5 Steps to Becoming a Risk-Free Landlord in California
Whether we like it or not, rents in California are constantly shooting up. Recent statistics indicate that rental rate in Los Angeles are exceeding the pre-recession value. The recession has impacted apartment developments in the worst way; meanwhile, reduced rental stocks and sky-high housing prices have become two pressing problems that any potential tenant seeking a new roof over his head in Cali is now forced to deal with. Even so, a report published by the Joint Center for Housing Studies at Harvard University indicates that Los Angeles takes pride in the biggest percentage of renters in the United States.
Now’s the Best Time to Become a Success-Oriented Landlord
According to this source, 52% of the people living in Los Angeles were renters three years ago, compared to only 35% on a national scale. While fewer and fewer people choose to start a new chapter in their lives as homeowners, some of the individuals who own one or more attractive pieces of real estate choose to try their luck as landlords. Nonetheless, to become a successful landlord you don’t really need luck; what you do require to reach your goal is a mix of determination, research, great marketing skills and even better measures of precaution. Yes, as a landlord you have to cover your back and pay special attention to the potential threats that could impact your financial situation and overall balance. We give you not one, but five excellent tips that you can and should apply to match the low-risk landlord profile.
- Get the Right Type of Coverage for Your Property. First of all, think about the fact that your rental is one of your most valuable assets, which requires the highest level of protection to preserve its value and help you attain peace of mind. Buy coverage based on your needs and the most pressing and probable emergency situations that you have in mind (flood, fire, acts of vandalism, expensive stolen goods and so on). When shopping around for insurance, focus on these three essential components to keep some of the most common risks in check:
- Rent insurance (a policy that covers losses associated with a tenant’s actions or a natural disaster)
- Personal liability insurance (covers fair housing law violations, as well as the damages suffered by others on your property)
- Property insurance (covers physical and structural damages affecting the looks, functionality and end value of your property)
- Screen All Potential Tenants. Take the time to meet all candidates in person and research your options very carefully before handing the keys to your place to a complete stranger. Keep in mind that you should never reject a potential tenant based on discriminatory reasons (sexual orientation, race, religion and so on), deny or hide the availability of available rental space, or create and embrace different standards for different categories of tenants. These actions are fairly common mistakes representing clear violations of the Fair Housing Act. If necessary, reject certain individuals based on legitimate motives, such as bad credit, negative reports from previous landlords and/or insufficient income.
- Turn Your Home into a Habitable, 100% Safe Environment. Next, take a closer look at the space that your new tenants would have to call home. Does it really resemble a home? Is your property attractive, practical and safe at the same time? If you still can’t provide an affirmative answer to this question, work harder to address obstacles that lower your rental’s levels of safety and comfort. Make sure your roof is structurally safe and that your tenants will have access to electricity and clean water at all times. Check the heating, gas and plumbing systems. Inspect lighting systems; replace or repair structures that could expose tenants to considerable risks (such as broken stairs or defective electrical wiring) and go the extra mile to accommodate the special needs of various categories of tenants. For instance, to boost your odds of filling your vacancies, you may want to implement a few additions, including accessible parking spaces, to accommodate disabled tenants.
- Address Environmental Hazards As Soon as Possible. Avoid a costly lawsuit by identifying and eliminating the most common environmental hazards that could put your tenants’ health on the line. Hazardous materials such as radon, mold, carbon monoxide, lead-based paint and asbestos can become serious threats, so you should conduct regular inspections to comply with current state laws and prevent potential damages and injuries.
- Hire Only Qualified Help. If you feel that some of the most importance tasks related to regular maintenance and your relationship with existing tenants would take away too much of your spare time, consider hiring a property manager who could preserve or even increase the value of your property, while keeping your residents satisfied. When looking for contractors, choose to work with experienced professionals who carry their own liability insurance.
Use the Tools Provided by Apartment Hunterz to Become a Better Landlord
Beginnings are always hard, we get it. As a first-time landlord, there are many things that you should focus on, including tenant screening, promotional strategies, maintenance work and complaint management tactics. All these aspects require time, energy and money. Wouldn’t it be easier to rely on a convenient solution designed to lift a part of this weight off your shoulders? Apartment Hunterz makes it easier for you to thrive as a landlord, by offering you a great variety of tools and features created to help you communicate with potential tenants, download and upload forms, schedule in-person meetings and promote your rental without lifting a finger to find the right clients. Give this great apartment finding service a try and reach a dependable team of experts to find out how you could shake hands with the perfect tenant in a matter of days.