Logistics of renting out a home in Berkeley
Hello! I am toying with a move to another city, but I would love to keep owning my single-family home here in Berkeley. I am hoping the BPN community might have some tips on renting out a home in Berkeley when you don't live here. I would likely want to use a property management company, and if anyone loves a particular property manager please let me know. I'm also curious about tips should an owner want to come back to live in the property in Berkeley or sell it after a few years -- I have heard those squatting horror stories (which I'm sure are uncommon) and would like to know if anyone has advice on protecting your investment. Thanks!
Nov 3, 2024
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I strongly suggest you join the Berkeley Property Owners Association, and avail yourself of their knowledge, advice, forms, and recommendations. Being a housing provider in Berkeley is not for the faint of heart. Best of luck.
It is simply not possible to rent out a house in Berkeley with confidence that you're going to be able to move back into it or get the renters out in order to sell it. Look up Berkeley Rent Board rules and you will discover that you, as a landlord, have absolutely no power to control your property once you hand it over to a renter. Either keep your house empty until you return or sell it before you move, but renting it out, in Berkeley? No way.
I would post your rental on Sabbatical Homes and get a family that is coming here for a year when one of the parents is on sabbatical. They have a job and home elsewhere and will leave but it's only for one year usually. Or rent to a current academic at UCB. I think that's a safer group in terms of not worrying about people refusing to leave. .
Renting a house in Berkeley - beware!
There is a low threshold for renters to accrue rights that would make it difficult for you to move back in yourself, or get an undesirable tenant out. You should study the rental housing ordinances before taking action.
Other BPN folks will likely recommend property management companies.
The UCB faculty housing office may be a source of one-year rentals for visiting scholars. The downside is having to manage the churn of tenants.
The ideal case is getting a great tenant who will stay for exactly as long as you want them to stay, but that is not guaranteed. Even if you think the new tenant will be good, and they state that they do not intend to live in your property permanently, the housing market in the Bay Area is so tight that they might get stuck there, despite your future objectives for the property.
Don't do it. We have been in that "uncommon" horror story, and in talking to our lawyer, it's not that uncommon. Philosophically, Berkeley sees housing as a right. The city doesn't want you to see your non-primary home as an investment. Instead, renting your home out is a service for tenants, who will have many rights. If you want to move back in or sell, it will cost you at least $18,500. Single family home rentals in Berkeley are rare, and people tend to stay in them for long periods of time. Save yourself the headache.
In almost every scenario, selling the house will be a better way of protecting your money. Unless you bought more than 15 years ago, the cash flow on renting out vs selling doesn't make sense, especially if you consider the cost of maintenance. If you bought more than 15 years ago, you're probably sitting on a ton of home equity that you can't tap into.