A Malibu beach home can make an attractive rental opportunity for both landlords and renters. Properties in this affluent area command high rents and generally attract better tenants than lower-priced areas in other parts of California.

They also offer stunning ocean and bluff views, easy access to the highway and many opportunities for socializing on the beach.

However, if you’re an owner, before renting out a Malibu beach home, it’s important to take several steps to protect yourself against property damage and non-payment of rent.

Malibu Beach Home Rental Tips

Lease Terms

Unlike someone dealing with selling a home, landlords have to worry about drafting leases that protect their interests and spell out exactly what tenants can and cannot do. Having a lease agreement is one of the most important steps you can take as a landlord.

Work with an experienced landlord/tenant attorney to draft a lease that details how much rent you will charge, when rent is due, what the fees and penalties are for late rent payments, what changes tenants may make to the property and related details.

Since many Malibu beach rentals are for short term, you’ll need to be clear about arrival and exit dates.

It is also a good idea to determine what your renters plan to do while staying in your beach home. Malibu is known for its famous parties during the summer, and longtime neighbors have complained to city officials. There are are now stricter rules in place that affect what types of gatherings can take place, whether  a permit is needed, and noise restrictions.

You will also be responsible for paying the city TOT (transient occupancy tax) if the rental is short term–30 days or less. If you use a service like Airbnb to rent your beach home for short term, you may not have to worry about collecting and paying the city TOT, as that platform and others have made agreements with Malibu and other cities to take care of it.

Tenant Screening

Many landlords make the mistake of taking on new tenants without screening them thoroughly. Although this might reduce the amount of time a unit is vacant, it could lead to problems with late rent and property damage down the road. This especially true during the summertime, when those beach parties are in full swing.

Landlords should always screen their tenants by asking for references or conducting credit and background checks. Running a credit check can tell you if a tenant has a history of paying his or her bills on time and can also reveal any civil judgments or previous evictions.

Lease Enforcement

It is important that you enforce the terms of the lease so that tenants do not get away with paying their rent late, damaging the property or breaking the rules. If a lease says that you will charge a $10 per day late fee for all late rent payments, make sure you charge this fee accordingly.

While a certain amount of wear and tear is expected, especially when on the beach (think sand/ocean water from dripping bathing suits), be sure to regularly inspect the property for damage. Make sure the tenant makes repairs, or plans to fix the damage. Having a good sized security deposit is important in case a tenant does not follow through with repairs.

Regularly inspecting the property and enforcing the lease can help you avoid costly problems in the future.

Maintenance and Repairs

Malibu landlords should keep their properties in good condition and make needed repairs as soon as possible. This is especially important with a Malibu beach home. The ocean mist can eventually erode any metal fixtures or decorative fencing. Take the necessary steps to protect anything that can be worn or damaged by the sun or ocean air.

Good tenants that pay on time do not want to live in rentals that have plumbing problems, broken appliances and other issues. And, with the amount that a Malibu beach home can be rented, they certainly don’t want to look at faded awnings, or rusty fixtures.

Repairing these issues quickly can keep good tenants in your rentals and help you avoid the hassle of trying to find replacement tenants.

If you own several properties, consider hiring a building manager or maintenance supervisor to make repairs at each one. In some cases, you may even be able to offer the building manager free rent in lieu of payment for his or her services.

Russell Grether of Compass Real Estate is a real estate agent based out of Malibu, CA. He specializes in Malibu real estate, Malibu homes for sale, Malibu properties, Malibu land for sale, Malibu rentals and surrounding area real estate from Montecito to the Pacific Palisades. You can contact hime at 310-994-4247