Ziegel Group Realty
Sherman Oaks REALTORS® – Property Management – Leasing Services – Real Estate Attorney
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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25Jan

Housing for an Aging U.S Population

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Housing needs for an increased aging population

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:

  • Easy wide entry without steps
  • Single level living area
  • Open space with with wide doors to accommodate wheel chairs
  • Large bathrooms with easy access
  • Lower heights controls

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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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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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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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21May

Landlord Insurance vs. Homeowners Insurance

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landlord insurance vs. homeowners insurance

 Know the difference: Landlord Insurance vs. Homeowners Insurance

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

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15Feb

Should I hire a Property Management Company?

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Should I hire a property management company?

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.

What Does a Property Management Company Do?

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.

When Should You Hire a Property Management Company?

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.

The Ziegel Group. We are here to serve you and would be pleased to have a consultation with you to determine whether we can serve you as your Property Management Company. Call us today to set up an in person, video, or telephonic appointment.

 

 

 

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