Riverside rental homes can provide their owners with an investment that’s competitive on many fronts. It can provide cash, positive equity growth, tax advantages—and even a variation on the “pride of ownership” that live-in homeowners feel. But at least in one area, it also brings a brow-wrinkling decision that those who live in the homes they own don’t have to think twice about.

We’re talking about pets. Fido and Kitty—yes or no?

For a huge proportion of American families, it’s a no-brainer. Despite potential less desirable side effects, that new puppy or kitten will be welcomed without hesitation into parlors from Riverside to Anchorage. Any damage that might result is just part of the wear-and-tear any household expects. The American Pet Association used to point to the 39% of households that own a dog or two—and to the 33% who own at least one cat. That might be greater today, now that 94 million cats and 89 million dogs populate U.S. homes.

What this results in for Riverside landlords is a tough choice about whether to allow renters to have pets. It might seem to make sense to simply rule them out—thus avoiding the clawing, scratching, digging, chewing on floors, walls, and fixtures, etc. Who needs those mental images to keep you up at night?

But if you decide on a no-pets policy, you eliminate something like 40% of your potential rental candidates. They’re spending $70 billion (!) a year to take care of their pets—which is why it’s sometimes argued that some of the personality types drawn to fostering animals are also highly desirable as tenants. In fact, the Petfinder website does say that pet-friendly rental units have a 4% lower vacancy rate.

The decision may be somewhat ameliorated by the fact that most pet owners readily accept pet deposits, various pet stipulations, and even a rent surcharge. For landlords who partner with professional managers, the best Riverside professional property management firms can be counted on to enforce established guidelines that protect their clients’ properties while providing the revenue benefits.

In short, the pet/no pet conundrum needn’t be a stumbling block for anyone weighing the investment potential that Riverside rental homes can provide. For a more complete picture, call me!

Suppose you have put your Moreno Valley home on the market, but the number of showings is signaling that your asking price is not attracting much buyer interest. In most cases, you will notch the price down to a competitive level. That’s simply responding to the real life market in real time.

But if you have no need to sell within a limited timeframe—and you are disinclined to accept what the market is supporting at the moment—you have the option of waiting. If you also aren’t in residence at the property, you have another option, too: you can turn the property into one of the Moreno Valley rental homes that keep cash coming in while the market continues to improve.

To make the most of the home rental solution, one major management issue is a systematic approach to maintenance. If you hire one of Moreno Valley’s experienced property management firms, that will be high on their priority list. If you decide to take on the job yourself, it will fall to you. Although good tenants can be considerate, watchful guardians of your property, to assure that your asset that retains its value when you aren’t in residence, regular inspections should be part of the rental home arrangement. Surprise landlord visits are to be avoided, but when regular inspections have been agreed upon and advance notice given, there should be no reason for anything other harmonious cooperation—particularly if generally agreed-upon good practices are followed:

⦁ Communication. There should be no ambiguity about why routine inspections are necessary. Every home needs to have its systems and structural integrity proactively maintained. No matter how thoughtful and careful a tenant may be, Father Time needs to be held at bay in ways the owner is most likely to spot.
⦁ Teamwork. If at all possible, at least one of the responsible tenants should be present during inspections. Not only does this deter any possibility of accusations of theft or other mischief from materializing, it’s also that much easier to foster an atmosphere of cooperation instead of confrontation. At its best, a successful inspection yields more than a checklist of items to be attended to. It gives the tenant assurance that their quality of life is part of your goal as landlord.
⦁ Privacy. When issues arise that should be photographed—for communication with maintenance professionals or for legal documentation—care should be taken that they never include personal items (like family photos, pets, people or valuables). This is a privacy issue that is universally observed, but too easily overlooked. Don’t!
⦁ If the above Communication and Teamwork ideas run up against a reality where the property is being neglected in any substantial corner, personal on-the-spot confrontation is generally regarded as likely to yield negative results. You will have documented the problem, and the best way to handle it is to address the issues with the tenant formally—and in writing.

When Moreno Valley properties convert into Moreno Valley rental homes, they can also acquire an extra asset—because that’s exactly what a good tenant is. And if the time comes to ultimately list the property, it might find a whole new group of prospects—investors interested in Moreno Valley rental homes that come equipped with long-time tenants. Call me!

The outlook for owners of Moreno Valley rental properties has been buoyant for some time, but last month a widely-publicized report added to the long range outlook. The study presented multiple scenarios in which demand is likely to outpace the supply of rental properties in the U.S., creating a market bound to reward their owners. Not such good news for tenants, though—or, as The Wall Street Journal summarized, “Renting is unlikely to get easier anytime soon.”

The report, which was issued by Harvard University’s Joint Center for Housing Studies and the affordable-housing organization Enterprise Community Partners, focused on the growing number of U.S. households for whom rent payments present a ‘growing burden’ in terms of the percentage of income they comprise.

According to the study, nationwide, rents have continued to grow faster than incomes over the last 15 years, hindering affordability. Added to that, many federal housing subsidies have been cut in recent years. One result is that the number of households who pay more than half their income to rent is estimated at 11.8 million—three million more than in 2000.

“Renters Will Continue to Struggle for the Next Decade, Harvard Study Says” was the headline that topped Laura Kusisto’s WSJ article summarizing the report. Although the study found that some factors contributing to the rise were due to temporary economic conditions that are unlikely to continue, other demographic factors will persist. Growth in groups of those in their mid-20s to mid-30s and in the Hispanic population (both groups “tend to be disproportionately renters”) have added to demand for rental housing. At the same time, the private sector has had difficulty producing profitable housing “that is affordable to lower- and moderate-income families.”

The trend might slow and even reverse should incomes begin to outpace rents—but the overall effect might have marginal results. One expert is quoted as saying that even a full decade of solid income growth would likely produce little change in the number of severely burdened households.

One nay-saying group to challenge that outlook is the Mortgage Bankers Association, which in August concluded that Americans will form “at least” 10 million new owner household in the next decade. Such growth would be expected to ease pressure on rental stocks, lightening demand enough to slow rental price escalation.

Whichever group is right, it’s evident that the owners of Moreno Valley rental properties currently stand to benefit from some of the economic currents that continue to garner headlines. That’s the kind of incentive that interests the investment-minded—and if that sounds like you, why not give me a call to review some of the rental properties in Moreno Valley currently listed for sale?