Dear Landlords and Investors,
The principles of leverage, supply, demand, and ROI still push appreciation. San Diego has proven to be a wise location for your investment dollars. But, don’t become complacent. Don’t lose track of why you are investing, regardless of how successful you are. Dealing with unexpected issues can make or break your business. So of course, you’re right to want to understand how the current market affects your property values. You deserve expert guidance. Here are details on what you need to know now:
PROTECTING YOUR PROPERTY OWNERSHIP RIGHTS
Last month we addressed the new Tenant Protection Ordinance for the City of San Diego. Expanding tenant rights about your income property. The government continues to move away from property owner rights and protection. Well, there are specific things you can do and resources out there. Things that will help you navigate the world of income property ownership.
The first thing you, as an income property owner, can do is screen your tenants thoroughly. Taking a preventive approach to potential renters will help weed out the bad apples. That way you can select tenants that are the best fit for your property, standards, and business model.
At a property inspection last week, our buyer was asking about how he can be sure he can get quality tenants. Today, you have to check the credit of anyone over 18 that will be on the lease. And yes, anyone over 18 must be added to the lease. DO NOT allow subletting in your units. If you do, your liability goes up tremendously! Don’t allow any loopholes for tenants. Now, FHA’s smallest credit score required to qualify for a home loan is 600. So we always say, if it’s good enough for FHA, it’s good enough for a tenant to rent your property.
Here is another must. You always want to speak with your potential tenant’s references. We advise you to skip speaking with the tenant’s current landlord. However, you must speak with their prior landlord. The reason? The current landlord may tell you anything so they can get rid of a problem tenant. Whereas the prior landlord should be more honest in their assessment.
Did you know you can get tenant screening for $25? Where you can check for prior evictions and criminal records. Oh and get full credit reports, social security verification, and address history. The system is active 24/7. And it’s provided as a member benefit. All this is from the Apartment Owners Association.
We are all in a progressive tenant protection time now. Joining AOA is one of the best protections you can do for yourself! Check out places like Seattle. Laws there are not owner friendly. Here is one for you. Landlords have to offer their unit to the first applicant who meets all requirements. In other words, first come, first served.
While you still can. Please exercise your right as a property owner. Give yourself peace of mind that you have the right tenant in place from the get-go.
The next thing you can do is join the Apartment Owners Association. They have a local chapter here in San Diego. Membership is $97 a year. And it’s a write-off for you as an income property owner. This is one of the best resources we’ve found for folks like us, Mom and Pop owners. The AOA has a monthly magazine both in print and digital. You get free educational meetings and presentations. With top-notch eviction attorneys, tax preparers, 1031 exchange specialists, contractors, and other specialists. Besides having conversations with and helping our clients. This is our favorite way of staying connected and informed on the latest need-to-know info.
They also have free Landlord forms for AOA members. Everything from rental agreements to move-in and out forms. Plus general notices, AB-1482 forms, to city/county-specific forms. And you can even take advantage of their legal department. They can connect you with a third-party attorney to answer your questions.
Now if you missed their last meeting covering San Diego’s new tenant protection ordinance a week or so back. Don’t fret! Here’s the link to the presentation. If you own income property in the City of San Diego. THIS IS A MUST-WATCH! And be sure to let us know if you need the new forms that go along with this ordinance.
Understanding San Diego’s New Tenant Protection Ordinance
They have a similar presentation this August. Last month’s presentation was a packed house. And it sold out. So get your seats now. For “The San Diego County Property Right Roundtable”. Wednesday, Aug. 9th, 3:30 pm. Here’s the link for you to register.
AND WHEN YOU’RE AT THE END OF THE GAME… READY TO RETIRE FROM LAND LORDING?
Let’s face it. Being a landlord has its ups and downs. If we had to point you in one direction it would be the Delaware Statutory Trust folks. And here’s why. With the DST, you get all the benefits of ownership. Without the hands-on day-to-day dealings of tenants and property management/maintenance. Plus it provides you with cash flow. And in a lot of instances, it’s even more than the relinquished property provided. Second of all, you’ve got professional management and bookkeeping. It’s automatically done for you. We’ve touched on DST options in the past. Don’t be shy, contact us.
Bookmark-Worthy Links
San Diego Real Estate YouTube-Weekly Videos Keep You Connected
Rentometer-House and Apartment Rental Rate Comps
HomeBot-Personalized Home Finance Tool
ALTOS Reports -Powerful Data-Driven Real-Time Zip Code Market Updates
MLS Access for Investment Property -Custom Searches For Investment Property
San Diego Apartment Investors Market Report Archives-Access Past Market Reports
IT’S TIME FOR YOU TO GET THE ROI YOU DESERVE
You’ve worked hard for what you’ve earned, and you’re right to want the best experience. Be confident you have professionals on your side. We use ROI-based marketing. Rest easy knowing we use an organized system to market your property. Employing our highly targeted and proven approach like no one else is what you deserve!
Thinking of selling your property in the next 12 months? Call us today for your strategic marketing consultation at 858-218-4511.
