Renters Turn into Buyers - Yes it is True!

August 19th, 2009

Summer is always a busy month for property managers and DIYers. However, this year some things have been different. In the month of June I had 5 tenants give notice and it was because they had become First Time Home Buyers - Yeah for them. Finally, prices have come down enough in Santa Cruz County and interest rates are still at an all time low, and the $8,000 incentive for first time buyers helped. July I had 2 more current tenants become home owners and August I have 1. So that tells me the market has probably hit bottom. I am hearing from Realtor friends that some properties are getting multiple offers. These properties of course are the short sells and the foreclosures but it makes me happy to know that good tenants are becoming good qualified home owners who are establishing permanent roots in our community.

Kathleen Richards
Broker/Owner

PS check out our Santa Cruz Rentals

Apartment Vacancy Rate Hits 22-Year High

July 22nd, 2009

I reposted this article because I think it is informative about the current rental situation. The good news is that Santa Cruz is somewhat shielded from the huge drops and extended vacancies. Santa Cruz is more of a single family and small complex community.

However, I have seen rents dropping and applicants are really shopping around. If the property is priced right it rents quickly so Property Owners need to get real about the rental price. It is better to lose $50 per month or even $100 per month than an entire month to 60 days worth of rent that can’t be made up.

Apartment Vacancy Rate Hits 22-Year High
By Nick Timiraos, Wall Street Journal

The vacancy rate for U.S. apartments hit a 22-year high in the second quarter as rising unemployment reduced demand during what is usually the peak leasing season.
Rents fell the fastest in markets that have shed white-collar jobs, such as New York and San Jose, Calif., and in markets where many foreclosed homes and condominiums have been turned into rental property, including Las Vegas and Orange County, Calif.

Vacancy levels nationally rose to 7.5% in the April-to-June period, up from 6.1% a year earlier, according to Reis Inc., a New York real-estate research firm. Of the 79 markets tracked by Reis, 45 showed an increase in vacancies.

Generally more rental units turn over during the spring and summer than in any other time of the year, which means that the declines could have an outsized impact on revenue for apartment owners. The housing downturn initially offered landlords the chance to lure troubled homeowners into the rental market. But the pace of job losses shattered any inroads that apartments might have gained from the housing bust. Apartment vacancies began to rise at the end of 2007 before accelerating further as the economy deteriorated last fall.

Rents, meanwhile, are falling at the fastest pace in at least a decade. Effective rents, which include landlord concessions such as one month free rent, fell 1.1% in the first quarter and 0.9% in the second quarter to an average of $975 a month. The combined decline for the first half of the year was the largest since Reis began tracking the data in 1999. “It is one of the worst second-quarter performances that we’ve seen,” said Ron Johnsey, president of Axiometrics Inc., an apartment-research firm. Vacancies tend to rise during periods of high unemployment because household formation slows, as would-be renters double up or move in with family members. Those who do rent are more cost-conscious.

Meanwhile, shadow inventory of foreclosed properties and condominiums for rent continues to compete with rental apartments in the most oversupplied housing markets. While rental demand grew by 2.1% during the first quarter, apartments didn’t benefit, in part because former homeowners chose to live in vacant homes for rent, said Gleb Nechayev, senior economist at CBRE Torto Wheaton Research. There are signs that the shadow inventory may be leveling off. The number of vacant-housing units for rent declined to less than one million in the second quarter, from more than 1.1 million through most of 2008, according to Ron Witten, who runs a Dallas-based apartment-research firm.

Falling home prices could hit landlords in two ways. They could force landlords to lower rents to keep up, and could spur some renters to purchase homes. Still, the number of renters who move out to purchase homes isn’t expected to surpass levels seen during the housing boom earlier this decade.

From 2000 to 2003, around 30% of renters who moved out of apartments were becoming home buyers, while just 15% of move-outs left to buy homes during the first quarter of 2009, AvalonBay Communities Chief Executive Bryce Blair told investors at a real-estate conference last month.

Markets with better employment prospects saw modest rent growth during the second quarter. Effective rents increased in the second quarter by 0.3% in suburban Maryland and in Washington, D.C. Poorer-than-expected rental growth could push landlords who piled on debt during the years of easy credit into default on their mortgages.

Be Safe This Summer

July 14th, 2009

Summer is a time of freedom, vacations, enjoying the warm weather. With twitter, blogs, social networking sites people like to share their summer fun and this is fine but be careful. Don’t give out too much personal info, home address, dates of your vacation because as you may have seen on the news there are people taking advantage of the fact that you are gone to rob your home.

Also, according to police statistics the highest rate of crime is in the summer when people aren’t home and burglaries are on the rise. Share your summer fun after you’re home.

Simple things to do to stay safe this summer. Lock all doors and windows. Don’t leave valuable items out for people to easily see such as in your car. Wear sunblock. Don’t drink and drive. If you are going on vacation have the post office hold your mail. Let your neighbors park their car in your driveway. Have someone house sit for you or at least check on your place so it doesn’t look all closed up. Get to know your neighbors if possible. When I am away my neighbors know it. They park in my driveway, check on my house, feed by birds and cats (I co-share the cat with my neighbor who is the actual owner) and I do the same for them. This is a great way to build community and face to face social networking.

Have fun this summer but be safe.

It’s the Economy Stupid!

July 6th, 2009

Everyone asks me about the rental market and then sales. I don’t do sales but what I can tell you is how the economy is affecting both rentals and sales.

This summer I am busy but it is taking longer to rent some properties than normal. Rental prices are dropping and prospective tenants are being very choosy. It is a renters market so to speak. My tenants that are giving 30 day notices are moving because they are now home owners - Yeah for them. It tells me that with the price of homes coming down and interest rates still at all time lows renters are now able to become home owners and this is terrific.

In this tough economy people are being very creative with their money. I am seeing home owners now become renters again. No, they didn’t go through foreclosure. They are renting their homes and downsizing themselves into smaller homes. The kids are gone etc etc. They are trying to make up some of the money lost in the stock market and their retirement plans.

People who have lost their jobs are getting creative too. They are moving into smaller properties, getting roommates, moving in with family and friends.

With all this economic uncertainty it is vitally important that people have an emergency fund. Save some money for the worst case scenario. If you are currently a renter and paying a high-end rent consider downsizing and pocket the extra money for savings or towards a downpayment of a home of your own.

In downtimes there are always opportunities so take a step back and try to see things with new eyes.

15 years ago I was laid off from a high tech company in Silicon Valley and reinvented myself, changed careers, went overseas, and ultimately it led to me being my own boss and owning my own company. So although forced change is painful it can often lead to really great things.

Kathleen Richards
Broker/Owner

Everyday Tips & Tricks

May 20th, 2009

1. To remove candle wax, freeze the candleholder and the wax can easily be chipped off once frozen.
2. If you have a CD that skips, put toothpaste on a soft cloth and rub the CD. Rinse with water and dry well.
3. If you have sparkling wine that has lost its sparkle, drop a raisin in the bottle. The concentrated sugar in the raisin will help make your wine bubbly again.
4. To quickly dry nail polish, plunge freshly polished nails into ice water. Be careful while drying.
5. To clean vinyl, put a drop of lemon extract on a clean cloth and wipe the vinyl down.
6. Instead of burning newspaper as kindling, use dried orange and lemon peels. They’ll burn hotter and longer than paper.
7. Run a 1/2 cup of rice through your coffee grinder for a quick clean.
8. To clean your antiques, use 2 parts turpentine to one part boiled linseed oil, or mix equal parts of turpentine with linseed oil and vinegar. Apply with a soft cloth and rub with another soft, dry cloth to polish.
9. To remove blood stains, as soon as possible, cover with a paste of cornstarch and water. Let it dry and brush it off.
10. Do your seat cushions slide off? Pin or sew a washcloth or hand towel to the bottom of the cushion or to the couch under the cushion to create a slip-resistant surface.
11. When dusting your TV, use a cloth dampened with fabric softener. This reduces static on the screen, which draws the dust to it.
12. When moving or rearranging a room, put socks over furniture legs to prevent scratching the floor.
13. To erase scuff marks on linoleum, try toothpaste on dry cloth, or use a gum eraser like you would with a pencil on paper.
14. To remove crayon or marker marks from wallpaper, walls or any other painted surfaces, once again, try toothpaste on a soft cloth.
15. Wait for a cloudy day to wash your windows, because then they won’t dry with sunspots.
16. Fireplace cleaning: use an art gum eraser to remove soot marks from stone or brick fireplace fronts.
17. To keep ashtrays clean and manageable, coat the inside of the tray with some floor wax. This will prevent the ash from sticking and make the trays easy to clean.
18. To remove odor from tobacco smoke, place several trays of open vinegar around the space, or use activated carbon (charcoal or fish tank filter carbon) in the same way, placing small amounts in saucers around the room.
19. Don’t hang heave pictures, mirrors or frames above the head of your bed. You can never be to careful living in earthquake territory.
20. To easily distinguish between keys, try marking the top with brightly colored nail polish or acrylic paint, and keep a record of which color is to which lock.
21. To prevent laundry soap from clinging to clothes in the washer, dissolve the detergent in warm water before adding to the wash.
22. Sometimes washing machines need to be washed too. To wash your washer, pour a gallon of distilled vinegar into the washer and set to a warm cycle. The vinegar will cut through built-up soap and leave your washing machine sparkling clean.
23. To make socks be their whitest white, soak them in hot water mixed with the juice from ½ a lemon.
24. Hate trying to thread needles? A bit of hairspray or starch applied to the end of the thread will make your life much easier.
25. Scissors too dull? Snip through a piece of sandpaper a couple times and your scissors will get their sharp edge back.
26. To make a sleeping bag for your baby, cut the arms off an old ski jacket and sew the arm holes and the bottom closed.
27. To help your baby get to sleep or calm down when with a babysitter, record your voice or your spouses on a tape telling a bedtime story or singing a lullaby. The babysitter can play the recording back to calm the baby when you’re gone.
28. Any artwork your child does that you want to save, spray with hairspray to keep the colors from fading. Just make sure the drawing isn’t done with ink, because when mixed with ink, hairspray can make the colors run.
29. To prevent children from sneaking out, tie a small bell to your doorknob. When turned, the bell will ring, alerting you that they may be trying to sneak out.
30. To help kids not run into sliding glass doors, put a piece of brightly colored tape at their eye level.
31. If you’ve ever tried to give your child a pill and they have trouble swallowing it, give them a frozen popsicle to suck on. It’ll help anaesthetize their taste buds for enough time to make swallowing it a little bit easier.
32. When a child falls and cuts themselves, use a dark colored cloth to dry up the injury. This will help them not be alarmed by the sight of their own blood on the cloth.
33. If your child has an earache, fill a hot water bottle with warm water and have them lay down and put it on their ear. It’ll feel a lot better while the water is hot.
34. To help lessen the pain of bee-stings, apply a paste of baking soda and water. Or try dabbing with lemon juice. Another thing to try is to cut a green onion and hold it on the sting. Or, if that doesn’t work, try a banana peel.
35. To help lessen the itch of a mosquito bite, soak a cotton ball with vinegar and apply to the bite.
36. Looking for an easy way to dry up pimples? Dab some lemon juice on it and it should dry up in no time.

Going Green in Property Management

May 13th, 2009

Ok, we just had Earth Day, and the current trend in marketing is to say you are Green. What does being green mean in property management and our daily lives and can it also save us some green – money?

Here are some things I do in my office and things I recommend to Owners/Tenants.

My office:
 We print lots of paper. We use the back of the printed side. Then we recycle our paper.
 We water the plants and yard at our office once a week. That is it.
 We don’t wash our windows until they really need it.
 I have started walking to and from work and I leave my car at work.
 We open the blinds in all offices and don’t turn on the lights
 I purchase recycled products for my office – paper for one
 We each have our own coffee mug instead of using paper cups and tossing
 My house cleaners use non-toxic products
 My contractors know to recycle paint and building products.
 Install energy efficient bulbs
 Lower the water level in the toilet tank (less to fill up each time)
 We stopped providing copies of all maintenance invoices with monthly statements to owners.
The info is on the statement. This saved employee time, paper, and postage.

Owners:
 Put in a drip system on landscaping
 Consider removing grass from yards and landscaping with draught tolerant plants
 Change out toilets if really old to low flow
 I offer monthly owner statements via email instead of print, and put in envelop, post and mail.
 Pay bills on line.
 Participate in our Preventative Maintenance Program – catch the small stuff before it becomes big.
 Install energy efficient appliances even if not the cheapest
 Use non-toxic paints, carpets in rentals
 Change out heater filters annually
 Ensure good insulation in the attic or ceiling to roof space.
 Install dual pane windows
 Consider solar installation for a very large home
 Install energy efficient light bulbs
 Lower water level in toilet tanks

Tenants:
 Report drips and leaks immediately
 Water yard or plant a garden and eat the food produced
 Lower temp on water heater
 Lower thermostat to save on PGE
 If no problem with HOA rules, hang clothes on a clothes line instead of dryer
 Wash laundry less. Even one load less a week makes a huge difference.
 Wash dishes without running water continuously
 Brush teeth without water running continuously
 Take a little shorter shower
 Recycle trash (Santa Cruz requires)
 Wear your clothes more than once before washing
(I grew up with school clothes and play clothes and church clothes)
 Use less soap/shampoo/toothpaste. I traveled for 1 year and learned very quickly how little
you actually need to use to get the job done.
 Pay rent on line – saves paper and postage.
 Have a garage sale at least twice a year. My rule. If I haven’t used it for a year it goes.
And, you know what I never miss it.
 As light bulbs die, install energy efficient ones.
 Lower water level in toilet tanks
 Turn off lights when not needed.
 Unplug counter appliances when not in use

I would argue that most of these Green things that we can all do will save us Real Green – Money. In today’s economy we can all find better uses for our Money than watching it go down the drain literally.

A great resource for FREE stuff is: www.freecycle.com

What Green ideas do you have? Share them and I will post and share with others.

Kathleen Richards

CALNARPM – Why You Should Care?

May 9th, 2009

CALNARPM stands for California Chapter of the National Association of Residential Property Managers. I am the President of the Monterey California Chapter and the VP of the California State Chapter.

I just attended our annual California Conference last week - April 20-23, 2009 in Burlingame, California. Anyone that is a property manager can attend the conference. Go to www.NARPM.org to check out the classes, conferences and other resources available to property managers.

So, Why Should You Care?

Well to start with we had Jeff Davi, Commissioner for the Department of Real Estate, speak to us about the State of the Union of the DRE. It was very informative about where real estate is headed in the coming year. More Foreclosures….

We had the key Auditor of the DRE speak to us about the audit process and what can trigger an audit and how to go through an audit. This was very valuable information for Broker/Owners on how to keep their files, trust funds, and employees compliant.

We had representatives from the Franchise Tax Board (FTB) speak to us about compliance with the Resident and Nonresident Withholding Guidelines and our role as Withholding Agents. The FTB considers California residential property management companies to be withholding agents in terms of residential housing rental payments made to non-California property owners. They discussed the guidelines of withholding 7% of gross rental receipts and forwarding the funds to the FTB Quarterly.

Enforcement of this withholding was to go into effect this April 15th. Needless to say CALNARPM was able to negotiate with FTB representatives to delay compliance for another year in order to educate our members and owners. This is why you should care about what NARPM does and the California State Chapter. We are your Go To Source for Residential Property Management needs.

The other workshops covered topics such as:
 What to do if a tenant dies in the property
 What to do if the tenant goes to jail
 How to prepare notices so they won’t be thrown out in court
 Marketing your business and offering excellent customer service
 Internet marketing
 Accounting software
 Applicant screening
 How to grow your business with mergers and acquisitions
 Time management and office procedures
 Eviction Protection Programs and Rent Loss Guarantee Programs
 Fair Housing – Are you in Compliance and Know the Law?
 Finding Opportunity in Chaos – Foreclosures

In addition, members can work towards professional designations. Classes offered towards this end that were offered were: Marketing, Ethics (which is a required class for all members), Leadership, Starting a Maintenance Company.

I already have my RMP (Residential Management Professional) designation and will write about that later but it took a lot of work to get that designation. I am now working towards my MPM (Master Property Manager) again a lot of work and classes to attain this next level of professional development. Towards that end I took the 2 day class of Starting a Maintenance Company. It was well worth the time.

I learned:
 It provides quicker response time to the property
 More quality control of the work being done
 Maintenance employees get to know properties and can handle emergencies faster
 Costs are equal to or lower than independent vendors
 Employees visit property on a more regular basis and become a second set of eyes and ears
 Completion of work quicker
 Tenants get to know maintenance crew and allow entry when at work
 It provides another revenue stream for property management company
 Your maintenance company has been trained in fair housing laws and your company procedures – leave house clean, don’t enter house with anyone under 18 alone in house etc.
 Control over employees and their time (not gone surfing for the day)

I am not in a position to start another full fledge company but I am at the point where it might work better for me to hire my handyman for all of the reasons listed above.
Bottom line, providing consistent, quality, responsive maintenance services at a better price than the open market to Owner and Tenants would be my reason for implementing an in-house maintenance department.

If you ever want to learn more about property management attend a local NARPM chapter meeting. The two close ones to us in Santa Cruz are Monterey (I am the President and personally invite you) and the Santa Clara Chapter.

Professionalism through Education!

Kathleen

Red Flags – Potential Tenant or Owner

April 29th, 2009

Things You Should Know To Protect Yourself

Tenant Red Flags

  • Need to move in FAST
  • Offer to pay 6 month’s rent in advance
  • Have a sad or complicated story
  • Someone looking for another person – parents looking for kids, friends looking for other friends
  • Won’t answer questions directly
  • Self Employed but can’t show financials
  • Trust Fund Babies

Why are these Red Flags? Why does someone need to move FAST – maybe they are being evicted…They offer to pay rent in cash in advance. Who in their right might would give up 6 months worth of money? Just put in the bank and pay monthly. This could indicate they have really bad credit. The other option that IS valid if you can see the proof is they are in a commission job and income isn’t steady.

I will not rent to anyone who hasn’t seen the property. Someone is trying to hide something. Not answering questions or changing story all the time means they may be lying on their application as well. Again, what are they hiding?

Self employed must show financial documentation, bank statements, past tax returns. Do not accept the answer my docs are in files in storage. Then go get them. I have seen falsified tax returns that were completely made up. Get more than one source of financial documentation.

What are Trust Fund Babies? They don’t need to work. They get money deposited into their bank accounts monthly – inheritance, won a lawsuit etc. The Red Flag is they don’t have to work but they have cash monthly. My experience has shown, substance abuse and people, friends, coming and going at all hours. Lack of respect for those that do work – meaning parties all night. Not all Trust fund recipients fall into this category but make sure to check all info on lease. Look at bank statements you might see how they spend their trust fund money monthly. You might also see lots of NSF’s or bounced checks. Be wary of anyone who has money deposited into their accounts. Students fall into this category. That is fine if you look at their GPA and see they are good students. This isn’t ok if they are 30 and have been in college (junior college) for the last 10-15 years and the parents are still supporting them. Red Flag!!!

If things feel strange or the applicant can’t provide the info you are requesting then let them know this may not be the property for them.

Owner Red Flags

  • They live on the property or have a workshop on the property
  • The house needs work and they promise to do it before move in
  • Want first, last and security deposit
  • Charge way above the market rent
  • Want to do a verbal lease with you
  • Want rent in cash only

Why are these Red Flags? If there is a reason the owner is on the property daily get in the lease that they will give you 24 hour notice to enter property. They may feel it is their house, their workshop and therefore they have the right to enter your unit without permission. Make sure you and the Owner are clear about boundaries.

The unit should be ready to go when you see it. Don’t trust that the walls will get painted or the unit cleaned if they are showing it in a bad condition. Chances are what you see is what you will get. They have no shame if they are showing you a terrible place and be assured they won’t fix anything either once you are in.

Rent & Security are all that are allowed to be collected.

If they are charging way above the market rent, the house needs repairs and this is a ‘student’ housing or ‘roommate’ situation be aware the owner may be just a slum lord. They rent the rooms out individually and collect as much as possible and won’t do any repairs because their rational is the place will just get beaten up by all the tenants. Stay clear of this type of landlord. You won’t get your Security back.

Never do a verbal lease. Protect yourself and have it in writing. Any agreements put in writing.

Never pay rent in cash. Always pay with check, money order or cashiers check. You want proof that you paid. I would be suspicious if the owner wants only cash…something illegal going on or the owner is trying to fly under the wire.

See our list of Santa Cruz Rentals and call if you have questions.

Kathleen Richards

Broker/Owner/Property Mgr

Finding Good Tenants

April 14th, 2009

I often hear from self managed property owners all their horror stories.¬† I then wonder why they keep managing their properties…maybe they are a glutton for punishment but I digress.¬† When I start asking questions I find out that they didn’t do any screening.

So here are a  few tips that the pros - like me - use.

  1. Make the applicant jump through hoops.¬† Do they follow your instructions?¬† If they don’t why would they follow the lease???¬† Hmmm
  2. Applications are to be filled out in full.¬† If they don’t have a complete application I don’t chase them down.¬† I deny them.
  3. Verify their income, residency, etc.¬† Don’t call a reference and ask Yes/No questions.¬† As them, “You were put down as a reference for Mr Renter.¬† How do you know him?¬† If the employer, landlord are legit they will tell you.¬† If they are a relative or friend trying to con you they will get stumped because they don’t want to say the wrong thing.
  4. Income is to be 3 times the rent.¬† You don’t want tenants eating noodle ramen every night for dinner.
  5. They should have a good credit score (I personally disregard medical collections).¬† What is a good score?¬† 650 or above.¬† Anything in the 500’s deny.
  6. Don’t accept the free credit reports.¬† They only show consumer credit - credit cards - they don’t show if there are any evictions or judgements, tax liens, or child support owed, or bankruptcy that hasn’t been discharged.¬† You can often sign up with a credit processing agency to run single credit reports.¬† I use CCIProfiles¬† 1-800-954-2266 in San Ramon.¬† I don’t know if they accept individuals as clients but check them out.¬† Let them know I referred you.¬† You MUST run credit.¬† This is one of the only legal ways that you can rule people out.
  7. Check rental history.¬† You want somone who hasn’t been moving around alot.¬† Call the current and prior landlord.¬† The prior landlord has nothing to lose and will often be honest with you.¬† When doing the reference check ask¬† lots of questions.¬† If the landlord is yes/no or hesitant this is a red flag.¬† Great tenants get rave reviews.
  8. Ask applicants lots of questions:  why are you moving, how many will be occupying the residence, do you have good credit, what is your income, etc.  If they are hesitant that is a red flag.  You are asking them the same questions the application asks for.
  9. Personally show your property.¬† You want to see how they are dressed, treat you, treat the property…Do they take shoes off at the door?¬† What does the car look like?¬† It should be clean.¬† It shouldn’t look like they are living in it.¬† Don’t spend hours.¬† 15 minutes look around and that is it.¬† Don’t listen to life sad stories.¬† You aren’t a counselor - you are an investor of real estate, a property manager.
  10. Once you have a good tenant, make sure you are a good landlord.¬† Keep in mind you may own the property but it is going to be their HOME.¬† Owners often lose good tenants because they invade their space without proper notice.¬† I can’t tell you how many times tenants come to me BECAUSE I am a property manager and they feel more secure knowing that I will enforce their privacy.

Happy Renting!

See our listing of Santa Cruz Rentals

Kathleen Richards

Broker/Owner/Property Mgr

Know the Law

April 1st, 2009

I recently co-taught a class at Cabrillo College on March 16th.  It was a day long class.  How to be a good Landlord. For those people who like to manage their own properties, or those who have inherited properties and are informing themselves as to if they want to be a Property Manager or have someone else do it.

The class had 25 attendees. It was from 9-4 on a beautiful Saturday. Attendees purchased a binder that contained all kinds of fabulous material on how to set up a system, accounting, filing, maintenance, tenant calls, etc. I even provided the lease I use in my business with addendums.

What I found most interesting when asking people what they wanted to gain from the class was their comments. 90% were there to learn the laws - yet the class wasn’t a legal class.

So,  I will share with you some of the main laws that DIY (Do It Yourselfers) need to know. I am not an attorney but I do spend a great deal of time staying on top of the laws in the Property Management field.  Afterall, that is a service I provide to my clients in Santa Cruz, CA.

Top 10 Laws You Need to Know

  1. Security deposit needs to be returned within 21 days from receipt of keys.  If not returned in time you could be forced to pay 2 times the security deposit to the tenant.
  2. Depending upon county rental property is located you are to pay interest to tenant annually on the security deposit (Santa Cruz County requires this)
  3. 24 hour notice must be given to tenant if you want to visit property, enter property, or just walk around the outside of the property.  This is one of the biggest violations Owners make.  They feel it is their property.  Well, Yes, they may own it but the Tenant has rights by virtue of paying rent.  They have the right to quiet enjoyment of the property and keep in mind it IS their “home.” So be respectful and always give at least a 24 hour notice.  More is always appreciated.
  4. Addendum required with a lease:  Lead if property was built 1978 or earlier.
  5. Addendum required with a lease: No Charcoal BBQ allowed on decks, balconies or within 10 feet of combustible construction
  6. If tenant gives 30 day notice you must provide Pre-Inspection date and time. Tenant isn’t required to do participate but Owner is required to provide form.
  7. If tenant has been in lease for 12 months and a day the Owner needs to give a 60 day notice to vacate.  If less than 12 months a 30 day notice is ok.  If section 8 housing tenant then 90 days needs to be given.
  8. As of Sept 2008 a new law allows a tenant to break lease early for Domestic Violence. Tenant must provide in writing to Owner copy of restraining order, or emergency protective order or a copy of a written report by a peace officer.  The tenant still owes 30 days rent from the time the written termination is provided but the lease is able to be broken and no further rent is required.  Also, the notice of termination of tenancy from the alleged victim must be given within 60 days of the date the order was issued or the report was made. The tenant is still responsible for the payment of rent for 30 days following the giving of the notice. All other obligations still apply.
  9. Normal breaking of lease - tenant will continue to owe rent and all utilities until the property is re-rented.  The tenant doesn’t get security deposit back until the property is re-rented.
  10. If lease is broken, Owner can’t raise the rent. They have to advertise (which the tenant pays for) for the same price they are getting under the lease terms.  If the owner wants to increase the rent they need to allow the tenants out of the lease.  Owner can decrease the rent to get the unit rented again but isn’t required to do so. Tenant’s are obligated to pay rent until the unit is rented again.

Over the next few weeks I will address some of the questions brought up in the class such as:

  1. How do you screen for good tenants?
  2. What are the red flags?
  3. How do you find a “good” property manager
  4. Do I have to rekey the unit after a tenant moves out and before the next one moves in?
  5. If the property is single metered can I charge the tenants pro-rated utilities?
  6. Can I not rent to families?
  7. Can I refuse pets? What about therapy pets?
  8. What is Section 8?
  9. Can I charge 1st & last month’s rent & Security Deposit?
  10. How much can I charge for Security Deposit?

Look for answers to these questions in coming blogs!

See our list of Santa Cruz Rentals

Kathleen Richards

Broker/Owner/Property Mgr