There are more California landlords now than ever before — and that’s not surprising.
According to a recent post on Forbes, 1.5 million new rental units go up every year. Admittedly, there are several explanations for the upsurge in rental units. However, the simplest reason is that being a landlord is profitable.
Be that as it may, several challenges can also make things seem unappealing. Before dealing with bad tenants, an average California landlord has to handle the following:
- Find a good rental property
- Improve the property’s condition
- Find prospective tenants
- Spend more money on maintenance
In this article, we’ll explore some of these challenges and propose one possible solution. Let’s jump right in.
Five Challenges that California Landlords Experience
Here are the top five challenges of being a landlord in California.
1. Buy a Good Rental Property
Finding a good residential rental property for sale is no easy feat.
Indeed, various real estate professionals have written several books about this topic — and for good reasons. Buy a property that’s too pricey, and you won’t make a profit. On the other hand, snagging a bargain requires an in-depth knowledge of the market as well as skills and patience
The good news is property management companies now help with this process. Not only do management companies find lucrative deals, but they also handle the paperwork.
Of course, you have to pay a specific fee to get started.
2. Improving the Property’s Condition
The first step to take after buying rental property in California is to improve its condition.
That often involves buying fresh carpet and paints to make the house appear appealing to prospective renters. Besides the slight touch-ups, you also have to attend to other common needs such as window screens, deck stains, and lawn maintenance.
The worse part is you have to repeat the same process every time a tenant departs.
3. Find Prospective Tenants
At this point, you have purchased a good property and improved its condition. Now comes the challenging part — finding prospective tenants.
Luckily, the internet is a fast and affordable way to find tenants. For example, you could run social media ads or other advertisements in reputable online publications.
There’s just one problem.
The process of screening a client can be tedious, especially for a regular California landlord. Besides the regular credit check, you also have to perform an in-depth background check.
Although the vetting process is pricey, it increases your odds of getting responsible tenants. That way, you won’t have to spend more on a time-consuming eviction process.
4. Bad Tenants
Bad tenants may be the biggest challenge that a landlord might face. That means you have to deal with daily calls as well as late and unpaid calls.
However, even the best tenants also come with a host of hassles. Several issues such as broken pipes, stuffed drains, pets, and roommates might arise. In other words, even the best tenants will demand your full and immediate attention.
That brings us to the next point.
5. Maintenance Fees
Maintenace of a major component and amenities can be very pricey. For example, a new roof can cost thousands of dollars. Here’s why that’s a problem.
The new roof could cost $3,000 on a rental property that only brings in $300 in monthly rent. That means it’ll take at least 10 months to make your money back.
What’s more, you could lose money on the rental property if tenants stay for a short period.
Wrapping Up: Avoid the Challenges that California Landlords Face
As you can see, being a landlord in California is a challenging endeavor. So, is becoming a landlord worth the effort?
We can’t answer that question for you. However, consider delving into the venture with a solid plan and realistic expectations.
Alternately, you may want to hire a property manager to handle the duties of running a rental property. It includes the following:
- Marketing your rental property
- Selecting a tenant
- Maintenance and budgeting
- Collecting rents
Another option is to sell your California property for cash. That way, you can avoid all the unnecessary hassles that come with being a landlord in California.