By Goldenwest Management
SAN DIEGO, CA. – There’s no denying that owning rental property in San Diego can be an up and down journey and over the years we’ve seen many San Diego Landlords make mistakes that could have been easily avoided including the following mistakes:
Not Following the Local Rental Market
It doesn’t matter if you live in San Diego, or out of the area, San Diego Landlords should be on top of what’s happening with the SD rental market including the latest trends because this is ultimately one of the best ways to keep tenants happy and vacancies low.
Staying on top of what’s happening in the rental market will give you the edge you need as a landlord when it comes to if you should make improvements to your rental properties, raise rents, or offer incentives to existing tenants to get them to renew their leases.
Not Making Your Home Rent Ready
Landlords often have two types of problems when evaluating their property: Either they are emotionally attached to the home and can’t get the right perspective when seeing its faults or; they don’t know how to efficiently spend funds to make their rental ready to show and rent. Fresh paint and a detailed professional cleaning is always a good start. Light fixtures, window treatments, upgrading mirrors, faucets, shower casing, and toilets are the next tier that can give you a big bang for your buck. If you have more room in your budget, focusing on the kitchen and bathrooms can provide a healthy return: Counters, appliances, knobs for your cabinets (or new cabinets) will all be long term investments both for rental and the sale of your property.
Not Screening Tenants Properly
Although every San Diego Landlord will tell you that they do a background check on their tenants, most don’t. Failing to perform a thorough background check on a tenant can hurt a landlord in the long run, especially if the tenant damages the rental property in addition to not paying rent. Avoid problems with tenants by doing a complete background check every time including employment verification, pulling their credit report and income verification. Don’t accept the “song and dance” from a prospect on why their credit score is not great (or why you can’t run their credit)….people are who their background check says they are. It’s the number one predictor of rental payment behavior out there. So if credit score is low, and employment history is checkered, don’t “stretch” for someone who could cost you thousands in lost rent, legal fees, and repair costs.
Not Budgeting For Costs
Most San Diego Landlords will tell you that right now is a great time to own rental property in San Diego since we’re enjoying the highest demand for rentals ever but, in spite of the demand many landlords are still not budgeting for costs including ongoing maintenance, unexpected repairs, or unanticipated vacancies, that is why it’s vital for every SD landlord to budget for these extra costs if they want to continue enjoying long-term, stable cash flow from their rental properties. GWM metrics state that the average home incurs roughly $65-$70 per month in maintenance charges. This doesn’t take into account “capital improvements” such as AC/Heater issues, roof repairs, water heater replacement, and garage door motor or spring replacement. If you haven’t upgraded these items in a while, at least find out how old they are and compare them to the average life expectancy of each.
San Diego Landlords – Get Property Management Here
For more tips for San Diego Landlords, or to speak with us about our property management service in San Diego, contact Goldenwest Management today by calling us at (858) 792-3442 or click here to connect with us online.