Do you have a home in Temecula that you’re thinking about renting out? If you do, it could be financially rewarding.
It’s no secret that landlording can be lucrative if done right. Matter of fact, many of the world’s richest people have earned their wealth through real estate.
However, renting out a property in Temecula goes beyond cashing out rent checks. To be a landlord, there are certain basic skills that you’ll need to possess.
In this article, we’ll offer you tips on how you can rent out your property successfully.
1. Have some Basic Skills
As already mentioned, being a landlord requires a certain set of skills. Just because you own a property, it doesn’t qualify you to become a landlord.
Ask yourself the following questions:
- Do I know how to market a vacant unit?
- Do I know how to determine the rental rate of a unit?
- How am I going to ensure that only reliable tenants rent my home?
- Do I have the time and the technical expertise to handle tenants’ maintenance requests?
- Am I knowledgeable about the state’s tenancy laws?
If you’ve confidently answered “yes” to all these questions, then great – you probably have what it takes to manage your property.
2. Understand your Responsibilities
As a landlord, you have many responsibilities.
Here are some of them:
- Abide by all terms of the lease agreement.
- Notify your tenant before making changes to the terms of the agreement.
- Handle tenant maintenance requests within a reasonable period of time.
- Maintain the property’s peace and quiet.
- Comply with all the state and local habitability codes.
- Follow the proper eviction procedure when evicting a tenant for gross lease violation.
- Provide all amenities promised in the lease or rental agreement.
3. Create a Solid Lease Agreement
Having a lease agreement in place will let the tenant know your expectations and help avoid any confusion or misunderstanding.
For the agreement to be foolproof, there are certain terms it must include, such as:
- Rent Details. You want to mention the rent amount, when and where it’s due, late fees, and amount of grace period.
- Pet Policy. Do you allow pets? If so, let your tenant know about any rules you may have. For example, you may have limitations on the number, breed and size of pet. Also, state any deposit or fee they may need to pay. If you don’t allow pets, make that clear in the lease.
- Property Changes. Will you allow tenants to make changes to their units, like repainting their unit to their favorite colors? If you will, mention any rules they will need to adhere to. And if you don’t, let it be known.
- Occupancy Limit. If you don’t mention this in your lease, the tenant may end up subletting the unit. Let them know that it’d be illegal to move in anyone else into the unit without your consent.
These are just some of the many terms your lease agreement should contain. If you’ve never drafted one before, it’d be best to simply hire a professional.
A property manager can not only ensure your lease agreement contains all important terms, but will also make sure it adheres to the law.
4. Take Care of all Repairs before Listing the Unit
No tenant wants to rent a home that needs many repairs. If your home has a clogged drainage system, leaky faucets, or flickering lights, repair them before a tenant moves in.
As a matter of fact, the California Warranty of Habitability requires that landlords provide a habitable home to tenants. If you don’t, your tenant may be able to:
- Withhold rent until you fix issues impacting their habitability.
- Repair the issue and then deduct the cost from the rent amount.
- Report you to a relevant government agency.
- Take you to court for violating the contractual agreement.
So, before renting out your property, make sure it’s in tiptop shape.
5. Know How Much Rent to Charge Tenants
Knowing the right rent amount can make all the difference. If you overcharge your tenants, you risk getting stuck with a vacant property for a long period of time. If you undercharge your tenants, you’ll be leaving money on the table.
You have multiple options when it comes to figuring out just how much rent to charge tenants. For instance, you can conduct a comparative market survey, or simply hire an experienced property manager to do it on your behalf.
The perfect rent should be able to meet two important requirements:
- It should be able to help you maximize your rental income.
- It should be able to help keep your rental property competitive in the rental space.
6. Understand California Landlord-Tenant Laws
The lease agreement obligates you to certain things. Besides those already aforementioned, you’ll also have a responsibility to abide by all California landlord-tenant laws.
The following are some of the legal obligations landlords in Temecula are required to follow:
- Treat tenants with respect and fairness in accordance with the California Fair Housing Act.
- Observe the state’s security deposit laws, which, among other things, require landlords not to charge a deposit exceeding 2 months’ rent.
- Follow the California tenant eviction process when carrying out an eviction.
So, do you think you’re qualified to rent out your Temecula home and self-manage your property?
If not, don’t worry!
You can hire a property manager to help you with all your landlord responsibilities.
Realevate Specialist is a full-service property management company, serving the Temecula and San Diego areas. Our goal is to safeguard your investment and work towards maximizing your rental income.
Get in touch with us to learn more!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.