As a new landlord, you are likely looking forward to finding a tenant, moving them in, and collecting rent. You’re embarking on a journey that requires a lot of responsibility but also comes with unlimited opportunity. Whether you've inherited a property, you’re looking to increase your income streams, or you have always wanted to invest in real estate and you now have the means, new landlords have an array of challenges and rewards awaiting on the other side of the lease agreement. 

We’ve been managing properties in Humboldt County for many years, and we understand what’s required of landlords today. We’ve put together some information that’s designed to ease your transition into the world of leasing, maintenance, and property management, ensuring that your rental property is not just a lucrative investment, but a source of pride and success for you. 

Building a Solid Landlord-Tenant Relationship by Understanding Tenants' Needs

As a landlord, you’ll be required to establish and maintain good relationships with tenants. 

Recognize that your tenants are, essentially, your residential customers. Just as in any business, understanding and addressing their needs is paramount. Regular maintenance, timely resolutions to concerns, and respectful communication go a long way in establishing a positive working relationship.

• Setting Clear Expectations

Start strong by drafting a comprehensive lease agreement. Include the details that matter most to you, such as rent due dates, maintenance reporting procedures, allowed activities, noise restrictions, and the protocol for ending the lease. A clear agreement reduces the likelihood of misunderstandings and disputes. When you share your expectations early, tenants understand what is needed and they have an easier time trusting you.

• Effective Communication Channels

Develop an efficient communication strategy that allows you to remain available and accessible to your tenants. You’ll need to be responsive, especially if there’s an emergency in the middle of the night or your tenant locks themselves out of the home. Smooth communication is key to a successful landlord-tenant relationship.

• Respecting Privacy

Ensure your tenants feel at home by respecting their privacy. Provide ample notice before entering the property for any reason other than emergencies or pre-scheduled maintenance. 

Pay Attention to the Humboldt County Rental Market 

Study the rental market. You’ll need to know what tenants are looking for, what rental values are looking like for various property types, and what kind of vacancy averages you can expect. You’ll want to know where the competing properties are and how long it’s taking them to be leased. 

As you prepare to become a landlord, you’ll especially need to know how much you are likely to earn from it. Market factors will always impact what you earn in rent, how you advertise your rental property, and where you find your tenants. So…get to know the market. 

Humboldt County has been performing very well as a rental market, thanks to the high quality of life that’s offered here. There is a strong tenant pool looking for good homes to rent. Rents are higher and a lot of people are putting off a home purchase in order to continue renting, thanks to mortgage and interest rates that remain high.

Spend some time studying other homes on the market. Get to know the neighborhood. Follow the rental prices. Talk to property managers in Humboldt County who are reviewing applications, leading showings, and negotiating lease renewals. They can tell you what tenants are looking for and how much they’re willing to pay. 

Legal Landscape: Navigating Landlord-Tenant Laws

Renting out a home in California is risky because of the large number of tenant protections that are in place. You need to know the basics of The Tenant Protection Act, The Fair Housing Act, and The Americans with Disabilities Act. You need to follow the Fair Credit Reporting Act when you’re screening tenants. You need to know the security deposit laws and how to lawfully evict and when it’s okay to raise the rent.

• Understand Local Regulations

Landlord-tenant laws can vary greatly from state to state and even within local jurisdictions. Knowing these laws is crucial for both setting the terms of your lease and to handle any disputes. California has some of the strictest laws in the country when it comes to residential rentals. Find a way to educate yourself on them and stay up to date on the changes. For example, the limit on security deposits will change in July of 2024. You can now only collect up to the equivalent of one month’s rent. Don’t make the mistake of trying to collect more.

• Fair Housing and Anti-Discrimination

It is illegal to discriminate against protected classes in tenant selection and property management. Ensure you understand fair housing laws and are aligned with their principles in all your dealings. Fun fact: California’s fair housing laws are stricter than the federal laws.

It's important to document everything related to your property and tenants. Keep detailed records of all communications, inspections, and maintenance. This will serve as a protection for you in case of any legal disputes.

Embracing Your Role as a Landlord

As a new landlord, you'll encounter a diverse set of challenges. However, with diligent attention to your legal and ethical obligations, the effective management of your property, and a commitment to fostering a good relationship with your tenants, you’ll find that the opportunity far outweighs the challenges. 

One of the best things we can recommend is this: Partner with a Humboldt County property manager. By leveraging the tools, resources, technology, and experience that we have renting out homes, you’ll have a far more pleasant - and profitable rental experience once you get started. 

Seeking out mentorship, joining local landlord associations, or hiring a property management company can provide invaluable support and resources. Remember, each property and each tenant are unique, so stay adaptable and be open to learning and growth as you navigate the dynamic landscape of property management.