by Kathleen Richards on January 25, 2012
We finally made the move to signing all leases and management contracts electronically. I was worried that something would be lost by not sitting down with the tenant and going over the lease with them.
What I realized is that they are so preoccupied with their move that they don’t really read the lease. We also had problems with all the roommates or couples being able to sign the lease at the same time. And, people kept asking us for the lease in advance so they could read it. We also have out of state residents and this is an easy way to accomodate people.
Electronic signatures is wonderful. We use Docusign, and Echosign, is another vendor. You send the contract via email, the receiver is prompted to initial or sign where indicated and then it gets emailed back to you. Now both of you have electronic copies and they can be stored in the cloud. I would still print a copy and file it. Ok, so I keep one foot in the past and one in the future but that is my comfort zone.
The advantage is that when the tenant meets you to collect keys and pay you the move in money your initial interaction is short and positive. There are no lease surprises to add to their stress. We do have the tenant sign a 1 page form stating they have read the lease and will abide by it.
Check out the vendors I mentioned above. They have some really inexpensive options and your tenants will love it and so will you.
If you are looking for property management services in Santa Cruz check us out. Our website is: www.PortolaRentals.com
Kathleen
by Kathleen Richards on January 19, 2012
As many of you know I am the State of California rep for the blog: www.CaliforniaLandlordSolutions.com and I often get calls from people who found out website and want advice on how to handle a situation.
Last week I was called by a lady who was shocked that her former tenant was taking her to Small Claims Court for $5000.00 these tenants had a history of not paying rent and at one time were 4 months behind. When they did move the owner refund most of their deposit minus the late fees incurred. Now she is being sued.
Tenants are suing her for not returning the security deposit within the 21 days as is required by law. The lady stated she was traveling and didn’t get the deposit back within the 21 days but hadn’t the tenants breached the rental contract by not paying rent.
Well two wrongs don’t make a right. Unfortunately, one has nothing to do with the other. The tenant’s claim is valid and if the judge sides with the tenants the owner could owe them 2x the security deposit.
So what to do? I would try to negotiate with tenant to get a settlement. If you do take your chances and go to court be prepared to hand over money in the worst case scenario and show the judge you were not acting in bad faith.
Lesson Learned? Security Deposits ALWAYS must be returned within 21 days of receipt of keys. If work is still going on and you don’t have the actual receipts to send with the return of the deposit then you need to do estimates of the cost and hold back the money and send the remaining portion to the tenant. Then once the work is done send copies of the receipts and any money owed the tenant.
California is a tenant state and judges favor tenant rights so know the law. Read the Nolo Press books, have a landlord/tenant attorney on file for questions and get educated. I don’t know how this case will settle out and if I hear I will pass along the info.
If you have property management needs in Santa Cruz please give me a call or check our my new revised website: www.PortolaRentals.com
PS. One of the new laws passed in 2012. Sm. Claims Court awards are now increased from $7500 to $10,000.
Kathleen
