Property Management Resources for Landlords
Tips, Tricks, Tools & Time-Savers from Real Property Managers
- NEW 2023 RESIDENT MANAGER LAWS: For your protection, you should have a new, updated, written, legal Resident Manager Agreement containing all NEW LAWS.
- L.A. CITY COUNCIL ENDS LOCAL EMERGENCY: The end date for the local emergency is on February 1, 2023 and also ends the city’s eviction moratorium and rent increase freeze. Renters will have up to twelve months to repay deferred rent owed depending on when the rental debt was accrued. The city’s rent increase freeze will end on February 1, 2024 – one year after this end date.
- CITIES WITH NEW RENT CONTROLS: Fairfax, Bell Gardens, Pasadena, Pomona and Antioch
- CITIES STRENGTHENING RENT CONTROLS:
- Oakland – Expands just-cause protections
- Richmond – Tightens existing rent control increases
- Santa Monica -Tightens existing rent control increases
- SB 721, and SB 326: BALCONY INSPECTION LAW: For multifamily housing, condominiums and buildings with more than three dwelling units. The first inspections AND any ensuing repairs require completion by January 1, 2025. Property owners have until January 1, 2025, to complete and file the inspection report. Re-inspection is required every six (6) years.
- SB 1383 – MANDATORY STATEWIDE WASTE COLLECTION: This bill requires multifamily apartments of five or more units to have a system for their residents by 2025 to collect their organic waste (like food scraps) and have it transported to a compost facility.
- RENT INCREASE NOTICES: Rental increase of more than 10% now requires a 90-day notice, rather than 60-day notice.
- NEW SANTA ANA NOTICES: Property owners are required to provide written notice of the Ordinance and tenants’ rights at the commencement of a lease or as part of any notice to increase rent. The notice shall be written in the language that the Owner and Tenant used to negotiate the terms of the Tenancy (e.g., Spanish, Chinese, Tagalog, Vietnamese and Korean), as well as English and in a form prescribed by the City. Notices in English can be found on our website – www.aoausa.com and other language notices can be found at the following website: https://tinyurl.com/mr362tmw.
- SB 329 -SECTION 8 APPLICANTS: Housing Discrimination prohibits landlords from discriminating against tenants who rely on housing assistance paid directly to landlords, such as a Section 8 voucher, to help them pay the rent. All Section 8 applicants MUST be considered. You may no longer advertise or state that you do not accept Section 8.
- NEW RENTAL AGREEMENTS FORMS: Be sure to use newest updated Rental Agreement/and or Lease which is available to our clients.
- REQUIRED FLOOD DISCLOSURE FORM: Remember to include a copy of the Flood Disclosure form with all new rental agreements.
- REQUIRED BEDBUG FORM: Information on Bedbugs must always be included with all new rental agreements.
- RESIDENT MANAGER HOURS: Be sure to have your resident manager report their hours in writing to you on a weekly basis.
- NEW 3-DAY NOTICE to PAY RENT: Always serve in a timely fashion – immediately – the day after rent is due. Any grace period given in your lease only refers to late fees, not when rent is due. Remember, weekends and judicial holidays can no longer be included or counted in the 3-day response period.
- AB 468 – EMOTIONAL SUPPORT ANIMALS -This bill became effective Jan. of last year and prohibits a licensed physician from providing documentation about an individual’s need for an emotional support animal without establishing a relationship with the individual for at least 30 days. Also, the physician must complete an in-person clinical evaluation of the individual who requests the emotional support animal. Be sure to get proper documentation from applicants and/or current tenants..
- FAIR HOUSING POSTER: Federal Fair Housing law requires every property with four or more units to have a fair housing poster displayed in a conspicuous location on the property. It must be a minimum of 11 x 14 inches to be in compliance. If you don’t have one posted.
- SMOKE/CO DETECTORS: Have your smoke and carbon monoxide detectors checked every six months. At that time, also inspect your units regularly for plumbing leaks and other needed repairs; preventative maintenance saves you money.
- RENTAL QUALIFICATION FORM: Standardize and write down your rental criteria requirements to avoid discrimination lawsuits. This should be given to each new applicant with your application to rent. A simple, fillable form of a criteria list has been designed for your convenience.
- SCREENING FEE RECEIPT: Rental housing providers must provide an itemized receipt when collecting an application screening fee.
- RUN TENANT SCREENING REPORTS: Search credit, eviction and criminal reports on all of your prospective renters.
- MOVE-IN/MOVE-OUT: Always conduct enter and exit checklist inspections. Take pictures of your unit before move-in and upon move-out. As they say … pictures are worth a thousand words – especially in court.
- SUPPORT THE INDUSTRY: Always obtain competitive bids to cut expenses and make sure repairs are done right the first time.
- Consider accepting pets to your rent pool – many responsible pet owners make great tenants.
- Call Real Property Management for Commercial Brokerage BEFORE you buy or sell an apartment building. Our professional agents have been serving our members’ needs for over 35 years.
- REQUIRED AB 2330 WALK-THROUGH (Move-Out) – Be sure to offer your vacating tenant the required AB2330 Walk-Through “pre-inspection” no sooner than two weeks prior to the move-out date.
- SECURITY DEPOSIT REFUNDS: Send back security deposits within the 21 day legal time frame, including the necessary receipts/invoices for each item when deductions total over $125.00.
COVID-19: Commercial and Residential Tenant Eviction Moratoriums Select State and Local Laws Tracker (US)
As a way to track the changing landscape of evictions, the following may be a great resource to stay up-to-date with eviction moratoriums. It is updated often with changes/updates for every state (and in some cases, specific areas/cities).
LA County Moratorium Update (Jan 2023)
The following information is specific to LA County.
The Board of Supervisors of the County of Los Angeles has extended the moratorium through January 31, 2023. Some news sources are reporting that the Board also backed an amendment that would extend it through June 30, 2023. This potential extension also includes a proposed creation of a $5m relief program for mom-and-pop landlords who have not been able to collect rent during the moratorium.
(Note: The only change currently adopted is an extension of the existing moratorium through January 31, 2023.)
Does this mean you cannot evict a tenant? NO. These specific restrictions are being applied to cases in which your tenant has suffered or is suffering a “financial impact” as a direct result of COVID.
A recent change in the moratorium (as of December 15, 2022) allows a landlord to pursue eviction for non-payment of rent if the landlord believes the Tenant’s certification of their financial hardship is fraudulent or if the tenant is unable to prove their hardship to the courts.
CA COVID-19 Rent Relief Program
March 31st is fast approaching, which means that the State’s Rental Assistance Program applications will be closing. This means that if you do not have your application for rental assistance filed prior to March 31, 2022, you will not be able to request financial assistance for your rental arrears. If you are unable to apply for rental assistance, this will also affect your ability to evict tenants who owe rent between October 2021 through March 2022, and may also affect your ability to recover past due monies in small claims court.
If you are unaware, since March of 2021, the State of California has implemented a program, called the CA COVID-19 Rent Relief Program, to assist Landlords and Tenants in covering unpaid rent from the periods of April 2020 through March 2022. Certain criteria is required in order to apply and get approved, but to date, out of the nearly half a million applications submitted, the State has doled out approximately $2.3 billion to Landlords and Tenants who qualify – with Los Angeles County receiving well over half of that amount.
If you wish to be able to take advantage of this program, you must submit your application before March 31, 2022. You may find out more about the program and submit your application at www.housingiskey.com.
If you need help with a tenant who is in arrears, we are available to assist you.
FHFA is Raising Rates on Loans
The Federal Housing Finance Agency (FHFA) recently announced targeted increases to Fannie Mae and Freddie Mac’s upfront fees for certain high-balance loans and second-home loans. High balance loans are mortgages originated in certain designated areas above the baseline conforming loan limit, according to a release from the FHFA. The new fees will go into effect for deliveries and acquisitions beginning April 1, 2022, in order to minimize market and pipeline disruption.
LA Multi-Family Housing: 2021 Q1 Report
Metro takes initial steps toward recovery. Los Angeles entered 2021 with the second-highest unemployment rate nationally, having recovered less than half of the 660,000 jobs lost last April. The metro’s economy, however, is beginning to benefit from the partial rollback of COVID-19 restrictions that has allowed certain companies to rehire.
Regional Housing Needs Assessment (RHNA)
Here in California, we have a state law that mandates local governments to conduct a Regional Housing Needs Assessment (RHNA) – you might hear the acronym pronounced as “reena”. Cities often talk about their RHNA goals and meeting their affordable housing objectives, but how does this work?
Rent Control Notice
AB-1482, approved by the Governor of California on October 8, 2019 mandates that notice needs to be provided to tenants no later than August 1, 2020 (see section 9.f.2) of the provisions stated in AB-1492. An example is attached.
For Leases signed after July 1, 2020 the following will need to be added to the language of the lease on non-exempt properties.
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
If you haven’t already given notice to your tenants, please read through AB 1482, asking any clarifying questions to your retained council, and we will discuss fee structures to owners for the service we provide for notifying tenants.
CryptoCurrency and Down Payments
According to a Redfin report, one in nine first-time homebuyers (11.6 percent) surveyed in the fourth quarter said selling cryptocurrency helped them save for a down payment.
Redfin commissioned a survey of 1,500 residents planning to buy or sell a home in the next 12 months. With surging home prices leading to larger down payments, some buyers are finding non-traditional ways to cover the cost and compete with other bidders.
Download PDF – Courtesy of Provident Title
California Tax Increase Proposal
Assembly Bill 1400, an estimated $163 billion measure, is poised to create a single-payer health care system for all California residents regardless of immigration status.
A proposed constitutional amendment (Assembly Constitutional Amendment 77) would increase taxes by $72,250 per household, roughly doubling the state’s already high tax collections, to fund the single-payer healthcare system. California businesses may also be looking at an increase in the unemployment tax.
Download PDF – Courtesy of Provident Title
Rising Rates May Not Slow Home Sales
Potential existing-home sales decreased to a 6.26 million seasonally adjusted annualized rate (SAAR), a 0.3 percent month-over-month decrease, according to the November First American potential home sales model. That’s a 79.5 percent increase from the market potential low point reached in February 1993.
The market potential for existing-home sales increased 7.2 percent year-over-year, a gain of 422,000 SAAR sales, outperforming its potential by 9.4 percent, or an estimated 586,000 SAAR sales.
Download PDF – Courtesy of Provident Title