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25Jan

California Landlord Disclosures

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California Landlord Disclosures

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.

Here is a look at some of the landlord disclosures required in California*.

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.

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19Dec

Legal Recreational Marijuana in a Rental Property

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In November 2016, Californians voted in favor of Prop 64 to legalize recreational marijuana use in the state of California.

Referred to as the Adult Use of Marijuana Act, the initiative allows people who are 21 and older to possess, transport and buy up to 28.5 grams of marijuana for recreational use.  Additionally, people over 21 years old will be able to grow and use up to six pot plants.

This new law will expand on the California’s existing law that allows marijuana for medical purposes.

Besides California, Maine, Massachusetts, and Nevada also voted to legalize recreational marijuana in the 2016 election. Each state has their own provisions about the legal amounts for possession and cultivation.

As a landlord or property manager in these states with newly enacted recreational marijuana legalization, you may be wondering how this new law will affect your rentals.

Per your state’s newly legal recreational marijuana, you might have the following questions:

  1. Do I have to let my renters use pot on my property?
  2. Do I have to let my renters grow pot plants on my property?

Let’s keep looking at California’s Prop 64 to help answer these questions.

It turns out, that while Prop 64 makes it legal for Californians to enjoy recreational marijuana, you do not have to let them do so on or around your rental property.

Other states, like Washington and Colorado, where pot is legal can be used as an example for how to deal with marijuana use by your resident.

Bret Sachter, a Seattle attorney who represents clients in the pot industry in the state of Washington, told the San Diego Union Tribune that landlords are on solid legal footing, provided they put an explicit clause prohibiting pot in their leases.

If you have a clause in your rental lease that prohibits smoking in or around your property, it would be considered a lease violation for your renters to smoke marijuana. Even if it is legal to do so under the new law, it would not be allowed in their rental property.

As further protection, since marijuana is still illegal under federal law, landlords could include a clause in their rental lease prohibiting conduct that is unlawful under state and federal law.

What about growing pot in the rental property?

There are many reasons to why a manager would wish to prohibit your tenants from growing pot in your rental property.

  • Marijuana plants can increase the humidity in the house and cause mold to grow potentially damaging windows, drywall, and carpet.
  • The smell of marijuana can be very strong and leave the house smelling like marijuana after the tenant vacates making the unit hard to rent. The smell may also bother neighboring tenants, who could start looking for a new pot-free rental leaving you with a vacancy.
  • The lights used for growing pot indoors requires a large amount of electricity. This may not be a concern if the tenant is in charge of paying the electric bill. However, there might be cause for concern if the tenant modifies the electrical system and causes a safety concern.
  • Ventilation is another issue, and tenants have been known to modify HVAC systems or cut ventilation holes in the structure.

According to Zillow, a landlord can prohibit renters from growing pot by including the rule as a clause in the lease.

How do I prevent marijuana use and cultivation by my tenants?

The legal team at Robinson & Henry, who work with landlord tenant laws in Colorado (where recreational marijuana has been legal since 2012)  have provided advice for landlords who manage property in an area where weed is legal on the state level.

If a landlord or property manager wishes to prohibit marijuana use in his or her rental properties he or she should incorporate a crime and drug-free lease clause into his or her lease agreement.  

A written provision in a lease prohibiting criminal activity in or on the leased premises will suffice to make marijuana possession a lease violation and can form a basis for eviction. Additionally a non-smoking provision will prohibit the smoking of marijuana on the leased premises and marijuana smoke and odor from emanating from a unit. More broadly a clause in a lease prohibiting a tenant from disturbing, harassing, annoying neighbors or creating a nuisance may be sufficient to evict a marijuana using tenant. Also, a provision prohibiting hydroponic cultivation or any cultivation of marijuana plants makes growing marijuana plants a lease violation and thus allows a landlord to evict for such a violation. –Robinson & Henry, P.C. Attorneys at Law

All landlords should review  their rental criteria, property rules, and lease agreements to make sure they are crystal clear on issues relating to marijuana use, possession, and cultivation. You should also have your documents reviewed by a knowledgeable attorney familiar with landlord-tenant laws in your state to make sure your policies are legal and enforceable.

Can I prohibit medical marijuana use on my property?

Some landlords have worried about running afoul of fair housing and disability laws from tenants with medical marijuana permits on the grounds of discrimination.

Since federal law does not distinguish from medicinal or recreational marijuana, it treats all types of marijuana as a Controlled Substance. As a control substance under federal law, medical marijuana use would still be considered a lease violation if you have terms that prohibit illegal activity or criminal activity.

While landlords need to provide tenants with reasonable accommodation for their disabilities, they do not need to do so in a manner that would violate federal law. Allowing an illegal act is unlikely to be required as a reasonable accommodation.

As a landlord or property manager in a state which allows legal use of recreational marijuana, you need to decide how to deal with marijuana use on your property. Some landlords may choose to tolerate it, while others will opt to prevent it from their property.

Article courtesy of  Rentec Direct.

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15Dec

Top 10 Qualities of The Best Tenant

Posted by: admin Categories: Landlords Tenants
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A good Property Management  will go to great lengths to find a qualified tenant for their rental property. Qualified tenants are those that have a proven track record of financial responsibility and rule-abiding behavior, indicating their ability to pay rent and not damage the property.

But a good Property Management will strive for more than just a good credit score and clean criminal background in their tenants. Although difficult to screen for, there are certain qualities that can make a renter stand out as the perfect tenant in their eyes.

  1. Pay your rent on time

The Property Management-tenant relationship revolves around regular rent payments in exchange for a place to live, and making on-time rent payments is one of the most important jobs for which a tenant is responsible. Most likely, your property owner depends on the rent to make the mortgage payment on the rental property so paying rent late can be a financial burden for your property owner / investor.

  1. Treat the property like your own.

Taking pride in ownership of your rental property by taking care of it will not only ensure the return of your security deposit but also builds for a great recommendation should you decide to move in the future. Normal wear and tear is expected, but preventing tenant caused property damage is ideal.

  1. Communicate maintenance issues.

Even a small leak can turn into a big expensive problem. A responsible tenant will notify their Property Management when they notice any maintenance issue that requires attention.

  1. Don’t be high maintenance.

While a Management values great communication from their tenant, a renter who constantly complains or requires special attention is a pain. In most cases, you will not be your Property Management’s only tenant and only priority. Try to resolve problems on your own, as long as they follow lease terms, before bothering your Management.

  1. Don’t let someone live with you who isn’t on the lease.

The lease agreement is designed to protect both the landlord and the tenants. It needs to be signed by anyone over 18 living in the rental property. A good tenant will not sneak in secret roommates and should notify their landlord if they plan on adding another person.

  1. Keep the rental clean.

A good tenant will keep the property sanitary as to not invite pest infestation or cause property damage. If the tenant does not keep a clean home, the landlord may deduct the amount paid for extermination or repairs from the tenant’s security deposit per the lease terms.

  1. Renew the lease.

Managing tenant turnover is expensive and time consuming for a Property Management. A great tenant will want to renew their lease agreement and hopefully live at the same rental property for a long time. In a perfect world they would meet every quality of a perfect tenant making the long term tenancy even more ideal.

  1. Keep up with tenant maintenance.

While the majority of maintenance responsibilities fall on the Property Management, tenants may be required to maintain some appliances, manage lawn care, change air filters or replace smoke detector batteries. A great tenant will not only understand and agree to these terms but will actually do it! A tenant’s maintenance responsibilities should be outlined in the rental agreement so they understand their contractual obligation in regards to maintaining the property properly.

  1. Follow lease terms.

A standard lease will prohibit any illegal activity on the property or any behavior that threatens the safety of the community . A good tenant will uphold theses rules as well as other lease terms. Other lease terms that a bad tenant might break typically involve pets or obnoxious parties that disturb other renter’s right to a quiet enjoyment. Beyond failure to pay rent, lease violations like these constitute legitimate grounds for eviction, which is expensive and stressful for all Property owners.

  1. Have renters insurance.

Not only will renters insurance help cover the cost of replacing a tenant’s stolen or damaged personal possessions, it can also cover the cost of damage caused to the property by negligence. A great tenant will have renters insurance so the homeowner isn’t left with a bill due a tenant being unable to cover the cost of damaged to the property or court fees.  The good news is, renters insurance is extremely affordable.

The most important quality of a good tenant is honesty. Honesty is so important, it gets its own section beyond the top ten.

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13Oct

Help Your Tenants to Protect and Keep Your Property in Great Condition

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How to help tenants protect the property?

Most renters move into a new place with the intention of keeping it clean and comfortable. Who’d want to live any other way?

This mentality is a good thing for a landlord; you have a big financial investment at stake and you’re entrusting it to people who are pretty much strangers.

In order to make it easy for your tenants to meet their expectations and protect your property at the same time, you need to treat their move-in the same way you’d approach a transaction with anyone you handed over the keys to any other part of your kingdom. If you lend your car to someone you tell him what kind of gas it takes, who your insurer is, and give him a heads up about the balky CD player. And you certainly wouldn’t leave a dog-sitter or a plant-sitter, much less a babysitter, alone for the first time without a comprehensive list of contact numbers and dos and don’ts.

Along the same lines, here’s a list of items to give your new tenants, as well as some tips on how to make life easier for everyone involved:

Start Them off Right

Begin with finishes and furnishings that are easy to care for. Your tenant shouldn’t have to live in constant fear of ruining something and then being financially responsible for it.

Floor treatments. Light-colored carpet is a magnet for stains. Even the most careful tenants can’t be faulted if someone spills on it, so why set them up for failure? Think over the flooring in the rest of the house too, especially the kitchen.

Countertops. Even though it’s very popular and considered high end, granite and similar natural materials are prone to staining and some need periodic sealing treatments. On the other hand, inexpensive materials often aren’t heat-resistant and inadvertently leaving a hot pan on them briefly can leave burn marks. Every material has its downside, but it benefits you and your tenants to have countertops that are as durable as possible.

Window coverings. Flimsy blinds don’t stand up to long-term use, and aren’t easy to clean. It’s really not fair to tenants to expect them to maintain these in pristine working condition.

Tell Them What to Watch Out For

In some parts of the country, and in some climates, there are natural occurrences that a tenant should be aware of.

At the beach or in areas with high humidity, for example, mold is a problem. Certain insects and pests are common property issues in other places. While rentals in California, like Lewis Apartments, should review basic earthquake safety and how to anchor furniture with their tenants.

If you take steps to protect your property and empower your tenants with knowledge about what to look out for and how to mitigate problems if they arise, it will benefit everyone.

Give Them Instructions

If the surfaces need special care or cautions, be sure to advise your tenants about them. If you’ve had the tub re-glazed, for example, make sure the tenants know not to use abrasive cleaners on it. You could also give them a move-in kit of specific cleaning supplies if they’re required, and let them know where to purchase replacements when they run out.

Help Them Understand the Appliances

Tenants are less likely to have — or cause — problems if they understand how things work. If there’s any special method to using an appliance, explain it. If you have the original appliance manuals, make copies and put them in binders or sturdy plastic envelopes for your tenants. If you don’t have the manuals, go online and find them; almost all manuals are available at the manufacturers’ websites. It’s also a great help when service is required if you take the time to annotate the manuals with the appliances’ model and serial numbers.

A great resource to share with your tenants is the New Tenant Success Tips Guide that details cleaning and maintenance instructions for renters.

Don’t Expect Them to Deal With Quirks

It doesn’t cut it to tell a new tenant that the refrigerator door closes if you kick it twice, that the doorbell shorts out in the rain but it’s fine after you take a hair dryer to it, or that someone can’t flush the toilet if someone else is running the water in the kitchen sink. It’s your responsibility to make sure that everything is in sound working order and doesn’t require idiosyncratic handling.

Make Sure They Know the Routines

Let your tenants know the regular schedules for trash pick-up and any regular services like gardening and pest control. Make sure they know if they’ve got to make special arrangements for anything, like leaving a gate unlocked or a pet kept in.

Give Them Helpful Resources

Of course you give your tenants a number where you can be reached 24/7 in case of emergency. But it’s also a good idea to give them direct utility numbers for water, gas, and power emergencies. As for non-emergency situations, make it easy for tenants to discuss them with  you. A tenant who is reluctant to call you is one who is going to let small problems escalate.

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24Jun

New California Smoke Alarm Law

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New California Smoke Alarm requirement

Landlords are required to install and maintain smoke detectors. it is no longer the tenant that maintains the units.

the California Building Code requires that a smoke detector must be installed in every bedroom, hallway that leads to a bedroom and in every floor including a basement.

Starting July 1st. 2015 the standard “old” type smoke detectors may not be installed or sold in California. Instead, new smoke detectors with a sealed 10 years battery life are replacing the old units.New California Dmoke Detector Law

The new smoke detectors must contain the following:
1. Manufacturing date of the unit
2. Blank space to write the installation date.
3. Have a silent or hush button
4. have a non removable battery that will last ten years.

Low battery chirp causes tenants to remove the 9v battery and then forgetting to replace it. The new alarms has a non removable battery that lasts 10 years.

Any units that are already installed do not have to be replaced but we highly recommend to install the new units to protect life and your property.

When a building permit is issued for dwelling improvement in access of $1000, the “old” type smoke detectors must be replaced with the “new” ones.

Back in 1973 one smoke alarm was installed in a hallway of a new home. 1988 changed the law to one smoke alarm per floor. 1991, an alarm is installed in every sleeping area.

House fire kills about 8 people a day.

Smoke detector laws have caused to a decline of about 50% in house fire deaths.

California State Fire Marshal

 

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4Jun

Know your Landlord Liabilities

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Landlords may be held responsible for tenants and other people injuries that occur on rental property.

Landlord-Tenant

Landlord Liabilities

– Property Hazards-
This is a fairly obvious and common sense issue. You as the landlord are responsible to rent the property in a safe and maintained condition. If there are any known hazards, or if your tenant ever reports an issue, fix or remove hazard as soon as possible. If you do not take action in a timely manner this could certainly become a liability issue.

– Criminal Activity in your property-
If criminal activities are being conducted on your property there are circumstances where you as the landlord may be held liable. This is especially true if you are aware of the situation but have not taken the appropriate actions. Try to avoid those tenants by screening criminal background and not allowing criminals to reside on your property.

– Pets-
In general, courts hold landlords liable for a dog attack only if you allow pets to live at your property that have injured persons in the past or when you care (harbor or keep) a tenants dog. If you are going to allow pets on the property it is always a good idea to check with the owner to make sure that their pets have no history of malicious acts and that they are friendly. Some breeds of dogs may not be covered under your homeowners insurance. Contact your insurance agent before agreeing to let a tenant have a dog.

– Equal Housing Treatment-
The Fair Housing Act of 1968 requires that you as a landlord do not discriminate against prospective tenants based on race, color, national origin, religion, sex, familial status, and disability. It is very important that as a landlord you follow the same tenant selection criteria exactly every time. If the criteria is not followed there is potential that a tenant may make claims that you are discriminating even though you are rejecting them for a completely legitimate non-discriminatory reason.

-Bad Behaving Tenants-
A landlord also assumes some responsibility and potential liability, for the conduct of his tenants. If he knows of any unlawful, obnoxious or other behavior that amounts to an ongoing nuisance, the landlord is required to take steps to protect other tenants, and other people, who are affected by his tenant’s unreasonable conduct. This includes evicting the offender, if necessary.

California Department of Consumer affairs Link:

http://www.dca.ca.gov/publications/legal_guides/lt-8.shtml

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28May

Duties and Responsibilities of Landlords and Tenants

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landlordtenant copy

Duties and Responsibilities of Landlords and Tenants

 

A tenant owes a landlord certain duties and responsibilities.
1. Tenant are expected to pay the rent by the due date
2. Tenant should keep the property at the same condition received
3. Tenants who are on a month-to month lease are required to give at least a 30-day notice before moving out. (landlord can sue for 30-days rent if tenant fails to give the notice)
4. Tenants may be held liable for injuries that are a result of tenant’s negligence or unsafe conditions. (it is recommended and sometimes required to purchase renter’s insurance)
5. Tenants have a duty not to interfere with the rights of other tenants.
6. Tenant has the right to use and enjoy the property. If tenant is unreasonably bothered by landlord or another person, the tenant may have the right to move out and pay no further rent. This process is called “Constructive Eviction”
7. All California residential rentals must meet a minimum housing and health codes. The landlord is responsible for meeting those codes. If the property falls below the codes as a result of tenants action or negligence, the landlord can take legal action against tenants.
8. Tenant can demand repairs for a property that falls below the minimum California code requirements, not as a result of tenants actions. If landlord refuses, tenant may use up to one month rent offset to conduct necessary repairs or may be able to abandon the property without owing any future rent.

 

* This article is presented for general purposes only. Please consult a professional for any specific case.

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23May

Do You Need a Property Management Company?

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Property Management Company

Why should you hire a Property Management Company?

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

https://ziegelgroup.com/about/

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