You've finally jumped in with both feet and bought your first rental property in Mission Viejo, California. Congratulations!
With a population of 93,000 and about 40% of households renting, Mission Viejo is clearly a promising market for any real estate investor wanting to earn a steady rental income. However, transforming a newly acquired property into a money-generating machine isn't something all investors know how to do.
You need to start banking the rent as soon as possible, but for that to happen, you must answer the question: what next?
Prepare the Property for Renting
In many cases, a property will need some work before it's ready to be listed for renting. The amount of work depends on whether it's a new or an existing building.
For a new building, you might need to repaint or furnish it to make it more attractive to tenants. An older building might need quite a bit of work, including making major repairs and upgrading some systems.
Get Familiar With Local Landlord-Tenant Laws
Both landlords and tenants have certain rights and responsibilities that are enshrined in local laws. Enhancing your understanding of these laws and executing your responsibilities is key to having a smooth and profitable journey as a landlord.
Firstly, you need to know Orange County's laws on security deposits. For an unfurnished apartment, for instance, the security deposit cannot be more than two months' rent.
Learn what the law says about handling these deposits, your property maintenance responsibilities, the eviction process, and fair housing. Violating any of your tenant's rights or neglecting your responsibilities can easily land you on the wrong side of the law.
Create Rental Leases
By this point, your property is almost ready to open its doors to tenants, but first, you need to draw up a lease agreement. This is a legal document that outlines your rental rules, rent payment methods, and the length of the lease, among other important issues.
You can download a rental lease template from the internet and tailor it to your property if you have some experience with leases. You can also hire a landlord attorney to help you draw up the agreement.
Make Outsourcing Decisions
Doing everything on your own can be strenuous, especially if you're a first-time landlord. For a solid start, it's essential to decide if you're going to outsource property management. You can outsource specific tasks like tenant screening and property maintenance, or take a hands-off approach by hiring a full-service firm.
Unless you want to gain some property management experience, outsourcing all your tasks is usually the savvier decision.
A Savvy Real Estate Investor Knows What's Next
You're a real estate investor because you want to make money. It doesn't get any more lucrative than investing in rental properties. However, your success will depend on your ability to manage the properties competently.
At PMI Mission Viejo, we stand ready to give you any professional assistance you might need. We're a locally owned full-service property management firm that's part of a global franchise network that's been in the industry for over 20 years.
Check out our services and get in touch to set up a meeting.
