At Chase Pacific, we’ve been managing rental properties for years, and we have faced just about every challenge that you have, yourself. Luckily, we’ve used those challenges to make our processes and our systems even stronger and more responsive.
We know, as you do, that owning rental property in San Diego can be a rewarding investment, offering a steady income stream and property value appreciation over the long term. However, navigating the responsibilities of being a landlord comes with a full set of challenges. From maintenance issues to tenant turnover, rental management can sometimes feel like more trouble than it’s worth.
A lot of investors and property owners partner with San Diego property managers for this very reason. We have learned from mistakes and we have put our tools, resources, and experience to excellent use for the owners who don’t have the time or the knowledge to deal with these things themselves.
If you’re not supported by a management team and you’re doing all of the rental management yourself, we’re highlighting some of the most common rental management challenges, and we’re providing some strategies for how to tackle them.
Consistent Maintenance and Repairs
Maintenance, as a whole subset of property management, comes with a long list of unique and separate challenges. You might have trouble finding vendors, you might have unexpected emergency repairs happening all the time. Maybe your tenants are not great at reporting maintenance issues, and you’re facing a lot of deferred and unreported repairs.
Here are some of the best ways to tackle the maintenance challenges that always show up for independent landlords and expert property managers.
- Be Clear about the Maintenance Process
Tenants need to understand the process of requesting help when a repair or a replacement is needed. This is something you must include in your lease agreement. When you’re meeting with tenants before they move in, always go over the process with them and ask if they have any questions about it. Make sure they know the difference between emergency maintenance and routine maintenance.
- Put Together a Preferred List of Vendors
Looking for a plumber in the middle of the night when your rental home is flooding is not going to be easy. You want to have relationships in place before you need them. Assemble a preferred list of vendors, service providers, and contractors who can help you when there’s a routine request that’s been made or a maintenance emergency. You’ll need to have plumbers, electricians, HVAC technicians, roofers, and even landscapers and cleaners in your list of contacts. This is one of the best reasons to work with San Diego property managers. We work with licensed and insured professionals who are affordable and responsive. They understand the urgency of our needs.
- Budget for Repairs
You’ll need a reserve fund to pay for minor repairs and major replacements. Save some of the rent you collect each month so the money is available when you need a new roof or updated plumbing.
- Focus on Preventative Maintenance
The more you’re willing to invest in preventative maintenance, the fewer emergency repairs will be necessary. You’ll also save money and protect the condition and the value of your property. Invest in annual HVAC checks. Have a roofer out every few years. Keep up with landscaping and pest control.
The upkeep of a rental property is continuous. Dealing with unexpected repairs and regular maintenance can be both time-consuming and costly. This can quickly become a rental management challenge if you’re not prepared and proactive.
Placing and Retaining High Quality San Diego Tenants
To have a profitable and stable rental property, you’re looking for reliable tenants who pay on time, respect the property, and stay long-term. This is a major concern for rental property owners, and with the market as hot as it is, this should not be a problem. Occupancy rates are high, vacancy rates are low, and it’s easy enough to find and keep a tenant when you offer a great property and an exceptional rental experience.
Find the right tenants by implementing a thorough tenant screening process. This must include looking at:
- Credit reports
- Nationwide eviction searches
- Income and employment
- Rental history
You need to follow all state and federal fair housing laws when you’re screening, and to do that, make sure you have an objective screening process in place as well as consistent rental criteria. You need to have a strong and positive relationship in place with your tenants, and that begins even before you approve them as tenants. Be responsive during the marketing and leasing process.
Once your tenant is in place, be responsive and supportive. The goal is to retain that tenant for as long as possible.
Tenant turnover is a huge rental management challenge. It’s expensive and disruptive, and if you have to spend a lot of time on upgrades and maintenance, it’s also time-consuming. Retain your tenants by responding to maintenance needs right away, sharing expectations openly and clearly, being available for questions and concerns, listening actively, and making reasonable rental increases when it’s time for the lease to renew.
Tenant Protections in San Diego and California
California is well-known to have some strict tenant protections in place.
You have to know the law. And, if you don’t have the experience or the expertise to keep up with all of the nuanced legal and regulatory issues, you can find yourself in some trouble. Staying informed and compliant with local laws, housing regulations, and safety standards can be overwhelming. You need to know everything there is to know about:
- Fair housing laws. The list of protected classes that California enforces is longer than the list of seven protected classes found in the federal Fair Housing Act. You need to know what this means for your marketing, screening, and rental management.
- Security deposit laws. There is a timeline that needs to be followed when your tenant moves out and you return their security deposit to them. There are limits to what you can collect as a security deposit. You also need to know why you might be able to keep all or some of the deposit. Security deposits can be a huge rental management headache.
- Habitability standards. California has an implied warranty of habitability, and cities like San Diego are required to follow up on any complaints tenants make about habitability issues.
- Rent control and just cause eviction. If these laws apply to your property, you need to know how much you’re legally permitted to raise the rent, and what’s required before you evict. Your lease agreement needs to reflect whether your rental property is covered by these laws or exempt from them.
Legal challenges are ever-present for San Diego rental property owners. You want to make sure you’re staying updated on landlord-tenant laws and housing regulations. Joining landlord associations or online forums can be beneficial for staying informed and receiving advice from experienced property owners. It may also be worth consulting with a legal professional specializing in real estate to ensure that all your rental agreements and practices comply with the law. Talk to a San Diego property manager. We can be your best resource for compliance and enforcement.
Effective Rent Collection
Late or missing rent payments can disrupt your cash flow and create financial instability. This is always a challenge for rental property owners. So, you need to establish a clear and firm rent collection policy from the outset, and communicate it to your tenants. Make rent payment convenient for tenants by offering online payment options. If late payments occur, follow through with late fees as outlined in your lease agreement, and maintain an open line of communication with your tenants about any payment issues.
When it looks like you’ll need to evict, always consult with a property manager or an attorney. The process in California is complex, and it’s easy to make a simple mistake that will send you all the way back to square one.
Since we’re on the subject of problem tenants, let’s talk about the tenants who cause damage, disturb neighbors, or violate terms of the lease. Address those issues early on through direct communication, and keep detailed records of any disturbances or damage. In more serious cases, familiarize yourself with the eviction process, and consult with a property manager if a tenant needs to be removed from the property.
While the challenges of rental property management are real and varied, they can be addressed with proactive strategies and processes. By focusing on maintenance, tenant relations, adherence to laws, rent collection, and effective marketing, landlords can reduce stress and maximize the success of their rental business.
Working with a San Diego property management team is always your best defense against the challenges and perplexities that come from renting out a home. Informed and prepared property owners are the most successful in navigating the challenges of rental management.
We are here to help all rental property owners, whether you’re a new landlord or an experienced investor. Avoid the major challenges. Contact us at Chase Pacific Property Management & Real Estate Services.