Anaheim Multifamily Transformation: An Example of Modernizing Property Management for Optimal Returns
The Challenge
In January 2024, Art, a property owner in DTLA, approached Primior with a complex issue involving one of his high-end residential units. The tenant, Mr. Li, had entered the lease through standard procedures and was present at the time of move-in, with a relative—his real estate agent—acting as a translator and coordinating the process.
However, when rent payments were missed, multiple attempts were made to contact Mr. Li. The tenant initially claimed he was in the hospital but assured that payment would be made soon, which it eventually was. But as the issue escalated over the final two months of missed rent, Mr. Li suddenly denied having ever rented the unit and claimed he had no knowledge of the situation.
Upon further investigation, Primior discovered that it was actually Mr. Li’s real estate agent relative who had been occupying the property, not Mr. Li himself.
Meanwhile, Art had been dealing with the aftermath of financial mismanagement by the previous management company.
This firm had engaged in unethical practices, including:
- Guaranteeing rent payments, which went against expectations and is not an industry-standard practice.
- Mishandling Art’s funds by investing them in risky cryptocurrency projects, leading to significant financial losses.
- Neglecting to pay essential fees, such as HOA fees and property taxes, which left Art with a tangled financial mess to clean up.
Art was facing mounting losses and didn’t know how to proceed. That’s when he turned to Primior for assistance.
The Approach
Primior began by conducting a thorough audit of Art’s property finances and addressing the tenant issue with a clear and structured plan.
Key Steps Taken by Primior:
- Financial Audit and Recovery (January-February 2024): Primior started by reviewing Art’s property accounts, including HOA fees, rental income, and expenses. We uncovered over $100,000 in mismanaged funds and ensured all outstanding payments were accounted for. Primior also identified that the ongoing situation with the tenant was costing Art roughly $5,000 per month in lost rent.
- Tenant Eviction Process (February-May 2024): With the financial situation under control, Primior shifted focus to the tenant issue. After Mr. Li failed to pay rent for two months, Primior swiftly issued a 3-day notice to pay rent or quit. However, Mr. Li continued to stall, claiming a lack of understanding due to a language barrier. Primior worked with law enforcement and the courts, and by May 2024, we successfully carried out a court-ordered lockout, evicting the tenant and reclaiming the property.
- Negotiating with HOA (March 2024): In parallel, Primior helped Art negotiate with the HOA. We successfully stopped a foreclosure process initiated by the HOA and got all fines and penalties waived, which significantly alleviated Art’s financial burden.
- Clear Communication and Cross-Cultural Expertise (Ongoing): Throughout the process, Primior maintained clear communication with Art, who had previously struggled with the language barrier presented by the tenant. With our expertise in helping Chinese-American real estate owners, we were able to bridge this gap, ensuring that Art remained fully informed and confident in every decision.
- Strategic Planning for the Property (June 2024): Once the tenant was evicted and the financials were restored, Primior met with Art to discuss the future of the property. We provided strategic advice on whether to re-lease the unit or consider selling it at a favorable rate, given the market conditions in Downtown Los Angeles.
The Outcome
Thanks to Primior’s decisive action, Art was able to recover from a challenging situation and restore stability to his property. Here are the key outcomes:
- Aided in the Recovery of Over $100,000 in mismanaged funds previously lost to unethical practices by the former property management firm.
- Stopped Monthly Rent Losses of $5,000, preventing further financial drain caused by the tenant’s failure to pay.
- Successfully Evicted a Fraudulent Tenant by May 2024, ensuring that the property was back under Art’s control and no longer at risk of further losses.
- Negotiated with the HOA, stopping foreclosure proceedings and securing waivers on all fines and penalties.
- Found a Qualified Tenant within two weeks after the eviction. Art never experienced tenant-related issues again.
Conclusion: Primior’s Expertise in Action
This case exemplifies Primior’s ability to navigate complex tenant disputes, restore financial order, and resolve HOA-related issues for our clients. By leveraging our deep knowledge of California property laws, financial management, and cross-cultural expertise, Primior was able to deliver a successful outcome for Art.
With the tenant issue resolved, his finances back on track, and a reliable tenant in place, Art is now well-positioned to continue renting his units or take advantage of the current market to sell at a premium. Primior remains committed to guiding him every step of the way, ensuring his real estate investments continue to thrive.
