Late Payments and Bounced Checks

Late payments and bounced rent checks are generally governed by the lease document. A lease document which deals with late and returned payments is essential. Assuming your lease allows you to collect a fee for a returned payment and/or a late payment, you should write the resident and advise them of what happened and request a replacement payment, as well as any administrative fees you have the right to collect. Also, if your lease allows for it or she is in a month-to-month tenancy, you may want to consider giving her notice that in the future you will no longer accept checks from her, only money-orders IF this happens again. Be sure to not be personal in this letter, so that it is very clear you are not playing favorites. It is best to have a written policy stated in the lease or somewhere in your business records indicating how many returned payments you will tolerate within a 12-month period BEFORE you give notice to a resident you will only accept a bank or cashiers check. And remember to save a copy of the letter in her tenant file for future reference.
As Always,
Ms. Merrie

Cohabitants Should All Be On One Lease

Typically, we advise against separate rental agreements with each resident. The better practice is to have all original adult tenants sign one lease agreement, submit a single security deposit and pay rent with a single check. This will help alleviate confusion regarding the return of the security deposit when the tenancy terminates.
Advise your tenants the security deposit will be returned to them when the unit is returned to you VACANT of all tenants (regardless of type - roommates, subtenants, guests, uninvited guests). The tenancy does not end until everyone is gone.
If you allow certain tenants to depart and terminate their relationship with you, but others remain, you end up with a complicated legal situation and you will have voided language in your lease making all tenants jointly and severally liable. By following the strict rule that no deposits are refunded until the tenancy (in its entirety) is terminated you will avoid the problem of what to do with the deposit should tenant B depart and be replaced by tenant D.
Due to the complexity of subleases in rent control jurisdictions and in California in general, our office recommends that all owners seek the advice of an experienced property manager or legal counsel when dealing with subleases. We certainly can provide this expertise. Give us a call.
As Always, Ms. Merrie

Smoking OK in Residential Units?

While smoking bans are common in the work place, restaurants, hotels, and leisure locations, currently there is not state law that bans smoking in residential units. Cities and counties in California are just beginning to enact bans on smoking. As residents become more aware of the risks associated with second-hand smoke, they also are becoming astute regarding their rights in order to protect their health.
Smoking is not a protected right under the U.S. or California State Constitution and there are rulings that set precedent in this regard. The safest approach is to adopt a uniform policy and to implement it during lease renewal and when signing new leases rather than to amend an existing lease. More information can be found at this link:
http://www.caanet.org/am/template.cfm?Section=caahome&template=/CM/HTMLDisplay.cfm&contentID=12618
-Ms. Merrie

Rent Increases and The Rent Board

Any increase in excess of the annual increase, plus available banked increases, requires a petition to the Rent Board. There are SIX types of increases that a landlord may file. They are as follows:
1. Capital improvement pass-throughs.
2. Operating and maintenance expense increases.
3. Special circumstances increases based on rent for comparable units.
4. Rent increases based on past rent history of a Prop I affected unit.
5. Utility pass-throughs.
6. Rules and Regulations Section 1.21 increases where there is not a tenant in occupancy.
If you are not sure HOW to go about doing this, I am always here for a consult.
As Always, Ms. Merrie

Special Leave for Military Spouses and Domestic Partners

DID YOU KNOW that In October of 2007, Governor Schwarzenegger signed AB392 into law. It added Section 395.10 to the California Military and Veteran’s Code. Therefore,if you have 25 or more employees you are required to provide UNPAID leave to spouses or domestic partners of military personnel who work “an average of 20 or more hours per week.” California Assembly Bill 392 lists the details for this new policy, which also states that the spouse or domestic partner must have been on active duty serving in Iraq or Afghanistan in order for this to apply. Visit the link for more details http://www.legislature.ca.gov/cgi-bin/port-postquery?bill_number=ab_392&sess=CUR&house=B&author=lieu.

And as always, I am always here to support you with your property management questions. - Ms. Merrie

Inexpensive Advertising for Property Managers

We know and appreciate everyones' need to be budget-conscience, yet still get the word out on your available listings. The following internet sites provide FREE or inexpensive advertising for rental properties:
http://www.apartmentlinks.net/
http://www.apartmentscout.com/
http://www.apartments.com/
http://www.craigslist.com/
http://www.rent.com/
http://www.rentlinx.com/
http://www.rentquest.com/
http://www.rentsearch.com/
http://www.sublet.com/
http://www.vacancynet.com/
http://www.yahoo.com/
http://www.lightnergroup.com/

Emergency Preparedness Was On Fire!

I was honored to do another interactive seminar for Bridge Housing in San Francisco. This seminar was focused on preparing for an emergency. It is hard not to live in a bubble where we think emergencies will never REALLY happen. We get so caught up in our daily lives that preparing for the worst is just not a priority. But then when we think about 911 or New Orleans, etc., and we begin to realize that emergency situations do occur and that we need to figure out how to handle them before we are blind-sided by them. Here is what some of Bridge Housing's gracious Resident Managers had to say about my emergency seminar:
"It made me realize the importance of having a plan and being prepared." - Kathie Miller
"This was a wonderful exercise. I intend to reinact it with my site staff." - Salette Campos

I love providing tools for other's success and would enjoy providing your company a tailored training on any version of emergency preparedness.
-Ms. Merrie