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Property Management Resources for Landlords
Tips, Tricks, Tools & Time-Savers from Real Property Managers

  1. NEW 2023 RESIDENT MANAGER LAWS: For your protection, you should have a new, updated, written, legal Resident Manager Agreement containing all NEW LAWS.
  2. 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.
  3. CITIES WITH NEW RENT CONTROLS: Fairfax, Bell Gardens, Pasadena, Pomona and Antioch
  4. CITIES STRENGTHENING RENT CONTROLS:
    1. Oakland – Expands just-cause protections
    2. Richmond – Tightens existing rent control increases
    3. Santa Monica -Tightens existing rent control increases
  5. 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.
  6. 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.
  7. RENT INCREASE NOTICES: Rental increase of more than 10% now requires a 90-day notice rather than 60-day notice.
  8. 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 in English and in a form prescribed by the City. Notices in English can be found on our website – www.aoausa.com. Notices in other languages can be found at the following website: https://tinyurl.com/mr362tmw.
  9. 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.
  10. NEW RENTAL AGREEMENTS FORMS: Be sure to use newest updated Rental Agreement/and or Lease which is available to our clients.
  11. REQUIRED FLOOD DISCLOSURE FORM: Remember to include a copy of the Flood Disclosure form with all new rental agreements.
  12. REQUIRED BEDBUG FORM: Information on Bedbugs must always be included with all new rental agreements.
  13. RESIDENT MANAGER HOURS: Be sure to have your resident manager report their hours in writing to you on a weekly basis.
  14. 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.
  15. 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..
  16. 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.
  17. 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.
  18. 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.
  19. SCREENING FEE RECEIPT: Rental housing providers must provide an itemized receipt when collecting an application screening fee.
  20. RUN TENANT SCREENING REPORTS: Search credit, eviction and criminal reports on all of your prospective renters.
  21. MOVE-IN/MOVE-OUTAlways 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.
  22. SUPPORT THE INDUSTRY: Always obtain competitive bids to cut expenses and make sure repairs are done right the first time.
  23. Consider accepting pets to your rent pool – many responsible pet owners make great tenants.
  24. 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.
  25. 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.
  26. 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.

Santa Monica City Council Passes Avalanche of New Owner Restrictions

The “key” provisions regarding these onerous, new restrictions are as follows:
  1. Housing Status as a Protected Classification (SMMC 4.28.030(a), (b), (c)): Discrimination based on housing status, including homelessness or lack of rental history, is strictly prohibited.
  2. Permanent Relocation for Economic Displacement (SMMC 4.36.020(a)(5))
  3. Additional Reasons for Permanent Relocation Fees (SMMC 4.56.020)
  4. Permanent Relocation for Other Reasons (SMMC 4.36.010(a)(6)-(8))
  5. Expansion of Buyout Code to Non-Rent Controlled Units (SMMC 4.57)
  6. Minimum Buyout Amount Requirement and Defense for Non-Registration (SMMC 4.57.020(b)(7), (c)(3))
  7. New Disclosure Language (SMMC 4.57.020(b)(7), (8))
  8. Evictions Based on Bad Faith Excessive Rent Increases (SMMC 4.27.090)
  9. Prohibited Activities (SMMC 4.56.020(a), (k), (m), (n))
  10. Potential Penalties (SMMC 4.56.040(c))
  11. Section 8 Discrimination (SMMC 4.28.030(i))

Read More >>

HOAs – New Laws & Cases (2023)

published by Adams Sterling PLC

AB 572Assessment Limitation. Beginning 1-1-25, new associations with affordable housing are limited to assessment increases for affordable housing to 5% + cost of living, not to exceed 10% greater than the preceding regular assessment.

AB 648Virtual Meetings. Beginning 1-1-24, associations can hold virtual without the need for a physical location, provided the notice of meeting contains technical instructions, access to technical assistance, provide a phone option, and the board takes roll call votes. Meetings where member votes are tabulated must designate a physical location.

AB 648ADUs Into Condos. Local agencies can adopt ordinances to allow owners to convert their ADUs into condominiums (with association approval), which can then be sold separately from the main dwelling.

AB 1458Adjourned Meeting Quorum. If an association cannot meet a quorum to elect directors, members can adjourn the meeting for at least 20 days, and the quorum reduces to 20% (unless the bylaws provide for a lower quorum).

AB 1572Potable Water. Beginning 1-1-29, associations cannot use potable water to irrigate nonfunctional turf, which is defined as turf enclosed to permanently preclude human access for recreation, and turf in street rights-of-way and parking lots.

AB 1764Election Term Limits. If term limits are in place, an incumbent director must step down when termed out. If a nominee for the board is disqualified, existing directors must comply with the same requirements when the directors are up for election.

SB 71Small Claims Court. Going into the new year, small claims limits will be raised from $10,000 to $12,500 if brought by a natural person. They go from $5,000 to $6,250 if brought by companies (such as associations). The bill also increases the limit on the amount in controversy for limited civil actions from $25,000 to $35,000.

Lender Guidelines. Fannie Mae and Freddie Mac issued new lender guidelines that impact most condominium developments in California. They require more documentation regarding insurance, building inspections, deferred maintenance, and structural safety issues.

Corporate Transparency Act. Beginning January 1, 2025, associations with less than $5 million in gross receipts and fewer than 20 full-time employees will need to file the names of their directors, their birth dates, home addresses, and driver’s license information with the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.

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 for staying 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 report that the Board also backed an amendment extending 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 and March 2022 and may also affect your ability to recover past due monies in small claims court.

Suppose you have been unaware since March 2021. In that case, 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.housing.ca.gov.

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, to minimize market and pipeline disruption.

Tiny Female Character with Huge Calculator and Percent Symbol at House with Gold Coins

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?

View of New American Houses

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.

Literal BitCoins tucked into a Leather Wallet

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. Surging home prices are leading to larger down payments, so some buyers are finding non-traditional ways to cover the cost and compete with other bidders.

Download PDF – Courtesy of Provident Title

Person's Hand writing in data next to a calculator

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

Family Looking Up at Their New Home

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

The Neighborly Done Right Promise

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When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

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