Owning a rental property in Carlsbad, CA can be extremely lucrative, if operated properly and efficiently. When your property is vacant, you are leaving money on the table. We will cover how to prepare your home for leasing season in Carlsbad, CA as well as some general tips and tricks to owning a home in the greater San Diego area. In general, the area is high in rental demand and experiences yearly job market growth. Learn more about how to manage your Carlsbad rental property below!
Before listing your rental property, make sure you have the background processes ready to make finding a tenant a smoother process.
Have policies and procedures in place
Having the right structure from the beginning will reduce your vacancy time, so your first step is to have policies and procedures in place. Set the screening criteria in a way that increases your chances of finding a quality tenant while also giving you a solid defense in a discrimination claim.
Know what questions to ask and what questions NOT to ask.
The last thing you want to do is violate a Federal Fair Housing law or find yourself involved in a discrimination lawsuit. It is important to have written criteria that meets all the laws. All the back end policies and procedures should be set before you start advertising your property.
Make the first impression count
Is the grass cut? Are there colorful flowers in the yard? Are the trees and shrubs trimmed? Is there trash in the yard or mail hanging out of the mailbox? Not only is this first impression important for attracting interest, it also sets the bar on how you want them to treat the property. It is worth taking the time to make that impression a great one. You want your property to be the one they remember for the good qualities you present.
The front door says a lot about the property.
Think about the difference between seeing a front door with peeling paint vs one with a fresh coat of paint. The front door gives the tenant some insight into how the owner takes care of their property. They are looking for someone that is going offer them a safe, well-maintained place to live.
Simple fixes to the interior can increase interest
You want to be the property they remember because it smelled good, not the one that smelled old and musty.
- Open the windows and air it out.
- Run the air conditioner. Stale air can make a home feel stuffy.
- Run an air purifier with a HEPA filter to remove odors, dust, and impurities.
- An open container of baking soda can help absorb musty smells.
A bad smelling home can be an instant turn off. Fresh paint or new carpet can make a big difference in making the home appear newer and cleaner.
If you have walls or carpets with holes or spots, take care of it. You are not going to want the tenant that would accept the home in this condition. Take the extra steps to attract a quality tenant and set the bar for the condition you expect it to be returned in.
Show the home while it is empty
When you show an empty home, the prospective tenant can envision how it will look with their belongings inside. Don’t show a property with an old, smelly, dingy sofa in it that was left behind from the previous tenant. Get rid of it prior to showing the property. Saying “We will take care of that before you move in” isn’t good enough. Getting your property rent ready before listing it on the market will produce the best results.
Leverage a property management company to help you
Don’t feel like prepping the home? Leverage your time by hiring a Carlsbad property management company that has the vendors and resources to help you get your property rent ready quickly.
Things to Know about Investing in Single Family Rental Homes in Carlsbad, CA
When you are thinking about buying a property in Carlsbad, CA, what are some things you should be thinking about as an investor?
Carlsbad is a quiet little beach town located just North of San Diego that has a few specific types of renters due to its location.
- You are close to the beach so there are people there for vacation.
- Being a popular tourism spot, the city has a lot of short-term rentals.
- People like to retire in the area and rent long-term.
- Camp Pendleton is a Marine Corps Base nearby, so you have a lot of families that want to rent nearby.
Renters in the area are a mix:
- high dollar rent retirees that want to stay long term
- short term vacationers
- military families looking for a safe, lower rent home for a couple of years.
Due to the demand for housing in the area, the price per square foot is going to be high, but the values in this market are very stable.
Because the city’s populations consist of mostly retirees, vacationers, and military families, there aren’t a lot of places to work in the area as far as businesses go.
Consider what type of tenant you are looking for when purchasing your rental property.
Would it be better suited for the retiree, vacationer, or a military family?
Because the value of the property is high, your cash flow is probably going to be a little lower than if you had property in another city. What you will get is a lot of appreciation. Don’t expect to put a minimum amount of money down on an investment property in Carlsbad and get a maximum amount of cash flow. However, you can expect the property to consistently go up in value year after year. Before investing in Carlsbad, consider these points and determine if that aligns with your investment strategy.
Carlsbad is perfect for someone that is looking for a property that is going to go up in value in a stabilized, smaller area.
Looking for a property manager in Carlsbad?
If you are interested in investing in the Carlsbad, CA area or need management services, contact us today about Mynd’s full-service, results-oriented property management in Carlsbad.