With home prices rising and being more difficult to afford, more Americans are turning to renting. That means the number of renters is growing, and you may have more opportunities to put your money to work.
But you'll need to do your research and optimize your processes to see a profit. Use the tips to manage rental properties in CA below to get started with your rental business.
Pick the Right Location
Even if you aren't buying real estate to fix and flip, purchasing property in the right location is still important for rentals. Many qualified renters are looking to live in certain areas. If you don't own anything in those regions, you limit your application pool.
Look for up-and-coming areas or areas that are already popular. Owning in these areas will help you find interested renters and decrease your vacancy rate.
Know Your Numbers
It's important to understand your numbers before you buy real estate to rent. In some cases, there are many unexpected expenses that you aren't aware of. Some of these things include:
- Unknown property issues
- Monthly maintenance costs
- Closing fees
- Management services
Get all these numbers before you make your purchase. If the numbers look good, you can look at your profitable rental strategies to determine if you'll make a profit on a property.
Vet Your Tenants
One of the best strategies to use with rentals is to vet your tenants carefully. You may have several applications, so don't avoid the work and vet each one.
Check someone's credit, rental history, eviction record, and other issues. Look for tenants with good histories and demonstrate they will be good tenants.
Learn Proper Maintenance
Maintaining your properties will be a vital task during your time as a landlord. Tenants expect good service and a livable home. You don't want constant issues because you ignored property maintenance.
Set a schedule for regular maintenance and stick to it. Look at things like the HVAC system, electrical, structural problems, and other home issues. Make any repairs before they turn into more expensive problems.
Use Property Management Services
Property management is a great option for rental property owners who want to offload some of the work. Many management companies will help with every part of the process, from tenant placement to customer service.
You can outsource as much or as little of the process as you want. Explore the management services in your area to learn your options. Speak with each company to learn their prices and processes.
Find the Best Rental Properties in Inland Empire
Managing rental properties in CA is a task you don't want to take lightly. You're putting a lot of money on the line, so you can't afford to buy the wrong investment properties in Inland Empire and lose money on your investments. Follow the rental property management tips above when buying rental properties to find profitable investments and grow your net worth.
At PMI Inland Empire, our full-service property management solutions can help fill up your time so you can continue to find profitable rentals and expand your investment portfolio. Contact us to learn how we can help your rental business grow.
