Blog Post

How To Maximize Rental Income From An ADU

Dustin Edwards • Nov 07, 2023

An accessory dwelling unit (ADU) is a great way to begin your journey in the real estate business. However, in Long Beach, CA, an ADU can only be listed as a long-term rental, meaning you can’t list it on applications like Airbnb. That said, much like any rental, you will want to maximize the income you can gain from said ADU.


Below, we will share a few tips to help you optimize how to increase your bottom line with an
ADU.


Maintain Property Condition

An ADU, by its nature, sits within your property. This means you cannot allow the ADU or the main home to fall into disrepair. Keeping the rental property in excellent condition is essential for attracting and retaining tenants. The greatest factor in ensuring you're maximizing income is to have tenants. For this reason, you should regularly inspect the property and address maintenance issues promptly. When a property is well maintained, it will enhance its appeal and allow you to justify charging higher rates. Properties that are well maintained also give tenants the confidence and the peace of mind that the property won't cause any issues, and if an issue arises, you, as a landlord, will quickly take care of it.


Screen and Vet Your Tenants

Your tenants will be the ones paying the rent. Therefore, finding tenants who can do so consistently is incredibly important. For this reason, it is best practice to screen and vet potential tenants before the lease is signed. Ensure a thorough tenant screening process, including background and credit checks, employment verification, and landlord references. Thoroughly vetting potential tenants minimizes the risk of issues with timely payments, property damage, or evictions. While you may not find the perfect tenant, at the very least, it's in your best interest to find a reliable one with good references.


Competitive Rental Rates

When renting your ADU, your first instinct may be to charge as much as possible. This may work in some cases, but it's essential to understand that the market can change, requiring you to adjust your rental rates to be more competitive. While a lower rent may result in less income than you desire, having a vacant rental is much worse for your finances. When deciding on your rental rates, consider factors like location, ADU configuration, amenities, and the market demand for an ADU like yours. You can understand its worth by researching apartments with similar amenities and living spaces. The goal is to find a tenant rather than leave the rental vacant. A vacant rental generates no money and often costs money to maintain while not generating income.


Secure Your Property Against Tenant Damage

There are many ways to protect your property from potential damage. This includes tile or hardwood flooring over carpets. While the initial installation may be more expensive, tenants can easily damage, stain, or tear the carpet. Avoid the cost of constant repairs by not using carpets. Natural wear and tear is to be expected. However, prohibiting some home modifications in the lease agreement can significantly reduce the amount of repairs you may need to do once a tenant moves out. This can include not allowing anything heavier than a picture frame to be mounted on a wall. Televisions, towel racks, and shelves are often mounted onto studs, which, if not repaired correctly, can lead to additional damage down the line.


Managing an ADU to maximize your rental income can be a tall task for some. However, this doesn't have to be the case. If you need help with your rental ADU or are looking for a
full-service property management company with experience managing rental ADUs, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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