Advice From One Landlord to Another
I’ve been working at a great new triplex we just listed in Larkspur. Vintage house, converted in the 1950s to multifamily (we believe), but recently remodeled with new kitchens, baths, floors, heating, etc. They probably over-remodeled for a rental property, with granite countertops in the kitchens, hardwood floors, really nice bathroom fixtures, etc., but that’s partly why it’s a good rental property. Tenants love it because it is much higher quality than what is generally available in this range.That and it’s an easy stroll to downtown Larkspur and its terrific restaurants, shopping, and of course, the Silver Peso. Go to www.OnlyInMarin.com to learn more about it, see pictures, and get financials if you like. The investment profile is good, and income property of any kind is rarely available in Larkspur.
One of the great pleasures of this job is meeting and being able to help so many really nice people. I just spent a long time talking to a guy named Roy (he doesn’t want me to use his last name) about his experience as a landlord, and he has some great, really useful ideas for anyone who owns or is thinking about buying residential income property in Marin County.
He’s owned a duplex in San Rafael since 1971, among other properties, so he speaks with wisdom and authority. Here’s a couple of great ideas I picked up.
1. When selecting a tenant, ask to see their last three cancelled rent checks. Look at the date they were deposited, not the day they were written. He believes most landlords hold checks only for a day or two, and the deposit date will be a pretty good indicator of when they pay. So if they’re deposited on the second or third day of the month, they’re probably paying on time. If they’re deposited on the 15th, then that may tell you when the check actually got there.
2.Once you’ve focused on a couple of possible tenants, stop by their current residence without an appointment and visit them unexpectedly. Ask to come in. The way they keep their current apartment will be a good indicator of the way they will live and maintain their unit in your building.
3. Visit your property often, and get to know the neighbors who live around the property. If there is anything happening there that is unusual or dangerous, they’ll let you know.
Ray is a very savvy guy. I’ve talked to other landlords about the importance of being physically present at the property often, but never heard the idea about talking to the neighbors. It makes sense, and I look forward to working with him.
