Being a landlord has its perks, but it also comes with its fair share of challenges. Here are three of the most difficult aspects of managing rental properties that landlords often face.
Balancing Property Ownership with Management Responsibilities
Owning rental properties can be an excellent way to build long-term wealth. However, managing those properties and dealing with tenants is a different story—it can feel like an entirely separate job.
At Andren Homes, we understand the hurdles landlords face when managing their properties. Here are the top three challenges that property owners encounter when they handle everything themselves.
Navigating Local Regulations
Over the past few years, Santa Cruz has seen the introduction of several rent control measures and just-cause eviction laws. These rules tend to be intricate and confusing, especially for the average property owner.
California recently passed laws such as the Tenant Protection Act (AB 1482), which imposes rent caps and establishes just-cause eviction protections. Additionally, the COVID-19 Tenant Relief Act (AB 3088) put restrictions on evictions related to pandemic hardships. Even on the federal level, agencies like the CDC have implemented eviction moratoriums.
With the ongoing presence of COVID-19, these laws may continue to evolve, creating a lasting impact on landlords. Trying to stay compliant with these changing rules without the guidance of a property manager or legal expert can be overwhelming. For instance, complying with the CDC moratorium or AB 3088 requires multiple tenant notifications, which can become difficult to track if you manage several properties.
Beyond these newer rules, landlords must also comply with fair housing laws, which prohibit discrimination against certain applicants. While landlords with three or fewer homes are exempt from federal fair housing regulations, California’s Fair Employment and Housing Act (FEHA) and Unruh Act provide strict guidelines for protecting tenants’ rights.
With an ever-growing list of regulations at local, state, and federal levels, staying compliant can be one of the most time-consuming and complex tasks landlords face, with severe penalties for non-compliance.
Managing Tenant Turnovers
Getting a rental property ready for new tenants can be a stressful process. After the previous tenants move out, landlords must assess the property for necessary repairs or replacements and coordinate with various contractors to get the work done.
Though it might seem straightforward, scheduling and coordinating different vendors can be quite a headache. Ideally, you want to space out their work to avoid conflicts. If extensive repairs are needed, it could delay how quickly you can list the property, which may lead to lost rental income. Once the work is completed, it’s essential to ensure everything meets your standards before new tenants move in.
This process can be particularly tedious if the property was once your primary residence. Personal attachment might lead you to overlook minor issues, such as a leaky faucet or a slightly faulty appliance, but these seemingly small problems can make the home harder to rent.
Turnovers can be expensive, often costing a couple of thousand dollars, but it’s crucial not to cut corners. Quality materials and attention to detail are key to attracting and retaining good tenants.
Handling Maintenance Issues
Maintenance can be a major point of frustration for both landlords and tenants. Tenants typically want repairs addressed quickly, and poor communication can lead to dissatisfaction on both sides.
It’s important to differentiate between urgent repairs and non-urgent ones. For example, leaks, mold, or any issue that affects habitability should be handled immediately. Other issues can be addressed quickly, but they are less critical.
At Andren Homes, we understand the constant pressure landlords face when tenants report every little issue. However, it’s vital to communicate clearly and consistently with your tenants. Even if there’s no new update, letting them know that you’re working on the problem can help ease their concerns.
Effective communication is not only important with tenants but also with vendors and contractors. Researching and establishing relationships with reliable service providers—plumbers, handymen, cleaners, etc.—will help you resolve issues more efficiently when they arise.
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Logan Andren
Logan Andren is the founder and CEO of Andren Homes Property Management. Since launching the company, Logan and his dedicated team have simplified the rental property experience for numerous Santa Cruz homeowners. Their mission is to enhance the lives of their clients and community, focusing on providing exceptional service and fostering lasting relationships. DRE #02002055
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✆ : (831) 291-5043
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