Maybe you’re renting out a home you once lived in and you’ve decided that you like the rental income it brings in, so you’ve decided to buy another property you can rent out. Perhaps you’ve been slowly building a portfolio of rental properties and so far you’ve had good luck; tenants are paying on time and maintenance needs have been minimal.
It’s exciting to see success, and there’s a subtle shift from landlord to investor that many rental property owners don’t even realize they’re making.
Smart investors know that owning rental homes doesn’t have to be a part-time job. When you turn most of the day-to-day work over to professionals, you’ll find you’re able to earn more and spend less, while freeing yourself up to explore additional investment opportunities.
RentSimpli is a full-service San Diego property management company specializing in single family homes, townhouses, condos, mobile homes, small commercial buildings, and small apartments. We also service Riverside counties including Temecula, Murrieta, Menifee and more. Today, we want to show you what it means to think like an investor.
Pay Attention to Legal Changes and Requirements
Renting out a home in San Diego and throughout California has become more complicated in the last few years. Many landlords are barely surviving the COVID-19 pandemic because of the eviction moratoriums. Collecting rent from tenants who have been impacted by job losses, salary reductions, and business closures is challenging.
Fair housing laws are always changing. There’s also the statewide rent control mandate that went into effect in 2020 and well as the just cause eviction laws. Section 8 tenants are now required to be considered when you’re screening applicants and advertising your rental property. There are a lot of legal landmines, and it’s easy to make an expensive mistake – even if it’s unintentional. If you’re thinking like a property investor, you’re consulting some of the most experienced legal experts and property managers in San Diego so you’re sure that your properties are in compliance.
Get to Know the Nuances in the San Diego Rental Market
The San Diego rental market is not one-size-fits-all. As you may have noticed, prices can fluctuate dramatically, even from one street to another. If you don’t know the market well, you could be underpricing your rental home. Even worse, you could be trying to rent it out with a price that’s too high, which may lead to longer vacancy periods as well as undesirable applicants.
Smart investors know that the rental value of their property depends on the market, the location, the season, and the condition of the home. Keep up with the market trends.
Make Preventative Maintenance a Priority
Small problems have a tendency to become larger and more expensive problems. Don’t let deferred maintenance sidetrack your financial goals. When a resident reports that a repair is needed, act quickly, even if it seems minor. Maybe you would wait a few weeks before repairing something at your own home, but tenants expect you to respond to their needs immediately. Responsive maintenance protects the condition of your home and also helps with tenant retention.
Thinking like a property investor means making a plan for preventative maintenance. You want to preserve the condition of your asset, so have its most expensive systems inspected and serviced annually. Get the gutters cleaned out and the HVAC system checked. These services will extend the life of your furnace, air conditioner, water heater, roof, etc. It’s worth the investment.
Work with San Diego Property Managers
The most important thing you can do as a property investor is seek the counsel of experienced San Diego property managers. Whether you’re renting out two houses or 10, a property manager will save you time, money, and unnecessary headaches. Let the experts do what they do best. You’ll find yourself having a better and more profitable rental experience.
RentSimpli is a full-service property management company serving landlords, investors, and property owners in San Diego and Riverside Counties, including La Mesa, El Cajon, Chula Vista, Santee, Rancho Bernardo, Escondido, Fallbrook, Temecula, Murrieta, Menifee and more. If you have questions related to property investments or San Diego property management, please contact us.