There are times when owning a rental property can feel like pouring silver dollars into a big bottomless hole with no chance of recovering them. After a vacancy and repairs, the property successfully rents and then the tenant wants the property owner to spend more money on repairs. It could be a big property tax bill is due or the mortgage is adjustable and the payment is more. The property owner's attitude is - when is it going to end and why should I spend more?

There are times when it may seem never ending but it is important to stop and consider the tenant request; even if there have been recent expenditures. It may be logical to turn down the tenant's request but before doing so, it is important to ask a series of questions before automatically saying "no." Here are questions with appropriate examples.

• Is the request a habitability issue? Example: there are large holes in the carpet that cannot be repaired and this could cause residents to trip and fall; if this happens, the insurance will probably not cover the accident if there is known neglect; it would have been cheaper to replace the flooring.
• Is this request reasonable? It may be that the kitchen curtains are torn and dirty; the only solution is replacement and it reduces complaints from the tenant. Would you want to live with this condition?
• Will refusing the request increase the chance of a shorter tenancy and increased possibility of a vacancy? Example: the request is reasonable but the owner turns it down and subsequent other reasonable requests; the tenant is not happy and there are many properties on the market; at the first opportunity, the tenant gives notice so they can find a better rental property.
• Can the property owner delay this request for a reasonable period? Example: the tenant wants a new dishwasher installed because the current one is rusting and does not wash well; because of many recent repairs, the owner agrees to install a new one in six months and the tenant is satisfied with this compromise.
• Is it appropriate to ask the tenant to share in the cost? Example: the carpet is serviceable but an outdated color. The property owner proposed they would put in new carpeting but that the tenant pays forty percent of the cost; the tenant agrees because it is cheaper than moving and they like the location.

Ultimately, will the tenant request provide any return on investment (ROI)? If you look at any of the previous questions and examples, you will recognize that any of them will increase a return on the investment for one or all of the following reasons.

• By keeping the tenants happy and reducing the vacancy factor
• By improving the property
• By reducing liability and costly litigation

When should you turn down a tenant request? There are times when a tenant request is definitely unreasonable and is definitely unnecessary. Just take the time to consider the request and discuss the request with us to seek any possible solutions. We want the best for your investment.

Responding to Residents for after hour maintenance emergencies:

Are we available for your residents 24-7? Please realize that this does not mean following up on minor issues that can be easily addressed in the light of day. It does mean that when you have a legitimate concern, are we easily reachable, even if just for some reassurance?

If you’re a little confused on what constitutes a legitimate emergency, here are some issues that we should respond to as quickly as possible. And remember, if you’re not sure, err on the side of the emergency being important and pick up the phone and call.

• Major leaks, which can not be contained or issues such as a toilet or sink overflowing from an upstairs units.

• A fire causing major damage.

• A clogged toilet when you only have one toilet

• A break in, leaving your home unsecured.

• Any structural issues. This can include anything from collapsing balconies, stairways, carports, or ceilings.

• Any gas smells. While hopefully residents have been instructed to call the local gas company in the event of a gas smell, this is an issue that managers need to address promptly.

While we do not to respond to every issue that arises after hours, it’s important for residents to know that should an emergency arise outside normal business hours, we are only a phone call away.

1) How many days do I have to wait to get my security deposit back?

California Civil Code Section 1950.5 requires that within three weeks (21 days) after a tenant has vacated the unit, the owner must either: 1) return the security deposit to the tenant, 2) furnish a copy of an itemized statement indicating the amount of any part of the security deposit used (e.g. for unpaid rent, repairs, etc.), or 3) a combination of #1 and #2.

Effective January 1, 2003, rental property owners must give the tenant an option to perform a walk-through with the residents no earlier than two (2) weeks prior to the termination of the tenancy. The intent of this new law is to give residents an opportunity to remedy identified deficiencies in the unit prior to move out.

2) Can a landlord increase the rent more than two times per year?

If you have a lease for more than 30 days (e.g. 1-year lease), your rent cannot be increased during the term of the lease, unless the lease allows rent increases. If you have a periodic rental agreement (month-to-month), your landlord can increase your rent, but must give you proper advance notice in writing. (Civil Code Section 827 (b))

3) How much can a landlord legally raise the rent?

Under California Law there is currently no maximum limit for rent increases.

As of January 1, 2001, a landlord must give the tenant at least 30 days’ advance notice if the rent increase is 10 percent (or less) of the rent charged at any time during the 12 months before the rent increase takes effect. A landlord must give 60 days’ advance notice if the rent increase is greater than 10 percent. (Civil Code Section 827b.)

4. When can a landlord enter an occupied rental unit?

California laws gives five (5) reasons that a landlord can legally enter a rental unit.

(1)   In an emergency.
(2)   When the tenant has moved out or has abandoned the rental unit.
(3)   To make necessary or agreed-upon repairs, decorations, alterations, or other improvements.
(4)   To show the rental unit to prospective tenants, buyers, or lenders, or to provide entry to contractors or workers who are to perform work on the unit.
(5)   If a court order permits the landlord to enter.

Effective January 1, 2003, California Civil Code 1954 states that except in the first two situations above (emergencies and abandonment), the landlord must give the tenant twenty-four (24) hours written notice before entering the unit.

The notice may be provided by the owner in one (1) of the following ways:

-Personally delivered to the tenant twenty-four (24) hours prior to entry;

-Left with someone of suitable age at the premises twenty-four (24) hours prior to entry;

-Left on, near, or under the usual entry door of the premises twenty-four (24) hours prior to entry; or

-Mailed to the resident six (6) days prior to the intended entry.

If the owner or agent’s reason for entry is to exhibit the residential unit to prospective or actual purchasers, the notice may be given orally, in person, or by telephone. If the owner or agent has notified the resident in writing within 120 days of the verbal notice that the property is for sale and that the owner may contact the resident orally for the purpose of showing the unit, a twenty-four (24) hour verbal notice is presumed reasonable. At the time of entry, the owner or agent shall leave written evidence of the entry inside the unit. 

5. How much advance notice must my landlord give if he wants a tenant to move out of the rental unit?

Landlords are required to provide a 60-day advance notice to a resident if the landlord elects to terminate a tenancy. If the tenant has resided in the unit less than 1 year, the landlord is only required to give a 30-day notice. (Civil Code Section 1946.1)

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7 Things People Forget to Do Before They Move

You packed everything perfectly, including that dining room chandelier, the big-screen TV, the vintage ’70s “Dukes of Hazzard” T-shirt collection. You even got your dog’s medical records from the vet. But something’s keeping you awake at night as your move draws nigh. You know you forgot something.

Don’t worry, keep packing. We assembled this handy checklist of things people often forget to do—or don’t even realize they should take care of—so you can make sure you’re covered and can move and settle down in your new digs with ease.

1 month before: Cancel recurring charges

Taking care of a gym membership or other subscription services may fall by the wayside during the madness leading up to moving day. Worse, those recurring charges will keep mounting on your credit card while you’re in the throes of unpacking. Get a jump on canceling these at least a month before your last expected day of use, especially since many gyms require a 30-day notice.

Can’t get out of your contract or transfer your gym membership to a facility by your new home? Sell it through online classifieds such as GymTransfer (yes, most gyms allow this!). Don’t forget to unload any prepaid class cards, too.

On the flip side, important recurring charges on your credit card—such as mail-order medications—might be canceled if your address change hasn’t caught up with billing information. So compile a list of charges and make the effort to call these companies and give them a heads up to avoid disruption in service.

2 weeks before: Call your car insurance company

The Department of Motor Vehicles advises people in the process of moving to closely manage their car insurance during the transition, as states have varying levels of required coverage. Even if you’re staying in the same city, rates can differ from neighborhood to neighborhood. So call your insurer well before the move to find out the parameters and deadlines for updating coverage at your new address.

2 weeks before: Change your address early

Most people know the U.S. Postal Service offers an online form to quickly change an address for all of your mail, but that doesn’t mean you should wait until the last minute to fill it out.

Complete this form about two weeks before your move. That way you should see the first of your forwarded mail by the time of move-in.

1 week before: Organize your finances

Important financial tasks are often forgotten in the whirlwind of moving. Since losing track of bills among piles of boxes is all too easy. It is recommended to set up systems before a move that can easily transition from old home to new. For monthly bills such as phone, rent, or mortgage, it can really help to set them up for autopay, which you can typically do through your bank or the billing company.

This can help ensure on-time payment during a hectic time.  Whatever system you choose, decide which household member will be responsible for paying which bills. And as moving often incurs unexpected costs, be sure that you’ll have enough money in designated accounts at time of payment.

1 day before: Snap pictures of your electronics

Those cables in the back of your TV and modem that keep your life wired? They don’t make sense now and will make even less sense when they are tangled in a box. A simple solution is to snap a picture of the setup before you take your electronics apart—and coil the cords and label them with masking tape, for good measure.

1 day before: Pack your plants

Do you have a special plant (maybe that hydrangea you planted for your child’s birth or your mom’s prized azaleas)? To make sure you aren’t forced to leave it behind in your rush, make a list of what plants you want to take with you and put a plant plan in place. Don’t put your shovels into the moving van until the last minute—you’ll need them to carefully dig up root balls. Buy large buckets beforehand and use them to transport each plant.

1 day before: Stock a go-to box

It is a good idea set aside one box for the first 24 hours in your new home. Pack paper towels, cleaning supplies, clean sheets, towels, paper plates and silverware, toilet paper, and maybe even a bottle of bubbly to celebrate all your hard work, picnic-style.”

In today’s blog, we are sharing our thoughts on social media reviews and customer feedback that can be found on sites such as Google Plus and Yelp. When you’re looking at reviews for property management companies, you may see negative reviews, and that’s not necessarily a bad thing.

Today, consumers have become accustomed to looking at reviews pertaining to any company that they are considering doing business with, and some people base their decisions exclusively on the number of stars a company gets in its ratings. That might make sense if you’re looking for a restaurant or choosing a hotel, but the stars don’t always tell the full story when it comes to professional property management companies.

Management companies perform a service for landlords. Their job is to find the best possible tenants for a property and to ensure those tenants are in compliance with the rental agreement and other contracts that was signed. Sometimes, prospective renters will write negative reviews because their application was declined and they’re not happy about it. More often, tenants will complain in these reviews about what they don’t like. Perhaps the property manager didn’t return the full security deposit and the tenant is angry. What that could mean is that the property manager is actually doing a thorough and responsible job on behalf of the landlord. You want a property manager who will properly screen tenants and hold the tenants who are in place accountable to their lease.

Take the time to read a complete review when you see something negative. You can’t take it at face value and decide against a property management company because you see a one or two star review. The relationship with the tenant can  be adversarial in nature at times.  That management company might simply be doing their job, and doing it well.

If you have any questions about this, or you’d like to know more about how to decipher online reviews, please don’t hesitate to contact us at 800-750-0017.