As of October 2023, one-bedroom apartments in San Jose, CA, had an average price of $2,500. So, if you have property here that's just sitting empty, now's the best time to consider renting it out. That way, you can earn rental income and profit from it.
However, to get the most from your property, you must first understand what rental leasing entails and how to do it correctly. But don't worry; we're here to show you the way.
So, without further ado, here are our top rental leasing tips to help you maximize your rental income.
Understand Tenant Screening Laws
The first step to mastering rental leasing is understanding California's Fair Employment and Housing Act (FEHA). Under this law, landlords must employ rental practices that don't discriminate against a person's:
- Age and marital status
- Ancestry, color, national origin, or race
- Mental and physical conditions and disabilities
- Religion
- Sex and sexual orientation
So, while it's your every right to screen tenants, you must be careful not to deny someone housing because of the above reasons. Otherwise, you could face hefty penalties and legal trouble. News about this can also quickly spread around and affect your reputation.
Consider Outsourcing Tenant Screening to the Pros
While you must comply with FEHA, you must still do your due diligence and conduct comprehensive tenant screening. It allows you to know your prospective tenants better, as it gives you a snapshot of their:
- Source of income or employment status
- Credit score and credit history
- Rental history and possible previous evictions
Effective screening practices also help you determine if someone has a criminal background. Many people in California do: about eight million have an arrest or conviction record. While many are for petty crimes, others are for more severe cases, such as felonies.
However, comprehensive tenant screening is time-consuming, and complex laws surround background checks. So, to simplify finding qualified, trustworthy tenants, work with a property management company. Their screening processes are thorough and abide by all federal and state laws.
Consider Allowing Pets
Allowing pets in your property expands your tenant pool since over half of renters in California own pets. It also gives you an advantage over other rental properties, as many landlords have no pet policies.
For the same reason, many responsible pet-owning tenants typically want to stay longer in pet-friendly rentals. After all, they know how challenging it can be to find properties that allow their furry family members. So, by welcoming pets into your properties, you can enjoy longer tenancies and lower vacancy rates.
Implement These Rental Leasing Techniques
From screening tenants fairly and thoroughly to having pet-friendly policies, these rental leasing techniques can help you attract qualified tenants. They also help you keep your best renters, which is vital to maximizing returns.
Our company, Provident Property Management, can help implement and enforce all those strategies. Since 2001, we've provided full-service property management solutions to San Jose landlords. In addition to the above, we specialize in property marketing, rent collection, maintenance, and accounting.
So, connect with us today! We'll happily answer your questions and even give you a free property consultation!
