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Should I Charge a Pet Deposit? Your Landlord Questions Answered

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With such high demand for housing in California, being a landlord in San Diego can be very rewarding. Whether you own a condo near Mission Beach or a single-family home in Santee, you’re unlikely to have any trouble attracting renters. 

But before you list your rental, there are some decisions you’ll have to make, such as whether the property is pet-friendly. And if it is, will you charge a pet deposit?

Here’s what to consider before you decide on the pet policy for your California rental home.

 

Should You Allow Pets?

First, consider whether you want to allow pets on the property. The main downside? Pets can cause damage to your place. This could mean increased costs to fix up the home once your tenants move out. But if that’s the only thing causing your hesitation, you could just collect a pet deposit that will cover any pet damage.

Also, there are some advantages of welcoming pets to your California rental home. First, your listing will appeal to more people, since about 68% of Americans have at least one pet yet not all landlords allow pets. 

This will give you a wider pool of interested applicants for your San Diego rental home. Not only will this help you rent it out faster, but you may also be able to charge a bit more than other landlords in the area. Some landlords charge a pet deposit and a monthly pet rent on top of standard rental fees.

You can even go one step further and advertise the household as being super pet-friendly. A dog door, big backyard and proximity to a dog park are all examples of pet-friendly amenities that you can mention in the rental listing. 

And if your property is close to Dog Beach on Ocean Beach, be sure to call that out to appeal to California dog owners! If you decide to allow pets, keep in mind you don’t have to allow every type of animal. You can decide if you’ll allow cats, small dogs, large dogs, etc. 

You can even require a pet interview before you approve a tenant’s application. During the interview, you can ask questions about the pet, such as size, weight, age, and medical and behavioral history. 

The pet interview is a task that the right property manager in San Diego can help you with if you’re not sure what to ask.

 

Pet Fees, Pet Rent & Pet Deposits: What Are the Differences?

Allowing pets inside your San Diego rental home will help you rent it faster, but you should always charge a little extra to protect your home. Fortunately, there are a few ways to do that via a pet fee, pet deposit and pet rent. Here’s what to know about each one.

 

Pet Fee

This is a one time fee that you charge upfront. It’s meant to cover any costs for damage the pet might do to the property. Clarify in your lease that it’s not refundable so you don’t have to give it back if there’s no visible pet damage when the renter moves out.

The reason to charge a pet fee is that it can help pay for regular wear and tear or issues you discover after the renter has moved out, such as damage to the floor that you didn’t notice during the pre-move out inspection. You can combine the pet fee with pet rent or a pet deposit for extra protection.

 

Pet Deposit

It’s common for landlords to charge a pet deposit, which is a onetime deposit. But unlike the pet fee, the pet deposit is refundable.

This gives an incentive to renters to ensure their pets don’t damage the home, but it also protects you in case they do. So if a pet puts a hole in the wall, scratches the floors or stains the carpet, the pet deposit will pay for the damage.

 

Pet Rent

Another way to protect yourself is to charge a monthly pet rent. This is a small fee — usually from $10 to $60 per month — that you charge on top of regular rent if the renters have pets.

You can charge pet rent instead of a pet fee or pet deposit, or you can combine any of these options. Just note that you don’t want to add too many pet fees, or your rental might look less attractive to pet owners who don’t want to feel nickel and dimed. 

If you’re not sure which fees to charge, hire a San Diego property manager for guidance. Contact us today to learn more!

 

6 Ways to Get the Most From Your Rental Property

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Your rental property is a source of income; just like any other income source, you want to make sure you’re maximizing your profits. There are several tried and tested ways that you can increase what you can charge for your rental property. A few obvious ones are to add extra space by way of extensions and renovations. However, here are six ways to get the most from the rental property you may have overlooked. 

Reduce Time Left Vacant

A property without a tenant will start to cost you money. For each day you don’t have people in there, you will have to foot the cost of the utilities, upkeep, and more. Include in your rental contract that tenants must give you 30-day notice before leaving your property; this should give you enough time to find new occupants.

To decrease the turnaround time, the day the current tenants leave should be the day you have the keys back in your hand.You can head in, clean the property, assess repairs, and have the new tenants in within a few days.

Hire A Property Manager

A property management company will cost you money, but if you use them right they will make you more money than they cost, making it a positive spend in terms of investments. They will take a small percentage of your rental income in exchange for their property management expertise. They will be able to tell you how much you should charge, take care of tenant searching, provide a personal showing assistant, conduct move-in and move-out inspections complete with videos and photos, and more.

Add Extra Fees for Pets

Many landlords won’t entertain the idea of pets because of the wear and tear that they often have on a living space. Yet, if you increase the rental price or add on a monthly fee per pet, many people with pets will be happy to pay for it. The increase in the rent can cover any damages and a deep clean at the end of the tenancy. 

Add More Amenities

The more a rental space has to offer, the more money it can command. Most people who rent will be happy to pay a higher monthly rent if, for example, they don’t have to fully furnish a rental property. Including appliances like a washer and dryer, a refrigerator, and a dishwasher. If your circumstances allow, consider including membership to a local pool or gym, energy-efficient features, and private outdoor space.

Don’t Include Utilities in Monthly Rent

This can be an expensive mistake. If you include all bills in the rental cost, but the energy prices rise, or the tenants use an excessive amount of gas or electricity, then you will need to cover the excess. This will drastically reduce your margins.

When the utilities aren’t included in the price, the tenant will be more careful about how much they use because they will be covering the bills. When tenants aren’t covering the cost for something, they will typically use more of it. Longer showers, more heating, etc. will cause a spike in utility bills. 

Make Use of Tax Breaks

There is a wide range of tax breaks that landlords can take advantage of. Here are five ways that you, as a landlord, can make use of your tax breaks and get the most from your rental properties. You can claim property tax. Depending on your state, if you manage short-term rentals, they may charge a fee known as occupancy taxes.

Just like your sales tax, you can deduct occupancy taxes too. You can also deduct the loan interest on your mortgage. This doesn’t mean you can deduct the portion of your mortgage payment that goes towards paying the principal loan amount; instead, this is just for the charges of interest.

If there are maintenance and repairs that need to be done on the home, and you hire someone to do this for you, you can deduct these maintenance and repair costs. Any form of insurance will be considered an ordinary and necessary rental property expense, and this means it is deductible.

As a property owner, you are allowed to deduct certain professional fees that relate to the rental property. If you use a lawyer, computing software to prepare your tax returns, or anything similar it can be considered in operating expenses and can be deducted.

For help getting the most from your rental property, get in touch with Amanica today.

5 Ways to Make Qualifying Tenants Easier

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The screening process ensures you can get the best tenants possible. With some due diligence and patience during the process, you can get the ideal tenants for you. However, it can be tricky when you have a vacant property and you are losing money every day that it remains unoccupied. You might be tempted to speed up the process, but don’t give in! Here are five ways to make qualifying tenants easier.

Quick Application

Just like with job applications, you can make housing applications quick and easy. You already have a deep understanding of the type of client that you want in your rental property. You can create a digital application form the tenant can fill out for themselves, saving you even more time. 

Set up your application so that if the tenant does not meet your requirements, they will automatically be disqualified. This will save you from having to sift through many applications for renters you won’t even consider. For example, if you are looking for a long-term renter with no pets and with a medium-high income, this form can collect that information quickly for you.

In-Person Meeting

This is a vital piece of the puzzle. If you work with property management services, they can do this for you to save you time, but for peace of mind, it is essential that potential tenants undergo an in-person meeting. Although it is important to remember that everyone has unique styles and personalities, there are some warning signs that you can watch out for while you are evaluating your potential new tenant. 

You shouldn’t necessarily judge a person based on their appearance, but you can tell quite a lot by their attitude towards you and treatment of you. Remember that this is someone you or your property manager will interact with quite a bit in the coming months or years!

See how they greet you and interact with you. A respectful person will most likely show respect to their surroundings too. Small things like wiping their feet when stepping into the house, shaking your hand when they meet you, etc. are important details to pay attention to.

Have they arrived prepared to sign for the property there and then? A more serious prospect might come with all the information and paperwork that you would need to make sure that they could sign for the property, even if this is simply just a viewing. 

Motivated Tenants

A potential renter that is serious about your property will be motivated to contact you more than once. This usually shows an eagerness for the property, and they will most likely maintain contact with you. This relieves a lot of the pressure off of you because you won’t feel the need to chase down potential leads to try and fill a vacancy in your property.

Make it clear on your listing that you are looking for a motivated tenant. The potential renter will typically be easy to get hold of via text, email, or a phone call. Most likely, they will be proactive in providing you with important documents and other information—forms filled out, all of the ID that you need, and perhaps even a deposit. This is a positive sign and can make the process incredibly quick.

Hire A Property Manager

As mentioned above, a property manager can take a lot of the stress out of renting your property. As they are experts, not only will they guide you through pricing and how to attract the right tenants, they can also attend viewings, contract signings, and more. 

Although a property manager will cost some money, in terms of the services that they provide and how smooth they can make the process, they are more than worth their fees.

Property managers have seen a wide selection of potential tenants, and not just for your property. This means they are seasoned professionals at picking out those tenants that would be ideal for you and those that are potentially wasting your time.

Application Fee

If you have a small application fee, you might weed out less serious tenants before they can even apply and waste your time. The fee could be returnable after the contract has been signed, or you can keep it, but either way it will be a quick differentiator between people who are genuinely interested in the property and those who are less serious. 

Choosing a tenant can be a daunting process, but with these five ways to make qualifying tenants easier, it can be swift. Properties that are left vacant for too long to begin to cost the owner money, so the quicker you can qualify new tenants, the better.

For help making this process even easier, contact Amanica today to learn more about how property management can make qualifying tenants easier.

Amenities Tenants Are Looking For

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Finding good rental housing can be difficult. When renters are looking for somewhere that they can call home, they will be looking for places that have certain characteristics or perks included. These amenities that tenants are looking for will make a renter’s life easier and oftentimes provide renters with a better quality of life. 

Homes that have these amenities are more likely to get rented out quickly and can attract a greater rental income. What are the types of amenities that renters are looking for in their homes? These are five common considerations for renters when they are hunting for a new house to call home. 

1. Good Location

The location is arguably the most important feature of any property. If your property is situated in the right location, you can command a much higher rental price even if your property isn’t the newest or nicest on the market.

People are much more willing to compromise on other amenities such as square footage, age of the home, appliances included in the home, etc. if the property is in the right area for them. 

Think about any areas that are close to the center of a large city. People are far more willing to pay higher prices to be in the center of the action. This will put them closer to work, grocery shopping, as well as entertainment. 

Think about the proximity of the property to workplaces, outdoor spaces such as parks, as well as other local amenities such as grocery shops, good schools, doctors clinics, and transportation links. 

Keep in mind that location is one of the few things that you will be unable to change about a property. When it comes to buying an investment property, this should be one of your top considerations. It might be more expensive to acquire a place in a city, near a university, close to public transportation, etc. but it will be that much easier to rent out because of its proximity to popular locations.

2. Safe Neighborhood

A basic human need is to feel safe in one’s own home. When it comes to finding the perfect property that will attract renters, you will have to research the local crime rate and other relevant information. You can find local crime stats online. 

If you are looking to invest in a rental property in a specific area, it is a good idea to speak to local residents and find out how safe they feel in their own homes. Additionally, a property management company in the area can give you great insight to the community and help you down the road if you intend on taking a more hands off approach to managing your tenant.

Think about the type of people who will be renting from you. If they live alone or have young families, safety will be very high on their list of considerations. Like the location, the safety of the neighborhood your property will be in is not something that you can change later on, so keep this in mind when purchasing a property for rent.

Additionally, you could help ease your tenant’s minds by installing safety features in your property. Good locks and intruder alarms will give your tenants a sense of safety that the neighborhood might not.

3. Parking

For tenants with cars, a place to park is essential in a rental. For safety and ease of access, off-street parking is often the most desirable choice, so most tenants are attracted to the idea of having a driveway or garage.

In suburban areas, parking is generally easier to come by and presents less of a risk of theft or vandalism. Tenants may be happy with on-street parking in these areas.

In more urban areas, parking presents more of a challenge. If there is not a designated parking spot that accompanies your property, you should try and find one for your tenants or source other parking options. If the parking situation is too far away, too expensive, or just too difficult to deal with, it may be a deal breaker for tenants with cars.

4. In-House Washer and Dryer

One thing that most tenants find useful is a washer and dryer. This will save them from making trips to the laundromat and instead provide them with the convenience of washing their clothes from the comfort of their own homes.

5. Storage

As tenants move from place to place, they seem to acquire many physical possessions and value properties that offer space to store everything. When renting out a property there’s no such thing as too much storage space. Although storage options don’t need to be huge, it’s a good idea to have multiple so tenants can store things like clothes and food in different spots. 

These amenities and more add value to your property. Not only will it be easier to rent out a place that offers a variety of perks, but a higher rent can be charged. It’s in your best interest as a property owner to make your property as attractive and comfortable as possible for potential tenants.

How to Find Good Tenants

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As a landlord, it’s important to have good tenants—not only for your own peace of mind. Having to deal with nightmare tenants is an experience that many landlords would like to forget. Learning how to find good tenants can save you a lot of headaches!

Whether it’s those who don’t pay their rent on time or those who trash your property beyond the amount they paid as a deposit, bad tenants come in all shapes and sizes. With that being said, it’s important to do some work on your part to find the kind of tenants that you can rely on to respect you and your property.

What Makes A Good Tenant?

It’s important that tenants have a good history when it comes to renting. You can run a background check to learn about their employment history, debt information, and previous rental experience. Background checks are always recommended when taking on tenants because the checks can quickly set off red flags about things that you might’ve never known. 

You should look for tenants who haven’t had any prior evictions; if they have, give them the opportunity to explain why. There are some cases in which the tenant has been in the right, so it’s worth hearing their side of the story. Or, you can get in touch with their previous landlords to set the record straight. 

Check to see if they’ve had any recent bankruptcies or if they have any outstanding debts. This should not include any medical or education bills. 

It’s also important that they have a good income; typically, tenants should gross 2.7 times the monthly rent. For example, if the rent was $1,000, then their gross income should be $2,700. This means that they’d be able to cover their rent, even if they were to fall on hard times. It provides you with some extra security that you’ll be paid what you deserve.

Coupled with this financial responsibility should be a sense of respect for you and for the property they’re renting from you. You should always meet your tenants face to face to try and determine if they are the kind of person you’d like living on your property, interacting with you regularly.

Landlords Must Advertise Well

Make sure you’re doing everything you can to advertise your property. That might mean contacting multiple real estate agencies so that you can get your listing in front of potential tenants who are both local and not local to the area.

The more coverage you can get for your listing, the better pool of potential tenants you’re going to get. You can also advertise online privately if you don’t want to work with realtors or if you want to supplement what a realtor might do. Do what you can to find a large number of possible tenants, particularly if your property is going to be a hard sell because of location or size.

Offer Amenities Tenants Are Looking For

You aren’t the only one looking for something specific—tenants have wants and needs when it comes to a property, so it’s good to try and provide as much as you can in terms of amenities. 

This can include appliances like a dishwasher and a laundry machine. AC and internet are becoming standard in the renting world. Private, guaranteed parking options are sought after, especially in busy or densely populated areas.

If you offer the right amenities, not only will you attract good tenants, but you can justify raising the rent to reflect the perks that come with your property. You want to make your place stand out from the crowd, so think about what you can offer that is hard to find.

Require A Thorough Screening Process

As mentioned above, there are certain things that can cause alarm, so try to do background checks for tenants before they sign a contract and move onto the property. 

Typically, if you work through a realtor, they will be able to do all these checks for you. However, if you’re doing it yourself, make a checklist and ensure that your tenant ticks off all the boxes before you offer them your rental property.

Hire A Property Management Company to Help

When renting out your property, you can run into a number of issues that are hard to juggle alongside everything else that you might be doing. Whatever your daily life entails, it can be helpful to lighten the load when it comes to being a landlord. 

Hiring a property manager to help might be the answer you’re looking for. They can help handle the tenant search as well as the ongoing management of your property while the tenants are living in it. This includes repair works and any relevant issues that crop up with the tenants.

Renting out your property should be a source of passive income. With the wrong tenants, you could be putting in more work than you have time for. Take the time and precautions to make sure you find good tenants. You won’t regret it!

9 Pitfalls to Avoid in Rental Property Real Estate

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Real estate can be a lucrative investment, but it’s not something you simply purchase and let rack in the money for you without putting at least a minimal effort. Here are some pitfalls that new property owners fall into, that if given the right attention, can keep you afloat and avoid the common mistakes in real estate.

Not Researching

There is a lot of information on the internet, and you need to do more than read a few blogs to get an idea of what real estate entails, and how to make the most of it. Connect with others in the business to get their take on the experience, and what tips they have for a rookie going into the industry. 

Not Making a Plan

You have to research in order to plan, but you’ll continue researching even as you make a plan. By planning the timeline, average expenditure, and your designated budget, you’ll have a clear idea of what to expect down the road. This is more than taking a peek at the house market and reading an article on how to work in real estate, but researching as you go.

Over-Investing

Don’t over-invest because it’s a good deal. Be detailed in your budget, stick close to it, and be wary of any unexpected costs buried beneath a seemingly good buy. Invest in what you can afford, and be patient as your estate value grows. You won’t see a grand immediate return, but over time you can use your equity towards further investments. Be patient.

DIY Everything

Certain projects you may be able to tackle by watching some YouTube videos and learning the process on your own, but for other projects require a little more expertise that without professional help could cost you a lot more to fix mistakes than to have invested in professional help in the first place. This is where you might look into investing in a property manager.

Overlooking Tenant Specifics

Get an idea for what type of tenants you’re hoping to attract; look at neighboring attractions such as whether any large companies are moving into the area, if there are good schools around, whether you want to place it near the freeway, if it has a fun night life—all these decisions are contingent on the type of tenants you’re looking to attract, but they also influence your choice of location.

Overpaying

Naturally when you find the property you’ve been looking for, you’re anxious to bid the best agreeable price. But setbacks in budget can take years to recoup, so be wise about your anxiety. Redirect that into looking at other houses with similar specs to gauge what the average value is, and stick with your budget. Unless there are attributes to your dream house that will appreciate over time, it’s wise to stay within the average value and not overpay.

Underestimating Underlying Expenses

Yard upkeep, functioning appliances (water heater, air conditioning, washer/dryer, oven, refrigerator), inspections, repairs, all contribute to underlying expenses that may cut deeper into your budget than you initially expected.

Disliking the Display

Just because the pictures were taken in bad lighting doesn’t mean you can’t transform the rooms to their full potential. Get a real photographer for your future advertising pictures. In the meantime, explore the potential property on your own to decide if it’s worth purchasing for a little lift, or if it would cost more than you anticipated to redo.

Buying Because of a Current Tenant

While it’s nice to have a good, long-standing tenant at your property, there may be some drawbacks the previous owner didn’t tell you about their late rent, or that they didn’t make enough that month to pay rent. You can pair up with an agency that will screen the tenants before you buy the home yourself, or look for a place that is already vacant.

Expecting Immediate Substantial Return

Real estate investing takes time, and property appreciates slowly, depending on your location. You’ll be earning money month-to-month, but at the start that is what you can use to invest in the upkeep, property tax, insurance cost, and repairs. The long-term ROI will come through the appreciation of your property.

How to Make the Most of Your Real Estate Investment

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Passive income is the dream, and there are many kinds of gradual, passive income sources. Especially in real estate.

However, one of the best sources is to invest in long-term real estate. With the right investments, you can make real estate the investment you’re looking for with minimal upkeep, and a steady income.

The longer you hold on to your investment property, the lower your risk of loss. When the market improves, so does the value of your property. Whether or not you can make it work and you increase your wealth is in your hands. Learn more about the common ways to become successful in real estate investing and make the most of your investment.

Budgetreal estate investment

You can make the most of your real estate investment by coming up with and following a budget. Sit down and calculate the numbers, facts, and figures, so you know precisely what you’re getting yourself into and how much money you need to turn a profit.

Next, choose your market wisely. Think about the types of renters you’re looking to attract, and cater to their interests. It’s ideal to keep the house local so you can keep an eye on it and respond to any issues promptly.

Understand all the costs upfront, such as the property, realtor commissions, repairs, closing costs, insurance, and utility costs. Avoid buying higher than you initially planned; instead, buy low and be reasonable with your first investment and choose a property that’s within your budget. The return on investment is based on how cheap you bought the commodity.

Placement

Look for areas that are safe, and have potential for healthy growth. For example, properties near good schools that have close freeway access, or are near big companies; employees may be moving near the area and will be looking for a house.

Avoid very hot markets because you risk buying at the top of the market and losing your money. It’s in your best interest to choose markets that are in the phase of expansion. Find locations where sales and prices are rising, affordability is good, construction is low, and capital investment is rising.

Manageability

Another way to make the most of your real estate investment is to select a property that’s manageable and won’t cause you too much trouble. Stay away from a project that’s an exorbitant fixer-upper and you end up spending more money than you expected before the return. If you can’t handle the potential stresses of fix and flip, buy turnkey properties instead. Trying to fix someone’s electrical and plumbing issues yourself may make it unsellable unless you’re already capable of doing work like this to code. You want to avoid taking on more than what you can feasibly handle, and having your real estate venture take up all your time, money, and resources.

Assets

Make the most of your real estate investment by working with a property management company. There are many benefits to investing in a property manager. The following are a few of the upsides:

  • Screen out problem tenants
  • Act as the point of contact for tenant concerns
  • Market your rental
  • Decrease tenant turnover
  • Ensure rent is paid on time
  • Avoid potential legal issues
  • Save you money on maintenance and repair costs
  • Reduce your rental headaches

Property managers can manage your rental investments according to your specific needs. They’ll handle tasks such as collecting rent and screening tenants that can take a lot of pressure and weight off your shoulders.

Maintenance

Also, consider that you’ll need to put in at least minimal effort to maintain your property. You never know what expenses and repairs will crop up when you’re dealing with real estate. If you’re looking for something to buy, and forget until it gives you returns, you might look more into stocks or bonds. It’s the type of investment that’s not as hands-on as a full-time job, but it requires some attention, and smart investments for it to give you the full return you are hoping for. 

Conclusion

If you want to achieve financial success, then real estate is an excellent investment option to consider. Positive cash flow from your real estate investment is an indication that you’re on the right track to becoming even more profitable. There are other types of investments, but be smart about your investment to avoid buying above what you can afford. It’s best to start small, and as you buy and sell more property, you can begin investing a little more as your return builds.

Four Important Rental Property Inspections

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Managing and renting out a property out is a great source of income and one of the best investment options on the market. If this is something that interests you, you will want to get in the habit of performing the right procedures from the start with rental property inspections.

There are many factors to keep in mind when it comes to improving the home and making the most of your property. One key point is to inspect your homes and check out any issues relating to them. 

It would even be a good idea to create a checklist of each entity of your property that you need to examine, such as the HVAC system, electrical system, plumbing, the interior, and the exterior of your house, etc. In all, there are four basic inspections that you absolutely must carry out for your rental property. 

Move-In Inspections

Before a tenant moves in, inspect the property and make sure everything is in working order. It would be wise to make a checklist of things to look over before a new tenant arrives to ensure you document the conditions before they begin moving in. This means taking down a list of all appliances in the home and the conditions they are in, complete with pictures. It is essential to be meticulous with this, and even more so if you have multiple properties to inspect. 

Move-Out Inspections

Of all times to be meticulous, this is where it pays off in documenting all the critical areas. If you find any suspicious damage, you can go back to your previous records to make sure you have sufficient evidence to prove any damages might have been done between the move-in check and the move-out check. If you furnished the house, make sure all the furniture and appliances are in good condition. If the tenants furnished the house, see that it is properly cleared out and there is no damage left behind. If there is damage, you can take the cost out of the security deposit to cover the charges. 

Make sure you document everything and take pictures, and that way you might compare the move-in and move-out inspection to spot any differences and catch if anything was damaged during the tenant’s stay. This is crucial in making sure you have property in the condition you rented it in and prepared for when the next tenants might be ready to move in.  

Drive-By Inspections

Drive-by inspections are just like they sound; if you’re running errands nearby, just drive by your property to see how well it looks from the outside. It’s recommended that if you plan on dropping by to see the inside, you notify your tenants before visiting. Otherwise this is a great way of checking up on the condition of the home and spotting anything that might need fixing. These visits are helpful in seeing how your property is used on a daily basis and not just when things need to be thoroughly cleaned.

Seasonal Inspections

Certain inspections are pertinent to certain times of the year, and in order to make sure your property is in the best possible condition, carry out seasonal inspections as well. These are important because the property is going to be directly impacted by the changing seasons. 

This means you have to be aware of things like carpet cleaning, blocked drains, and leaky pipes. If you have a hard time meeting the demands of property maintenance and enforcement, you can contact property management services for additional help and professional advice. You will want to address any outstanding issues before they deteriorate and you end up spending more in replacements than you would have on repairs. 

You want to ensure that these inspections are conducted in the best possible way to properly maintain the home. There are many factors that play a part in the success of your investment, and it is a long-term return to make the most of this moving forward as a professional landlord so that you can protect your properties and keep your tenants’ best interest in mind.

Are You Financially Ready to Buy a Rental Property?

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Renting out a property can be a productive, convenient form of passive income, although it doesn’t come without effort. But before investing in a rental property, you need to make sure you’re financially prepared for even worst-case scenarios. 

The novel COVID-19 pandemic is one of those worst-case scenarios, bringing financial distress and uncertainty to landlords and property owners across the country and globe.

With flights grounded, vacations canceled, and business travel postponed across the world, one subset of this industry especially affected are Airbnb property owners. With the sudden drop in travel, Airbnb property managers have had to refund already-paid deposits and reservation fees to customers who are now unable to travel due to COVID-19.

Many are struggling to meet the basic costs of monthly payments and utilities for properties that are normally turning a profit, and some owners are left with no other option but to sell. It’s worth researching what it takes to be financially prepared to invest in a rental property. Here are some factors and tips to keep in mind.

Renting Out a PropertyHand holding keys to rental property

There are many factors, both foreseeable and unexpected, that can affect homeowners and landlords. It is important to know the potential risks involved with an investment before going all in to ensure that you’re prepared to weather less-than-ideal circumstances.

One major thing to consider before buying a rental property is whether or not you can affordably make the mortgage payments and pay any bills comfortably, even in the event that you have no renter.

Whether you own a vacation home or a long-term residential property, you want to ensure that you can make your payments on time and without difficulty before deciding to buy.

The best-case scenario is, of course, owning a rental property outright. Although you still have to pay taxes and manage other upkeep costs, having no monthly payment hanging over your head decreases your financial risk. However, if you are renting while still paying off the property, there are things you can do to safeguard your investment.

If you’re relying on rent income to pay off a monthly loan, you should have at least several months’ rent saved to protect you against the inability to find tenants, financial crises like the one caused by COVID-19, and other unforeseen disasters that might occur.

You should also ensure the rent you charge fully covers your loan payment, taxes, utilities, and other costs, while still offering a competitive price for your area. Research current rent prices in your market to determine what you can afford to charge while still attracting desirable tenants.

Expenses

Potential expenses to keep in mind include property insurance, vacancy costs if you go any length of time without being able to find a tenant, and the cost of a property manager if you don’t want to be responsible for maintenance and other responsibilities yourself. You also need to consider unpredictable expenses that may arise, such as repair costs.

Property Assessments and Maintenance

It is recommended that you visit the property on a regular basis to examine its current state and ensure there is no property damage. This can be done either personally or through a property manager. If there are unexpected costs or repairs, a well-connected property management company could also provide connections to companies who provide the materials for repairs and replacements.

Cost of Finding New Tenants

If you plan on renting out property, the possibility of bad tenants is one that every landlord attempts to avoid, but is likely to encounter. Careless tenants will cost more in repairs and replacements, while flaky tenants will have you constantly chasing after late rent. Finding new tenants results in advertising costs, background check costs, and lost profit if your property sits empty while you search.

Work with a Property Management Company

There are many compelling reasons to buy a rental property, but before buying, be sure to choose the property according to your own budget and ability to create a good investment.

By carefully analyzing your own budget, ensuring you have adequate savings to protect against setbacks, and being fully aware of the other costs that come with renting out property, you can ensure you are more financially prepared to buy a rental property.

Tips for Keeping Apartment Buildings Safe and Sanitized

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The number of confirmed COVID-19 (coronavirus) cases continues to increase. This global pandemic is much more than a health crisis; it is also a human, social, and economic crisis. This disease, which has been officially designated as a pandemic by the WHO (World Health Organization), has changed life as we know it, and the responsibility falls to each of us to stop its spread.

Many people are already contributing to the coronavirus’s decline by maintaining social distancing and other safety measures. But sometimes, human contact—whether direct or indirect—is simply unavoidable, like in large apartment buildings where tenants touch the same surfaces daily to enter and exit their homes.

In such cases, it is up to both tenants and landlords, and any other parties involved, to do what they can to maintain safe standards. Here are some things that every landlord or property manager can use for sanitizing apartments and keeping shared spaces safe.

How is COVID-19 Spread?

According to the Centers for Disease Control and Prevention (CDC), COVID-19 spreads between people who are in close contact, mainly through respiratory droplets produced by an infected person when they cough or sneeze. These droplets can easily land in the mouth or nose of nearby people.

Currently, there is no vaccine or cure for coronavirus, and the only way to protect yourself from the spread of this disease is to avoid being exposed in the first place. To protect yourself and others from spreading the virus, you should:

  • Wash your hands frequently: Use soap and water to wash your hands for 20 seconds, especially after coughing, sneezing, blowing your nose, or if you have been in a public place. If water and soap are not available, hand sanitizer will also work. Additionally, you should avoid touching your mouth, eyes, and nose with unwashed hands.
  • Wear a face mask when in public areas: Face covers are meant to protect others in case you’re infected. When in public places, remember to keep a distance of 6 feet between you and others.
  • Avoid close contact: Ensure that you avoid close contact with sick people, even those inside your home.
  • Clean and disinfect: It’s important that you frequently clean and disinfect surfaces, especially frequently touched surfaces like doorknobs, tables, countertops, phones, desks, handles, toilets, keyboards, and sinks.

cleaning supplies used for sanitizing apartmentsHelping Keep Tenants Safe

Landlords and property managers have a responsibility to keep their tenants’ living conditions safe. To limit the spread of the virus and protect residents, maintenance workers, and others frequenting rented buildings, they should take extra precautions.

Sanitize Frequently

Maintain the common areas by sanitizing shared locations and surfaces frequently. Areas that should be given constant attention are doors, lobbies, elevators, and stairwells.

Make Hand Sanitizers Available in Commonly Used Areas

A best practice is to sanitize or wash your hands when changing locations, especially for places where other people are touching surfaces; for example, returning to your apartment building from the grocery store.

Although it might not be feasible for every building, when possible, making hand sanitizer available at entrances and encouraging tenants to use it will decrease the risk of transmitting germs from other locations to your apartment building.

In an attempt to protect their skin from contact with germs, some people have begun wearing gloves. While this does protect your own skin, if you wear gloves to the grocery store and then open the door to your own apartment with the same pair of gloves, you’re still cross-contaminating every surface you touch. Because of this, encouraging the use of hand sanitizer is still the safest option for everyone, as, when used correctly and frequently, it will decrease the number of germs being spread between locations.

Close Public Areas Where Tenants Are Likely to Congregate

If your apartment has an indoor gym or outdoor playground or other amenities that can draw a crowd, it is wise to temporarily close them down to prevent the spread of COVID-19.

Ask Tenants to Limit the Number of Guests

While you may not have the right to tell tenants not to have their babysitters or friends visit them, fewer visitors means less exposure to the virus for everyone else in the building.

Of course, the extent to which you implement these measures will depend on your area and the severity of the virus in your location. While some states and counties are carefully beginning to ease restrictions, others are still at high risk. Follow the advice of your local health officials when deciding on measures to take that can affect the health and safety of your tenants.

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Amanica is proud to specialize in and provide property management and real estate services to Riverside County, San Bernardino County, the greater Inland Empire, and San Diego County.

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