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Items to Consider for Your First Rental Property in Long Beach

Dustin Edwards • Mar 13, 2020

Make Your First Rental Property in Long Beach a Success

Your First Rental Property in Long Beach
For most people trying something new is filled with a bit of trepidation. Just think back for a moment about the first time you:

  • Rode a bike
  • Drove a car
  • Went Skiing or Snowboarding
How did you feel?

Did you feel excitement?  

Maybe a bit of disappointment as you thought it might be easier?

Learning a new skill was likely a combination of excitement, nervousness and maybe even a bit of frustration as tend to anticipate something being easier than it actually is once we give it a try.  

Now imagine you are considering your first rental property in Long Beach (could be a condo, single family home, duplex, triplex, or 4-unit). For many first time rental property owners we have helped over the years we have found their emotions are similar to trying a new activity.  

Thoughts that run through their minds are items like:

  • What happens if a renter damages my property?
  • What if my property stays vacant for months?
  • Did I make the right decision by buying a rental?
  • Am I going to get that late night call about a backed up toilet?
  • Will I have to hire a lawyer to evict a tenant if they decide to stop paying?
All of these are natural and unlike riding a bike, where you might skin your knee, the fear can be losing thousands of dollars. To help alleviate your fears of managing your first rental (unless you want to leave the heavy lifting to us) we invite you to consider the following that can help.

Keeping a Reserve Fund
When you are talking about Southern California Real Estate this is no easy task but it is one that will give you confidence to weather any storm. Having funds set aside for your rental property are essential to keeping the property in the best shape and to allow you to rest easy knowing that a small vacancy doesn’t mean having trouble paying your mortgage. So, just how much should you keep in reserve?

While the number can vary depending on the size, condition of your property, and risk tolerance we recommend implementing a simple rule such as:
  • 3 Months Mortgage and 1 Major Repair of Reserves
For example if your mortgage (including taxes and insurance) is $2,000 a month and you know your A/C unit is nearing the end of its life you would want to save around $11,000-$15,000 in reserves. This gives you 3 months of mortgage and $6,000-$9,000 to cover an A/C unit. You can keep these funds available in a local checking account or even have the funds available through a HELOC (Home Equity Line of Credit) on the property.  

If you go the route of the HELOC make sure that your property has enough monthly positive cash-flow to cover the payment on the HELOC if you need to use it. As tough as it may be we recommend having cash reserves available (and the HELOC too) to allow you to be prepared for any challenge.

List of Local Trades Professionals
Managing a property (whether it is your first one or your 880th) means having a list of trusted trades professionals willing to work with you. One of the hardest aspects of property management is having a list of reliable professionals who are ready, willing, and able to repair items on your property. We have found many new rental owners only started looking when they were in need and this added undue stress to the process.

If you have to call a plumber for help at 10pm on a Saturday then be prepared for a select number of options and the pricing might not be what you want. To avoid the anxiety of a frantic night search consider identifying key trade professionals such as:
  • Plumber
  • Electrician
  • Roofer
  • Pest Control
  • Handyman
  • Appliance Repair
  • Gardener
Having two options for each trade is a great way to be prepared for any situation. If you are wondering why you would call them when you don’t need them yet try calling them and sharing you have a rental property. Mention that you were wondering what their charge was for “X” (choose a few fundamental tasks based on their trade like unclogging a toilet or replacing a garbage disposal) to help you gauge their price ranges which allows you to double check your reserve fund. It’s also a good idea to ask if they have previous experience working for property management companies. Service providers who have worked with property management companies know to send you the bill and not leave it at the property.

When it comes to your first rental property in Long Beach we hope you are excited. Should you want our help taking care of your property we would be happy to do so. Take the first step and find out today how much your property could rent for with our Free Rental Analysis.

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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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