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Sherman Oaks REALTORS® – Property Management – Leasing Services – Real Estate Attorney
10Dec

Landlord Property Management – How to Keep Your Investment Property in Great Shape for the Future

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If you ask any first-time investor or landlord to sum up their first year in a single word, it’s likely to be this: “overwhelming.” The first few months of owning a rental property bring a host of new challenges, from finding good tenants and responding to their needs to dealing with HOA fees and investment property maintenance. Unless you grab the proverbial reins and take steps to organize, plan, and adjust, you’re going to be stuck feeling like you just move from crisis-to-crisis.

It’s time to take charge. Property Management is the key! Here are three ways you can set yourself and your rental property up for sustained success: scheduling preventive maintenance, setting up an emergency fund, and becoming a quick-reacting owner.

Invest in Preventative Maintenance and Upkeep

Just like any home or condo, your rental property requires regular upkeep and care. This includes everything from lawn maintenance and landscaping to roof inspections and HVAC tune-ups. 

Our recommendation? Start by creating an investment property maintenance checklist. Take note of everything the property needs throughout the year, and then divide the projects out into their appropriate seasons. For example, it makes the most sense to inspect gutters and downspouts in the fall, right before winter snow and ice are set to arrive. On your new checklist, differentiate between tasks you can complete yourself and those you’ll need a professional to complete. The annual roof inspection, for instance, is best left to a licensed roofer.

In any season, prioritize critical items. If nothing else, you’ll want to ensure that the property remains safe, secure, and habitable. That means its roof, HVAC systems, structure, and plumbing come first. Every property owner is going to have months where they’re unable to fully keep up with their rental’s maintenance needs. That’s life. As long as you take care of the essentials, you’re set.

This includes scheduling spring and fall HVAC tune-ups. Your property’s heating and cooling systems require annual maintenance from a certified, experienced technician. An HVAC tune-up greatly reduces the risk of a system breakdown. By scheduling annual maintenance every year, you can even extend the lifespan of the property’s HVAC systems, pushing out the eventual date you need to replace them. For their part, your renters will appreciate the added energy savings and comfort that a professional tune-up brings.

To protect the property’s roof, clean out gutters and downspouts in the fall. Leaf litter can clog these critical water channels, preventing moisture from leaving the roof. This can degrade shingles and eventually lead to roof leaks. Overhanging tree branches can also pose a threat to the roof structure, so make sure you or someone you’ve hired safely cuts those down before the next summer storm rolls into town.

Set Aside Money for Emergencies

Start by setting up a savings account specifically earmarked for your rental property. Many property owners put their monthly rental income directly into this account and pay for the property’s overhead—including the mortgage, HOA fees, maintenance costs, and more. They then “pay” themselves with some of what’s left, leaving a residual balance leaving a residual balance (also known as a property reserve or account reserve) squirreled away future, unforeseen expenses. 

No matter how you slice it or set it up, it’s important to build a “rainy day” fund for your investment property. All homes, regardless of their age, location, or general condition, will inevitably need some form of emergency repair. It’s just part of the gig. Depending on the type and scope of the problem, it could mean you’re on the hook for thousands of dollars in repairs. Problems with the roof, foundation, structure, pipes, electrical wiring, or HVAC systems generally do not come cheap. The bank account you set up years ago and contributed to, through good times and bad, could be your saving grace when something goes wrong.

Just how much you need to save is a matter of nuance and debate. The common advice given to new homeowners (and property owners) is to set aside 1-2% of their home’s value every year for ongoing repairs and maintenance. That’s $2,500 annually for a home worth $250,000. 

Like all generalizations, this approach has its flaws. First, there’s no actual connection between property value and property maintenance: the exact same house could be worth $700,000 in San Francisco and worth $100,000 in Omaha. With this approach, the San Francisco property owner would save too much, and the Omaha owner would save too little. Second, different homes have different needs. There are dozens of variables: the age of the home, the climate where you are, the number of stories, and more.

If you’re a new property owner who just needs a starting point, start with the 1-2% figure, but plan on making adjustments as you go and price things out. When in doubt, save more than less—especially in that first year. That extra cushion could be a lifesaver in an emergency.

Act Quickly in Times of Crisis

One of the challenges of dealing with a rental property is that you’re not there. Outside of infrequent inspections, you’re not seeing the water heater, listening to the air conditioner running, or noticing that back door sticking. As a property owner, you’re more-or-less reliant on your tenant to let you know when something goes wrong. This is one of the key reasons why you need to establish a clear line of communication with your renter.

If your renter feels uncomfortable contacting you, or feels as though their observations are ultimately ignored, they’ll be less likely to report small warning signs of impending problems. Let’s say they notice, one morning, that there’s water pooled under the water heater tank. The tank otherwise looks fine. If they have to call you and leave a voicemail, they may feel as though they’re bothering you over what is (likely) nothing. However, if you’ve given them your cell number, they might feel more comfortable sending you a quick text message to let you know what’s going on. You, knowing that a water heater leak is a common warning sign of a tank failure, thank them and call one of the emergency plumbers you picked out months ago.

That last part is critical: to keep the trust of your renter, you need to act quickly in dealing with emergency repairs. Procrastination gets you nowhere: not only does your renter feel betrayed, but the problem is likely to still be there or have worsened. Keep a cool head and bring in a professional.

Setting a Strong Foundation

Just like anything else, property management is something you’ll get better at as the years go by. When it comes to maintenance, dealing with renters, and marketing your property, there’s always more to learn. But, by following the three tips outlined above, you’ll set a strong foundation for your rental property’s future.

Courtesy of RentecDirect

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26Apr

What is “Cash for Keys” and what you need to know?

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“CASH FOR KEYS” – INFORMATION FOR CONSUMERS AND DRE LICENSEES   The challenge to successfully market REO properties has given rise to a growing practice known as “cash for keys”.  The Department of Real Estate (“DRE”) has been receiving questions and complaints from consumers about “cash for keys” solicitations.  This article is intended to provide some guidance for consumers and licensees when involved in a “Cash for Keys” program to minimize any misunderstandings or violations of the law.    “Cash for Keys” Programs When a lender takes a home back as a result of a foreclosure action, it becomes responsible for that property.  The longer the lender has to wait to sell the property and the more money it has to spend to repair damage to and/or to maintain the property, the greater will be its ultimate loss.  The consequences of foreclosure and the looming legal eviction action affects the prior resident owner/occupant of the foreclosed property and/or the tenant(s) living in the property (hereinafter such occupants and/or tenants are referred to in the singular as “tenant” and in the plural as “tenants”) the same way – they must, unless there is an existing landlord-tenant rental or lease agreement that survives the foreclosure by law, or a written agreement with the new owner/lender to maintain or modify the tenancy, vacate the property in a relatively short period of time.    If the lender can make a deal with a tenant to pay for the tenant’s security and utility deposits, moving expenses, and maybe even temporary living expenses, and perhaps a bonus for a quick moving date, it would be in the lender’s interest to do so to avoid the inevitable minimum 3 to 6 month delay associated with formal legal eviction proceedings.  In the many circumstances, the lender would most certainly prefer that the tenant agree to vacate the property within a certain number of days, leave the property in “broom-swept condition”, remove all debris from the interior and the yard, leave all fixtures and landscaping intact, and turn over the keys and garage door openers.     Practical Application of “Cash for Keys” Generally, the amount offered to tenants varies and is usually negotiable. Anecdotal reports from those who have had experience with “cash for keys” programs report that $500 is generally the minimum and $5,000 the maximum amount offered to tenants for their keys.       The amount an owner is willing to pay for a tenant’s keys depends on several factors, including the value and physical condition of the property, and the plan(s) the lender has for the property.  Other factors include the amount of time the tenant needs to move out.
Laws Protecting Tenants’ Rights With Respect to Foreclosed Properties As recently as early 2008, in the absence of a written lease agreement requiring greater notice, California law required that an owner provide only a 30-day notice to a tenant to vacate the property for any reason (other than the failure to pay rent, which required a 3-day notice).  However, recent legislation has changed the rules.
Signed as an urgency measure in 2008, Senate Bill 1137 gives tenants at least 60 days after a foreclosure before they can be asked to vacate the property.  The provisions of SB 1137 are due to sunset (be repealed) on January 1, 2013.  To review a copy of the bill and get more details, please visit www.leginfo.ca.gov.
Federal legislation was enacted effective May 20, 2009, requiring property owners who have taken a residential property by foreclosure, to give their tenants at least a 90 day notice to vacate the property before beginning the eviction process.  That federal law is applicable nation wide, and it is known as “Protecting Tenants At Foreclosure Act”. The law is found at Title 7 US Code Section 701 (“the Act”).  See http://thomas.loc.gov.    The Act provides that if a tenant is renting under a lease entered into before the notice of foreclosure was communicated to the tenant, the tenant may remain in the property until the lease ends, unless the owner sells the property to a purchaser who will occupy the property as his primary residence.  In that case, the owner may properly give the tenant a 90-day notice to vacate.    While the Act provides greater protection to tenants than State law, local law may provide even more protection.  If a particular property is subject to local “rent control” or “housing assistance” laws, or so-called “just cause for eviction” ordinances, those laws may provide even greater protection than the Act itself.  As an example, even the Act itself provides that the owner of a residential property which is subject to a “housing assistance contract”, and who has a lease with a tenant in that property, is subject to any additional protections in the housing assistance contract (this typically applies to “Section 8” properties).    Finally, with the signing of SB 1149, tenants must be told of their rights when the property they occupy is foreclosed. Senate Bill 1149 requires that tenants who are living in foreclosed homes be given notice of their rights and responsibilities under these state and federal laws by requiring a cover sheet be attached to any eviction notice that is served within one year of a foreclosure sale. The cover sheet must delineate the laws and rights a tenant may have in cases where the property he or she occupies is foreclosed upon. The bill also seeks to help protect tenants who would otherwise have a negative mark on their rental history by prohibiting the release of court records in a foreclosure-related eviction unless the plaintiff landlord prevails. For more information, please visit www.leginfo.ca.gov.

 

What Tenants and Resident Owners Can Do to Protect Themselves Tenants and resident owners of foreclosed properties must take a significant amount of personal responsibility in this matter.  They should become acquainted with Federal and State law concerning foreclosures and tenant evictions, and also with local laws which apply to their particular situation.  For example, in the City of Los Angeles, beginning December 17, 2008, tenants who are current in their rent payments can not be evicted because of a foreclosure.  Many cities in California, including Santa Monica, West Hollywood, Beverly Hills, Oakland, and Berkeley, are subject to local “rent control” and/or “just cause for eviction” ordinances, which may provide even greater protections.  Without a working knowledge of applicable local law, a tenant is at a distinct disadvantage.     Tenants and resident owners should make sure that any “cash for keys” offer is coming from the new owner of the property, which is often a lender or a government sponsored mortgage investor, such as Fannie Mae or Freddie Mac. Tenants and resident owners should insist on verifying the identification and authority of the person making the “cash for keys” offer.  They must insist on receiving a written “cash for keys” agreement, and carefully read and understand that agreement.  They should have a trusted and competent attorney, real estate licensee, family member or friend review the agreement and provide counsel concerning its duties and obligations.       Before signing the agreement, a resident owner should call his or her lender directly to confirm the authority of the person making the “cash for keys” offer.  A tenant must be especially careful.  The tenant should call his or her landlord and ask about the foreclosure and the identity and contact information for the new owner.  It would not be unusual for the landlord to tell the tenant to continue to make rent payments directly to the landlord.  That should not be done if the landlord is no longer the owner of the property.  And finally, a tenant or resident owner should never hand the keys over unless the money is delivered. Cash is best. If paid by check, the tenant or resident owner should make certain the check is good and/or clears.  If the keys are handed over, and the owner fails to pay the money, or if the owner’s check bounces, the written agreement should be sufficient to allow the tenant to prevail in a small claims action against the owner.  But obtaining a judgment is far easier than collecting it.  Without a written agreement, the chances of obtaining a judgment are substantially reduced.   A Real Estate License is Required Unless the “Cash For Keys” Services are Only Ministerial There is no way to generalize and declare that a real estate license is, or is not, required to provide “cash for keys” services.  The particular facts of each transaction will determine the answer to the question as to whether a license is required.

 

If a person is soliciting a tenant to enter into a cash for keys arrangement on behalf of an owner and/or lender or servicer, negotiating the terms of the transaction with a tenant, or soliciting and/or negotiating with an owner, lender or servicer with respect to

 

such a transaction(s), Section 10131 of the California Business and Professions Code requires that the person engaged in those activities be a real estate broker or a real estate salesperson acting under the supervision of a broker.  On the other hand, if the person is simply acting in a ministerial fashion and just handing the tenant a check and collecting the keys in return for the payment, that arguably falls outside of licensed activity.   Responsibility of Real Estate Licensees Who Engage in “Cash For Keys” Transactions

A licensee who solicits a “cash for keys” deal should identify him or herself to the resident owner or tenant when requested to, and provide his or her DRE license number.  A consumer may look on the DRE website (www.dre.ca.gov) and, on the “Home” tab, under the heading “Consumers”, click on “License Status Check” to verify that person’s license status.  Under that same heading, there is also a link to “How to File a Complaint”.  One who has been solicited by a DRE licensee is encouraged to file a complaint with DRE if the solicitor has not acted fairly and honestly in the “cash for keys” transaction, or if the solicitor has engaged in any other unlawful conduct.    It should go without saying that California real estate brokers or salespersons who engage in “cash for keys” negotiations with tenants must be aware of the federal, State and local laws relating to foreclosed properties, and the tenants’ rights with respect to their tenancies or leasehold interests.  The old saying “ignorance of the law is no excuse” really does apply in this context.    It should also go without saying that DRE licensees who solicit a resident owner or tenant to accept a “cash for keys” proposal must act fairly and honestly with respect to the transaction.  Dishonest behavior, misrepresentations, harassment, failures to disclose material information to a resident owner or tenant, including failing to advise the resident owner or tenant of his or her rights with respect to eviction (that the licensee has knowledge of) as a result of foreclosure, or negligence, could possibly lead to license disciplinary action.  A licensee who unlawfully hires unlicensed persons to “solicit” cash for keys deals, or to negotiate the terms of the transactions, can also be liable for the dishonesty, misrepresentations, and/or negligence of his or her unlicensed agents.      Conclusion A fair and equitable cash for keys agreement will mutually benefit both the new owner of the property and the resident former owner or tenant residing in the property.      For tenants, resident owners, and Department of Real Estate licensees, knowledge of the law concerning this subject is power – power to avoid problems that are just looking for place to happen.  

For resident owners and tenants in foreclosed properties, your only real safety lies in your

 

taking the responsibility to protect yourself.  Get the agreement and all other communications in writing.  Have someone you trust look the written documents over.  Make sure the solicitor is authorized to act for the real owner of the property.  And do not give up the keys before you get the cash.
www.ag.ca.gov, and/or the California Department of Real Estate at www.dre.ca.gov.                                   (Rev. April 2012) Additional Resources: The Office of the California Attorney General issued a News Release on June 28, 2010, entitled “Brown Investigates Whether Tenants’ Rights Are Violated in Foreclosures”.  You may wish to consult that Release for more information.  If you are a tenant or resident owner and believe your rights have been violated, you can contact the California Attorney General at

The Los Angeles City Council approved an amendment to the RSO to require notice to tenants prior to executing a “cash for keys” agreement. The Tenant Buyout Notification Program (LAMC 151.31) provides for regulation, monitoring and enforcement of voluntary vacancies of RSO rental units occurring pursuant to a Buyout Agreement. To promote fairness during buyout negotiations and agreements, landlords must inform tenants of their RSO rights which include the RSO relocation assistance amounts before executing a Buyout Agreement. Disclosure notices must be filed with the City. The required Disclosure Notice is provided at the end of this bulletin. This notice must be provided to tenants before executing a Buyout/Cash for Keys agreement to vacate an RSO rental unit.

rso_disclosure_notice_march_2017_eng_1.pdf
 

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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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28Dec

How to Take Safety Precautions As a Landlord

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How to take safety precautions to protect yourself and your property in case you reach a Landlord – Tenant argument or misunderstanding.

Landlord Safety Precautions

  • Don’t give out your home address.
  • Encourage that your tenants pay via direct deposit or online payment.
  • Use a P.O. Box for tenants to mail rent payments
  • Get a separate secondary phone number for your tenants to call. Magic Jack or Google Voice number are good possibilities. It prevents your tenants from constantly calling your personal number with complaints or threats.
  • An angry tenant might pose a threat to damage your property. always be calm and stay on a professional level.
  • Screen Your Renters. Tenant screening goes beyond reviewing a tenant’s credit report and criminal background Get references to find out if the applicant has a history with aggression. Try to search online for the phone number and call to make sure that the  reference is real.
  • When you own a Property and want to avoid a Landlord / Tenant Relationship, choose a Property Management that will do all the work for you. Our team at the Ziegel Group manages local properties with pride and professionalism.

If you receive threatening messages or phone calls from a tenant, here are some ways to manage it professionally.

What To Do When Your Tenants Threaten You

  • Do not threaten back. Always respond professionally.
  • Call the Police if you feel threatened or in immediate danger. Having records will help you if you need to go to court.
  • Ask a witness to be with you during interactions with your tenants.
  • Tell the tenant that all communication must be done in writing.
  • Save all of the texts, emails, and voicemails. You might need them in court someday.
Remember your tenant may have legitimate claims. Check your state and local laws before you reply to a tenant demand.

 

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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

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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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9Jun

Protecting your Property against crime and vandalism

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How to stop and prevent vandalism and crime?

Protecting your property against tvandalism
Vandalism is a crime that is committed without a specific reason. It is often committed by a small group of people and is usually gang related. It’s a problem that can reoccur, may be costly to fix and might require you to file an insurance claim and as a result pay higher annual premiums.
Here are some way to protect your property against vandalism:
• Install Lights: Keep your property lit at night with some lights that will turn on automatically at dusk and your off at dawn. Also install some lights with motion detection. This type of lights will turn on when movement is detected and stay on for a few minutes.
• Property access: keep all gates and entrances to your property locked at night. Any persons without a key have no business in your property at night.
• Install surveillance cameras: No criminals wants to be caught by camera. Put your cameras at a visible location and inform the presence of your cameras with plenty of signs. In many cases “dummy” or display non operating cameras with the addition of signage are enough to keep the bad guys out.
• Trim trees: Limbs can provide means of getting on roofs or second stories, or of getting over a wall or fence. Try to eliminate easy access to people you want to keep out.
• Neighborhood watch: Inform your tenants neighbors and other landlords about any crime prevention group or organization in your neighborhood.
• Extra security: Inform your local police department of any suspicious activity in your Neighborhood. You can also hire a private patrol service for additional protection.

We, at the Ziegel Group Real Estate and Property Management always inspect all the properties that we manage and recommend to our landlords and tenants the best ways to protect your homes.
Remember: the better environment you provide for your tenant, the most likely they will want to stay rather than look for a better place.

More Information can be Found here: National Crime Prevention Council

 

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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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