Los Angeles · Member since 2020 · 12 posts · 4 votes
Hi there,
My family and I are moving from Los Angeles to Honolulu early next year.
We own our heavily-renovated, very nice 2BR/2BA with detached office space in the highly-desirable neighborhood of Silver Lake.
I’d like to keep the property and rent it out, but I need BP’s help.
What, if anything, can I do to protect myself from the nightmarish scenarios I hear about landlording in California? (Tenants not paying rent, tenants overstaying, paying to get people to leave, etc.)
I’ve heard you get a bit more protection (as owner) in a single family than a duplex or apartment building. I was also told to sent rent high enough so that tenants don’t get overly comfortable.
Any other tips for a prospective LTR in CA?
(FYI: I own two fourplexes in Austin, and a condo in HNL. So I’m an experienced investor, just need help navigating California’s laws. And selling is not an option right now, I want to keep the property.)
You protect yourself the same way that you do with your other rentals. You set very strict rental criteria and stick to it. You check references and employment. Get copies of bank statements to see that they have consistently had the ability to pay rent.
Do not anticipate additional protections because it is a SFR. You live here. You have to know that all the protections afforded to landlords are being stripped away.
Assume the tenant you rent to will be your lifelong tenant. Anticipate the very real possibility that you will need to pay the tenant SIGNIFICANT monies to get them to leave. This includes both good and bad tenants.
Given the frequency our laws are changed, you may want to hire a property manager to handle this home.