This month Kevin Lehman of BlueHorizon Management has writtenabout landlording in Montecito.
People have always been drawn to this little corner of perfection. The last few years have seen a rapid influx of tech companies calling the Central Coast home, resulting in a significant population growth with a well – paid pool of prospective tenants.
Rental properties are great financial assets and unique investments; you are providing a home for someone, blending profit margins with hospitality. The ability to provide someone a home is a wonderful gift and it should not be taken lightly.
In today’s market, the supply of rental units is slightly trailing demand. Although demand is high, applicants have become more discerning, looking for the same finishes in a home that most home buyers seek, including modern kitchens, updated bathrooms, stainless steel appliances, hard surfaced floors, dual paned windows, etc. Happy tenants result in less turnaround and vacancy periods. Maintenance expenses are minimized, since these tenants take pride in maintaining their residences.
The first step to securing great tenants is to select the optimal price range. Although there is a wide array of unique qualities amongst properties, rental pricing tends to be based upon location, amenities and finishes. As an owner, you can impact the rental value of your investment through these tools.
One of the lowest cost, highest impacts you can have on your rental rate is to allow pets. Many people consider these furry buddies to be like family. Although Santa Barbara is very dog friendly, finding a home that allows them can be challenging.These tenants are often willing to pay more in rent, $100 – $750/month, if the owners allow cats or dogs more for larger estates.
We recommend that owners be flexible on their pet policies, as it can provide a significantly higher rate of return. If your investment is in a Common Interest Development (HOA), you will need to confirm if and how many pets are allowed in your Community.
Below are baseline rental values for properties throughout Montecito, including guest units. Most homes rent significantly higher than the figures shown to the right.
Blue Horizon Management Company specializes in the management of long-term rental units and Common Interest Developments (HOAs). “We connect great people to great properties.”
Montecito Market Report
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