New to property management looking for advice.

[Estefania Concha]

I have taken over my parents rental properties in San Diego and they haven’t been managed properly. I have a few questions I’m hoping you can help me with.

1. Non of the tenants have updated contracts which I’m working on updating. Can I issue a new contract and date it for the following month so I can increase the rent?

2. Anyone have any advice on having a company do an inspection before renewing contracts? During this covid time has anyone run into issues?

3. One of the properties has items on the front porch that I would like removed but she is under section 8.. can I issue a contract of my own and have her remove the items within a set time frame?

4. Another tenant has a big front yard that used to be parking spots..has anyone ever asked a tenet to remove personal belongings so that I can make them parking spaces once more? It has become an issue with tenants having front and back yards they have put boards up or sheets to not allow the other tenants to see and it makes the properties look horrible. I was thinking of just removing all of the gates and making one community area.

Please let me know if you have any books or if you have any vendors in mind for property located in National City, CA.

Thank you!

[Joe Martella]

Estefania,

Wow. Lots of questions.  One thing I try to remind new landlords is that as much as this is real estate, this is a people business.  People respond to how you make them feel.  We are in a tough spot as landlords right now.  The tenants have the upper hand with not having to pay rent. I am sure California is a tenant friendly state, so you may want to implement change slowly.  Going in with “There’s a new sherif in town” attitude may cause a reaction from your tenants that you are not looking for.  Remember turnover is one of the biggest expenses landlords face.  

1.  Updated leases.  You can rent month-to-month or on a lease for a period of time.  You have to know what your local laws are with notification.  Generally, notice is required 30 days prior to raising the rent, but CA may have different rules.  Consider giving your tenant options.  For example:  I had a tenant paying $2050 a month on a month to month.  I prefer a lease and I wanted to raise the rent.  I sent a notice to the tenant informing them that they can go on a annual lease for $2,100 a month or stay month to month for $2200.  I gave them 5 months notice.  It is more than I had to, but it gave them time to make a decision on what avenue they wanted to choose to include moving.  

I approached it in case I am facing a judge I can tell the court I gave sufficient notice for the tenants to make preparations to move if they didn’t like the rent increase. 

You probably don’t want all your leases to expire at the same time.  Consider staggering them. 

2.  You can probably arrange doing the inspection yourself.  I generally do not inspect my tenants properties unless they are moving out.  

3.  The items on the front porch are they a hazard?  Any complaints from the local municipality?

As you said, these properties weren’t managed and you may find that they weren’t maintained well either.  The propertied may need more  repairs than you imagine.  I would take a not so stron approach.  Go slow.  Start with one unit and move onto the next with the current climate in mind.  A mass exodus of your tenants can cause you a financial hardship. 

As for books “The ABCs of Property Management” comes to mind as well as Rich Dad Poor Dad