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When the World Health Organization (WHO) declared the novel Coronavirus (COVID-19) a pandemic, it affected California residents drastically. Specifically, most of the California economy was shut down, leaving many residents without jobs or any source of income. Making residential real estate one of the hardest-hit sectors affected by the COVID-19 pandemic. In any event, everyone is left to pick up the pieces, including landlords dealing with potential evictions and collecting back rent from tenants that accrued while California was shut down.

Investing in and managing your own rental properties in Southern California is admittedly an incredibly challenging process. However, being a rental property owner can be quite rewarding when done strategically. Specifically, if you chose to manage your own investment property in lieu of hiring a professional property management company, you will have to wear multiple hats and take on various roles. Below we will discuss the top things you need to know about managing your own multifamily rental property in 2021.

A simple and effective way to avoid future headaches is to require proof of income from potential tenants. In order to determine if a potential tenant is going to become a liability or an asset you’ll need to find out some information about them. All financial factors should be considered and analyzed. For example, you’ll want to know how much does the person make? How much can they actually afford? Most importantly, can you verify his or her claims?

Damage to a rental property can be a huge headache for a landlord. This is not only because it can compromise the profitability of your investment, but because it can also result in further damage to the home. Tenant damage can also lead to disputes and disagreements between owners and tenants.

Known by various names such as granny flats, backyard cottages, in-law units, secondary units, guest houses, and so forth, an accessory dwelling unit is essentially a second dwelling on the same grounds as the main home. In California, it can be attached or detached. It can also be in the form of an apartment located on top of the garage, a smaller second home in the backyard of a home, or a small basement apartment.

Most, if not all, property managers and landlords in Southern California will conduct a background check on prospective tenants. This background check usually includes the landlord ordering a credit check and/or a consumer report. When conducting background and credit report checks, owners, landlords, and property managers must remember to comply with both Federal and California Fair Housing Laws. Additionally, they must also comply with the Federal Equal Credit Opportunity Act and the Fair Credit Reporting Act (FCRA), which may be applicable whenever a landlord or property manager orders a consumer report on a tenant.