Are you ready to rent out your house in Torrance, CA? Landlords and real estate investors are reaping the benefits of the strong Torrance real estate market - and you can too!
Landlords are enjoying good returns from their properties due to an increase in population and passive housing supply. The real estate market offers an opportunity to receive stable income over a long period of time. Recent property reports reveal an appreciation of property value over the last decade.
If you choose to rent out your property, it’ll come with many obligations and responsibilities. You will need to understand certain laws, know how to manage the rental, and make yourself available to tenants regularly.
We know that this can feel overwhelming. That’s why we’ve compiled our top tips for renting out your Torrance property.
Tips for Renting Out Property in Torrance
1. Know the Federal and State Property Laws
As a landlord in Torrance, you will be required to abide by specific state laws before and when renting out your home.
Here are a couple of the laws that apply to you as a prospective landlord.
- The Fair Housing Act: This law prohibits discrimination of tenants on the basis of gender, religion sexual orientation, race, familial status or physical or mental disability.
- Security Deposit: The State of California has put forth a number of rules and procedures that govern the landlord-tenant relationship. One aspect that is covered in state law is the security deposit limits and return laws.
There are many more laws that you need to know. This can feel overwhelming and difficult, especially if you’re a new landlord. Consider hiring a property manager to help you with this!
2. Create the Rental/Lease Agreement
The lease agreement is a written document that establishes the contract between you and the tenant. Among other things, the agreement should detail:
- The length of the lease
- When rent payment is due
- Tenant rights & responsibilities
- Landlord rights & responsibilities
- Who is accountable for certain utility bills
- Security deposit
A lease agreement should bear clauses that adhere to federal and state laws. Any illegal clauses in the rental agreement will be considered null and void if the matter is escalated to a court.
3. Communicate the Legally Required Disclosures
California law requires the landlord to disclose certain information to the tenant at the start of the tenancy. It is recommended that these disclosures be communicated in writing, via the lease agreement.
4. Hire a Property Management Company
Property management is the key for a successful investment property. A well-managed space attracts higher quality tenants, has less legal problems and has better tenant retention rates.
Property managers understand the relevant laws and procedures that you may not be aware of. That’s why it’s best to hire them as soon as possible!
Pinnacle Property Management understands the dynamics of the real estate market in Torrance. We can offer a comprehensive property solution that covers tenant screening, marketing and leasing, eviction management, rent collection, property inspection, utility monitoring and maintenance. We can offer services that’ll decrease your stress and increase your ROI.
5. Get your Property Renter-Ready
In order to get your property rent-ready, we recommend a few things:
- Get your property’s foundation, structure, appliances and fixtures inspected and thoroughly examined. Then, you will be able to budget for the repairs and renovations needed.
- Give the property a new look by adding a fresh coat of paint to the walls.
- Ensure the unit is safe for tenant occupation.
6. Insure the Property
Like any other asset, your property is exposed to uncertainties. As a landlord, there is always the risk of bad tenants who can cause significant damage to the home. There’s also always a chance of small fires, electricity faults or flooding, for instance.
That’s why it’s important to insure the property against the occurrence of such events. A standard landlord insurance policy should be able to suit all your needs. The security deposit should be able to cover small damages and breakages.
7. Advertise, Find Tenants & Move-In
Once the house is ready, you can begin advertising it. When you have prospective tenants, be sure to screen them thoroughly. This will help you find high-quality renters. Once you find the perfect renter for your Torrance property, arrange a move-in date. Ensure you have a lease agreement in place and make sure it’s signed by you and the tenant before they occupy the unit.
Torrance CA offers an urban-suburban feel that is desirable by young professionals in the South Bay area. Renting a house in Torrance is a good investment. It has the potential to become a successful long-term source of income. With proper guidance, you can enjoy all the benefits that come with being a landlord.
We hope that the tips provided above help you rent out your Torrance, CA property. If you’re looking for further assistance, your best option is to hire a professional property management company.
The team at Pinnacle Property Management has over 30 years of property management and real estate experience. Our experienced team offers excellent service in line with your financial goals. Contact us today!