It’s not easy for millennials to find homes they can afford in San Diego County with a shortage of inventory and high home prices. It’s a good time to turn an existing home into a rental property with the help of qualified property managers. According to a recent report by businessinsider.com, the suggested annual income for a person living in San Diego, California, is about $135,000. If an individual spends $67,000 on necessities, $40,000 on discretionary spending and puts aside $27,000 for savings, they could live comfortably while saving up for a house. Since most people don’t earn enough to save for the future, they delay home ownership. If you already own a rental property, consider working with a property manager to maximize your profits. Australian millionaire Tim Gurner recently chastised millennials for spending money on avocado toast and coffees instead of saving up to buy a home. But experts point out most American millennials have too much student loan debt and not enough savings to qualify for a home. Even though most millennials do not have the money to save up to buy a home, they spend at the top of their budget to achieve a better lifestyle as a renter.
Figuring out the market rent
For rental property owners with investment properties in the college area, expect a $3,000 rent for a three bedroom, two bathroom home with more than 1,300 square feet and nice features. A home in Ranch Del Rey with the same size and bedrooms/bathrooms might go for about $2,100, depending on the interior features. Oceanside condos often lease for about $3,000. By relying on a property manager, you know your tenants are paying a competitive market rent. If you want to boost the market rent, include a washer and dryer instead of just a hook-up. Also, consider renting your investment home as a fully furnished unit to attract renters relocating to the area or coming as part of a work assignment.
Making sure renters carry insurance
Another way property managers help is by ensuring renters carry renters insurance with at least $100,000 liability. Some DIY landlords run into complications when they expect renters to carry insurance as well as pay for gas and electric. Some other sticky situations property managers handle include whether or not to accept section 8, security deposits, application fees and fair housing laws. Few investors have the time to spend dealing the day-to-day problems that occur with rental homes and tenants. It gives investors greater peace of mind to know their tenants receive the white glove treatment through a property management company.
Providing the in-demand features
Even though most millennials can’t afford to buy a home or save up what they need for a down payment, they are willing to splurge for a rental home that already has their ream features and amenities. If you want to convert your current condo or home into a rental home, consider some of the features that qualified renters often love. Young renters and buyers love stainless steel or trendy appliances in different colors, laminate or engineered hardwood floors, high-end countertops and a clean, fresh, modern look.
While the San Diego real estate market is always changing, most investors love the return on their investment. Real estate is a great addition to any investment portfolio. At HomeTeam Property Management, we coordinate all of maintenance needs for your rental home in San Diego County. We also find qualified tenants. For more information on why it’s an excellent time to rent out your existing home or buy a rental property, please contact us. We offer full property management services as well as help for people looking for an exceptional San Diego rental home or condo.