How Insurance & Market Shifts Are Reshaping Property Management

Skyrocketing insurance, rent control, and costly repairs are pushing landlords to the edge—here’s what property managers are dealing with in 2025. Tyler Mehl of Belmont Shore Land Co shares what he’s seeing in the Long Beach rental market, why some longtime owners are throwing in the towel, and how property management fees are often misunderstood or misleading.


Property Insurance Woes: The #1 Pain Point

The biggest headache right now for landlords? Insurance. Tyler confirmed that the past 3–6 months have been a whirlwind of cancellations, demands, and skyrocketing premiums. Owners are either being dropped by insurers or told they need to upgrade electrical systems, plumbing, or roofs—often without any clear guidance.

“We had a drone flyover that flagged roof discoloration,” Tyler explained. “It wasn’t even damage—just different-colored tile. But we still had to document it, send pictures, and deal with the insurer.” Even when owners comply, premiums are still going up, often by 30–40%.

Are Landlords Giving Up?

Some are close. Tyler noted that one of his longest-standing clients—since 1992!—was on the verge of selling. “She’s upgraded her buildings over the years,” he said, “but the process of complying with insurance demands, waiting for underwriters, and paying last-minute premiums wore her down.”

It’s rarely just one issue, though. Insurance is the tipping point after dealing with rent control laws, rising costs, delayed evictions, and general property wear and tear.

The Rent Control Dilemma: Old-School vs. Market Reality

Some landlords, especially those who’ve owned for decades, don’t feel comfortable raising rents. Even when their units are well below market, they hesitate. Tyler gave an example: “We had a one-bedroom at $1,500 and the owner didn’t want to charge more—even though market rent was $1,900+.”

And when you do raise rents, there’s a cost. “A basic kitchen, bath, and washer-dryer upgrade can easily cost $30,000,” I shared during the podcast. “You’re not raising rents just because you want to—you’re reinvesting.”

A Shifting Rental Market: Slower, Softer, Smarter

Tyler brought up something surprising: a slowdown in the Long Beach rental market. Some units that would have been snatched up in days are now sitting vacant longer and renting for less.

“Vacancies used to move fast,” Tyler said. “Now we’re seeing more competition, especially for two-bedroom units. One-bedrooms, surprisingly, are still in high demand—especially by couples trying to save money.”

He noted that one-bedroom units often rent faster and for a higher price per square foot than two-bedrooms. But high-end two-bedrooms can still command premium prices—if they’re in top condition.

Overpricing = Lost Rent

I chimed in with my own lesson: “I had a two-bedroom, two-bath sit for two months because we overpriced it by $100. That’s over $6,000 in lost rent.” Tyler agreed: “If your property is priced right, it should move within two weeks.”

So what’s driving the slowdown?

  • More rental inventory coming online
  • Fewer tenants moving due to higher market rents
  • New investors undercutting previous high rents to fill units faster

Advertising Rentals: What Still Works?

Tyler’s go-to recommendation for landlords? Zillow.

“It’s easy for DIY landlords,” he said. “They offer application tools, credit checks, and a platform tenants are already using.” While Tyler’s company doesn’t accept Zillow applications directly (to ensure tenants view the property first), he still uses it for advertising.

He’s less enthusiastic about Craigslist. “We used to use it and the Grunion Gazette—those days are over.”

Yard signs? They still have value— if the property is on a busy street. “If you’re tucked in a cul-de-sac, the only people seeing your ‘For Rent’ sign are your neighbors.”

Red Flags for Self-Managing Landlords

Many landlords call Belmont Shore Land Co. after they’ve made a mistake. Whether it’s renting to the wrong tenant, failing to stay on top of repairs, or just being overwhelmed, Tyler says about 30–40% of his clients come in with existing issues.

“If you’re losing sleep over your property, and you don’t want to become a student of property management, it’s time to call someone,” he said.

Management Fees and Sneaky Costs

Tyler shared some transparency around pricing. His company charges:

  • 8% for multifamily properties
  • 10% for single-family homes
  • No lease-up fees
  • No add-on tenant charges

This is a stark contrast to other managers, who may charge pet fees, technology fees, and lease-up fees on top of their base rate—without always disclosing it to owners.

One recent example: A tenant was unknowingly paying $120/month in extra fees to a property management company, including an $80 pet fee and $40 “tech” fee, none of which the owner was aware of.

Tyler’s Offer: Free Contract Audit

If you’re currently working with a property manager and aren’t sure about your agreement, Tyler is offering a free contract audit. Just mention the podcast and say you’re requesting an “audit.”

Contact Belmont Shore Land Company

☎️ 562-438-6532

🌐 Belmontshoreland.com

Related Posts

Share:

Facebook
Twitter
Pinterest
LinkedIn