If You Have Been Watching Rental Housing In California
You realize that rental prices are increasing faster than wages are increasing.
This is not a good sign for renters, and talk of Rent Control is coming to the forefront again in many cities. But there are still some areas to invest.
It is estimated that housing for students will keep growing and prices are increasing.
Now, this is not easy property to manage. I have several properties in over 55 housing. Love the tenants. They have their budgets established. Fewer evictions. Less damage. Fewer wild drug parties. Maintained landscaping. But there are fewer possible tenants, high HOA fees, and you have to deal with Project Managers and Boards. Enough said.
You could rent to students, and your beautiful property becomes an “Animal House”. For younger readers that is a movie from 1978, and the fraternity destroys the rental. Belushi and friends make this a good comedy, but it would not be funny if you were the landlord.
Some Tips For Student Housing:
No carpets, tile; no drapes, commercial blinds; no fancy landscaping, junipers; consider month to month rentals so it is easier to get rid of bad ones; collect the rent at the property monthly (perhaps hire an offensive lineman from the school) and you will see what is happening; locks on all the bedroom doors; check always for extra tenants; strict rental rules including parking; no pools for sure; include in the rent monthly cleaning; use living room for study room and this means less traffic than a TV room; consider co-ed (my daughter’s first restrooms at CAL were coed in 1999); and did I mention that you should consider co-signers on all rentals, etc. etc.
A four-bedroom home is best, one more rental, consider bunk beds. I lived with bunk beds for four years at IU, and it did not severely ruin me for society.
Consider Having Your Child As One Of The Tenants
When you buy the property, you could buy it as an Equity Share with both of you on title. That means better loan rates and perhaps a lower down payment.
Yes, renting to students is tough management just as renting to children, etc. But sometimes they work out well and the returns are better.
Hi Duane, you are the best! My dad and stepmom turned me on to you years ago!! They are Don and Pam Gaines. My friend wants to get his license and me my brokers. How long would each take and what’s the process? Oh yeah, cost also.
Cynthia Gaines Black
Ps how is the market doing?
Great to hear from the deep, dark past; where are Don and PammyPo as I remember him calling her.
Market is slow as there is no inventory, but that has been a problem for decades, always some reason for problems.
New license, fastest would be about two months with a cost of $355 for courses and a test prep course to pass the exam.
Brokers, normally need five courses which would be around $300 plus $150 for the exam prep.
For better information, you should call my office at 949-457-8934 and ask for Lana. She is the best at these questions.
I will tell her that you should get 10% off for old times sake.
when is the bubble for real Estate is comming. before they said 2017, now 2018
Who said? Too many Who’s out there. Some people get very old waiting for bubbles to break. Is this a good time to get into the Real Estate Business or to stay in, better than tomorrow, is it a good time to buy real estate, better than tomorrow.
I saw an old cartoon the other day. It was a picture of Rip Van Winkle. Under it the caption read: “Young man waiting for real estate prices to fall.”
Yes, Rip was a fine man. Met him he worked for Forest E. Olson.