My New Blog

Have you thought about taking advantage of the rising real estate rents but wondered what might be involved in putting on the landlord hat? Here's the basics on becoming a landlord..

1.  Run the proforma numbers.  Before you purchase the potential rental property, make sure you have the most recent numbers and you are comfortable with the likely rents.  Know your competition (what's for lease in the area?) and the most recent similar rentals in the area.   Have you factored in some possibly vacancies? Property taxes? Repairs? The benefits of depreciation?  After dong so, does the property make sense for you from a numbers stand point? 

 2.  Make sure your docs are tip top.  You'll need, at a minimum, a lease application, a lease agreement and a credit authorization. Most leases are for at least one year.  There are standard California Association of Realtor forms that cover what you'll need or your can purchase a form set on line. Most realtors charge 6% of a year's lease to find prospective tenants, check their background/app and prepare the lease documentation. When we work with a new landlord and assist in the purchase, we typically put the first tenant in free of charge.  If you are working with a realtor, ask them if they will do the same. 

3. Do your homework on those prospective tenants. Make sure you (or your agent) check backgrounds, confirm employment and run credit checks so you can reduce the risk of any future problems.  Its helpful to request a copy of the tenant's driver's license and pay stubs.  ALWAYS run a credit report.  Be patient...it can pay to wait for the "right" tenant.

If you want some help or just want prefer to limit your landlord duties to collect the net rent each month, we can help. We offer property management services (we'll take the 2AM flood call and arrange for repairs if needed), pay the gardener, etc.  Call or email us for details!

If you are looking for a rental property, we can help you find it.  We'll put your first tenant in, free of charge.

Melinda (714) 863-5485