According to 022 census data, a home in California is about 2.5 times more expensive than the national median. The California real estate market holds a lot of potential and you can get a lot out of it with the right approach.
The Redwood City rental market can be quite complicated, especially if you don't have much experience. You have to consider things like rental analysis, property marketing, lease negotiation, and more.
In this guide, we'll go over some key tips that every first-time landlord should know. Let's get started.
Research the Market
One of the first things you should do is learn more about your local market. Figure out what properties are in the most demand in the area and why. There may be certain characteristics or features renters are looking for.
You can also get a better idea of property values in the area. Seeing what other landlords are charging will help you determine a suitable amount to charge for your property.
Renovate and Repair
You can improve your rental pricing strategy and maximize your income by increasing the value of your property. To do this, you should make repairs and renovations that will make it more appealing to renters. You could also make optional upgrades that are more desirable for those looking for a new home. Consider things like:
- Kitchen/bathroom renovations
- Landscaping
- Fresh paint
- New windows
- Energy-efficient features
- Smart technology
With a higher property value, you'll be able to charge more and increase your rental profit.
Perform a Rental Analysis
With the above completed, you might have an idea of how much to charge for rent. However, getting this right can be quite difficult. It's often beneficial to hire a property manager to perform a proper rental analysis.
They have the experience and expertise to determine the most suitable amount to charge. If you set your rental price too high it will be harder to find tenants, and if you set it too low you won't be able to maximize your profits. Working with a property manager is a good way to find the right balance.
Market Your Property Effectively
Solid investment strategies involve quality marketing. You need to make your rental property stand out from the competition so you can generate interest from potential renters.
Use professional photographs to make your property look its best. Write an enticing description that highlights all the most important features so that it appeals to your target audience.
Screen Applicants Thoroughly
Before accepting any applicants, carry out a thorough tenant screening process. This will help you spot any red flags such as a history of criminal activity or unpaid rent. This can be a long-winded process, but it's more than worth it in the long run as it will help you find the best quality tenants.
Being Successful as a Landlord
When first getting started, life as a landlord can be daunting. Working with a professional property manager is one of the best ways to ensure you handle things correctly.
PMI Redwood Realty is a full-service real estate asset management company that can take care of rental analysis, marketing, tenant screening, and more. Our team has over 25 years of experience in the Bay Area allowing us to navigate the local market effectively. Check out our residential property management page for more.
