If you’re an investor with a property that has had renters for a long time, I wanted to share a few things that you should look out for.
We always want to maximize your ROI when you have a rental property, and we’re seeing many investors not charging market rate for rent. The classic case is someone buying an investment property 15 years ago and charging $2,000 a month in rent, and having great tenants who pay on time. Then, investors come to us ready to sell, but the tenant can’t leave because they probably work in the area and have kids in the local school district. Market rate has gone up to, say, $3,000 a month, and that tenant can’t afford to move out anywhere.
If you’ve dealt with investment properties in California, you know that it’s expensive, time-consuming, and requires hiring an attorney to get rid of a tenant. Many times during this period, they’re also not paying rent.
Keep this in mind if you’re an investment property owner!
If you have more questions on this subject, please feel free to call me or email me. I’d be happy to answer them for you.