Rental Property Maintenance salinas

10 Ways to Save Major Money on Rental Property Maintenance

Rental Property Maintenance salinas

Rental property maintenance is one of the largest expenses that you will incur as a landlord. Owners spend an average of $2,300 per rental unit per year on rental property maintenance. This makes sense, given that most landlords own multiple rental properties. The costs can be even greater if your rentals are not well-maintained, to begin with, which is why it's so important to create and implement a regular rental property maintenance plan for your properties.

1. DIY Maintenance Whenever Possible

Many small repairs can be done by yourself rather than hiring a contractor or plumber. It may take some time, but the savings in money and labor will more than makeup for this effort. Such things include changing burnt-out light bulbs, unclogging toilets, replacing faulty faucets, and more. This list of do-it-yourself home repair tasks can be especially helpful when trying to fix things on your own.

2. Get Rid of Lawn Care Services

This is not always possible, but it can save a lot of money if you have a large yard or lawn that takes up considerable amounts of time to maintain yourself. These services are not cheap, even if you get a discount since the person doing the work is likely an hourly employee. The best way to avoid this cost altogether would be to rent out a house with no yard or live in an apartment with some form of a landscaped courtyard or common area that provides green space for tenants.

3. Hire Professionals Only When You Need To

If you do need to hire someone, only pay the premium rate when absolutely necessary. For example, if you have an appliance that needs to be repaired or replaced, it is almost always possible to find a better deal than what the company you bought the appliance from offers. This means calling around for prices or asking friends and neighbors who they used, or finding online reviews for local businesses that offer these services. Keep in mind that any time your rental has something major like plumbing work needing to be done, there will be significant costs involved, so getting multiple quotes should be done first before hiring anyone.

4. Do Your Painting

Many landlords don't realize how easy it is to paint their rental units whenever necessary. Not only is it very simple, especially if you can afford to invest in high-quality rollers and brushes but also inexpensive. This may be another one of those tasks that would be helpful to learn how to do when you are trying to fix things on your own. If the paint job isn't perfect, consider this part of the charm of renting out an older house; no one expects perfection when it comes to old buildings with history behind them.

5. Utilize Public Service Resources for Repairs

One way to save money is by asking your local public services department for help in making repairs. For example, many towns provide free plumbing or electrical assistance, which can make any necessary repairs significantly easier and faster without having to pay a private contractor. You can find out about these resources by contacting your city hall, local community center, or library.

6. Negotiate for Better Deals on Insurance

Renting insurance policies are almost always overpriced; this is especially true if you own multiple properties or live in an area with a high chance of property damage caused by natural disasters such as hurricanes and floods. It's important to shop around among different insurers to get quotes at least annually because premiums will fluctuate depending on the insured value of the rental unit and the type of dwelling it is. If you have a fair amount of equity built up in your rental, you may want to consider giving up some coverage for a lower premium, but be that the liability limits you have for this particular type of property.

7. Hire a House Sitter When Traveling

This can save you money on pet sitting services and provide you with an extra layer of security. The house sitter will let in maintenance workers when they come by to fix things, pick up any packages that come for tenants, and collect rent if necessary. Furthermore, there may be a travel cost involved only once but then the savings every time after that until you use it again or sell your rental property should more than makeup for it. If you want to find someone trustworthy who is available when needed, check with family members or neighbors first before getting online bids from strangers since references are essential when choosing someone to take care of your home. Also, make sure they are bonded and insured to protect you in the event that something unfortunate happens.

8. Utilize Your Tenants for Repairs & Maintenance

Before embarking on any major repairs or renovations, consider asking your tenants if they would be willing to contribute financially towards making necessary updates. Often this can come in two forms: either a lump sum when signing the lease or monthly contributions during their tenancy. This is especially beneficial if you have just one tenant since it only requires communication, whereas hiring someone else to do work on the unit will involve coordinating between them and whoever you hire. Furthermore, it will save you time because you won't have to worry about getting bids from contractors then sorting through quotes before getting started.

9. Enlist the Help of Your Tenants for Repairs & Maintenance

This is another strategy to save money on repairs and rental property maintenance, though it's not recommended you utilize this too often since it can go both ways. It may be an incentive to have your tenants complete work if they aren't responsible enough for certain tasks by providing them with cash or free rent in return, but one problem with this approach is that there is no guarantee they will finish the job. Another issue might arise if the tenant does something wrong, like bricklaying a wall incorrectly or doesn't do anything at all, which ends up costing more than doing it yourself would have. However, there are some instances where allowing your tenants to make minor improvements themselves will save you some money.

10. Renew Your Rental Insurance Every Year

Rental insurance policies are one of those things that automatically renew themselves for the same price as the original purchase unless you cancel it, so this is a service that's going to run for as long as you continue renting out your property. The problem is that many people forget about it or don't bother canceling their old policies after they've bought a new one and end up paying double the premiums, which isn't a good deal. For these reasons, be sure to contact your insurance provider every year before the annual due date on your plan to make sure everything is in order, and there aren't any unnecessary charges being added by mistake. In addition, always double-check with them before starting work on your home since some projects might invalidate your current policy and force you to buy a new one which will cost more if you wait too long.

In conclusion, these are some of the ways to save major money on rental property management Salinas. Although they may not be the most exciting things in the world, it is important to keep up with them because there is always something that will need collecting rent for, fixing, or updating during your time as a landlord. However, even if you end up doing everything yourself, these strategies won't have helped you that much since keeping busy around the house is far from anyone's idea of fun. Therefore, use them only when absolutely necessary and try to make sure they are kept to a minimum so you can maintain your sanity along with your wallet without letting one affect the other.


commercial property market analysis salinas ca

Why is a Real Estate Market Analysis Important?

commercial property market analysis salinas ca

Investing in real estate is a smart move. Investing in real estate smartly is an even better move. In order to make the most profit from your real estate investments, you should hire a property management services company to conduct a full real estate market analysis on every property you are considering to purchase as an investment property. Here's what the analysis is and multiple reasons why a commercial property market analysis is vital to your real estate investments.

What is Commercial Property Market Analysis?

The property market analysis is a tool used by wizened property investors to ensure that their money is well-spent. Nobody enjoys making a bad investment as the money lost is rarely, if ever, regained. The analysis provided by a good commercial property management firm in Salinas CA allows you to see what a property is really worth based on the surrounding property values. Then you can bid or buy at a price that is more in line with the value of the property and not lose money.

1. Keep More Money in Your Pocket for Other Investments

If you could buy two properties for the price of one, and the two properties would garner more profit in a month than just the one, you'd buy the two. Additionally, if the two properties together cost less than the single property, you've just essentially doubled your profit and you kept some extra cash in your back pocket to invest in a third property. That's smart investing, but you wouldn't know it if you just buy properties on a knee-jerk reaction. The market analysis you receive on all three properties you're interested in would reveal which two properties will give you the most bang for your buck and the least headaches for the immediate future.

2. Locate Properties With Historically High RORs

Part of a market analysis is viewing historical data for a given area. Just because a property is located near Beverly Hills, for example, doesn't necessarily mean it will be a profitable property. Examine the historical data on the property and the area as a whole. Compare it to neighboring properties several blocks over or a couple miles away. If the historical data shows that the value of your investment only climbs over time, or has a few minor dips, it's a worthwhile property to consider for your portfolio.

2. Use Demographic and Statistical Data That Dictate Property Usage and Potential Value

Let's say you're interested in a commercial rental property. It has multiple units to rent to tenants, and some of those units are already generating income because the property has some tenants. Examining the demographic and statistical data of the tenants the building currently has, as well as the data about the area surrounding the property, tells you whether or not the property would make a good investment. If the building is run down, needs frequent repairs by tenants not responsible for repairs, and/or may need more upkeep than you can manage, you may still consider it a worthwhile investment if you can afford property management services from property management companies. If your investment budget is tight, and the demographic and statistical data suggest you'd be in the hole before you even advertise open and available units, you may want to leave this property in the listings.

4. Determine If the Property Is Overpriced for Its Location

When the real estate market is strong, you want to jump right in and take advantage of the potential profits. The trouble is, if you buy properties that are overpriced for their location, usage, etc., you lose. A real estate market analysis can tell you exactly what you should pay, and if the seller isn't willing to negotiate down to the more reasonable price, there are other properties you can pursue. The sad thing about most real estate investing greenhorns is that the leap before they look and often pay far too much for properties they should have bought for less. It's a tough market, but holding out for better pricing on better investment properties is how the best investors do it.

5. Once You Own a Property, Market Analysis Helps You Set Reasonable Property Rental Pricing

Once an investment property is yours and you have made the choice to rent it out (if it isn't a rental property already!), the market analysis helps set rental pricing. You can look at all of the information you gathered before you bought the property to determine what a fair rental price is/would be. When potential renters come across the property and discover that you are offering a very reasonable rent price, they are sure to jump at the chance to rent from you.

It's also important to set the rent just slightly above the going rate. If you can't get tenants at your higher asking price, you can adjust the rent down to the amount you want and are willing to accept to attract more potential tenants. You can also offer discounts or move-in deals that shave a little off the higher amount and still allow you to make some profit.

In Conclusion...

Real estate investing is exciting, but like all investments, you could lose your shirt if you aren't diligent about research. A commercial property market analysis is your research and your insurance against a larger percentage of the worst mistakes you could make. Find the right firm for this service, and use it consistently for every property you are considering. The added expense of the analyses you receive more than pay for themselves in the long run because you aren't buying into bad investments. That doesn't mean you won't make any mistakes at all along the way, but your due diligence with the analyses prevents you from making a lot of mistakes you would have regretted.


apartment property management Salinas

7 Apartment Management Tips to Attract Quality Tenants (From a Seasoned Property Management Company)

apartment property management Salinas

An apartment management company can maintain a high occupancy rate in a wide number of ways, ranging from fair policies and pricing to providing quick maintenance and customer satisfaction. Assuming that these basics are in place, here are seven ways apartment management staff can attract the best tenants.

7 Apartment Management Tips

1. Offer Realistic Property Rental Pricing

For the most part, property rental pricing is not an exact science. There are many factors that come into play that can affect how much property management services should charge for rent.

Pricing is one of the most important factors when it comes to finding the right tenant. It can be difficult to determine what the right price would be, but research has shown that properties that are priced too low or too high have a higher risk of not being rented out at all.

If you set your price too high, you will have to wait for months before someone decides to take it off your hands and if you set your price too low, you may get more foot traffic but have fewer people willing to rent because they think it’s overpriced.

For example, in apartment property management in Salinas, it is easy for property management services to attract high-quality tenants and have close to full occupancy because not only are the apartments attractive and well-maintained but the price, too, is realistic, within the target range of what people in Salinas expect to pay.

2. Apartment Management Should Provide Customer Satisfaction

From a business perspective, a tenant is a customer. In fact, according to an experienced luxury property manager, customers, like the guests at The Ritz, may not always be right, but they are still customers.

Property managers should treat a new resident like a customer who pays the rent and not just like someone they see once a month to collect money.

A happy tenant is one who will always pay on time, keep up with their end of the lease agreement, and be willing to work out any disputes they may have with neighbors or the property management company in a reasonable manner. In return, property managers should do everything possible to make sure that their tenants are as content as possible.

They should provide excellent customer service that exceeds their residents' expectations. It’s not enough to simply pay lip service to the value of keeping tenants happy. Providing excellent customer service does not have to be complicated. It can be as simple as inspecting the air conditioning unit and smoke detectors in preparation for renting a property in summer. It can also be as simple as listening to their needs and fixing maintenance issues.

3. Create a Marketing Campaign to Attract Tenants

Marketing campaigns are a great way for property management companies to attract tenants. They are important because they help the company make its brand known to potential tenants. Marketing campaigns help the company create a relationship with potential clients.

Property management services have been utilizing marketing campaigns for years now in order to attract more tenants. This is because marketing can be a very valuable tool in today’s competitive market.

Keeping the right tenants happy is all about living up to promises made during a marketing campaign. For instance, if advertising promises an apartment with attentive and knowledgeable staff, then apartment managers need to groom their teams to live up to this reputation.

Customer satisfaction combined with word-of-mouth advertising will help keep any business in any market thriving.

4. Respond as Quickly as Possible to Maintenance Requests

Property management companies often need to respond to maintenance requests at a moment's notice. This gets more complicated when they have multiple properties, and a request comes in for one property, but the apartment manager is dealing with another property. It can be hard to keep up with all the requests, so it's important for these companies to develop a system to respond as quickly as possible.

If a request is made and not responded to quickly enough, it may be necessary to schedule emergency repairs and this will cost more money than it would have if the manager had responded quicker. It's also important that apartment managers know about any problems before they become an issue of their own accord.

5. Landscape and Improve the Property Grounds

Landscaping can be a great way to increase the curb appeal of a property. It can also help with attracting attention by making the property more desirable for potential tenants.

Property management companies should be taking advantage of this trend by investing in landscaping. There are many options available to them, including ground cover and trees. They should also be doing more with the outdoor space to give the residents some scenic beauty.

6. Make It Easy for Tenants to Find Their Apartments Online

This is a great way to increase the chances of your property being rented out. This will also keep tenants from walking around and just looking for properties, which takes time and effort.

Ultimately, it will help the tenant find what they need more easily without the headaches of having to go through a lot of listings that don't apply to them. It's important for property management companies to have an online presence because it's so easy for tenants to search on various websites and apps.

7. Offer Luxury Amenities for Tenants

Property management companies should offer luxury amenities for their tenants in order to stand out from the competition. The presence of these amenities not only provides a sense of luxury and comfort but also attracts higher-end tenants.

Offering luxury amenities not only makes the tenant’s stay more enjoyable but will also increase their chance of retaining a tenant. These amenities could be a pool, large-screen room, clubhouse, library, or gym. Many apartments in New York City offer an impressive number of amenities to improve their occupancy levels.

Conclusion

With the increase in people looking to rent apartments, it is essential for apartment management staff to build excellent relationships with their tenants. They should be able to work together in order to get rid of any problems that may arise. This way, they will also be able to create a sense of rapport with tenants.

One way that apartment management staff can build relationships with their tenant base is by being accommodating and understanding when there are complications in the rental process. They should always try their best to find solutions that would make all parties involved satisfied and avoid any unnecessary tension.


commercial property management salinas

6 Tips For Making Money on a Commercial Property

commercial property management salinas

As a property owner, you know there is value in the land and buildings that make up your investment property. Essentially, it is because you put money into making upgrades to attract commercial tenants. But when it comes to maximizing the potential of your commercial property, are you following these six tips for making money on a commercial property?

1. Place a Bid on a Commercial Property Being Auctioned

If you are looking to buy a property at a lower price, try asking your real estate agent about the lists of properties being auctioned. You can also check out county courthouse records online for details about foreclosure auctions. If you can get in on these auctions, you might be able to pick up the building without buying it at a high price. However, you will have to be willing and able to put up the cash quickly, as these auctions generally take place within days.

If a bank is looking for a buyer for your commercial property, they will often hold an auction. If you know the right time and place of the auction, you can get it at a lower price and sell it at a higher price. This means that you will cash out to a larger amount.

2. Consider NNN Lease Properties

NNN lease properties are also known as triple net leases. This means that the tenant has to pay for all expenses associated with the property, like taxes, insurance, and maintenance. For instance, if your building already has tenants in it, there is no need to spend money on marketing or finding new ones because they are already paying you every month. Also, in NNN lease properties, you will not have to spend money on repairs. Ideally, if there is any repair that needs to be done, the tenant will be responsible for doing it. With this knowledge in mind, you can already see why NNN lease properties are a great way to get your income up the sky.

3. Consider Mixed-Use Properties

Mixed-use properties are also an excellent way of making money on a commercial property. Mixed-use properties are a combination of retail units on the ground floor and offices above it. This is a great way to get more money coming in because you will have two tenants that pay rent every month.

4. Consider Long Term Leases

When considering long-term leases, you may be inclined to believe that they are not that profitable, but they are. Provided you have the services of an excellent commercial property management Salinas, and you will be able to make some good money on the long-term leases. Long-term tenants will help you stabilize the property, whereas short-term ones might not meet rent payments every month. This can end up costing you thousands of dollars in losses. Also, long-term tenants will help you to ensure predictability. If a certain tenant is paying rent on time and is well-liked in the community, then it may be in your best interest to keep them there as such long-term leases are more likely to pay off.

To secure such long-term tenants, you will have to work hard and ensure that your property is in the best possible condition. You must also make sure that you are not charging excessive rent because this may scare off potential long-term tenants. Most people want their own space and prefer privacy over other luxuries.

5. Analyze Rents Before Approving a Lease Agreement

Before approving any lease agreements for commercial properties, make sure that you analyze the rents forefront. This is important because there may be some properties that are being overcharged. Also, make sure that you keep a record of your predictions and then, later on, check if they match up with the actual values. It is always possible to undercharge on monthly rentals compared to the market value, but it is easier said than done to get tenants to agree to do that. Moreover, analyzing rent before approving a lease agreement is also essential because it is the first factor that you will have to rely on while making decisions regarding commercial property management.

You should always remember that it is always better to keep your expectations from the rent as low as possible. This is because of all the risks involved in commercial property management Salinas. Also, it is essential for you to ask for rent upfront since asking for payment at the end of the lease period can prove very complicated.

If you are a newbie property owner, it might be difficult for you to determine whether or not you have set the right rent at your property. Still, you should always keep in mind a lot of things while analyzing rent prices and tenancy agreements.

6. Keep Up With the Real Estate Market

You need to keep up with what's going on in the real estate market to be aware of how much your properties are worth and their current market price. If any of these properties are likely to give you more returns, it might be a good idea to put some effort into these properties instead of the others.

Furthermore, even if you have high hopes for one property, this doesn't mean that you should give it more than your undivided attention. Always remember to take care of all of your investment properties so that they can give you massive revenue margins. Keeping up with the real estate market is also crucial because it enables you always to be aware of what's happening in the market. It is also important that you get information about the market from trusted sources. You should not simply rely on advertisements or tips from other people.

In conclusion, commercial property ownership is a very lucrative business. Nonetheless, the market can be unpredictable, and you may lose money if you are not careful. By reading the tips above, you have learned about some things that will help your investment grow more rapidly. Nevertheless, never take anything for granted because even the smallest details could significantly impact your finances. If you don't know what you're doing, it would not be easy to make money in this market. Keep the tips above in mind before investing in a property, and you will soon learn how to make smart business decisions.


How to Choose the Right Tenant for Your Rental Property

tenant selection rental property Salinas

Being a landlord comes with various responsibilities. The most important consideration is to ensure you have valuable tenants in your rental property.

However, obtaining tenants isn't an easy task. You want to do due diligence to ensure you get the right tenants for your rental real estate. Here are tips to help you choose the right tenants for your rental property.

Check their Credit Score

Analyzing your potential client's credit history will help you know the kind of person you're about to admit into your property.

A tenant with a higher score is an excellent person to allow in your rental property. It shows that a tenant is a responsible person who will pay rent and other bills on time. Such tenants can also take good care of your property, and this will help you avoid damages.

The tenant will have to pay a small fee to get the credit score report. Ideally, you want to analyze the credit report and find out if the tenant has outstanding debts and the payment history of various items.

Observe Potential Tenant's Behavior

At the property showing, you should carefully observe how your potential tenant behaves. This is the best time to tell if the person is a good match for your property.

Whether the property showing is virtual or physical, you need to pay close attention to the tenant when talking and giving gestures.

First, determine whether the tenants shows up on time for the show, behave politely, and if they are respectful of your property. Here are several things to question a potential tenant:

  • Reasons for moving
  • The desired moving date
  • Willingness to give current landlord's contacts
  • Ask whether he/she smokes, has pets and/or roommates

Ensure your tenant selection is professional and straightforward to get quality feedback and make informed decisions. If the tenant shows up late, is rude, disrespectful, or refuses to fill the rental application form, then forget about the person and move on to the next. However, if you do not see any red flags, allow the person in.

Conduct a Criminal Background Check

With the current increase in crime rates, performing a thorough criminal background check for the tenant is imperative. You want to know if the person has a clean record.

Allowing a tenant with criminal records can be risky to you, other tenants, and your property. You can obtain criminal information from various courthouses and check for both serious and minor offenses that the person might have committed in the past.

Ask the tenant to give you his/her name and date of birth to check the criminal history. Remember, some people will try to provide false information, so you need to use valid details to check the criminal record.

Analyze the Tenants Rental History

Another way to know the tenant's character is by checking the previous rental history. If possible, ask the tenant for the previous landlord's contact. Call the landlord and inquire about the tenant's overall behavior.

Find out if the tenant paid rent on time, took care of the property well, and maintained peace with other tenants. If the person was troublesome, then do not move forward with the tenant. Such tenants are a threat, and you may never have peace if you admit them to your rental property. Here are a few questions you might ask the previous landlord:

  • Does the tenant pay rent on time?
  • Did he/she keep the rental property in good condition?
  • Was he/she respectful to you and other tenants?
  • Does the person keep a clean environment?
  • Did he/she give a 30-day notice before moving?
  • Did you incur any damages caused by the tenant?
  • Did you evict the tenant? If yes, what were the reasons for eviction?

Please pay close attention as you get the answers and determine whether the person is worth it. Remember, if the person is a first-time renter, a student, or a recent graduate, you should not expect a rental history since they're just starting life.

Choose a Stable Tenant for Your Rental Property

As a landlord, you expect timely rent payment from your tenants. This is only possible if you have responsible people in your rental property. In this case, it is imperative to choose a financially stable tenant who can pay rent and other bills on time.

To be sure of this, contact the tenant's employer to determine how much the person earns. Since the tenant will fill the form with the current and previous employment history, you can obtain much information from the form.

Find out if the tenant keeps switching jobs. If this is the trend, then be sure that the person will likely not stay at your property for long. You can avoid letting in such people because it will take you back and start looking for another tenant earlier.

If the person has not shown consistent employment, you might experience rent payment issues in the long run. So, it'd be best to avoid them.

Know Details of Rental Application

Knowing what the rental application entails will make your tenant selection seamless. The application gives much information about the tenant's employment history, contact details, and employer contacts.

Once the tenant fills the form, you can obtain much information needed and make informed decisions whether to let the person into your rental property or not.

You may want to know the tenant's history of eviction, a conviction of a felony, bankruptcy, and smoking and rent payment habits in the rental application.

Trust Your Instincts

While all the above tips are crucial to consider when selecting the right tenant for your rental property, you should also learn to trust your instincts. If you do not feel comfortable after doing due diligence, trust your instincts, cut off the deal, and move to the next tenant.

Sometimes, things may look good on paper, but you later discover that the tenant was the opposite of what you thought they are. That is why you should never go ahead if you are not at peace.

Hire a Professional Property Manager

Using the tips above can help you identify the right tenant seamlessly. Once you find the tenant, monitor your property closely and ensure it stays in good condition. You may want to work with a Salinas property property manager. Property management companies can take good care of your apartment. This gives you peace of mind knowing your property is under excellent property management services worth a bang for your buck.


investment property Soledad California

A Guide To Earning Passive Income on Investment Property

investment property Soledad California

For individuals who take wealth creation and passive income seriously, owning and scouting investment property is critical. For these dreamers, the thought of getting a check in the mail every month keeps them up at night with excitement and anticipation. More importantly, they know how wealth can enable them to better themselves, their family and their communities as a whole.

And while this is a worthwhile goal to have, there's more to earning passive income from a piece of real estate than meets the eye. If you are considering making your mark in the world of real estate, here's what you need to know.

Picking A Winning Investment Property

Let's be honest with ourselves for a moment: not every piece of property makes sense from a financial perspective. While every property has potential, not every investment has enough upside to make the deal seductive or feasible. Knowing this, what are the criteria you should consider when purchasing an investment property for passive income? While there are a myriad of variables to consider, here are the main components of a good deal:

  • The property is located in an area with good population growth.
  • The local market has steady employment numbers.
  • The surrounding area is low on crime.
  • The property isn't perfect but can be upgraded by you to generate more rental income.
  • Surrounding homes and pieces of real estate have sold within reasonable timeframes.
  • The property is listed at a discount or less than it would cost to build it new.

In a perfect world, your property would meet all of these criteria and then some, but that's not reality. Instead, use your best judgment to calculate repair costs, upgrades and additions to negotiate a sale price that makes sense for your budget. By buying your investment property at a discount, you can fix the property up, increase rents and put more passive income into your pocket every month.

Property Management

To truly reap the benefits of passive income, you must save your mental energy for things that matter most, like buying more investment properties. For most real estate investors, the thought of waking up at 3 a.m. to change a tenant's toilet sounds horrible. That's why most investors, both big and small, use a property management company to deal with the ins and outs of their investment.

Finding a reputable Soledad property management company to deal with your tenants, property requirements and day-to-day activity is crucial for your success. These professionals are the face of your business, so you must do your homework and find a company that fits your unique situation. Here's what to keep in mind when consulting with a Soledad property management company:

  • Have they worked with clients like you before?
  • What kind of reputation do they carry within the local market?
  • What property management services do they provide, but more importantly, what won't they cover or deal with?
  • Are they easy to get ahold of and accessible?
  • Do they treat tenants like a number, or do they specialize in the "human" side of property management?
  • If a tenant leaves the property or does not renew their lease, what strategy does the company use to attract new, prospective tenants?

Early on in your passive-income journey, these questions may seem trivial to you. But the further into your career you go, you'll soon realize that finding a property management company that's efficient, effective and communicative is the difference between "making it" or "breaking it." More importantly, reputable property management companies can help you decipher appropriate property rental pricing to generate growth and expansion.

Diversification Opportunity

Many newfound investors think of real estate as a static domain with limited variation, but this couldn't be further from the truth. What makes investment property so lucrative is the amount of diversity it holds within the market.

Readers who desire passive income, take a drive through your town when you have free time and take note of what you see. For most individuals, their brief excursion will include residential homes, land, warehouses, industrial complexes, medical facilities and retail locations. What does this mean for you? A diverse pool of property types that can be leveraged to earn passive income!

More importantly, real estate also provides various opportunities to adjust your investment during chaotic financial shifts. Certain property types, such as commercial and industrial, can withstand the ups and downs within the market and provide consistent income. Other property types, such as residential homes, retail locations and commercial apartment complexes, can help passive-income earners capitalize on job and population expansion. Although your city's demographics will vary greatly, real estate provides a multitude of outlets to succeed and prosper.

Is Passive Income From Real Estate Right for You?

To put it simply, investing in real estate is for the individual who wants to have a better life, financial stability and the ability to take care of the people they care about the most. And when that person decides it's time to take a leap of faith and get an investment property under their belt, a property management company should be their next move.

For readers who know they want to make a great deal of wealth and put their hard-earned resources into domains that aren't going away any time soon, investment properties are the way to go. If you know you're capable of a great deal more, what are you waiting for? Get out there and find a reliable property that pays you passive income for many years to come!


buying commercial property California

Ten Tips for Buying Commercial Property in California

buying commercial property California

Buying commercial property in California is far harder and more complicated than most people realize, at least compared to a few other states. The entire transaction is a blend of rules and regulations set forth by the state and federal government. You will be required to look at it not just from a financial perspective but legal, structural, and environmental as well.

1. Researching the Property

Before you invest in commercial real estate in California, you need to get really clear about current laws governing this industry, which may also extend to other property types in the state. If you don't, you run the risk of losing the property to liens, lenders, or other parties that have interest in the property.

2. Researching the Seller

Sadly, far too many investors end up with spotless commercial buildings but owned by unscrupulous sellers. This means buying commercial property in California needs extensive research, planning, and due diligence. The investor/buyer should look into the reputation of the seller and his/her transaction record.

3. Land Use and Zoning

There are many different zoning types in California, all of which should be very clear to you before you invest in a commercial property. Non-compliance with one or more zoning laws can lead to irreversible and significant liabilities on the buyer's part. It's important, as an investor/buyer, to obtain everything related to the property, including originals and copies of licenses, permits, certificates of occupancy, and so on. Past code violations, as well as any pending violations, should also be researched thoroughly. Of course, you want to purchase real estate right away because it seems like a bargain, and it has great potential. But the clearer you are now about these issues, the easier it will be to ensure that the property is not a money pit.

4. Surveying the Title

Take some time to get a clear picture of the commercial investment in terms of the legal description of the property. The title company you hire will help you do that. Make sure you understand the clear motivation of the seller as well. There may be some sellers whose reasons to sell may be inherently misaligned with your expectations. The seller may be trying to sell the real estate that contains title issues, or he or she may be trying to dispose of it for potential defects. Inaccurate property identification can lead to a major issue down the road. Through a title company, you will not just obtain a commitment but also the ALTA/NSPS land survey, which is another element to add to the title's authenticity.

5. Environmental Considerations

Property contaminated with pollutants from current and previous activities around the area is subjected to environmental site assessments. You need to find out if such assessments took place for the property you are buying. And if it did, you need to obtain copies of the reports for the same. Certain concerns such as fire hazards, presence of mold, asbestos, and underground storage tanks also call for federal and state assessments. What impact these elements will have on you, your business, your employees, your vendors, and the entire logistics, the people living near the property, and the environment in general? All these areas need to be assessed as well.

6. Encumbrance Certificates

Buyers and investors in California are subjected to the same restrictions as that for sellers with regards to easements, covenants, and other encumbrances related to commercial properties. Most encumbrances for buying commercial property can be found in county records. However, you may find this an extra exercise or may simply assume that the seller has it ready for your perusal. The best thing to do is to put those assumptions aside and home in on doing the research yourself.

7. Current Valuation of the Estate

Some buyers may want to cut to the chase and skip the part of valuating the property professionally. But it's well worth your time and effort to get it appraised and for multiple reasons. First, your title underwriter may need this information, and your lender may demand it. Second, you may discover the difference between the real value and market value when professionals assess it in person. Spending some time upfront to make this happen is one of the best investments you can make to avoid the headache of dealing with the discovery that the property is worth much less than what you paid. This valuation may also come in handy for investigating property tax-related issues.

8. Paying Taxes

Finding and investing in commercial real estate requires that you have an idea about what your yearly tax bill would look like and how you are going to pay for it over the course of ownership. Remember, unpaid taxes can lead to liens followed by foreclosure quickly in California. Your decision to purchase, therefore, should be driven by your ability to pay property tax every year without fail.

9. Leases and Guaranties

It is not advisable that you be rigid and uncompromising when it comes to tenant leases if any. But most investors have commitments that are so important to them that compromising on leases would make it hard for them to carry on with business. Doing the due diligence on identifying leases and guaranties that are in effect and determining which one to carry over after the purchase is crucial before buying a commercial property. There are sellers who share your values and will be eager to furnish the necessary details.

10. Income and Expenses

You should obtain an accounting of all incomes, expenses, and security deposits held by the seller on the behalf of tenants as well. In California, it's mandatory that the seller provide rent rolls, financial statements, and other related documents to the purchaser. While rent is almost always straightforward, expenses may be in the form of common area maintenance, utilities, salary to employees, insurance premiums, and service contracts for which you need the ledger details.

Want to find out more about buying commercial property in California? Contact Coast & Valley, the commercial property management of Salinas CA right away!


How to prepare rental property for summer

Ten Ways to Prepare Your Rental Property for Summer

Summer is one of the busiest periods in the real estate market. At this time, new graduates join the workforce. Some students move to different cities for internships, and families also consider relocating when kids are out of school. As a landlord, you need to prepare your rental property to attract new tenants and even maintain the current ones. Here are various tips to help you prepare your rentals for the summer rush.

1. Inspect the Air Conditioning Unit

During summer, sometimes the heat can be very unbearable. Most tenants, therefore, appreciate a well-functioning air conditioning unit in their houses. Start by changing the filters, usually located along the return duct. Note that a dirty filter restricts airflow and can lead to the accumulation of hot air into the house.

Next, you need to have a professional clean the air conditioner coils and empty the condenser drain. Also, trim bushes and clear off any debris from the outside unit to prevent clogging the system.

Maintaining cooling systems can reduce energy use by as much as 50% which will keep your tenants happy and comfortable. If you have an AC older than 15 years, consider replacing it to avoid a frustrating breakdown in the middle of the season.

2. Test the Smoke Detectors

According to the Environmental Planning and Assessment Regulation, any rental property owner must install smoke alarms or detection systems. If your rental property is in areas prone to fires, regularly inspect the smoke alarms to ensure that they are in working conditions. Check and change the batteries to extend their useful life and improve your property's security.

3. Perform Yard Maintenance

Well-maintained outdoor spaces are among the top amenities that attract renters into your property. During summer most people enjoy spending time outside. Therefore, Salinas landlords should consider adding tables and chairs in the backyard to make the house more appealing.

Plant fresh flowers, trim the shrubs, and mow the lawn. Check the sprinklers and ensure that they are in working conditions so that the outdoor plant won't dry.

4. Insulate the Rental Property

Insulation helps boost the energy efficiency of your rental property. Note that air conditioning is one of the most energy-consuming appliances. In case of leaks, cracks, and holes in your property, the cooled air may seep out. Thus, the unit will have to work extra hard to maintain the desired temperature. It results in high electricity bills that can frustrate your tenants. To avoid this, caulk or weatherstrip the windows and doors. Remember also to seal off any gaps on the roof, floor, or walls.

5. Clean the Ductwork

Look through the duct for excess dust or mold signs. If there are any, it's essential to call a professional to clear out molds and eliminate irritants that can put off tenants. Duct cleaning removes pests' breeding grounds on your property. It also helps cut costs through improved airflow.

6. Prepare Outside Amenities

Summertime calls for entertainment in the outdoor spaces. Therefore Salinas landlords should provide functioning features to the tenants. If you are responsible for cleaning the pool per the rental agreement, do it in time. On the other hand, if the pool has an inbuilt cleaning mechanism, ensure that you instruct the tenants on using it. The pool should also meet all the safety measures like correct fencing and signage.

Other outdoor amenities like grills and fire pits will make your property stand out from others. Such facilities will also give you an added advantage during property rental pricing.

7. Perform Some General Repairs

Make prompt repairs upon request. Also, go through your rental property, check and fix any broken electrical outlets, a leaking roof, or clogged gutters. Ensure that all fittings are in the right conditions and replace any damaged furniture.

Additionally, fix any broken toilets or any other leaks in your plumbing system. Refer to your lease agreement and ask your tenants to make some repairs, for instance, replace damaged window screens.

8. Inspect the Basement And Attic

Sometimes, during winter or spring, your attic and basement can accumulate high moisture levels. As a result, it leads to mold growth, and the moisture can also compromise your property's structural integrity.

It's easy to neglect such areas since they remain unused most of the time. Therefore, inspect them for water damage or excess moisture to improve tenants' comfort and eliminate expensive repairs.

9. Prepare for Pests

The warm summer temperatures may attract bugs into your rental property. Watch out for ants, cockroaches, spiders, wasps, or other critters. You can keep them out by adequately sealing your doors and windows. Remember that any negative review can affect your property's popularity in the future.

You can use pesticides on your laws or insecticides within your property to stop pest breeding before becoming a significant issue. You can also advise the tenants on the best way to handle ants if they gain entry into the house. Remember to demolish wasp nests in your compound.

10. Ensure Overall Property Maintenance

If you have multiple rental properties, it's a good idea that you seek help from property management companies. They will maintain your houses in the right conditions throughout, which preserves the value of your property. A professionally maintained house will also attract tenants quickly.

Additionally, by hiring property management services, you won't have to deal with late emergency calls, evictions, or other time-consuming tasks. Such companies also screen your tenants thoroughly. Hence you will attract renters who pay on time, cause less property damage and fewer problems.

With such assistance, you can focus more on expanding your business. The property maintenance company can also advise you on the right investment based on your portfolio since they have a better knowledge of the industry.

Conclusion

You can prepare your rentals for the summer season by cleaning up and making some simple adjustments as outlined above. There is a projected rise for rental properties during the summer season. Failure to capitalize on such an opportunity could cost you considerably. Also, the competition between property owners is on the rise, and you need to maintain your houses in the best possible conditions to stand out. If it seems somewhat complicated, you can always seek help from a property management company.


CDC eviction ban Salinas Landlords

Everything Salinas Landlords Need to Know About the CDC Eviction Ban

The CDC has issued an order and landlords are not supposed to evict tenants. The ban was supposed to end on December 31, 2020; however, it has been extended for three more months.

To qualify for the CDC eviction ban, a tenant should meet a particular criterion. The ban does not apply automatically to each tenant. It is in the form of a signed declaration that should be presented to the Salinas landlord.

The eviction ban came into play on September 4, 2020. The tenants and landlords are currently confused regarding the details of the CDC eviction ban. The order has also been misinterpreted by the judges and tenants who qualify for the CDC eviction ban have been evicted from their homes.

In October 2020, a guiding document was issued by the federal agencies, and it was meant to address the questions tenants and landlords have regarding the ban. The document has clarified many issues regarding the ban, and more questions have come about in the process. Landlords and tenants are worried about how the CDC eviction ban will be carried out and how it will be handled in each state and the courts.

Tenants should have a declaration that will allow them to claim protection under the ban effected by the CDC. The form has detailed instructions on how to determine whether the tenant is eligible for protection and how the form is supposed to be filled. Also, you will be guided on how to issue it to the landlord.

Below are the main questions that landlords and tenants have regarding the ban and property management:

A tenant is evicted by a judge despite qualifying for the CDC eviction ban. Which is the way forward?

When a person loses a court battle, and the issue revolved around property management, it is possible to file an appeal. The CDC does not have an appeal process, which means the tenants are supposed to rely on the appeal process in their state to challenge the verdict by the judge. File the required notice at the court. You should seek professional help from an attorney if possible.

The main issue is whether the eviction can be postponed by the trial judge as your case progresses through the appellate court. It is rare for a judge to rule in favor of the tenant since the issue, in this case, is non-payment. However, the judge may rule in your favor given the circumstances around the CDC eviction ban and current pandemic.

The guidelines released by the CDC in October recommend that if a tenant wants to appeal the decision by the judge, it is advisable to liaise with a private attorney to get the assistance they need.

After a tenant presents the CDC eviction ban declaration, are they eligible to stop paying rent?

In the CDC eviction ban, the tenants should state that they are working hard to clear the arrears. Other expenses are also taken into consideration.

If a tenant cannot pay rent as per current circumstances, they may not be tasked with paying rent until a more reasonable time. If the tenant can make partial payments and still put food on his or her table and purchase medicine, the landlord should allow so.

The Salinas landlord or property management agent is entitled to the whole amount and any fees as stated in the rental agreement. When the CDC's eviction ban comes to an end, the Salinas landlord can evict the tenant and file a lawsuit demanding the whole amount owed as rent.

Can a landlord evict a tenant based on other issues apart from nonpayment of rent, even the tenants qualifying for the eviction ban by the CDC?

The CDC eviction ban states that a tenant can be evicted by a Salinas landlord for the following reasons:

  • When they pose a health threat to the other residents in the apartments (if a tenant has COVID-19 or similar symptoms, they should take the necessary precautions to ensure the disease is not spreading since they pose a health risk to other people)
  • Partaking in criminal activity while residing in the rental property
  • Violating the applicable health ordinance, building codes, or other regulations that relate to health and safety
  • Damaging the rental property or posing a significant risk
  • Violating the obligations present in the contract, including failing to pay the penalties and fees.

 

Is there any relief for a Salinas Landlord who is not in a position to evict a tenant because of the eviction ban by the CDC?

Unfortunately, for the property management experts and landlords, the government did not avail any funds for the individuals who are not receiving rent from their tenants. A landlord who relies on the monthly rent to cater to the mortgage payments is eligible for the mortgage forbearance. The landlords hit hard by financial hardships are supposed to get in touch with mortgage lenders and ask whether they can get mortgage relief.

Foreclosures have also been banned in some states. Although the loss of property is delayed in such instances, the issue being faced by the landlords will become a significant problem later because of the interest, late fees, and different charges put forth by the lender.

If dealing with tenant eviction all by yourself is too confusing or exhausting, consider hiring a full-service property management firm like Coast & Valley. This will allow you to relax and focus on your investment property without worrying about the hassle of tenant management. Coast & Valley will offer the same level of care and concern for your property as you, the landlord, would.


Salinas Landlords Tenant Damage

How Salinas Landlords Handle Tenant Damage

Salinas Landlords and Tenants

Tenants are the only clients for real estate property owners. If you are one of the Salinas landlords, you may encounter tenants who help you build equity in your properties through timely payment of rent. You find a good match, then meet your tenants' needs with your housing facility, and everyone maintains a harmonious relationship with one another.

Unfortunately, not all tenants tend to be the same. Sometimes the landlord-tenant relationship works for many years and other times, your tenants leave the property in a few months even before the lease ends. Worse yet, is to discover that the tenant has left your property in bad shape with majority of the repair cost coming from your own pocket.

The Dilemma

One of the hardest aspects of dealing with the damages done to your property by a bad tenant is to determine who pays for those damages. Tenants often assume that landlords own their properties free and clear and are rich enough to take care of anything that is thrown at them. From their perspective, they are handing out a bundle of cash each month to cover the landlord's lavish lifestyle or funding his or her retirement. So, when they are told to bear the expenses related to damages other than normal wear and tear, they either simply deny or threaten to take the matter to the court.

As a Salinas landlord, on the other hand, you will be expected to act with utmost patience and respect. You will curse yourself for not investing a great deal of time at the beginning of the tenant screening process that would have otherwise saved a lot of grief. You will also consult a local property attorney to make sure that whatever remedy is in your mind is not crossing the line of legality.

Agreement in Writing

Well, here is the answer you have been looking for. What you need is a comprehensive rental agreement in the first place, that contains all terms and conditions related to property damage during and after the tenant moves out. This agreement is a valuable piece of evidence that can come to your rescue should you encounter a problem like extensive damages to your rental dwelling. So, if arguments and disagreements arise later, you can immediately refer to the agreement signed by the tenant.

Salinas landlords are required to have rental agreement form at all times, according to real estate law in California. It is a good device to protect yourself from potential lawsuits and tenant damage situations. It provides you and the tenant proof of the condition of your property at the time of rental. It also serves as the determining factor for who pays for what when the damage is done. Signed copies of rental agreement and statement of condition should be kept for your records and one furnished to the tenant as well at the time of signing the contract.

If you run into problems with the condition of the property in the beginning of the lease, say within one month of renting, an addendum may be required to describe the property from that point on after rectifying the issue. Typically, it's the tenant's responsibility to pay for all costs related to repairs as a result of misuse, intentional damage, accidents and incidents not related to maintenance failure. Nevertheless, you need to re-establish the rules with the tenant and ensure that they understand the terms and conditions laid out on the agreement.

Deposit Policies

Every Salinas landlord faces the difficulty of how much of a security deposit to receive from the tenants during the lease, whether to take additional deposit to cover missed rent and damages. If they are asking too little, they are exposing themselves to a huge risk. Ask too much, the number of applications will drastically reduce. Here are the guidelines. No matter what the situation is, landlords in Salinas CA should never waive the requirement for deposit in the beginning of the renting process.

The purpose of the deposit is to prevent financial disaster as a result of non-payment of rent or, in this case, property damages. If the tenant disagrees to that full deposit, it is a clear indication that he or she has difficulties with planning financially. Your deposit amount should be set based on rent amount as well as other expenses that the tenant is responsible for while renting your place.

Dealing With Damages

Laws vary by state to state, but California's civil code in real estate law book states that you, as a landlord of Salinas property, can apply security deposit for cleaning, against unpaid rent, covering damages and much else. You don't have to distinguish two or more separate deposits for these purposes. So, if a tenant uses moving out as an opportunity to leave behind unwanted items that need hauling to the landfill, or if only a partial rent payment is made, you can cover these expenses plus additional related cost through security deposit. Some landlords collect first and last month's rent along with security deposit at the time of lease sign up. This could be a significant amount in the eyes of the tenant, but it's the only way to protect yourself from huge losses down the road.

Hiring Salinas Property Management Company

If dealing with tenants all by yourself is too tiring, hire a property management firm like Coast & Valley. This will allow you to insulate yourself from dealing directly with annoying tenants as well as protecting your assets from destruction. Property management firms like Coast & Valley take care of all the needs related to rental properties, such as screening tenants, paying utility bills, collecting rents and deposits on time, advertising property, even following up with the tenant for payment of damages and related expenses after move-out. When a tenant becomes a problem or repairs, which the tenant is responsible for, go unpaid, a trusted management firm will offer the same level of care and concern as you, the landlord, would.