In 2018, Southern California cemented its status as one of the most lucrative housing markets for landlords. According to a Los Angeles Times article published in late November, the median rent in the populous L.A. metropolitan area reached $2,450 during the third quarter of the year—nearly $1,000 over the national median—prompting some rental property managers to remodel small apartments into even smaller units.
Despite the rising rental prices in Southern California, demand hasn’t slowed down, and prospective tenants with deeper pockets are looking for places that justify the higher monthly payments. If you’d like to attract these tenants, here are five tips to make your property more interesting to them.
1. Protect Your Financial Status
Start by making sure everything is in order with regard to your rental, which means ensuring taxes are paid, settling all debts with the homeowners association, building up a couple of months of cash reserves, and making sure you’re adequately covered by homeowners insurance. San Diego property owners should be aware that operating as a landlord is a risky proposition, particularly if you’re carrying a mortgage, so it’s critical to protect your financial investment as much as possible.
2. Keep the Basics in Mind
Cleaning the carpets and painting the walls is something virtually all American tenants have come to expect from prospective new landlords. For this reason, skipping these upgrades could result in driving away potential tenants. At a time when carpeting is on a downtrend, installing laminate or bamboo flooring may be a sensible investment. A deep cleaning of all living spaces before and after painting should never be skipped.
3. Pay Attention to Kitchens and Bathrooms
Female tenants tend to pay very close attention to bathrooms and kitchens, and they’re often the decision makers regarding lease contracts. Simple touches such as upgrading to brushed steel fixtures and replacing broken tiles aren’t expensive, and the same goes for resurfacing cabinets.
4. Hire a Real Estate Professional
Rental properties can be professionally staged just like homes listed for sale. In a hot rental market such as Southern California, it makes sense to spend a few more dollars on staging because the return on investment can be considerable. Since staging tends to follow certain trends, you may want to retain a real estate professional to handle this task. Everything can be done according to a budget you agree on. You might be surprised to learn how effective little staging details such as aromatherapy bowls, plants, framed posters, and stylish decorations can be.
5. Install Enticing Extras
A smart home automation network connected to a broadband Internet service can go a long way toward attracting the right kind of tenants. If you decide to offer these two extras, make sure the ISP subscription doesn’t have a data cap and that you have a master password to override the smart home devices, which shouldn’t be state of the art in case of theft or damage. Other extras to consider include wine chillers, fancy closet organizers, and a surround sound system with a basic subscription to a music streaming service.
Before you rent your property, make sure you have adequate homeowners insurance. The insurance experts at Altra Insurance Services can inform you about the essentials of landlord liability as well as any additional coverage you may need. We also offer affordable, dependable renters, motorcycle, and auto insurance. San Diego residents should call one of our friendly agents at (800) 719-9972 today for a free quote.