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Property Management Advice
A Property Experts Advice
What Do Property Managers Do?
The main reason someone hires a property manager or management company is to protect their real estate investment and passive income. Investors hire property managers to manage their rental properties for a variety of reasons, from wanting a local professional to handle a property to a desire to take a more hands off approach with their properties.
But what does a property management company or manager do when tending to the properties they oversee? Let’s go over a few common responsibilities typically held by property managers. (I have covered this topic on other pages but I will provide it again as a quick summary.)
But what does a property management company or manager do when tending to the properties they oversee? Let’s go over a few common responsibilities typically held by property managers. (I have covered this topic on other pages but I will provide it again as a quick summary.)
1. Follows Landlord-Tenant Laws And RegulationsAs an investor, especially if you own multiple properties in several different states or areas, it can be difficult to keep track of all the different landlord-tenant laws and regulations. A property manager can help avoid potential legal headaches by taking care of these regulations. Since we are typically experts in the specifics like rent control limits, fire ordinances, local fair ousing requirements, or even crime prevention in areas that we work, we are often better equipped to deal with local laws and regulations.
As an example, in some states there are specific requirements on how much a tenant can be charged as a security deposit. I have to know the area might be better equipped to make sure tenants are charged the correct amount rather than the property owner accidentally asking for a deposit beyond the legal limit and creating a potential legal issue because they weren’t aware of the local laws.
2. Acts As A Local Presence For Out-Of-Town OwnersAs the expert on-site, property managers also act as a local presence for out-of-town owners. If a property owner has lived in Hawaii their entire life, they may not be equipped to deal with the intricacies of managing property somewhere they’re unfamiliar with, like California in my case. A property manager takes care of the details locally – along with other things that come up, like maintenance and other operational issues that would be difficult to handle remotely.
3. Handles Maintenance RequestsA property manager or property management company also handles maintenance requests and other in-person upkeep. A landlord that is slow to respond to maintenance issues can quickly cause tenant frustration – which is why it’s useful to have a manager onsite to address tenant concerns right away.
Maintenance requests could be anything from broken appliances to unwanted pests or wildlife in a tenant’s home, so having someone on-site to take care of these issues as they arise is vital. A lack of landlord support with issues in rental properties can cause tenants to take their business elsewhere when their lease is up, so it’s important to have a strong local presence to take care of tenant needs.
4. Shows And Leases Vacant UnitsWorking with a property manager can also help owners eliminate the potential financial loss of having an empty unit sitting around for an extended period of time. Rather than trying to market a property remotely to potential tenants, its usually better to rely on a property manager to attract new tenants and renew existing leases.
Tenants aree often uneasy about or unwilling to move into a property without seeing it first - and showing off properties may not be an option if the owner lives out of state. Working with a property manager allows owners to have someone present on the property to fix problems and show off the full potential of spaces to potential tenants.
5. Collects And Deposits RentProperty managers also collect and deposit rent as a part of their duties for the properties they oversee. Some property managers and property management companies will collect rent using online sites or payment apps to help get money to the property owner quicker but its often essential to have someone there in person. We often also handle delinquent payments, collections and evictions. The tasks that might be difficult for investors to handle from afar are dealt with efficiently to save owners money and time.
As an example, in some states there are specific requirements on how much a tenant can be charged as a security deposit. I have to know the area might be better equipped to make sure tenants are charged the correct amount rather than the property owner accidentally asking for a deposit beyond the legal limit and creating a potential legal issue because they weren’t aware of the local laws.
2. Acts As A Local Presence For Out-Of-Town OwnersAs the expert on-site, property managers also act as a local presence for out-of-town owners. If a property owner has lived in Hawaii their entire life, they may not be equipped to deal with the intricacies of managing property somewhere they’re unfamiliar with, like California in my case. A property manager takes care of the details locally – along with other things that come up, like maintenance and other operational issues that would be difficult to handle remotely.
3. Handles Maintenance RequestsA property manager or property management company also handles maintenance requests and other in-person upkeep. A landlord that is slow to respond to maintenance issues can quickly cause tenant frustration – which is why it’s useful to have a manager onsite to address tenant concerns right away.
Maintenance requests could be anything from broken appliances to unwanted pests or wildlife in a tenant’s home, so having someone on-site to take care of these issues as they arise is vital. A lack of landlord support with issues in rental properties can cause tenants to take their business elsewhere when their lease is up, so it’s important to have a strong local presence to take care of tenant needs.
4. Shows And Leases Vacant UnitsWorking with a property manager can also help owners eliminate the potential financial loss of having an empty unit sitting around for an extended period of time. Rather than trying to market a property remotely to potential tenants, its usually better to rely on a property manager to attract new tenants and renew existing leases.
Tenants aree often uneasy about or unwilling to move into a property without seeing it first - and showing off properties may not be an option if the owner lives out of state. Working with a property manager allows owners to have someone present on the property to fix problems and show off the full potential of spaces to potential tenants.
5. Collects And Deposits RentProperty managers also collect and deposit rent as a part of their duties for the properties they oversee. Some property managers and property management companies will collect rent using online sites or payment apps to help get money to the property owner quicker but its often essential to have someone there in person. We often also handle delinquent payments, collections and evictions. The tasks that might be difficult for investors to handle from afar are dealt with efficiently to save owners money and time.
Some Landlord/Tennant Rights and Regulations
There is a lot to know if you are a landlord in California. This includes rent control policies, restrictions, limitations, and other miscellaneous policies.
What follows is not necesarily up to date or accurate as things change constantly and some cities have their own regulations, but there are some general guidelines to follow in a California, This is an overview of some basic California landlord-tenant law, which explains the duties and rights of every party involved in a lease agreement. If you need any additional information, consider talking to a real estate agent or a lawyer.
Before diving into specifics, it's important to note that both landlords and tenants have rights and responsibilities.
Landlords are required to provide a safe and habitable dwelling unit for their tenants; this involves keeping utilities in good repair, provide safe common areas, maintain pest control measures, and more.
Under state law, California landlords must disclose specific information to tenants (usually in the lease or rental agreement), such as whether the gas or electricity in the tenant's rental also serves other areas and information about toxic mold if the landlord knows that mold on the property exceeds exposure limits or poses a threat to the tenant's health.
The landlord has the right to collect rent, withhold a refundable security deposit in case of property damages, can demand evictions in case of an agreement breach, along with many more right including some than are outlined here.
According to these same California landlord-tenant laws, tenants have the right to live in safe, habitable rental units, as well as sue the landlord for retaliation, withhold rent for failure to provide essential services, recover attorney's fees, and more.
As for tenant responsibilities in California, the most common ones found in most rental agreements include
- Keep the rental unit in safe and habitable conditions.- Keep themselves and their guests from disturbing the neighbors or other tenants.- Make small repairs that the property may need.- Pay rent on time.- Comply with any additional rental agreement clauses.Rent Payment Clauses The California Civil Code (1940-1954.05), is your best resource if you want specifics.
- Keep the rental unit in safe and habitable conditions.- Keep themselves and their guests from disturbing the neighbors or other tenants.- Make small repairs that the property may need.- Pay rent on time.- Comply with any additional rental agreement clauses.Rent Payment Clauses The California Civil Code (1940-1954.05), is your best resource if you want specifics.
Lets start with what constitutes a Lease Agreement in California. Generally, a lease agreement is any oral or written agreement between a landlord and the prospective tenants. In this agreement, the landlord is allowing the tenants to inhabit their property in exchange for rent a payment. The lease is a summary of the expected rights and responsibilites of both the Landlord and the Tennant. This is done to set ground rules and avoid any confusion or mistakes from either party.
The agreement needs to include details regarding how, when, and where those payments are going to be done. This includes any rules on late fees, bounced check fees, amount of written notice, and more.
Overall, the most common things that need to be disclosed are: -List of parties involved in the rental agreement.Description of the property.-Amount of rent, due date, and payment methods.-Late fee policy.-Lease termination policies.-Eviction policies.-Security deposit policies.-Additional mandatory disclosures (Common utilities, pests, mold, lead-based paint, etc.)
The agreement needs to include details regarding how, when, and where those payments are going to be done. This includes any rules on late fees, bounced check fees, amount of written notice, and more.
Overall, the most common things that need to be disclosed are: -List of parties involved in the rental agreement.Description of the property.-Amount of rent, due date, and payment methods.-Late fee policy.-Lease termination policies.-Eviction policies.-Security deposit policies.-Additional mandatory disclosures (Common utilities, pests, mold, lead-based paint, etc.)
Some important thigs to know:
According to state laws at the time I wrote this
(Once again: I am not a lawyer and this is my general interpretaion/understanding.) ,
California law regulates several rent-related issues, including late and bounced-check fees, the amount of notice landlords must give tenants to raise the rent, and how much time a tenant has to pay rent or move before a landlord can file for eviction.
Rent Increase Amount of NoticeLandlords in California can increase the rent's price once every 12 months. Generally, landlords are required to give at least 30 days' notice to the tenant, but if the increase is greater than 10% of the lowest amount paid during the last 12 months, landlords must give at least a 60-day notice.
When it comes to rent, the tenant must verify that they're appropriate and legal. California also allows cities and counties to enact local rent control laws. The Act does not override more restrictive local rent control laws, but does override those that are less restrictive. Also, local rent control laws might apply to rental properties that the Act does not cover.A landlord cannot raise the rent's price to retaliate or as a discriminatory measure; this allows the tenant to seek legal advice and sue them. These real estate laws exist to try and solve the California housing crisis. They started in January 2020, and it's expected to last until January 2030. Keep in mind that these measures don't override those in the cities that already have control laws, such as San Francisco, Los Angeles, or San Jose. You can read more about this measure here.
When it comes to rent, the tenant must verify that they're appropriate and legal. California also allows cities and counties to enact local rent control laws. The Act does not override more restrictive local rent control laws, but does override those that are less restrictive. Also, local rent control laws might apply to rental properties that the Act does not cover.A landlord cannot raise the rent's price to retaliate or as a discriminatory measure; this allows the tenant to seek legal advice and sue them. These real estate laws exist to try and solve the California housing crisis. They started in January 2020, and it's expected to last until January 2030. Keep in mind that these measures don't override those in the cities that already have control laws, such as San Francisco, Los Angeles, or San Jose. You can read more about this measure here.
Late PaymentsIf the tenant fails to pay on the day that the payment is due, landlords are legally allowed to charge a late fee only if the amount is reasonable. While California law doesn't state any specific grace periods, a landlord might state one in their agreement document.
There is NO grace period for paying rent in California.California landlords are not required to give tenants a rent payment grace period. Rent is due on the date specified in the lease or rental agreement, and a landlord can consider it late if it is not paid on that date. However, if the lease or rental agreement gives the tenant a grace period for paying rent, the landlord must honor it, and cannot consider rent to be late until after the grace period has passed. When a tenant is late with rent, the landlord cannot file an eviction suit until the landlord has given the tenant a properly written and served three-day notice to pay rent or quit. The three days does not include Saturdays, Sundays, and other judicial holidays. If the tenant does not pay the rent owed or move out within those three days, the landlord can file an eviction lawsuit.
There is NO grace period for paying rent in California.California landlords are not required to give tenants a rent payment grace period. Rent is due on the date specified in the lease or rental agreement, and a landlord can consider it late if it is not paid on that date. However, if the lease or rental agreement gives the tenant a grace period for paying rent, the landlord must honor it, and cannot consider rent to be late until after the grace period has passed. When a tenant is late with rent, the landlord cannot file an eviction suit until the landlord has given the tenant a properly written and served three-day notice to pay rent or quit. The three days does not include Saturdays, Sundays, and other judicial holidays. If the tenant does not pay the rent owed or move out within those three days, the landlord can file an eviction lawsuit.
Bounced Checks
Landlords are allowed to charge an additional fee for bounced checks. According to California rental laws, these fees are $25 for the first bounced check and $35 for any bounced check that comes after the first.
Lease TerminationAccording to landlord-tenant laws, both parties involved in a rental property agreement may terminate the lease after it reaches its due date.
In California you are REQUIRED TO GIVE FORMAL WRITTEN NOTICE: Here is a list of the amount of notice that tenants and landlords must give:
-Weekly Leases: Seven-day notice.-Monthly Leases: 30 days notice.-Quarterly Leases: Not specified.-Yearly Leases: Not specified. A tenant may terminate a lease before the due date in the following cases:
-The tenant is going on active military duty.-The rental unit is unhabitable.-The landlord is retaliating or harassing the tenant.-There was an early termination clause in the agreement. While tenant rights allow them to terminate a unit lease early, they still may need to pay the entire amount of the term.
-Weekly Leases: Seven-day notice.-Monthly Leases: 30 days notice.-Quarterly Leases: Not specified.-Yearly Leases: Not specified. A tenant may terminate a lease before the due date in the following cases:
-The tenant is going on active military duty.-The rental unit is unhabitable.-The landlord is retaliating or harassing the tenant.-There was an early termination clause in the agreement. While tenant rights allow them to terminate a unit lease early, they still may need to pay the entire amount of the term.
EvictionsA landlord may evict their tenant for many reasons; here are the most common ones:
-Rental property agreement breach.-Criminal activity.-Failure to pay.In these cases, the landlord can give a three-day notice to the tenant to either pay or quit. If the agreement wasn't written, a tenant might receive a federal standard up to three months' notice. However, at-will tenants are entitled to at least 30 days' notice or 60 days' notice if they've been renting for more than a year.
-Rental property agreement breach.-Criminal activity.-Failure to pay.In these cases, the landlord can give a three-day notice to the tenant to either pay or quit. If the agreement wasn't written, a tenant might receive a federal standard up to three months' notice. However, at-will tenants are entitled to at least 30 days' notice or 60 days' notice if they've been renting for more than a year.
Security DepositAccording to California landlord-tenant laws, security deposits are not required, but they're recommended to avoid future issues. Landlords can charge no more than two months' rent as a security deposit for unfurnished rentals. For furnished rentals, the maximum security deposit increases to three months' rent. If the tenant is an active service member, the landlord can charge no more than one month's rent for an unfurnished rental and no more than two month's rent for a furnished rental. If the tenant plans to have a waterbed in the rental, the landlord can add one-half month's rent on to the security deposit.
No state law requires landlords to pay interest on security deposits. However, local laws (those passed by a city or county) might require interest. Landlords have 21 calendar days (see Cal. Code of Civ. Pro. sections 12 and 12a for help calculating deadlines) after the tenant has vacated the premises to provide the tenant with an itemized statement indicating the amount of and use of the security deposit and to return any remaining portion of the security deposit. Keep In Mind that the landlord may withhold the return of the security deposit to cover unpaid rent, and cleaning or repairs expenses that come from extreme wear and tear. (Wear and tear is subjective; meaning, items like carpet and paint or appliances are expected to last multiple years. Things like nail holes, scratches, spills, pet accidents are considered to be damage.) If the landlord refuses to return the security deposit within 21 days, they may be penalized. A landlord must not deduct other expenses from the security deposit besides unpaid rent or damage costs.
No state law requires landlords to pay interest on security deposits. However, local laws (those passed by a city or county) might require interest. Landlords have 21 calendar days (see Cal. Code of Civ. Pro. sections 12 and 12a for help calculating deadlines) after the tenant has vacated the premises to provide the tenant with an itemized statement indicating the amount of and use of the security deposit and to return any remaining portion of the security deposit. Keep In Mind that the landlord may withhold the return of the security deposit to cover unpaid rent, and cleaning or repairs expenses that come from extreme wear and tear. (Wear and tear is subjective; meaning, items like carpet and paint or appliances are expected to last multiple years. Things like nail holes, scratches, spills, pet accidents are considered to be damage.) If the landlord refuses to return the security deposit within 21 days, they may be penalized. A landlord must not deduct other expenses from the security deposit besides unpaid rent or damage costs.
Landlord Rights to Enter Their Property in CaliforniaA landlord can enter their private property if they wish. However, they're required to give at least 24 hours notice before entering. If the landlord must enter as an emergency measure, they can enter without notice.
This 24 hours' notice may be given in any way the landlord sees fit. On the other hand, both parties may schedule a visit during business hours to avoid problems.
This 24 hours' notice may be given in any way the landlord sees fit. On the other hand, both parties may schedule a visit during business hours to avoid problems.
Need Temporary Property Assistance?
Please contact me today if you are in need of a Fill in Propert Manager, Leasing Person o, Maintenance tech, or porter in San Jose or San Francisco area. I work with several companied that provide additional or fill in assistance and would be happy to provide a referal or arrange assistance.