12 Essential Tips for California DIY Landlords: Navigating Tenant Protection Acts and AB 1482
Being a landlord is a business, not a hobby, and comes with many responsibilities. If you're an owner-managed landlord in California, you're likely already aware of the challenges that come with navigating tenant protection acts and the new AB 1482 rent gouging ambiguities. To help you succeed and thrive, here are 12 quick tips to keep in mind:
Treat It Like a Business — Whether you have one or multiple rental properties, it's important to treat your business as a business, not as a hobby or a charity. Even if you're a do-it-yourself landlord, you should always conduct yourself professionally and treat your tenants with respect.
Market Online — The majority of renters, especially millennials, search for properties online. To ensure that you're getting the most exposure for your rental property, use online syndication and social media to your advantage.
Price Your Rental Property Right — Your rental property's price is affected by several factors, including its location, condition, amenities, and floor plan. To determine the right price, research your competition and be realistic. Overpriced rental properties can quickly gather dust on the door knob.
Screen Tenants Thoroughly — It's essential to conduct thorough tenant screenings for all prospective tenants, regardless of whether they're friends or not. Always check credit history, criminal background, and eviction history to ensure that you're selecting the right tenant for your property.
Use a California-Specific Lease — Regulations can vary between cities in California, so it's important to work with an attorney to create a location-specific lease agreement. This will help to ensure that you're complying with all local regulations and protecting your interests.
Complete a Move-In Condition Report — Before your tenant moves in, complete a move-in condition report that documents any damages or wear and tear that are already present. This will provide a baseline for any future security deposit deductions.
Get It in Writing — Whenever you make any agreement with your tenant, whether it's an amendment to the lease or a verbal agreement, be sure to get it in writing. This will help to avoid any misunderstandings or disputes down the road.
Use Electronic Rent Collection — To make the rent collection process easier, consider using electronic methods like online collections, ACH, or wire transfers. This will save you time and headaches.
Require Renters Insurance — Requiring renters insurance from your tenants can help to protect you in case of property damage or liability. Make sure your tenants provide proof of insurance before moving in.
Stay Up-to-Date with Tenant Protection Acts and Fair Housing Laws — It's essential to be familiar with tenant protection acts, like AB 1482, and Fair Housing Laws to help avoid any potential litigation. Do your research and stay informed.
Inspect Your Property Regularly — California requires landlords to inspect their rental properties annually for smoke/CO alarms and other safety issues, but it's best to do so every nine months. Regular inspections will help to ensure that your property is well-maintained and safe for your tenants.
Hire Professionals for Repairs — Never let your tenants perform repairs on your property. Instead, hire professional, licensed, and insured vendors to ensure that the work is done safely and up to code.
By following these 12 essential tips, you can set yourself up for success as a California landlord. Remember, being a landlord is a business, so treat it as such and always strive to improve your practices.
*We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.