Tips Every Landlord Should Know
From Leasing Experts in the San Francisco Bay Area
The Game Plan
Interested in renting your investment property but unsure where to start? Here are some tips and resources that we have found to be very useful during the leasing process.
Establish Your Goals
Specify and picture your ideal situation, then take the necessary actions to make it a reality. There are many reasons why people rent their homes, so in order to come up with the best strategy, be clear about your objectives, the time frame, the minimum monthly rent requirement to cover all of your costs, and the level of risk involved.
See the assessment below to help prepare and better identify the necessary actions for a seamless leasing experience.
The Assessment
- Are you looking to rent your property on a long-term or short-term basis?
- Are there any restrictions in your HOA or Co-op that may affect your desired rental plan?
- Will you be renting furnished or unfurnished?
- Will you be hosting showings in person and/or virtually?
- What is your application and vetting process?
- What utilities will the tenant be responsible for and what is included in the rent?
- Who will prepare the lease and uphold the agreement over the terms?
- Who will collect the rent and deposit and what method of payment will you accept?
- What if there is a delay in payment or the tenants are unable to pay?
- How will you make sure you are in compliance with local ordinances and rental laws?
- Are up to date on the ILO law in San Francisco?
- How will you process and handle maintenance requests?
- Who will be on call in the event of an emergency?
These are all very important questions that one must assess beforehand, and those who take this extra step and plan for the unexpected often fare far better than those who jump in blindly.
Knowledge & Preparation are Key
In its truest form, renting your property can be extremely beneficial to all parties involved, and while this is the ultimate goal we strive for, if the proper steps are not taken, these relationships can get messy quickly. In order to avoid a potentially disastrous situation, it is a great idea to hire a professional leasing agent to assist with the process.
See these tips that we have learned over the years to make your leasing experience as smooth as possible.
Rental Tips
- Get your property rent-ready - If you build it, they will come. Too often, we see owners who are interested in renting out their property but are nowhere near ready to rent it out. Get prepared and get your property in rent-ready condition. The sooner it is move-in ready, the sooner it can be rented out.
- Have a clear vision of the timeline - Be practical in what your desired timeline is and what makes sense for your particular situation. Sometimes it is better to miss a few months of rent than to get locked into a long-term engagement if you plan to use your property in the near future. Remember that once tenants are in place in California, they are protected under the California Rent Laws as well as any county or city laws.
- Pricing - This is a huge component of the housing industry, and if you do not price your property with a strategic plan, then it can be very hard to get back on track. It is imperative to know your current market and what other properties are renting for in the area. Once you list your property, it is very hard to raise the price, and if it is priced too high, there is a chance that you will lose momentum and the property will sit vacant for a longer period. Remember to take into account all of your expenses and be informed of the market and other comparables before listing your property. AMSI's agents have a vast network of resources to help with this process, and finding the right price is a very important piece of the puzzle.
- First impressions are everything - Make sure that everything is clean and presented well, when you are taking pictures and showing your property to prospective tenants
- Set reasonable expectations beforehand - When people are signing a lease agreement, you are giving them permission to live in their home. This comes with the wear and tear of normal daily life. Be sure to include any addendums in the lease that you wish to emphasize to protect yourself from potential long term damage to your property.
- Start with a professional - If you have never rented your property before, there are many different factors that come into play, and to be on the safe side, we always recommend hiring a trusted professional to walk you through the process every step of the way. Since your home is often your most valuable asset, we are aware of the care that it takes to find and place qualified tenants . It is much better to hire a professional and not encounter any issues than to go at it alone and find someone later down the line. Relationships between tenants and landlords can turn sour quickly if proper procedures are not followed, and this can turn into an expensive lesson for a landlord. We always encourage you to find a trusted resource to help you along the way.
- Set yourself apart from the masses - What can you do to provide a selling feature that will attract the perfect tenants for your property. Remember, the more care you put into your rental, the more likely you will attract someone who will put that same care into your property.
Ex. If you have a washer dryer hook up it is always a good idea to install a washer dryer and include this in the rent. Not only will this add value to the property, but you will often find that it is a key selling point for many tenants. While this may seem like common knowledge, unbeknownst to some landlords, most renters do not travel with these appliances... If you have the hookups, do everyone a favor and install a washer and dryer.
Bonus Tip
- Be prepared & stay positive - Envision the best case scenario and stay true to your game plan. The more you worry about things, the more energy you are putting into these specific areas, and we have seen owners cause issues that would have never happened if they had confidence in their tenants. Remember that one of the most important parts of the process is vetting your applicants, and if there are areas of concern, be sure to outline this in the lease agreement beforehand. Trust is the name of the game when renting and in order to establish a beneficial relationship, it is imperative that you trust your tenants and that they will care for your home as their own. Respect is the most important part of renting. Through building a solid relationship with the occupants of your home, you may be in for a sweet surprise when they return it better than when they first arrived.
Bring in the Pros
AMSI's qualified rental agents are an extremely valuable resource who uphold all aspects of the law while securing qualified tenants with professionalism that is of the highest quality. Our goal is to see that your property will be well taken care of by walking you through the process every step of the way and informing you of non-discriminatory practices and other legalities that you may be unfamiliar with.
From handling all showings and communications with interested parties, to vetting applicants with our superb technology, and presenting all qualified applicants for the owners' final approval, we are meticulous, diligent, and communicative in our implementation and execution.
Upon final approval of an applicant, we thoughtfully and carefully prepare a very detailed and thorough lease agreement using the SFAA (San Francisco Apartment Association) Lease Agreement, and once both parties have signed and rents have been collected, we can introduce the tenants and landlords to arrange a time to meet for key transfer and move in.
Learn more about our leasing services here.
Hands Off Approach
More often than not, we highly recommend a professional property management company as a third-party mediator to separate the tenants and the landlords and provide protection for both parties. This can be a huge relief in the long run and end up saving you energy, time, headaches and even money. This is one of the best ways to ensure that your property will be taken care of and is in good hands.
As property managers, we are well versed in California, San Diego, San Francisco, and other Bay Area county rent laws and take pride in offering world class service to our clients and tenants. Our goal is to see to it that everyone feels comfortable and safe in the leasing process and we are committed to keeping open and honest communication throughout the whole process. Transparency is extremely important when working with owners and we are constantly striving to create the best service possible while upholding all rental agreements and requirements.
Our property management services are run and operated by a team of dedicated professionals who are passionate about the process and see to it that your property and tenants are in good hands. With the trust of craft comes a skill that is an art form, and we approach it enthusiastically and moderately, always keeping an even keel with foresight and a proactive demeanor.
The Flow State
If you're looking for property management, you probably already know how challenging it can be to manage property while maintaining your regular schedule. Property management is an art form in and of itself and fortunately, you've come to the right place.
We have been managing properties in the Golden State for more than 50 years and we have accumulated so many fascinating tales over the years that it is challenging to keep up with them all. That's the beauty of learning over the years and since we have put in the time to hash out a system that works, you don't have to.
One must constantly adjust to this delicate balancing act and those who succeed in this area try their best to anticipate issues and find solutions before they even arise. If you are in the midst of managing a property yourself or are about to embark on this adventure, one of the best tips we can give is the importance of good communication.
Learn more in this interview with Nathan Murdock about the many benefits of our property management program in the San Francisco Bay Area and San Diego and what makes a great property management company.
