Blog Post

New Year, Now Time to Evaluate Your Rental Property Opportunity

Dustin Edwards • Jan 01, 2021

Each New Year Represents a Great Time to Evaluate Your Portfolio

New Year Rental Evaluation

With the New Year upon us now is the time that many are evaluating their lifestyles. For many that means a new diet or exercise program and for others that means focusing on one’s finances. For those that have rental property in Long Beach, Lakewood, or nearby cities there is no time like the present to evaluate what is possible with your rental portfolio. That means whether you have a single rental property or you have a number of rentals it is important to take account of how you are making the most from your investments.

To help maximize your investments in your rental portfolio we invite you to consider the following areas for evaluation:

How Does Your Current Rental Amount Compare to the Market Rates?
One of the biggest ways you can impact the yield on your investment is through the monthly rental amount. Take time to compare your rental to other rentals that are available in the marketplace. As you compare your rental we invite you to be critical of the condition of your property, amenities/features offered of other properties in comparison to yours, and consider how long your tenant has been in place.  

Even if your evaluation determines that your property might be worth a substantial increase in rent you might choose to raise by a more modest amount to keep your existing tenant in place.  

Note: Make sure to consult your property management company and/or a real estate attorney to understand if it is possible to raise the rent given local restrictions. Economic crisis conditions such as COVID-19 and/or ordinances such as rent control can limit or even prevent you from raising the rental rate.

Condition of Your Rental Property
If your rental property is in Long Beach it could have been built anywhere from the early 1900’s to the 1940’s, 1960’s or even much newer. Regardless of when it was built, when is the last time that you updated it? While there are items that certainly have lifespans (i.e. heating units, plumbing, etc.) there are also aspects of your home that can go out of style (i.e. think of cabinets, paint styles, etc.). Attracting and retaining great tenants means taking the time to update your property with current trends. This doesn’t mean you have to be cutting edge, but if you have a busted tile countertop and old appliances it may be time to make some updates.

Expand an Existing Property with an ADU/ADUs
An Accessory Dwelling Unit (ADU) has long been associated with adding an additional living structure to a residential property, but an ADU (or even plural ADUs) can be added to a residential income property as well. With building costs generally in the $250-$300 per sq ft range and home values in the $500+ per sq ft range you have an opportunity to add value to your property as well as increase your monthly rental income. Evaluate your rental portfolio to see if developing an ADU is an aspect that is right for your goals.

Purchase a New Income Property
Mortgage rates are at historic lows and rents have remained strong in Southern California. If you haven’t purchased a new rental property in a number of years now may be your best opportunity to grow your portfolio. While purchasing a rental property in Long Beach can require more than 20% down to make it cash flow positive if you also add an ADU/ADUs to the property you could be in the best possible position to have positive cash flow in your first year of ownership.

When it comes to achieving your goals with your rental portfolio in Long Beach there are many items to consider. We invite you to call us today at (562) 888-0247 to find out more. Or if you prefer a complete evaluation of your property we invite you to fill out 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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