Many first-time landlords frequently jump into the real estate business without truly understanding how much time must be invested. That being said, there are many successful do-it-yourself types of owners. However, many others feel overburdened by the load and leave the industry before enjoying the fruit of their labor.
Below are seven mistakes you should avoid when managing a Long Beach rental property.
Regular maintenance of the property fulfills two roles. The first is your property’s curb appeal. This is the first thing potential tenants see when looking for a new home. A prospect may have reservations about contacting you if your rental property appears disrepair, especially in a city like Long Beach, where wind-blown sand can weather paint and other features more quickly than in inland cities.
The outside of your rental property is the first impression. When someone sees your rental needs regular maintenance, such as overgrown landscaping, malfunctioning or faulty lighting, or broken windows, they may assume that since you give little care to your property, they won't be a priority.
Keeping your Long Beach rental property in good shape helps lower vacancy rates, which can greatly affect your bottom line.
Managing repairs for your rental can be time-consuming and, in some cases, pricey. However, you should always pay attention to a tenant's repair request. Not only because the goal is to keep tenants for as long as possible to maximize income, you need to remember that the property is yours.
Any repairs that need to be done are in your best interest to resolve as soon as possible. Leaks and electrical issues may require you to hire an expensive tradesman. Though left unchecked, these problems can cost thousands of dollars to fix.
Typically, you want to fill in a vacant rental as soon as possible, though that can be problematic if you rush through the tenant screening process. Every landlord wishes to find an exceptional tenant who pays rent on time and respects your rules. Once found, they want to keep them for as long as possible.
In order to have the highest chance of finding an ideal tenant, you should have a thorough screening process. You may need to invest in help doing this, though the results can significantly reduce stress. Poor-quality tenants run the risk of paying rent late, causing severe property damage, or leading to eviction procedures.
Having good communication with a tenant can help your relationship with them. While you don't need to become their friend, it's essential that your tenant feels comfortable talking to you or your representative. Having poor communication with tenants can cause them to distrust you. This can lead to minor repairs becoming significant issues and quick tenant turnaround.
While you are free to charge any rate you see fit for your rental property, it's a good idea to understand the going rate for similarly sized homes. Misjudging rental rates may deter potential tenants from inquiring about your rental, and it can extend vacancy periods. This
can result in a financial loss for you.
Much like with a vehicle, your rental property needs to be insured. Not having the correct coverage can result in a financial loss due to unforeseen circumstances. Accidents and natural disasters are usually the most common. However, when it comes to pets, some dogs are more challenging to find coverage for, while breeds like rottweilers, pit bulls, and Akitas are typically never covered.
Many owners frequently believe they are capable of managing their rental property; in some cases, this is true. However, it's not uncommon for first-time landlords to quickly become overwhelmed by the amount of work and time required to manage a rental, especially older properties.
Don't be disheartened by this. Real estate is a great opportunity to make passive income.
Property management companies are oftentimes a great solution if you’re feeling stretched thin.
If you feel like you need a hand managing your property or are unsure if you can manage a rental on your own, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.
