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Property Management – Northridge – Before You Rent Your Home

NORTHRIDGE PROPERTY MANAGEMENT

Before You Rent Your Home

Before deciding to rent a property it is important to research state laws. Did you know that state laws can dictate what you are able to charge for screening fees, application fees, late fees, security deposits and holding deposits? For example, as of 2011 a landlord can only charge up to $42.41 in screening/application fees and a landlord cannot require more than 2 months’ rent for a security deposit on an unfurnished property. There are also strict guidelines when it comes to evictions. It’s crucial to know the rules before starting the process.

Managing a rental property can be a lot of work. If you prefer to be less hands-on you can hire a professional management company to take over the responsibilities you’d rather not handle. This can typically cost up to 10% of the monthly rent collected. Many management companies will advertise for new tenants, collect rent, handle maintenance repairs, handle legal notices, and help with evictions. Make sure to be well aware of exactly what services will be provided and whether they are bonded and have errors and omissions insurance.

If you decide to manage your own rental property, look into current rentals in your area. What price are they renting for? What is this landlord offering? What is the condition of the property? It is very important to know your competition. Price your property close to the going rate. An overpriced rental can sit for weeks unwanted. The longer it sits the more money you will lose.

Start the advertisement process immediately. There are many free ways to advertise. Social media and Craigslist are free and easy to use. Buy a large rental sign and keep the sign posted at the property with a good contact number at all times. Hold open houses and keep your showing schedule flexible. If a good potential tenant is ready to see the home and your availability is poor, they will move on to the next property.

Screen potential tenants carefully. Ask that all possible candidates complete a rental application and have their credit report ran. You can ask for a screening fee that can be used to complete this process. Remember, you are not allowed to discriminate based on race, sex or religion. You can however choose to not rent to anyone with a past eviction or history of not making payments on time.

Always request a security deposit. This will protect you once a tenant moves out. If any damage has occurred because of the tenant, this can be used to repair the property. Most landlords require first month’s rent as well. Remember to charge a refundable holding deposit if you are being asked to push out the move in date when the tenant is not available to move in immediately. If the tenant decides during that period of time that they no longer want to rent the property you can keep a portion or the entire holding deposit for lost rent or other costs. Otherwise this fee should be refundable or applied to the first month’s rent.

A rental or lease agreement should always be signed to protect both the landlord and the tenant. This contract will outline the terms and conditions of the lease that have been agreed to. It can include if pets are allowed, who will pay for utilities, which services will be provided, the amount of the agreed rent and deposits. Upon execution, the landlord and tenant should complete and sign an inventory or move in condition check list. This should be completed within the first 3 days. The property should be walked through and its current condition should be noted. Disagreements can be avoided at time of move out by just taking this small extra step.

There are a few extra items that should be mentioned at this point. You should consult with your insurance company to make sure you have Landlord insurance to protect you. You should have a list of contractors to recommend or call for repairs. Your tenant should know exactly when and where to call in case of any emergency’s. Communication is important to maintaining a great landlord/tenant relationship. Many landlords are happy with their tenants and have few problems.

If you should happen to be faced with a situation where an eviction is inevitable, the process can get tricky. Once you have given the tenant the required notice and they fail to move out of the property you can begin the eviction process by filing an unlawful detainer. In most cases a judge will hear and decide on the case within 30 days after it is filed. Sometimes it takes longer. You must use court procedures and you absolutely cannot begin to carry out the eviction on your own. If the court decides in your favor they will issue a writ of possession allowing the sheriff to remove the tenant from the property. The tenant will have five days from when the writ is served to leave. If the tenant chooses not to leave the sheriff will physically remove and lock the tenant out.

By Sheryl Drake

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.