If you’re preparing to deploy, you’ve likely been through this before. You have your long list of tasks that need your attention before you go.
This time, you may be leaving behind not only family and friends, but a home as well.
At Chase Pacific, we work with a lot of military members and their families who have bought a home in San Diego and then find themselves having to move for a couple of years.
When you know you plan to return to the area, there’s no reason to sell your home. Even if you’re not sure about returning to the area, keeping your home and renting it out is a great way to build some serious wealth over the long term. California real estate is a valuable asset.
Renting out your home is a good idea for many reasons, and there are things you’ll need to do before you ship out for duty. Hopefully, you’re working with a great San Diego property management partner who can manage most of the details for you. If you’re not, contact us to find out how we can make this a lot easier and probably a lot more profitable for you.
For now, we’re sharing some tips on how to prepare your home for the tenants who will be living there while you’re deployed. Here’s our detailed guide.
Hire a Property Manager
As we have said, your property management partner can take a lot of the work off your plate so that you can focus on your deployment and upcoming mission. It’s important to think realistically about whether you’ll be able to manage the rental yourself. You’re likely going to be far away. You’re likely going to be busy. Having a local expert taking care of details for you can be exactly the peace of mind you need.
It probably seems like managing on your own will save you some money on management fees, but honestly it could end up costing you. Think about time zone differences, limited communication during deployment, and emergencies that might pop off with your tenants or with your home. All of these things could make self-management complicated. There are also a lot of laws to follow, and it’s easier than you think to make an expensive legal mistake.
On the other hand, your San Diego property manager can handle tenant issues, rent collection, repairs, and even legal matters for a monthly fee that’s usually no more than 8-12% of the monthly rent and always tax-deductible.
Not only do we provide the support you need, we also have a record of success working with members of the military. This has to be an important consideration as you begin to find the right management partner for you and your property.
Understand Local Rental Laws
We mentioned those rental laws earlier, and we want to make sure you’re aware of just how well-enforced they are in San Diego and throughout California. Tenant protections are strict in this state, and the specific rental laws can vary dramatically depending on where your home is located and what kind of property it is.
You’re going to have to understand:
- Fair housing and how it impacts marketing and tenant screening.
- Security deposits and the limits, restrictions, and timelines around them.
- Habitability standards and the mandate on local cities and counties to enforce habitability laws.
- Safety devices like smoke detectors
- Rent control
- Eviction procedures
This is just a brief list. It’s crucial to understand your responsibilities as a landlord when you’re renting out a property.
Take Care of Necessary Repairs and Upgrades
Before listing your home for rent, it’s important to take a critical look around. Are there small repairs you’ve put off? Would a coat of paint make rooms more appealing? Would professional carpet cleaning freshen things up? You’ve probably been living with that creaking handrail or that torn screen for a while. When you have tenants moving in, you need to have even the minor repairs attended to.
Prioritize the following:
- Fix anything broken, from door handles to leaky faucets.
- Ensure all appliances are in good working order.
- Refresh walls with neutral paint colors.
- Deep clean carpets, floors, kitchens, and bathrooms.
Making the home shine before tenants arrive for showings can help you attract responsible renters and bring in higher rents. Good tenants are willing to pay more rent for an updated, modern home in the right neighborhood.
Remember to remove all of your personal belongings. Most rental properties in the long-term San Diego market are unfurnished. This is better for you and it’s better for your future tenants. They’ll want to move their own things into the home. Remove anything sentimental, irreplaceable, or highly valuable. Sell, store, donate, or move your own furnishings.
Create a Maintenance Plan
Since you won’t be physically available to handle issues like a broken water heater or roof leak, it’s vital to set up a clear maintenance plan. This is another excellent argument for a property manager who is local and well-equipped to respond to emergencies and take care of preventative issues.
Set expectations for who handles minor vs. major repairs. It’s reasonable to expect your tenants will change air filters and light bulbs. Who is responsible for landscaping? Establish this.
You also need a system for tenants to report maintenance issues. Your property manager will have an online system for routine repairs, but there may be an emergency line that tenants will need for any problems that are urgent.
Update Your Insurance
Regular homeowners insurance might not cover you once the property is rented out. You’ll likely need to switch to a landlord insurance policy. Landlord insurance generally covers:
- Property damage
- Liability protection
- Loss of rental income (due to covered losses)
We always recommend that you require tenants to have their own renter’s insurance policy. This will protect their personal belongings and reduce your liability. Inform your insurance company about your deployment status, because some offer military discounts. Insurance is becoming increasingly complicated in California. Every discount and detail matters.
Pricing Your San Diego Rental Property
Setting the right rental price is key to attracting tenants quickly and maximizing your income while you’re away. While you might have an amount in mind, it’s important to understand that the market really drives what you’re able to charge. Research comparable rental listings in your area and take a look at current market trends. We strongly recommend that you rely on the data a San Diego property manager can collect for you. We have insights and analytics that can ensure your property is priced competitively and also profitably. One strategy we support is pricing your rental home slightly below market rent. This will minimize vacancy periods and ensure you head off for deployment with a tenant already in place. A month without rent is more expensive than a slight reduction in monthly income.
Screen Tenants Carefully
Choosing responsible tenants is absolutely critical, especially if you’ll be on the other side of the world.
At a minimum, screen for:
- Creditworthiness
- Income stability
- Rental history
Develop a written set of tenant criteria and apply it consistently to all applicants to comply with Fair Housing laws.
Again. A property manager can take care of this for you and remove any frustration or liability.
Communicate Clearly Before You Leave
Once your tenants are approved and they’re ready to move in, take time to communicate expectations clearly. Your property manager can do this for you. Provide tenants with:
- A list of emergency contacts
- Instructions for paying rent
- Information about routine maintenance
- Contact information for your property manager (or yourself, if applicable)
We strongly recommend that you set boundaries about contacting you directly unless it’s a real emergency. This is especially necessary if you’re operating in a combat zone or remote location.
Plan for Taxes and Financial Management
Rental income is taxable, but many expenses, such as property management fees, repairs, and even mortgage interest, can be deducted. Keep organized financial records throughout the lease term. You want to maximize all deductions, so if you’re not already working with a CPA or a tax attorney, ask your property manager for a referral. Some deployed service members qualify for deadline extensions on their taxes. Make sure you know your options.
Renting out your home during deployment is an excellent way to preserve your property in case you want to live in it again. It also makes you some money now and in the future. Renting from afar doesn’t have to be stressful. With a little preparation now, you can protect your property, create passive income, and return to a home that’s been well cared for. The key is planning ahead and building a support team you can trust, led by a San Diego property manager.
We appreciate your service, and we’d love to talk with you about how we can serve you and your real estate needs while you’re deployed. We have a record of working successfully with members of the military, and we’d be happy to lease, manage, and maintain your home. Contact us at Chase Pacific Property Management & Real Estate Services with any questions about how your San Diego property should be managed while you’re deployed. We can help.
