Rental Property in Los Angeles: Things to Think About
With the median home price in Los Angeles surpassing $600,000, many people are choosing to rent instead of purchase a home. There are benefits and drawbacks to being a landlord in Los Angeles. Read on to learn more about what you can expect as a rental property owner in LA.
Rent Control
One of the first things you need to be aware of as a landlord in Los Angeles is rent control. Rent control is a set of regulations that limits how much landlords can charge for rent and how often they can increase rent prices. These regulations vary depending on the municipality, but in general, they are designed to protect tenants from exorbitant rent increases.
There are two types of rent control in Los Angeles - the Rent Stabilization Ordinance (RSO) and the Costa-Hawkins Rental Housing Act. The RSO applies to buildings that were constructed before 1978 and have at least two units. The Costa-Hawkins Act applies to all other rental units in the city.
Dealing with Tenants
As a landlord, you will also be responsible for maintaining the property and dealing with any issues that arise with your tenants. When it comes to finding tenants, you will want to screen them carefully to make sure they are responsible and will take care of your property. You can do this by running a credit check and getting references from previous landlords.
Once you have found tenants, it's important to establish clear expectations from the start. Be sure to go over the rules of the lease agreement with your tenants and make sure they understand what is expected of them. If there are any problems that arise during the lease, be sure to handle them promptly and fairly.
Overall
If you're thinking about investing in rental property in Los Angeles, now is a great time to do it. The LA rental market is strong and shows no signs of slowing down anytime soon. With careful planning and research, investing in rental property can be a great way to generate income and build wealth over time.