Patience, Preventative Maintenance, Pets, Policies & Procedures, Photos, Profit
Patience - Always outline in detail what you want done with the property and in the lease. When tenants ask what seems to be stupid questions be patient and happy that they are asking you first..educate your tenant.
Preventative Maintenance – Do annual checks for batteries in smoke detectors, for drips, change filter in heater, visual check of roof, gutters, outside and inside. Handling maintenance on a preventative basis will save you costly repairs down the road.
Pets – There are good, responsible, tenants who own pets. I personally like pet owners and most have been wonderful with no damage to the property. Take photos before move in. Collect extra towards deposit. I charge $250 per pet in my business. Do annual inspection. Have a pet addendum to the lease outlining what damage is not considered wear and tear. Have vet and emergency contact for the pet incase owners are not home and something happens. Check with your insurance carrier. Some pets are on a list that the insurance company won’t allow.
Policies & Procedures – have them and know what they are before tenants move in. Stick to your policies. If you have policies then you will know how to answer the tenant that asks if they can store their RV in the driveway, or they want to paint the walls with their favorite colors, or they want to pay rent on the 7th of each month and your lease states the 1st and late after the 5th. I have policies and procedures and I can always say,”I am so sorry but our policy is….” I am confident, not wishy washy. The few times I have made an exception to my policies and procedures it has come back to bite me. You think you are doing someone a favor and it comes back to haunt you. Stick to your procedures.
Photos – Take photos of the unit before the tenant moves in, at inspections, and at move out. A picture is worth a 1,000 words. I always take photos. I use them for advertising to rent the unit and I use them at the time I return the security deposit. If there are any discrepencies I print the photos and include them with the security deposit check so the tenant can see why I held back money for cleaning the toilet…if you ever go to court the judge will ask if you have photos. Once you take photos and encourage tenants to take photos at move in as well. You will no longer hear the common tenant mantra, “I left this place cleaner than when i moved in…” Photos should show the property in a good light. I have seen some horrific photos posted on rental sites. Please flush the toilet and put the seat down…please pick up the clothes off the floor. If the property is so messy you can’t take photos to advertise then you probably shouldn’t show the unit until the tenant has vacated. It will only turn potential applicants off to the property.
Profit – I am always saying treat your rental as a business. You should be aiming to make a profit at some point – in 5 years or 10 years or as a tax write off. Know your goal for holding the real estate. Rents should be slightly below market but raise the rent annually at least a little bit. You are not in the position to be subsidizing someone elses life style. It is a business arrangement.
Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.
Kathleen Richards
