Are you a landlord in California? Learn about the local rental market, what renters in the area look for, and how you can stand out in the region, whether you are currently a landlord or hope to become one.
California is a hub for many varieties of people, nearly half of whom are renters. As such, it is an excellent place to own property as an investor or a landlord. However, California can be a challenging market for a landlord. Between the high competition, cost of getting into the market, and the often quite strict nature of California’s landlord-tenant laws, being a landlord in California is not always an easy job.
According to Apartments.com, four cities in California make the top ten list of most competitive cities in the United States, including San Francisco, San Jose, Anaheim, and Santa Ana. As such, it is unsurprising that the market can be quite competitive, meaning that you will need to take steps to help your property stand out.
To stand out in the local rental market, you should consider providing amenities that are highly desirable in your area, especially if they are uncommon. Here are trends in the California market and some of the major cities within it.
Learn more: California Landlord-Tenant Laws Resource Guide
California Rental Market Statewide
As a coastal state, California is quite an expensive area to live in. The median rent across the state is $2,481, and while not every city in the state is quite that expensive, most of California’s residents are paying quite high expenses for their living circumstances. These costs, unsurprising to most, are commonplace in coastal states and in an area as highly desired as California. Currently, it is experiencing a cooling period, as many places in the U.S. are, but costs remain high for both rentals and purchases across much of the state.
Common sights in rentals across California include pools, hardwood floors, and air conditioning, with a substantial portion of rentals in the state having one or more of these amenities. Air conditioning and pools become significantly more common in rentals in the southern part of California.
Desirable amenities in California include storage solutions to accommodate the often cramped apartments in California cities, in-unit laundry facilities, and off-street parking spaces. As with many coastal states, waterfront property is also highly sought after.
Learn more: How to Spot Investment Properties Likely to Appreciate Over Time
San Francisco Rental Market
San Francisco is a highly sought-after market for renters, being a major city with plenty of amenities that renters and homeowners alike love. Additionally, San Francisco has excellent, highly-rated schools, which appeal to many California families. It is often considered one of the most desirable cities in the U.S., which helps explain its high median rent of $3,519.
San Francisco rentals often feature amenities such as pet-friendly accommodations, ocean views, and proximity to popular attractions. However, San Francisco rentals often lack air conditioning due to the city’s northern, coastal location. The city’s local renters also often desire large windows and outdoor spaces, which can be difficult to find in the city. If possible, offering rentals slightly below market rate, especially in such an expensive city, is another good way to encourage renters.
San Diego Rental Market
San Diego is another hot rental market right now, with its warm, sunny location and proximity to the coastline. People seeking beautiful natural environments, fresh seafood, and a variety of sports will find San Diego an excellent place to live. However, these factors have contributed to a median rent higher than much of the state, at $3,105.
As San Diego is a notable hub of culture and industry, desirable rentals will be close to whichever cultural or industrial locations are most important to their intended inhabitants. Desirable amenities include proximity to beaches and cultural centers, as well as the ability to partake in common tourist attractions in the area.
Los Angeles Rental Market
The L.A. rental market is known for its luxury apartments and high cost of living. Rent in the city is typically in the region of $3,179, and some luxury housing arrangements can come out to tens or hundreds of thousands of dollars per month, although these are far from the normal expectation.
As expected for the city, the common amenities in L.A. are luxuries such as proximity to nightlife and the art scene. However, outdoor spaces aren’t overly common in Los Angeles rentals, making them highly desirable to many renters. High-speed internet, as always, is desirable, and location, especially in L.A., is always important to renters. While not very common, many residents desire gyms, spas, and other similar amenities, especially in high-end apartments.
Learn more: Luxury Apartment Amenities – What Some Renters Will Pay Big Bucks For
Fresno Rental Market
As one of the better markets in California, Fresno is a good location for California families. Much like San Francisco, it has some excellent schools and many nearby amenities that residents love. Unlike San Francisco, however, it boasts a relatively low median rent in comparison to other cities in the state, at $1,650. Fresno is also quite close to several of California’s beautiful national parks, making it a desirable city for many nature lovers.
Rental properties in Fresno often feature central air conditioning and heating, and, as it is less dense than many other California cities, parking areas are much more common than in much of the rest of California. A rare amenity in Fresno is high-speed internet access, which is highly desirable, especially for those who work from home. Other desirable amenities for the region include proximity to parks and outdoor recreation, and proximity to the local museums and farmers’ markets that are a part of Fresno’s local culture.
Final Thoughts
California is a great market for landlords and renters. It has thriving economies, luxury rentals, and a variety of renters looking for many different kinds of rental properties. As a current or future California landlord, it is important to consider what to do to stand out in your market, but fortunately, there are many easy things to look for when buying or building property to rent out, in order to ensure your success.
