.

Prop. 33: The defeat of Proposition 33 was the biggest victory for California property owners this year. If Prop. 33 passed, it would have completely revamped landlord tenant law by allowing individual cities to implement their own unique rent control laws. Thankfully, this proposition failed with more than 60% of California voting against it.

We know that keeping up with these laws can feel overwhelming but don’t worry, we’re implementing processes in our business to make sure you are in compliance with these new laws. If you are interested in our full write up, be on the lookout for our 2025 legal update coming later this month.

3 Strategies We Use To Protect Your Investment:

As the legal landscape and rental market continues to change, there are three key strategies we are using to protect your rental property.

1. Keep Residents Happy:

Happy residents stay for a long time and long term residents means less vacancy and more cash flow for the property owners that we serve. One of the best ways to keep residents happy is to make sure repairs and maintenance are completed in a timely manner and by a quality vendor. We send out maintenance surveys after every work order is completed and this year our average response was 4.6/5! I put some recent reviews from residents below:

Positive Google review from a tenant.

2. Always Add New Contractors:

High quality contractors are increasingly hard to find. This has been complicated by some of the best plumbers and electricians in our area retiring in the last few years. This means we are always looking for new vendors to partner with.

We are so thankful for the 10+ year relationships we have with many of our core vendors. However, there is plenty of work to go around and this year alone we've added multiple contractors to our preferred vendor list. This ensures we can solve problems quickly while keeping prices competitive. See this blog post for more information on how we choose which vendors to work with.

3. Continually Add New Technology:

As the world continues to change and innovate, we are committed to as well. I listed some of our most notable changes in the past year below:

New vendor management technology to help balance efficiency and workload.
Brand new work order process to increase communication and customer experience.
Updates to the lease agreement.
Customized videos for every new resident that welcomes them to their new home while simultaneously teaching them about the systems (water shutoff, air filters, etc).
Upgrades to the application screening process to help increase throughput and decrease scams.
New inspection team designed to standardize inspections while increasing quality.
New hardware and training to increase quality of inspections and marketing.

It's been a busy year!

Looking Forward To 2025:

As we look ahead to 2025, the future remains uncertain. However, history shows that real estate has consistently proven to be a solid long-term investment. At our core, we remain a property management business run by landlords, and that won't be changing. While rising costs for insurance, property taxes, and maintenance have presented challenges, we've also seen a steady increase in rental income and property values over the years.

Ultimately, we still believe that California is a great place to hold real estate. I want to close by saying thank you. Managing rental property has never been more complex, and we know how much your investment means to you. Thank you for trusting us to manage your property! We'll continue to work hard to ensure you’re not just meeting the challenges but thriving despite them.

As we move into 2025, our commitment remains the same: to provide the resources, expertise, and service you need to succeed as a rental property owner without exposing you to the drama of day-to-day management.

Thank you for trusting us with one of your most valuable assets. Here’s to a successful 2025!