Home to about 190,000 people (World Population Review), Huntington Beach is currently recognized as one of the best places to retire. Although the majority of the population is aged 65 and over, the city has a thriving rental housing market.
So, if you just purchased your first rental property here, you made a savvy decision. But what next? How do you transform your investment into a machine that generates rental income every month?
Being a successful real estate investor isn't just about finding the best locations for your properties. You must also know what it takes to manage the rental effectively. In this guide, we're sharing the steps you need to take soon after acquisition.
Determine a Rental Strategy
When you buy a rental property in Huntington Beach, you have two approaches at your disposal. You can use it as a short-term rental (for vacation), or a long-term rental.
Both options are attractive, but you must settle on one. A lot will depend on your investment goals and how you plan to manage the property. Short-term rentals have a greater lucrative potential, but they have intensive management needs. Long-term rentals may not be as lucrative, but they're easier to manage.
Your choice will also determine the next steps.
Understand Local Regulations
Rental property owners typically have to meet certain regulations before they can offer their properties for rent. In particular, short-term rentals in Huntington Beach have stricter regulations than long-term rentals.
For a short-term rental, you have to understand that you can not rent it out for more than 30 consecutive nights. You have to obtain a permit from the city, which must be renewed annually.
For long-term rentals, landlords need to have a good grasp of their responsibilities. As per California's landlord-tenant laws, owners must maintain the property in a habitable condition at all times.
Preparing Your Rental for Occupation
After obtaining the necessary permits, you're ready to offer the dwelling for tenancy. However, depending on its condition, it's important to make final preparations.
For instance, if it's an existing property, you might want to give it a new coat of paint, even though it might be in a fairly reasonable condition. Ensuring your property is in the best possible condition improves its chances of attracting a tenant quickly, and it can also help justify your rental pricing.
Setting the Rental Price
Speaking of rental pricing, what's your process for determining what you'll charge? How do you ensure you're getting the property's worth?
As a savvy landlord, you need to do a rental analysis. This takes into account a number of factors, including the size and condition of the property, prevailing market conditions, and the rental rates for similar properties in Huntington Beach.
Move Like an Experienced Real Estate Investor!
This is your first rental property in Huntington Beach, but that doesn't mean you should act like a newbie. Whether you're a seasoned real estate investor or not, these tips will help you get started like you have been in this city for a long time.
Plus, if you'd like to get some professional help, we're here. At Sail Properties, Inc., we're a full-service property management firm dedicated to helping local landlords succeed. With over four decades in the industry, you can bank on our experience.
Schedule a consultation today to get started on your investment journey in Huntington Beach!
