What are you supposed to do once you finally close the deal and buy the rental property?
First, congratulate yourself on doing the thing. Maybe it’s your first real estate purchase, maybe it’s the start of a long-term portfolio, or maybe you stumbled into being a landlord because the deal was just too good to pass up. Either way, you’re now a property owner.
But once the papers are signed and the keys are in your hand, reality sets in. What now?
Before you can even find a tenant and collect the rent, there’s work to do and early steps to take. Successful rentals are successful (and profitable) because of careful preparation, smart decisions, and a well-executed plan.
Whether you’re holding a single-family home, a condo, or a small multifamily, here’s what to do once you buy the property.
Quick Overview:
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Decide Where Your Property Fits Into the Local Rental Market
Do you know what you’re working with? The rental market in Santa Rosa and surrounding areas will impact everything from pricing to how you market your amenities. You likely did a bit of research before you bought, but here are some of the things you really need to know about your market now that the property is yours and you’re preparing to rent it out.
- Average rents for similar properties in your neighborhood.
- Vacancy rates. A high vacancy rate may mean you’ll need to price competitively or offer incentives.
- Tenant demographics. Will you be renting to professionals, families, retirees, students, remote workers? Each group values different features.
This matters to pricing, marketing, and even tenant relationships. Knowing the market helps you make informed decisions from day one.
Review Legal and Compliance Requirements
California is a state that’s strict with tenant protections and rental laws. You need to know about rent control and just cause eviction. You have to understand the limits to what you can collect in security deposits and how you’re expected to go about screening your tenants. Are you collecting an application fee? That puts stricter requirements into place.
Operating within the law is compulsory. And it’s easier than you might think to make a legal mistake.
Get to know:
- State and local habitability standards
- Fair housing laws statewide and nationwide
- How the Tenant Protection Act impacts rental increases and evictions
- Balcony laws, especially if you’re renting out units in a multi-family building
- Notice requirements before you enter the property
- Service animal and companion animal rules
- Inspection reports before move in and after move out
Talking to a local property management company or even an attorney to make sure you’re compliant before you even list the property is an excellent idea. If you cannot imagine approaching the legal landscape as a landlord, make sure you’re partnered with a full-service property manager.
Change the Locks and Secure the Property
Once you take possession of the property, you want to make sure that only you have access to it. Rekey all exterior doors or change the locks entirely. You never know how many keys are floating around from previous tenants, owners, contractors, or even real estate agents. This ensures your new tenants and your investment are safe from day one.
Not everyone is still using keys. Consider keyless entry if you don’t love the idea of changing the locks every time you have a turnover between tenants. This is not only a modern and efficient way to keep your property secure, it will also help with the management of that property going forward. When vendors need to get in to do work, instead of meeting them at the property to let them in, you can share the code. That code can be changed as frequently as you’d like. Smart home technology like this is also extremely popular among well-qualified renters who are looking for convenience and ease when they rent a home.
Make Sure You’re Well-Insured
Insuring your property is an important part of protecting it. Make sure you have a comprehensive landlord policy in place; one that protects the structure of the home, its appliances and fixtures, as well as liability and loss of rent.
A good landlord insurance policy will also have a comfortable amount of liability coverage. This is important, because anything can happen when tenants are living in your property. Talk to your insurance agent about the required or recommended liability limits. If something happens and you’re sued, you want to be protected. A tenant could fall down the stairs or a tenant’s guest could get injured in the driveway. You need to be prepared for any potential claim or legal action.
Inspect the Property Thoroughly
Get inside as soon as you can, and take a look around. Even if you purchased the home in “move-in ready” condition, it’s critical to do your own walk-through, preferably with a professional inspector or trusted contractor.
Look for:
- Structural issues. Foundation cracks, roof damage, water intrusion.
- Plumbing leaks. Check under sinks, around toilets, in basements or crawl spaces.
- Electrical safety. Test outlets, check for exposed wiring.
- HVAC performance. Make sure heating and cooling systems work properly.
- Appliance function. Test ovens, refrigerators, dishwashers, washers, and dryers.
- Pests. Rodents, termites, and ants can cause problems for tenants and your property.
Take photos and notes. This will help you get any work scheduled that might be necessary before you rent the property out.
Once you know what needs attention, you can make a plan for repairs and updates. The goal is to ensure the property is safe, functional, and appealing. You want it to rent quickly once you list it on the market. Respond to health and safety issues, functionality issues, and finally, aesthetics.
Budget-friendly improvements that make a big impact. Consider:
- Neutral interior paint.
- Modern light fixtures.
- Durable flooring (vinyl plank is popular with landlords for its look and longevity).
- Updated cabinet hardware.
- Curb appeal enhancements like fresh mulch or a new front door.
These small touches can make your rental more attractive without breaking your budget. It’s a great way to prepare once you have the property and can make some changes to it.
Decide on a Rental Rate
With repairs underway, you can zero in on pricing and establish a rental rate that’s both competitive and profitable. Check online platforms for similar listings, but make sure you’re working with good data. A local property manager can provide more accurate rental estimates.
Consider what your property offers compared to others. You can increase the rents if you have extra bedrooms, a yard, parking, or included amenities such as Wi-Fi or valet trash.
If you’re not already working with a property manager, this is the time to get that relationship into place. Some new property owners expect to self-manage. However, they quickly learn that leasing, managing, and maintaining a rental property effectively and profitably requires a local expert. There’s a lot of risk involved, and minimizing that risk often involves asking for professional support.
If you live far from your property, have a busy schedule, or simply don’t want late-night plumbing calls, a property management relationship is even more important.
Market the Rental Home: Create a Compelling Listing
When all of the advance work is done, your next step in this process is to market your rental home to good tenants. The listing has to grab the attention of tenants looking for their next home. It has to stand out and give people a reason to pause as they’re scrolling through homes for rent.
A great rental listing includes:
- Headline. Highlight the biggest draw, such as a private yard or a quiet neighborhood.
- Description. Focus on benefits, not just features
- Details. Include information on square footage, number of bedrooms/bathrooms, amenities, parking, pet policy, rent, deposit, lease term.
- Photos. Make sure they’re clear, accurate, and high-quality.
Put your listing on all the popular rental sites and social media platforms. If you’re working with a property manager, you won’t have to worry about syndicating it or following its performance. Your management team will take care of this.
Buying your first rental property is exciting, but success requires preparation and planning.
By taking the time to understand your market, follow the law, prepare the property, market it well, and choose the right tenant, you set yourself up for steady income and long-term growth.
Let’s talk about what to do now that you’re a property owner. Even better – reach out to us before you buy. Please contact us at Prestige Real Estate & Property Management. We manage homes in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.
