The True Cost of Being a Landlord in Long Beach (And How to Maximize Profits)

So, you’re thinking about becoming a landlord in Long Beach? Or maybe you already are one. Either way, let’s talk money because renting out a property isn’t just about collecting checks. It’s about making sure those checks actually leave you with a profit.

Being a landlord comes with costs, some expected and some sneakier than a tenant trying to hide their pet iguana. Here’s what you need to know to keep more cash in your pocket while keeping your rental in top shape.

The Real Costs of Owning a Rental in Long Beach

1. Mortgage and Property Taxes

If you’re still paying off your property, your mortgage is your biggest cost. In Long Beach, the median home price is around $850,000, and with a 20% down payment, your monthly mortgage could easily be $4,000 or more. Add in property taxes, which average 1.1% of the home’s value per year, and you’re looking at another $9,000 to $10,000 annually.

How to Maximize Profits:

• Refinance if interest rates drop. A lower rate means lower monthly payments.
• Challenge your property tax assessment. If values dip, you could save thousands.

2. Maintenance and Repairs

No property stays perfect forever. Roofs leak, pipes burst, and somehow, every tenant manages to break at least one cabinet handle.

• Expect to spend 1-2% of your property’s value per year on maintenance. That’s around $8,500 to $17,000 for an average Long Beach home.
• Emergency repairs? A broken water heater can set you back $1,500, and a new roof? Try $10,000 or more.

How to Maximize Profits:

• Schedule regular inspections to catch small problems before they become wallet-draining disasters.
• Invest in quality materials because cheap fixtures break fast and cost you more in the long run.

3. Vacancies and Tenant Turnover

Every time your unit sits empty, your profits take a hit. In Long Beach, the average vacancy rate is around 4%, but if your place sits empty for one month, you’re losing a full month’s rent (easily $2,500+).

Tenant turnover costs can add up fast:

• Cleaning and repainting: $500–$1,500
• Advertising and screening: $100–$300
• Lost rent: ??? (depends on how long it sits empty!)

How to Maximize Profits:

• Keep tenants happy with responsive maintenance and fair rent increases.
• Use a property manager to streamline tenant screening and reduce turnover time.

4. Property Management Fees

Speaking of property managers, hiring one can save you stress but it comes at a cost. In Long Beach, expect to pay 8-10% of the monthly rent plus leasing fees.

For a $2,500 rental, that’s $200 to $250 per month. Is it worth it? If you value your time (and sanity), yes. A good property manager handles late-night maintenance calls, screens tenants, and makes sure you’re following California’s landlord-tenant laws.

How to Maximize Profits:

• Work with a reputable property manager who can help you reduce vacancies and handle maintenance efficiently.
• If you manage the property yourself, invest in property management software to keep things organized.

5. Insurance and Legal Costs

Standard landlord insurance in Long Beach costs around $1,500 to $3,000 per year, depending on coverage. And don’t forget about legal fees: evictions in California can cost $5,000 or more if a tenant refuses to leave.

How to Maximize Profits:

• Make sure you have solid lease agreements to avoid legal battles.
• Require renters’ insurance so tenants cover their own belongings and liabilities.

Profit-Boosting Strategies for Long Beach Landlords

Now that you know where your money goes, let’s talk about how to keep more of it.

1. Charge Market Rent (And Adjust Regularly)

Check rental listings every six months to make sure your rent is competitive. If you’re undercharging, you’re leaving money on the table. In Long Beach, the average rent for a two-bedroom is around $2,800, so make sure yours is in line.

2. Offer Perks to Keep Good Tenants

A small incentive can go a long way. Offer a free deep cleaning once a year or a discount for tenants who sign a longer lease. Happy tenants stay longer, and longer stays mean fewer turnover costs.

3. Use a Property Manager to Reduce Costs

Yes, they charge a fee, but a great property manager can save you money by keeping tenants longer, handling maintenance efficiently, and avoiding costly legal mistakes.

4. Go Energy-Efficient

Installing smart thermostats, LED lighting, and water-efficient appliances can reduce utility costs, which makes your rental more attractive and allows you to charge a higher rent.

5. Screen Tenants Thoroughly

A bad tenant can cost you thousands in unpaid rent, damages, and legal fees. Don’t rush the process: verify income, run background checks, and call previous landlords.

Final Thoughts

Being a landlord in Long Beach is all about smart budgeting, minimizing vacancies, and keeping costs under control. If done right, it can be a solid investment.

But if managing tenants, repairs, and legalities sounds like a headache, a property manager can handle the hard stuff while you enjoy the passive income. At CMC Realty and Property Management, we’ve got you covered. Because, let’s be real, your time is worth more than chasing down late rent or fixing leaky faucets at midnight.

Stay smart, stay profitable, and make your Long Beach rental work for you, not the other way around.