Whether you own a rental property or are considering investing in one in the future, these Six Simple Tips will help you maximize the advantages:
- Keep Your Expectations Reasonable – Have the goal of positive cash flow, but don't expect to be purchasing a new yacht at year's end. If you keep your expectations in check, you won't be tempted to jack up the rent and push out good tenants.
- Know the Rules – Federal and California laws outline your responsibilities and liabilities, so you can't claim ignorance when something happens. We can help you with these if you have any questions!
- Make Sure Your Leases Are Legal – If you make a mistake on the lease, you will find it more difficult to litigate if a tenant violates the terms.
- Call References and Run Credit Checks – Too many landlords rush to fill a vacancy rather than taking the time to make sure the prospective tenant is a better option than an empty property.
- Create an Emergency Fund – This is essentially money earmarked for unexpected expenses. There is no set amount for an emergency fund, but 10% of the value of the property is a good guideline. Not realistic? Having something set aside is better than nothing!
- Find a Balance between Earnings and Effort – Are you planning to be a "hands-on" landlord? Or should you consider working with a firm? The income might not seem so great if you are putting in another full-time shift working on your rental property. If you decide a firm best suits your needs, we can provide you with full property management services. Just say the word!
Interested in searching for a rental property or learning more about property management? Reach out with any and all questions! The only dumb questions are the ones not asked. With over 20 combined years of real estate and property management experience under our belts, we are happy to share our knowledge in any way that we can.