Landlord mistakes can be pretty common, even if you’re experienced in renting out homes. Here are the six mistakes we see most frequently, and how you can avoid them if you’re renting out a home in Benicia or the surrounding areas.
1. Improper Pricing
The wrong price is a huge mistake and there are a couple of things to be aware of when you’re pricing your property accurately:
- Location. Use the exact location of the property you’re marketing to set the right price. Don’t look at other neighborhoods, be specific and detailed about where you are.
- Size and layout. Is it an open floor plan? Is it functional? A three-bedroom, two-bathroom home with 1,100 square feet versus a three-bedroom, two-bathroom home with 1,800 square feet will demand different pricing levels.
- Condition. You don’t have to provide the Taj Mahal when you’re renting out a property, but it matters when you’re pricing your property. You cannot price your home similarly to a home that recently had a $100,000 flip completed. Be honest about the property’s condition and use it to adjust your price.
- Amenities. A single-family home might be in a gated community. Condos and townhomes will have amenities in the complex. Tennis courts, a gym, and a pool will often demand more rent.
- Timing. In different seasons, you can ask for more rent. It’s supply and demand. Most people move in the summer.
2. Improper Tenant Screening
The resident you place will affect your experience as a landlord. You could have a dream resident making life easy. They’ll report maintenance right away but not call you daily. They’ll pay rent on time.
Without good tenant screening, you’ll miss out on the best quality renters and potentially end up with a nightmare tenant, which everyone wants to avoid. Here’s what you need for property screening:
- Written rental criteria.
- Dependable eviction reports. California can be tricky; there’s often a delay in evictions showing up on the report and if it’s a filed eviction but not a court eviction, it may not show up. If you do get something back around an eviction in California on an applicant, you know it’s serious.
- Verify employment.
- Obtain a full credit report.
- Get a full rental history with positive references.
3. Not Being Open to Pets
Assistive animals are not pets, and we have a lot of them in California. We use PetScreening as a service to screen pets and collect verifiable information on assistive animals. With pets, you can charge a pet deposit or pet rent, but with assistive animals, you cannot. We recommend allowing pets because you cast a wider net and increase your chances of a qualified renter. Ultimately, you earn more money with pets.
4. Ignoring Preventative and Routine Maintenance
We do drive-by inspections to catch potential maintenance issues, and we also conduct interior inspections. Preventative plumbing is especially important because if you leave a water leak, it will lead to rust and potentially mold and subfloor damage. In a multifamily property, water can go from one unit to another. Preventative roofing is also important in extending its life.
Get in there and conduct your inspections so you can catch any maintenance that needs to be done.
5. Not Keeping Up with California Landlord Tenant Laws
Every year, California tends to have one or two curveballs that impact how you handle your landlord/tenant relations. The Tenant Protection Act went into effect in 2020, and that was a big one. It applies to multifamily buildings and properties owned by a corporation. It doesn’t apply to those mom-and-pop investors renting out a single-family home. But, if you do not have a specific clause pulled from the civil code listed in your lease, then your property does qualify for the Tenant Protection Act.
There are a lot of odds and ends when it comes to California rental laws. Your lease agreement has to be up to date.
This could be your biggest mistake as a landlord and cost you a lot of money.
6. Neglecting to Partner with a Local Property Manager
It’s important to partner with a Benicia property manager so you can access the best expertise. A property manager keeps you compliant with the laws and ensures you’re aware of market trends. You’ll price your property correctly and have access to great tenant screening.
Property management in Benicia helps you avoid all of these mistakes.
Please contact us at Krystle Properties. We lease, manage, and maintain rental homes in Benicia and work in surrounding areas such as Vallejo, American Canyon, and Fairfield.
