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Items to Consider for Your First Rental Property in Long Beach

Dustin Edwards • March 13, 2020

Make Your First Rental Property in Long Beach a Success

Your First Rental Property in Long Beach
For most people trying something new is filled with a bit of trepidation. Just think back for a moment about the first time you:

  • Rode a bike
  • Drove a car
  • Went Skiing or Snowboarding
How did you feel?

Did you feel excitement?  

Maybe a bit of disappointment as you thought it might be easier?

Learning a new skill was likely a combination of excitement, nervousness and maybe even a bit of frustration as tend to anticipate something being easier than it actually is once we give it a try.  

Now imagine you are considering your first rental property in Long Beach (could be a condo, single family home, duplex, triplex, or 4-unit). For many first time rental property owners we have helped over the years we have found their emotions are similar to trying a new activity.  

Thoughts that run through their minds are items like:

  • What happens if a renter damages my property?
  • What if my property stays vacant for months?
  • Did I make the right decision by buying a rental?
  • Am I going to get that late night call about a backed up toilet?
  • Will I have to hire a lawyer to evict a tenant if they decide to stop paying?
All of these are natural and unlike riding a bike, where you might skin your knee, the fear can be losing thousands of dollars. To help alleviate your fears of managing your first rental (unless you want to leave the heavy lifting to us) we invite you to consider the following that can help.

Keeping a Reserve Fund
When you are talking about Southern California Real Estate this is no easy task but it is one that will give you confidence to weather any storm. Having funds set aside for your rental property are essential to keeping the property in the best shape and to allow you to rest easy knowing that a small vacancy doesn’t mean having trouble paying your mortgage. So, just how much should you keep in reserve?

While the number can vary depending on the size, condition of your property, and risk tolerance we recommend implementing a simple rule such as:
  • 3 Months Mortgage and 1 Major Repair of Reserves
For example if your mortgage (including taxes and insurance) is $2,000 a month and you know your A/C unit is nearing the end of its life you would want to save around $11,000-$15,000 in reserves. This gives you 3 months of mortgage and $6,000-$9,000 to cover an A/C unit. You can keep these funds available in a local checking account or even have the funds available through a HELOC (Home Equity Line of Credit) on the property.  

If you go the route of the HELOC make sure that your property has enough monthly positive cash-flow to cover the payment on the HELOC if you need to use it. As tough as it may be we recommend having cash reserves available (and the HELOC too) to allow you to be prepared for any challenge.

List of Local Trades Professionals
Managing a property (whether it is your first one or your 880th) means having a list of trusted trades professionals willing to work with you. One of the hardest aspects of property management is having a list of reliable professionals who are ready, willing, and able to repair items on your property. We have found many new rental owners only started looking when they were in need and this added undue stress to the process.

If you have to call a plumber for help at 10pm on a Saturday then be prepared for a select number of options and the pricing might not be what you want. To avoid the anxiety of a frantic night search consider identifying key trade professionals such as:
  • Plumber
  • Electrician
  • Roofer
  • Pest Control
  • Handyman
  • Appliance Repair
  • Gardener
Having two options for each trade is a great way to be prepared for any situation. If you are wondering why you would call them when you don’t need them yet try calling them and sharing you have a rental property. Mention that you were wondering what their charge was for “X” (choose a few fundamental tasks based on their trade like unclogging a toilet or replacing a garbage disposal) to help you gauge their price ranges which allows you to double check your reserve fund. It’s also a good idea to ask if they have previous experience working for property management companies. Service providers who have worked with property management companies know to send you the bill and not leave it at the property.

When it comes to your first rental property in Long Beach we hope you are excited. Should you want our help taking care of your property we would be happy to do so. Take the first step and find out today how much your property could rent for with our Free Rental Analysis.

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By Dustin Edwards November 18, 2024
Be aware of these 3 common issues when the rainy season arrives at your rental property.
Cold weather can come fast and strong so it's best to ensure your property is ready for this climate
By Dustin Edwards November 12, 2024
It's important to prepare your rental properties for the colder weather. Although we don’t need to prepare for snow and freezing temperatures, we do need to prepare for the cold and rain. By ensuring your rental is cozy inside and prepared for the fall season , you can not only reduce energy costs for your tenant but also maintain your rental property value. Today, we’ll go over three signs your property is ready for this upcoming cold weather.  Sign #1 Proper Weatherproofing During the colder seasons, it's much easier for a tenant to notice any cold spots in your rental. Well-insulated doors and windows can not only help maintain the warm temperature but also prevent it from lowering. It can also prevent cold spots and drafts, which can help with tenant satisfaction . Doors and windows should be properly sealed and insulated to prevent drafts and maintain proper temperatures. A visual inspection of the weatherstripping around doors and windows to ensure they’re intact is a great place to start. If damaged, consider replacing them, as trying to seal gaps can be tricky and rarely lasts. Other seals should also be checked, as well as any areas that need to be caulked in order to keep cold air out. Insulation during the summer helps keep the cool air in, and during the winter, insulation in the halls and attics helps retain desired heat. Hot air rises, and if there isn't adequate insulation in the ceiling, heat will continually be lost. Luckily, adding insulation to an attic is not uncommon and typically only requires a day or two for installation. Sign #2 Energy Efficiency Measures During the winter, it's not just the cold you need to keep in mind. As days are much shorter, there is less sunlight to keep the rental warm and more hours of darkness. For this reason, it's a good idea to keep energy efficiency in mind when preparing for the cold weather. Energy-efficient lighting or smart lighting helps reduce overall costs since your tenant will likely use electricity to keep warm. Ensure your outdoor lighting is rated for external use, as this can provide crucial illumination during longer nights. Draft guards on doors and windows help reduce the load on your rental’s HVAC system which can significantly improve its lifespan. This is also a great time to replace filters and clean the ductwork in your rental to improve energy efficiency. Additionally, consider installing an insulative film on older windows, which helps retain heat and keep rooms warmer without the need for extra heating. If your rental has a programmable thermostat, ensure it’s in working order, as this can help tenants manage an energy-efficient heating schedule more easily. Sign #3 Property Exterior Southern California is a great place to settle down, and while we don't need to worry about snowfall or deep freezes, ensuring the exterior of your rental property is ready for the cold weather is important. With our cold season mainly bringing with it rain, inspect your rental property’s rain gutter system . Remove debris from drains and check for leaks or signs of wear and tear. Walkways should be clear of debris and well-lit. This may require you to prune and trim trees and bushes that may leave behind leaves. When combined with rainfall, a single wet leaf can cause someone to slip and hurt themselves. Consider adding non-slip mats or tape to areas where people may have tripped in the past. Much like during the hotter weather, it's important for your rental to be ready for fall and winter. By keeping your property ready for any weather Southern California has to offer, you ensure your rental property and tenants will provide steady rental income every month. If you need help preparing your rental for the cold weather or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards November 4, 2024
Owning a rental property in a beach city like Long Beach, CA , offers a number of advantages, like great weather and a strong real estate market. However, the cold ocean breezes can pose some challenges for landlords and tenants, making it convenient for property managers . Although the weather is generally great, these ocean breezes can sometimes make properties drafty and uncomfortable during the fall and winter seasons. Today we’ll go over four measures that can improve tenant comfort and protect your investment from the cold ocean breezes. Weatherproofing Againsts Drafts Drafts are caused by gaps between doors and windows which can make a rental feel colder than it is. This leads to unnecessary energy use and tenant discomfort. Sealing these gaps is not difficult and quite doable for a landlord who doesn’t mind getting their hands dirty. Replacing worn weatherstripping and adding fresh caulking to seal minor gaps blocks air from permeating the property. For additional protection from drafts, you can provide your tenant with inexpensive door sweeps. Improve Heating Efficiency Having efficient heating is crucial to countering the cooler ocean breezes while keeping costs low. Schedule regular maintenance for your HVAC system , such as replacing filters, cleaning vents, and cleaning the compressor to keep it running smoothly. This not only provides more efficient heating, it also extends the life of your HVAC system. Installing a smart thermostat is another way for tenants to adjust heating schedules efficiently. Protect Outdoor Spaces Outdoor areas such as patios, balconies, and even porches can oftentimes be exposed to the coastal breezes. This can be an issue in the long run, especially for rentals next to the beach , as the wind can carry sand and salt, which can accelerate the deterioration of metals, wood, and paint. This can be mitigated by adding windbreaks to the property, such as lattice panels or outdoor curtains, to create a more comfortable and functional outdoor space. Exterior finishes will require more frequent maintenance. This includes resealing wood and metal surfaces. As well as repainting is important to protect against wear from salt, sand, and moisture. Wind Mitigating Landscaping Much like with the curtains and lattice previously talked about, the landscaping can also be used as a windbreak. For example, planting wind-resistant shrubs or trees alongside exposed areas creates a natural barrier. This helps reduce the impact of the gusts of wind hitting the property. Many native plants thrive in coastal climates while also requiring minimal maintenance. While expensive, the results can greatly improve your rental’s longevity and curb appeal. Alternatively, you can strategically place planters to provide protection. Durable Furniture Furniture and fixtures exposed to the cold coastal breezes need to be able to withstand that wear and tear. Choose resilient materials such as treated wood, powder-coated metals, and outdoor-rated plastics. These are less prone to being damaged by the salt or wind. Furniture that is lightweight should be secured or anchored in place to prevent it from being blown away. By investing in durable furnishing, you can provide tenants with a comfortable and functional outdoor space for years to come. Protecting your beach city property from the cold ocean breeze doesn't necessarily require extensive renovations or investments. Try to focus on any relevant feedback from your tenant, this can help you pinpoint what part of your rental needs attention. If you need additional help protecting your rental property from the cold ocean breezes or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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