Anaheim Property Management Blog

Perhaps one of the most difficult aspects of being a rental property owner is the potential variance in collected income from year to year. Although your market rent may be $2,000 a month and you expect to collect $24,000 in the coming year, your actual income may be much lower. If the tenant needs to be evicted because of non-payment, or the unit remains vacant after a tenant leaves, the actual rent collected for that property may be much lower, but the expenses associated with that property don't disappear when your rent does. Mortgage, taxes, maintenance and marketing costs must be met. We are toying with a "Rental Income Guarantee". If your tenant does not pay and the unit remains vacant up to 3 months, we will continue to send your monthly income to you. The management fee will be higher (I believe 2% per month higher) and there will be a deductible of one month's rent, but you will have the assurance that no matter what, you will continue to receive income. We will be analyzing our portfolio and checking with the Bureau of Real Estate about the details, but hopefully within the next 12 months, we will be offering this new Guarantee to our owners.