Avoiding the Cost of Wrong Tenants

By
Real Estate Agent with Keller Williams Realty Central Coast ~ Pismo Beach CalBRE# 01502962

Avoiding the Cost of Wrong Tenants

 

The rental market is part of every community and the need for rental properties is robust in most communities, including Santa Maria/Orcutt, CA.  As a landlord, I know firsthand the experiences of problem tenants.  

 

In my opinion, one of the most important landlord decisions is securing the right tenant.  The temptation to fill vacancy quickly is strong, especially if the house is vacant and not producing income.   Please don't make the mistake of renting the house without vetting the applicant.   It is easy to find tenants by advertising in the local paper, Craigslist and word of mouth.    Screening is critical if you want to save yourself a lot of headaches.  

 

If you are not experienced in applicant screening, you might consider hiring a property manager to find the best tenant.  The property manager processes applications, checks employment, conducts credit/background, screens candidates and complete rental agreement.   Property managers typically charges 50% of the first months rents as a finder's fee, if you want all the work down and you'll take over after the tenant placed.  This might seem expensive upfront, but the cost of a bad tenant including potential lack of payment, home repairs, favorable tenant laws in CA and eviction fees, is not a good gamble.  (Ask me how I know?)      

 

If you want property management services after placement, monthly fees usually cost 10% of monthly rent.   This is a good approach if you don't want the extra responsibilities of collecting rent, repairing toilets and facets and generally dealing with tenant issues.  Hiring a property manager is wise in many cases, especially if you are a new landlord or a long distance owner.   The option of discontinuing property management is always an option down the line after you get comfortable with the process or a long-term tenant is in place.   If you are confident in the screening process, rental applications/forms, FAQ are available online. 

 

As a landlord, your goal is to place the best, qualified tenant to minimize headaches, expensive repairs and vacancies.   Best advice is to take your time, don't rent based on emotions but look at as a business decision and screen the best tenant, even if it cost you some initial rental income in the beginning.  In the long-term, you'll be a happy landlord, not a stressed out landlord. 

 

I recommend Creative Properties in Santa Maria, CA.   Since 2009, Carlos Macias/owner has managed my properties and I strongly recommend him.  Work: 805.928-6688.  Email: carlosmaciascpm@gmail.com.  Tell him Cesar Bautista recommended him. 

 

Do you have any thoughts or suggestions on finding the right tenant? 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
California Santa Barbara County Santa Maria
Tags:
landlord
rental properties
property manager
santa maria real estate
orcutt real estate

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
65,828
Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Great read, thank you Cesar! Another advantage of hiring a property management company is insulation from rejecting tenants. The burden of ensuring a non-discriminatory selection process varies from state to state (as you must know well being in California), but there is always a bit of risk when a tenant is rejected. A property management company has an established process (that has quite possibly already been audited by a government agency or tested in court) to vet applicants for you so you do not have to navigate the law yourself.

 

Obviously any landlord with enough time on their hands can take care of this process, but if that is a burden it might make sense to pass it off to someone else. 

Jun 01, 2016 03:38 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
148,262

Cesar Bautista

Your Central Coast Area Realtor 805.264.1646
Ask me a question
*
*
*
*
Spam prevention