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.
Air filters are a vital component of your property’s HVAC system, but they are too often neglected. While the benefits of regularly replacing these comparatively inexpensive items might not be immediately noticeable, failing to replace them can actually severely damage or ruin your entire system. Keeping an eye on small details like these is what makes AllView Real Estate Management a top property management firm.
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.
The real estate market is one of the most rewarding industries a person can get involved in. It is one of the few investments that a person can actually use someone else’s money, to make money for themselves. To maximize the investment and make it work for your demands knowing how to effectively leverage money. Leverage is one of the most critical factors in having a successful real estate investing experience.
Did you know that the median price of a home in 16 zip codes in Orange County has surpassed the million-dollar mark? In other words, prices have pretty much doubled in the last ten years! Imagine how you would feel if you had doubled your money in just a decade? Basically, a steady 10 percent raise every single year. Not to mention the rental income and tax deductions you’d likely benefit from throughout those same 10 years. You are probably looking at these figures and thinking, “OK, I am ready to dive in.” We have some tips to keep in mind when you are looking into OC real estate investing.
The Laws and Regulations Regarding Pulling and Using Credit and Consumer Reports for Selecting Tenants
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.
If you own a home in Southern California you must ensure the care, maintenance, and upkeep of the home is a priority if you wish to maintain your property’s value. One way homeowners can keep their appliances and major systems in optimal condition is by investing in a home warranty policy.
In response to this brewing housing crisis, Governor Newsom enacted AB 3088, commonly referred to as the COVID-19 Tenant Relief Act of 2020, to offer substantial new protections to all California residents, from eviction, provided that they qualify. In sum and substance, the bill prevents the eviction of tenants who are facing financial hardship due to COVID-19.
The Importance of Having Local Representation and Local Expertise in Property Management and Real Estate Investing
As an owner or investor of multifamily properties in Orange County, Los Angeles, and beyond, the property manager or property management firm you choose to work with is critical to your real estate portfolio’s success.