There was a family weighing whether to sell their home or keep it as a rental due to a job transfer of one spouse that required the whole family to move out of state. Selling would provide a lump sum of cash, but the thought of possibly returning to California made it daunting, while keeping it as a rental would come with monthly management responsibilities.

The average rent in Torrance is $2,849 as of August 2026. This figure is a 9 percent decrease compared to the previous year. According to July data, a one-bedroom unit averages $2,210, while a two-bedroom averages around $3,010. This information serves as a starting point for estimating monthly income if they choose to keep the property as a rental.

If they decide to keep it as a rental, they will need to go through three steps: advertising, screening, and signing a lease. Advertising on platforms like Zillow or Apartments.com is advantageous, but if they are out of state, it may be more practical to hire a local management company for photography and property showings. While this incurs additional costs, it significantly speeds up response times to inquiries.

Screening involves checking credit scores, income verification, and previous rental history. A common income requirement is typically 2.5 to 3 times the rent. If managing remotely, it's beneficial to keep thorough documentation of this process.

The lease should specify the rent amount, payment due date, security deposit amount and return conditions, repair responsibilities, and lease duration. If managed from out of state, including a clause that allows tenants to handle minor repairs and settle with receipts can be helpful.

According to California AB 12, the security deposit is generally capped at one month's rent. Individual landlords with two or fewer rental properties and no more than four units can charge up to two months' rent. The landlord must return the accounting details within 21 days after the tenant moves out.

Torrance does not have its own rental regulations, so landlords must follow the statewide regulations of California AB 1482. If a tenant has lived there for more than 12 months, the lease cannot be terminated without just cause, and annual rent increases are limited to the lower of 5 percent plus the consumer price index or 10 percent. Selling provides immediate cash, but it may mean missing out on future market opportunities, while keeping it as a rental generates cash flow but comes with the challenges of remote management.

There is also a defined process for handling late rent. A notice must be sent after three days, and if the issue is not resolved, a court eviction lawsuit must be filed. If they are out of state, it's advisable to delegate this process to a local management company or attorney to minimize mistakes.

Security deposit deductions are assessed by distinguishing between normal wear and tear and actual damage. Taking photos before and after the tenant moves in can help reduce disputes over these distinctions later on.

Before leaving, it's important to switch the homeowner's insurance to a landlord policy. If they decide to keep the property instead of selling, preparing these documents will influence future management responsibilities.

If they want to check on the house while the tenant is living there, they must generally provide written notice 24 hours in advance and visit during normal business hours. If they choose to sell, the same notice requirements apply when showing the property.

There is also a process for increasing rent. If the increase is 10 percent or less, written notice must be given 30 days in advance; if it exceeds 10 percent, 90 days' notice is required. If they choose to keep the property as a rental, knowing these notice periods in advance can help reduce the burden of remote management. Whether selling or renting, delaying decisions can narrow options, so it's better to establish a direction early on.

This article is intended for general informational purposes and is not legal advice. If managing a property out of state, it is advisable to consult with a real estate professional or attorney before signing any contracts.