We know that deciding to rent out your Los Angeles property is a difficult decision, and when you’re choosing between putting it on the sales market or the rental market, you might find yourself going back and forth a lot.
This is normal and understandable, and you should give yourself time to make the transition in a way that works for you.
When you’re leaning towards converting your current home to an investment property, we want you to consider these five things so there are no surprises later.
Can you Treat the Property Like a Business?
It’s hard to detach emotionally from the home you lived in, worked in, and possibly raised your children in. It’s bound to be difficult to let go. But, if you were selling the property, you’d have to detach from it and move on. When you rent it out, you need to do the same thing.
Every decision has to be made from a business perspective and not a personal perspective. You’ll need to be prepared for that. It’s still a property you own, but it’s no longer your home. It’s someone else’s home, and they’re entitled to their privacy and enjoyment of the property.
Can You Trust Your Los Angeles Property Manager?
Having a Los Angeles property manager lease, manage, and maintain your rental property is an excellent way to earn more money, keep expenses down, and protect yourself against costly legal mistakes. Make sure you have the temperament to hand over control of your asset. A lot of owners want to make decisions about who the tenants will be when the lawn should be mowed, and how much rent should be demanded.
You have to let your property managers do what they do best. You’re paying for the expertise and experience that comes with property management. We know the market and the tenants and your property better than anyone. Don’t micromanage your management team. Trust them, and let them do their work.
Do you Have the Resources to Respond to Maintenance and Emergencies?
There may be some improvements that need to be made before you begin renting out your property. Once tenants are in place, there will be ongoing repair needs that are necessary. To attract and keep good tenants, you’ll need to provide a well-maintained home that’s safe and habitable.
Make sure you’re willing to make the necessary repairs and listen to your property manager when upgrades and updates are recommended.
Have You Changed Your Insurance Policy?
Your homeowner insurance policy won’t protect you when you transition from owner/occupant to the landlord. You’ll need a landlord policy that covers the dwelling, your liability, and any loss of rent. Talk to your insurance agent before you decide to rent out the home. You won’t be covered for any losses while it’s being rented if you neglect to change the policy.
Are Your Expectations Reasonable?
Transitioning into the role of a landlord can be overwhelming. There’s a lot of paperwork, a lot of moving pieces, and a lot of details that need your attention. Luckily, a good property management company will help you navigate the process. You don’t have to feel stressed or uncertain.
Make sure you know what to expect, especially when it comes to the services provided by your property manager, the amount of rent that will be collected, and how the laws affect your ability to take possession of the property back if you ever decide you want to.
If you have any questions, please contact us at EGL Properties. We’d be happy to serve as your Los Angeles property management resource.