In 2009, our client inherited his grandmother’s home in Westlake Village, California. The house needed major improvements, and our client was not able to immediately sell the home due to various tax considerations. LBPM put together an interim rental program to help defray the expenses until the house could be sold.
Our two-stage plan was to quickly prepare the home for short-term rental, while simultaneously recommending improvements that would add value to the home for eventual resale. The “rental improvements” were rather straightforward — appealing, but inexpensive items like basic paint, carpeting, and landscaping. The “resale improvements” were those that would not suffer wear and tear from the pre-sale tenancy, like plumbing fixtures, shower and tub enclosures, door hardware, new kitchen and bathroom cabinets, and hard flooring at the entrance.
To rent the home, our marketing team featured the property on our website, as well as other popular sites like Craigslist and the MLS. We defined our ideal tenant as one who not only could pay the monthly rent, but potentially qualify for a loan to eventually purchase the home. Within only a few short weeks, a tenant was procured. The property is presently cash flow positive while our client awaits an eventual sale date.
Planning for both the short-term and long-term is just another way that LBPM delivers “proper” management to its managed properties.
Find more real-world turnaround stories at property management case studies.