Los Angeles is number 7 on the most expensive rental market list in the US
Cost is still way below the number one market – San Francisco with a whopping $3,350 for a one bedroom and $4,510 for a two bedroom apartment
Landlords and property managers are required to follow their federal, state and local laws about informing tenants of policies, facts, and rules about the property.
Any information that is shared with a renter about the property or a renter’s right are considered disclosures. Landlord disclosures can either be included in the lease or rental agreement, or some other form of writing, and are typically shared with the tenant prior to move in.
Registered sexual offender database: Landlords must include the following language in their rental agreements: “Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender’s criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.” (Cal. Civ. Code § 2079.10a)
Tenant paying for others’ utilities. Prior to signing a rental agreement, landlord must disclose whether gas or electric service to tenant’s unit also serves other areas, and must disclose the manner by which costs will be fairly allocated. (Cal. Civ. Code §1940.9)
Ordnance locations. Prior to signing a lease, landlord must disclose known locations of former federal or state ordnance in the neighborhood (within one mile of rental). (Cal. Civ. Code § 1940.7)
Toxic mold. Prior to signing a rental agreement, landlord must provide written disclosure when landlord knows, or has reason to know, that mold exceeds permissible exposure limits or poses a health threat. Landlords must distribute a consumer handbook, developed by the State Department of Health Services, describing the potential health risks from mold. (Cal. Health & Safety Code §§ 26147, 26148)
Pest control service. When the rental agreement is signed, landlord must provide tenant with any pest control company disclosure landlord has received, which describes the pest to be controlled, pesticides used and their active ingredients, a warning that pesticides are toxic, and the frequency of treatment under any contract for periodic service. (Cal. Civ. Code § 1940.8, Cal. Bus. & Prof. Code § 8538)
Intention to demolish rental unit. Landlords or their agents who have applied for a permit to demolish a rental unit must give written notice of this fact to prospective tenants, before accepting any deposits or screening fees. (Cal. Civ. Code § 1940.6)
No smoking policy. For leases and rental agreements signed after January 1, 2012: If the landlord prohibits or limits the smoking of tobacco products on the rental property, the lease or rental agreement must include a clause describing the areas where smoking is limited or prohibited (does not apply if the tenant has previously occupied the dwelling unit). For leases and rental agreements signed before January 1, 2012: A newly adopted policy limiting or prohibiting smoking is a change in the terms of the tenancy (will not apply to lease holding tenants until they renew their leases; tenants renting month-to-month must be given 30 days’ written notice). Does not preempt any local ordinances prohibiting smoking in effect on January 1, 2012. (Cal. Civ. Code § 1947.5)
Notice of default. Lessors of single-family homes and multifamily properties of four units or less, who have received a notice of default for the rental property that has not been rescinded, must disclose this fact to potential renters before they sign a lease. The notice must be in English or in Spanish, Chinese, Tagalog, Vietnamese, or Korean (if the lease was negotiated in one of these languages), and must follow the language specified in Cal. Civil Code § 2924.85(d).
*Not every disclosure was included in this list, check with landlord tenant laws and civil code for the complete list of landlord disclosure requirements.
Over the next 30 years the 65 and older age population will Double from about 47 million today to over 80 million. 20% of our Population will be at the age of 65 or over compared to about 14% today.
With the growing demand for housing to fit the old-age population, here are a few key amenities they will search for an easy Senior Citizen Living condition:
Average rent price in Los Angeles has gone up 5.2% during 2016
The cities with the biggest increase are: West Hollywood Hills 13%, Beverly Hills 12%, Mid City 12%, Olympic Park 10%.
The biggest decline in rent was Down Town Los Angeles -8% during 2016
Who are the Baby Boomers? The generation of people that were born Between 1945 and the early 1960s.
Baby Boomers accounts for about 30% of the renters market.
According to data from the Joint Center for Housing Studies of Harvard University, renting increased for adults between ages 50 and 75 from 2004 to 2013.
So what are some Baby Boomers looking for?
Baby Boomers are looking to downsize while still keeping a high quality living. Landlord should try to offer higher end amenities, a quiet relaxed environment, the ability to entertain family and friends when visiting, and please do not mention any senior citizens when advertizing of describing your property.
Read our article about: Amenities tenant are searching for in a rental
* Less Space – with the kids all grown up and out of the house, there is no need for so much space and they are ready to downsize.
* Less expenses – moving to a rental eliminates the need to pay Property Taxes, Homeowners Insurance, maintenance, repairs, etc.
* Selling their House allows the money to be used for other investments or lifestyle changes.
We at the Ziegel Group always highlight convenience when marketing properties to baby boomers, including maintenance services, length of lease agreements, and any community features that would encourage baby boomer renters to invite their family over to enjoy community pools, recreation rooms or picnic areas on the property.
Congratulations! You are an owner of a rental property. Deciding to work with or hire a property management company to represent your property is a big decision. While some owners self-manage their homes, using a management company is an alternative way to secure rental income for less stress and less dedicated time.
We at the Ziegel Group keep your property occupied by a reliable tenant and handle the dirty work, like late night phone calls, maintenance management, hunting down rent payments, or dealing with an eviction process.
Every task that we perform for your investment is done to promote the success of the property. If you are new to the industry, the Ziegel Group Property Management will also have all the appropriate leases, applications, notices of entry and other relevant documents, as well as screening procedures and knowledge of the landlord tenant laws in your state.
Some owners will base a management decision purely on the cost of services, and while cost should be considered, it is important to understand that our knowledge saves you money!
At the Ziegel Group monthly Property management fees starts at just $49
Insurance policies designed specifically for landlords provide added protection for financial loss and obligations associated with your rental properties. While some landlords assume they can rely on their standard homeowners insurance to cover their rental units, homeowners coverage it usually not sufficient to protect an investment property.
Homeowners insurance covers owner-occupied homes while landlord insurance covers liability and damages connected to tenant occupied homes.
Depending on the insurance company you work with and the options you choose, your policy may consist of some or all these types of insurance coverage:
Dwelling Coverage – covers structural damage to the rental property from things like fire, vandalism, or a broken water heater. The more expensive dwelling coverage policies will also cover damage caused to appliances or equipment on the property and damaged inflicted by malicious tenants.
Liability Coverage – provides coverage for expenses associated with injuries that occurred on your rental property that you are found to be legally responsible for.
Personal Property Coverage – covers damage to your personal items on the property (not your tenants’) like curtains or light fixtures. This is especially important if your rent out a furnished home.
Loss of Income Coverage – if your property becomes unlivable due to damage and you can no longer collect rent from tenants, some policies allow you to receive the lost rental income for a limited amount of time until it is rentable again. However, most standard landlord policies won’t cover the lost rent due to an eviction or missed rent payments by tenants.
Flood Coverage – beyond dwelling coverage, specific flood coverage can protect you from water damage caused by things like negligent plumbing issues, rain, or busted pipes.
Acts of Nature Coverage – dwelling coverage has further limitations to structural damage or total loss as the result of tornadoes, hurricanes, and earthquakes which is why acts of nature coverage is important to consider. Depending on your region you might need special protection to cover your property for instances like these.
Legal Fee Coverage – covers fees and costs of legal counsel if a tenant sues you or you need legal representation in court for owed rent money or ignored eviction notices.
Make sure you are appropriately protected in the event you need to file a claim for your rental property. Without landlord insurance, you may find your claim is denied under standard homeowners insurance. Landlord insurance is typically more expensive than homeowners insurance because landlords require more protection for their tenant occupied property.
When choosing your landlord insurance policy consider language about cash value versus replacement costs. If your property is older, the cash value can be significantly less the actual amount it costs to replace or rebuild damaged property.
Not every landlord will choose to include every available coverage option in their policy. It is up the you to decide how much you want to spend on your premium in order to manage costs for damage or liability associated with your rental property. An insurance provider will be able to review these coverage options and more to help you find the best policy for your needs.
Insurance for Tenants
Landlord insurance only protects the owner’s property and covered belongings. Your tenants’ personal possessions are not covered under your policy. It is good standard practice to require tenants to have their own renters insurance, which is an inexpensive way for your tenants to protect themselves and cover the cost of damaged or stolen goods.
Article courtesy: rentecdirect.com
One of the biggest cash flow killers in property management is tenant turnover.
When a tenant moves out of your rental property, not only do you miss out on monthly rental income from the unoccupied unit, but the costs continue to add up when you factor in the additional steps it takes to get your newly vacated unit rented again.
Costs Associated with Tenant Turnover:
Administration Costs – Time is money in most industries, and property management is no exception. When it comes to budgeting tenant turnover, you need to factor in the administrative time it takes to market your newly vacant property, process move-out paperwork, coordinate repairs and cleaning services, screen new applicants and process lease agreements for future tenants.
Marketing Costs – Sometimes a simple online listing is all it takes to get your vacant unit rented fast. But in a slower market, advertising your property can involve signs, flyers, or print ads, all of which will contribute to your bottom line.
Showing Costs – For serious prospects that want to visit your listed property, you will need to schedule time out of your day to present the vacant unit in person. If you live far away from your rental property, showing your unit in person can get expensive when you factor in traveling expenses.
Application Processing – Property managers and landlords should always approve rental applicants after reviewing tenant screening reports to discover an applicant’s financial responsibility, job stability, law abiding behavior and rental history. Credit, criminal, and eviction reports all cost money, which can be deferred to the applicant, but they involve time to review in order to make the best approval decision.
Cleaning Costs – Despite your tenants’ best efforts, they might not be able to get your property back to the level of cleanliness you require for the next tenant. Even if you use their security deposit to cover the cost of cleaning and repairs, there might be extra expenses that go beyond the deposit that will come out of your pocket. If the vacating tenant has lived in the property long enough, some of restoration expenses will not be covered by the security deposit at all.
Repair Costs – Once a tenant vacates the home, you have the opportunity to conduct a thorough inspection which may reveal some home maintenance repairs that must be handled before the next tenant moves in. Not only will repairs cost you money, but the longer it takes to get the property market ready, the longer you will be without rental income.
Lost Income – Without steady income coming in from regular rental payments, you will notice a hit to your bank account, that will continue to add up the longer your property sits vacant. This is will be especially noticeable if you are relying on rental income to cover a mortgage payment on the property.
Save Money During Tenant Turnover
Although tenant turnover is unavoidable in this industry, there are some steps you can take to manage the transition and keep costs at a minimum.
Start marketing the vacant property early – As soon as your current tenant gives notice about their intent to move, start looking for a new tenant. In a perfect world, you will have a new tenant ready to move in as soon as the current one moves out.
Minimize in-person showings – Only show the property to serious applicants, and try to get some initial screening questions out of the way in a phone interview, by asking some qualifying questions about income and job stability. You can also host an open house to show the property to multiple prospects at once.
Do a move-out inspection prior to your tenant vacating the unit. Set up a time to do a walk-through with your tenant so you can point out areas that need to be cleaned or fixed by your tenant. This step will help your tenants take an active approach to getting the property back to the condition it was when they moved in. You can also take this time to make a note of what additional maintenance you will need to do once the unit is vacant.
Reduce Tenant Turnover – The simple solution for avoiding tenant turnover is prevention. While you won’t be able to stop a tenant from moving out of town for a new job or to be closer to family, preventing local moves is the best way to keep vacancies at a minimum. Maintain a positive landlord-tenant relationship with good communication and timely response to tenant requests. Keep your rent priced at a fair market value and keep up on maintenance and property features.
Best case scenario, you will find a long-term, reliable tenant who pays rent on time and takes care of the property, with no intention of moving. But if one of your tenants does decide to move out, understanding the true cost of tenant turnover will help you budget your expenses and manage the process more efficiently.
Some landlords manage properties on their own or with the help of an employee, such as a resident manager. But sometimes landlords need more help or are not interested in nor have the time to deal with the day-to-day issues that arise when leasing real property. That is when a property management company is needed and can be of service.
Property management companies can be a huge asset to your business and even save you money in the long run.
At the Ziegel Group our property management company deals directly with prospects and tenants, saving you time and worry over locating, screening, and interviewing prospective tenants, marketing and leasing your rentals, collecting rent, handling maintenance and repair issues at our discounted rates, responding to tenant complaints, and when necessary, even pursuing evictions. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Finally, the Ziegel Group is an independent contractor, so you avoid the hassles of being an employer.
Hiring a property management company has its disadvantages and advantages.
Consider the following factors to determine if hiring the Ziegel Group as your property management company would be a good decision for your investment or business.
You should consider hiring a property management company if:
You have little experience in maintaining a house for others. We know to cost of repair and maintenance and use our own in-house staff or contractors at a discounted rate.
You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely not to have the time to deal with the day-to-day management of dealing with tenants and thus the more likely you are to benefit from a management company.
You don’t live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.
You’re not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring the Ziegel Group to manage your property.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if isn’t not your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.
You don’t want to be an employer. If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
Your property is part of an affordable housing program. If you participate in an affordable housing program, things can get complicated. Usually, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to continue receiving the assistance, the landlord must comply with a complicated set of rules. With so much at stake, it’s often worth hiring a property management company that has expertise and experience with the particular housing program in question.