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General Landlording & Rental Properties

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Luis Ceja
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Biggest things to look out for when kicking off first rental

Luis Ceja
Posted Jun 30 2022, 22:47

I’m currently turning my primary into a rental. I have no experience with this and it’s a little nerve wracking because I live in California and I’m afraid of picking the wrong tenant or having a flaw in the lease agreement. Any tips?

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Bjorn Ahlblad
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Bjorn Ahlblad
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Replied Jun 30 2022, 22:56

There is a lot you have to know especially in California. I'd recommend a PM while you study up. An in adverted mistake in discrimination could cost you tens of thousands! It is no joke!

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Henry T.
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Henry T.
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Replied Jul 1 2022, 00:15
Congratulations on your new beginning. It can be satisfying to provide someone a nice place to live.
Even on the west coast where we constantly hear from politicians about the evil landlord.
Dont beelieve it, youre a property owner and that means something. It didnt't come easy.
You may want to call a realtor and ask if they have an inspector they could recommend.
Know that you're starting off with all the proof that your property is solid.
Even with the best lease, California is full of tricks and anti landlord legislation.
Join a landlord orginization that can help you with a basic lease.
Fill it up with all the rules you can thnk of. One vehicle on property, must be licemnsed.
BBq 20 feet away from house. No alterations, Late fees and utlilities are considered rent and will be
sent notice if delinquent. You get the idea... think of everything.
Take a billion pics before he moves in. Floors, paint, door knobs, ceilings, sinks, countertops.yard. white glove test.
Read the laws about screening, sometimes they\re a set up.  And read about screening techniques on these forums.
Take your time and find a great tenant, not the first guy that throws cash in your face.
These moderators here are really smart and can offer a lot.  Good luck.
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Henry T.
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Henry T.
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Replied Jul 1 2022, 00:16
sorry for the mispelling, I dont have mmy glasses. Doh!

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Nathan Gesner
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Nathan Gesner
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ModeratorReplied Jul 1 2022, 06:05
Quote from @Luis Ceja:

I’m currently turning my primary into a rental. I have no experience with this and it’s a little nerve wracking because I live in California and I’m afraid of picking the wrong tenant or having a flaw in the lease agreement. Any tips?


You are in one of the most regulated, most litigious parts of the world. I would hire a PM and let them run with it.

If you insist on doing this yourself, join the California Apartment Association for forms, education, and assistance. I also recommend "Every Landlord's Legal Guide - California Edition" for practical advice, sample forms, and links to your laws.

FYI: I manage a couple dozen rentals owned by several Landlords that invested in California for decades. They sold every property they owned and moved their money out of the state. Take from that what you will.

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Replied Jul 1 2022, 06:56

It’s all in your mistakes. Get in the mindset that no matter what happens it’s going to be a learning experience. Even experienced investors make mistakes, it never goes perfectly 

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Scott E.
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Scott E.
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Replied Jul 1 2022, 08:22

As others have suggested, get a property manager. They will take on all of the responsibility that you are not prepared for. It'll cost you ~8% of your gross monthly rent, but you will learn a LOT as you watch them get the unit rented, handle all of the paperwork, and take maintenance calls.

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Chad Hale
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Chad Hale
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Replied Jul 1 2022, 10:47

@Luis Ceja  Also recommend joining California Apartment Association.  Lots of good information and forms/addendums that are constantly being updated.

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Stephanie Trevizo
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Stephanie Trevizo
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Replied Jul 1 2022, 11:01

Hi Luis, I’m a landlord in CA and a realtor. CAR has a pretty neutral lease agreement that I use for my rentals. As others mentioned above, a PM may be a good route if you’re nervous about managing the property. If that’s not in the budget I’d recommend having a local realtor list the rental for you and they can help you with the showings, screenings and the lease agreement. 

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Kelsey Bailey
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Kelsey Bailey
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Replied Jul 20 2022, 09:55

@Luis Ceja It is smart to start with a property manager, see their lease, ask them questions, and see how they handle situations. After a year or two of seeing how things are handled you can always take over and self-manage when you are prepared. Going in completely blind can either go fine with some luck and research or be a costly mistake. Let me know if I can be of any help or provide some further advice! 

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Madison Carlson
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Madison Carlson
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Replied Oct 4 2022, 15:56

Hi Luis,

I would explore the idea of hiring a property manager that specializes in managing your specific property type. Having an expert that has the network and resources is important when operating a successful rental. Especially with the changes in the San Diego market, specifically the new short term rental ordinance it is important to be knowledgeable in potential conflicts/obstacles that could arise. 

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Melanie Thomas
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Melanie Thomas
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Replied Oct 7 2022, 13:14

Hi there, welcome to BP! Im going to mirror the above responses here. CA- go pro! Lots of ways to get yourself into trouble if your not already well versed in laws surrounding PM in your area. It will be worth every penny, the peace of mind alone. Happy investing!