San Diego boasts over twice the national average with $679,568 as of its current median home price. Property here is affordable and the cost of living is 23% lower than San Francisco. Despite the city’s profitable opportunities in the rental market scenario, many landlords still aren’t able to reap profits. In fact, they end up wasting more money, time and effort.
As a property owner, you cannot overlook certain factors. Property investment can only be lucrative if you dodge the bad decisions. At Beach Front Property Management, San Diego, California, we accurately know the most common errors homeowners make. Let us tell you how you can easily avoid them.
Property Investment: 3 Mistakes that Any Landlord Should Avoid
1. Not Up-to-Date With Neighborhood, City and State Laws
Earlier, San Diego did not have any rent control. But, since January 1, 2020, a new law has been imposed where property owners cannot raise the rent over 7.2% every year. This ensures landlords are not overcharging their tenants.
Suppose, you have raised the rent over 7.2% since last March, you would have to decrease the rent this year. If you are not aware of this law and still charging more, you may get fined.
This also applies to the ever-changing homeowner’s association (HOA) rules in the community where you own a property. If these rules are not complied with, you will be held accountable for the costs and even attorney fees incurred when they were enforced.
Treat your rental property as a serious business. Stay up-to-date with the current laws. Ensure your interests are protected. Impose policies that act in accordance with the neighborhood’s and city’s regulations.
2. Incorrect Pricing
Your property’s value largely depends on the San Diego rental market. If you are pricing the rent higher than the market, your home will stay vacant for a longer time. You will have to pay much more for your property’s maintenance. This will negatively affect your ROI.
Most property investors in San Diego do not think about this. They price the property much higher without considering the condition, size, layout and location.
The best practice is to price it competitively. For that, you have us at Beach Front Property Management in San Diego, California. Our team will calculate the statistics for you and give you the best estimate.
3. Infrequent Property Maintenance With Inexperienced Vendors
You are making a big mistake if you are not taking immediate action for your property’s maintenance issues. Paying attention to routine repairs makes your home fit to live in for your tenant.
You also need to respond to your tenant immediately when there is any maintenance problem. Otherwise, you will be violating habitability regulations.
Even when you are hiring a worker for the repairs, you need to be certain if s/he has been insured and has a license. Vendors, who are not verified, put your business at a greater financial risk. If they are inexperienced, you may have to shell out over a thousand dollars in repairs along with tackling legal problems.
That is why we provide licensed, third-party vendors, who will not let you bear the legal consequences.
We always advise San Diego landlords to get the repairs done frequently. We handle the task of taking on reliable vendors at any given time of the day, week or year. With a speedy response, you are able to get a better retention rate with your satisfied tenants.
Property Investment: Know How to Earn Better Profits
While these three are the most common aspects that landlords should know, there are many more. For property management in San Diego, California, feel free to reach out to us. We pride ourselves in effective and efficient property management, to maximize the returns on your property.