Owning and managing a multi-family rental property seems like it should be easy enough. You list the property, find a tenant for your units, and collect rent.
It’s not quite that easy. There’s a lot that goes into effectively leasing, managing, and maintaining a rental property, especially a multi-family unit. We find that new owners often aren’t prepared for the detail that’s required, especially when it comes to following the law, managing tenant disputes, and protecting your investment.
We’re highlighting a few of the most important things you need to know, but please understand this is not a comprehensive list. You need to take your time getting to know the market, putting together a list of preferred vendors, and developing professional relationships with your residents.
Here are some good places to start.
Establishing a San Gabriel Lease Agreement
There are a lot of state, federal, and local laws and regulations that you’ll encounter when you decide to rent out a home. The residents you’re placing in your property are protected by those laws, and California has become notoriously tenant-friendly. There are new rent control laws statewide, a strong eviction requirement for just cause, and mandates for screening tenants and returning security deposits.
The lease agreement you sign with your resident is a bilateral contract. You cannot pick and choose when you’re going to enforce the lease and when you’re going to ignore it. You will need a lease that’s state-specific and covers everything that’s required in your contract. Don’t download the first template you find online for a lease agreement. Get a legally approved lease from a professional association or property manager.
Treat Your Multi-Family Rental Property Like a Business
When you own rental property, you are running a business. You don’t want to become emotionally involved with your property or your tenants. Emotional decisions will only lead to problems, so don’t let your feelings get in the way. Remember that you have to follow what’s legal and correct; not what you think is right.
Residents have a lot of rights, and you can’t lock out a tenant who is behind on rent or show up unannounced to perform an inspection while tenants are living there.
Avoid emotional reactions and stick to business decisions. You have to establish some policies and procedures, and you have to be careful not to deviate from them. When one tenant complains about another tenant or there are disputes over parking, pet clean-up, or noise, you’ll have to refer your residents to your lease agreement and follow whatever steps are found there.
Buying a Rental Property: Set an Investment Goal
When you buy a rental property, you need to have an end goal and a strategy in mind. Many investors are anxious to buy an investment property, but they don’t know why they’re buying or what their end goal might be. You have to know how a potential rental property fits into your strategy and gets you closer to meeting your goals.
- First, create your investment goal.
- Then, create a strategy that will get you towards that goal.
- Finally, buy the property that meets your goal and serves your strategy.
Working with a professional property management company in San Gabriel and the surrounding area can be your best decision. There’s a lot to know about owning and managing your multi-family investment. Having the support and resources of an experienced professional can make a huge different in your outcome. Contact us at ZenPro Property Management for more information.
