Hi all,

Some of you may know that I teach property management classes at Cabrillo College each semester.  The last class was a huge success.  I revamped the class from a 1 day class down to a 4 hour class.  We had 25 people and a waiting list!

Well, another class is coming.  The current schedule is set for Saturday October 1, 2011 from 9:00-1:00 at Cabrillo College.  Look for it in the Extension Booklet that comes in the mail.

We cover how to get your property ready to rent, advertisement do’s and don’ts, screening for the tenant, the move-in, the lease, once tenant is in what to do when things go wrong, how to handle the move out and the security deposit, all the steps and red flags that you need to know to have a wonderful landlord experience.  It really can be easy if you do a few things.

I am also working with Nolo Press to see if I can get you discounted books for attending the class.  Look for the class.

I look forward to spending another great morning with you!

If you are looking for management or rentals in Santa Cruz, Soquel, Capitola or Aptos, check us out at: www.PortolaRentals.com

Kathleen Richards

 I teach a regular weekend class at Cabrillo Community College in Aptos CA.  The next class is scheduled for Saturday February 26, 2011 from 9:00am-1:00pm. 

For those of you who want to manage property yourself, or have inherited property and are trying to decide if to sell or keep and manage this is the class for you.  If you are a long time property owner come and get up to speed on current laws and the way things are being done today to protect yourself and manage the risk of being a landlord.  We cover forms, basic laws you should know, how to advertise the property and screen for the right tenant and once the tenant is in the property how to handle residency and finally the move out process and security deposit return.  It is a lively interactive class so please join us.

For more info: will be adding link as soon as I get it.

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards, M.S. MPM, RMP

I recently rented a cottage in Santa Cruz and was surprised to see the tenants had a chicken coop with 2 hens and they collected the eggs daily.  When I would show the cottage the hens would scurry around the yard – no bugs at this property was my first thought.

As a property manager it is hard enough to find owners willing to rent to tenants with cats, dogs, birds (in cages) or even fish.  Now, we have chickens.  I was wondering what the city code said about chickens.  It is the rooster that people have problems with but apparently hens are a wonderful pet and very eco-friendly. The roosters are banned in urban areas but hens don’t require a permit of any kind.

The Santa Cruz Sentinel, Home & Garden section, Saturday, June 12, 2010, written by Laura Copeland, lcopeland@santacruzsentinel.com and www.santacruzsentinel.com had a 2 page article on chickens and how they have taken off in Santa Cruz County.  Scotts Valley Feed sold 3,000 chickens in 2009 up from 150-300 just four years earlier. 300 were sold out in 45 minutes.

If you want more info about raising hens there are workshops, of course, this is Santa Cruz County. Contact 831-466-3444, www.diggardensnursery.com To read the entire article you can find it online or click the links above.

I wonder how soon I will see hens listed on my rental apps under pets?

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

I was invited to speak at the Santa Cruz Housing Expo on May 8th, which was sponsored by the Santa Cruz Association of Realtors.  My topic was Investment Properties.  Here is a brief outline of workshop.

Investment Opportunities: 

What is your goal – rental income, appreciation and sell, pass on to heirs?

Location – this will determine rent, appreciation and what kind of tenants you will have

Type of Property – single family, multi-family, owner living on property

Cash Flow – what are your expectations and how much are you willing to put down to achieve cash flow?

Loan – do your home work.  Right now single family is probably easier to buy and get a loan on versus a multi-family.

FMV – Fair Market Value – Rent – often realtors will tell potential buyers that they can X amount of rent and the reality is substantially less which goes straight to your bottomline and cash flow.  Always check with local property management company to find out comparable rates for your type of property.

True Cost of Rentals – Isn’t just the mortgage payment, you need reserves for unexpected maintenance, allow for vacancy factor meaning no rent coming in to cover costs, possible court costs if you ever have a bad tenant, and most importantly your TIME.  I am always amazed at how people give their time away. 

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

As part of the senior seminar series I was asked to speak to the students about how to get their first apartment, what owners and property managers look for in a tenant.

The class was on April 22nd, from 1-2:15 at the school.  About 40-50 students were in the class and all were attentive except one poor lad who kept drifting off…after all I was the first class after lunch.

For those of you that don’t know I was a former middle school, high school teacher (English, Business) and university lecturer and far in my past a State Dept Cross-Cultural Trainer.  Anyway, it was so much fun to be back in the classroom.

I reviewed with the students the importance of putting together a binder or portfolio to present to potential landlords.  It should include a photo, bio or resume, transcripts (in lieu of credit report since they  may not have one yet), letters of recommendation from teachers, coaches, employers, past landords or RA’s from the dorm, pay stubs, copies of bank statements etc.  Be organized.  If roommates are involved all show up to view the property at the same time.  1 person from the group should be the spokesperson.  Show up, presentable, car clean, no music blaring as you pull up to the house.  Follow the owners instructions, take off shoes when entering house, take notes about the property.

If approved and when you move in, take photos of the property at move in.  Do a detailed move in report of the condition of the property.  Do not have loud parties, get to know your neighbors, keep the property clean and tidy.  Offer the landlord the opportunity to do quarterly inspections of the property.  Report items that need maintenance.

If there is a maintenance issue always put it in writing, if conversations are done with the owner over the phone, follow up with an email so all communication is documented.  Be an adult and handle your communication with the owner yourself.  PLEASE do not have your parents step in and try to be helpful.  As a property manager when I get calls from parents I kindly let them know I cannot speak with them.  Their name isn’t on the lease.  If there is an issue the tenants need to contact me.  My feeling is if you are adult enough to live on your own then you need to solve your issues yourself.

I spoke about the importance of establishing credit and keeping it in good standing and how you get a FICO score.  I also informed them that they need to be careful about what they put on the web and Facebook etc.  Employers and property managers will check those places as part of  processing of an application. I also mentioned to them the importance of checking roommate credit scores so that you can make sure they can in fact pay their share of the rent and bills and don’t leave you holding the bag so-to-speak.

I reviewed with them what is in a standard lease, and the types of notices that they could get and what they mean and how to avoid getting notices.  Lastly the importance of getting renters insurance.  It only costs about $129.00 for the entire year and it will replace stollen items, and cover all kinds of costs associated with a fire or damage to a property.  I gave a few very sad stories about tenants who did not have insurance.

Students had good questions and we quickly were out of time.  I really want to commend the school for offering such classes.  The week before they had a class on finance, check books, investing, credit etc.  The class after me was going to be on communication with landlord, teacher, boss etc.  How to start a difficult conversation.  I wish I had such classes when I was in high-school and college.

Doing this class got me thinking about offering a seminar to students (high-school and those in college) about how to be a Successful Tenant/Renter.  I already teach a class on how to be a Successful Landlord so it makes sense to offer the opposing side of that class.  I know UCSC offers a class to its students and I am always impressed when a group comes in with their binder and all the info is put together.  I have had great success with these students and parents who have been through the class.

I want to thank the school, the students for participating and Linda Murphy, who invited me to do my thing.

If you want more info about Georgiana Bruce Kirby Prep please go to their website: http://kirby.dreamhosters.com/

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

As many of you know I have been very involved in professional organizations for Property Management.  By participating and being involved I learn more and grow not only professionally but personally.

April 12-15 in Concord at the Hilton, the California Chapter of NARPM (National Association of Residential Property Managers) had their annual state conference.  There were classes the first 2 days for those who want to enhance business skills in marketing, office procedures, and owner-client relationships.  The conference kicked off on Wednesday.  Throughout the 2 day event there were serveral workshops covering such topics as how to use  Social Media, Fair Housing, Risk Management (insurance), Starting the Difficult Conversation, Business Practices to help increase revenue, offer excellent customer service and so on.  In place of a key note speaker the first day we had a session that reviewed the new FTB (franchise tax board) 7% out of state withholding tax that property managers must comply with as agents for the owner.  We also had a networking session that produced some real laughs.

The networking session question was, “You thought you’d heard everything until….”  2 stories stand out.

1.  Tenant calls property management office complaining that the heater doesn’t work, his wife has to wear a sweater to bed when they make love….property management company sent maintenance out and there was nothing wrong with heater…

2.  Tenant calls property management office with plumbing back-up, plumber is sent out, and in the process of snaking the plumbing the next door neighbor comes running out of the house screaming that she knew the house was haunted…apparently the snake came up through her toilet and was whipping around and caught the shower curtain and was spinning it in the air!

Humor is what gets any of us through the bad days and it is fun to be able to share these crazy stories.

Our key note speaker the second day was a legend in our community.  Mark Kreditor from Texas.  He has a degrees in music and is able to put property mgmt lyrics to well known songs to keep us all in stitches.   He shared with us his thoughts on the Stimulus of the Economy and how it relates to Property management.

As a current board member for the state I had the opportunity to attend the First Timers breakfast where I got to meet new members to NARPM and their first conference.  It is really inspiring to me to meet other property managers and hear their experiences and find out how they decided to become part of our family.

I can only tell you that NARPM is the first and only professional organization I have ever been a member of that truly made me feel welcome from the first day and each time I see old friends.  They gladly share their experiences, tips and tricks and are always available if you have a situation or question you just aren’t sure how to handle.  The thought is there is more than enough business to go around so there isn’t the feeling of being competitors as much as being professionals who want to do what is right and help others in the field.  A perfect example is the last day of the conference there is always a breakfast and at this breakfast we network and share forms.  Attendees bring with them handouts of some of the forms they use in their office that have been especially helpful.  Why recreate the wheel?  I can’t tell you how many ideas for services, better ways of streamlining my office procedures or added text to my management contracts that I have gotten from fellow property managers.

I would like to encourage anyone that is a property manager or thinking of becoming a property manager to attend a local chapter meeting, or state or regional conference.  I think once you meet some of the members you will be convinced of the importance of getting involved.  Many members are former past presidents of local, state and national boards, are authors of property management books, teach and speak to professional organizations, and continue to run businesses in their local communities.

Our vendors are a large part of our success as well and this year for the first time we had them in the conference room with us instead of a separate vendor exhibitor room.  The feedback was overwhelmingly positive.  They were able to mingle with us in an informal setting and got to hear first hand the presentations and topics of interest to us as business owners.

For more info about NARPM or to find a local chapter go to:  www.narpm.org

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

Well I am on Z and covered all topics related to Property Management through the alphabet and then some.  Hope you have found the topics timely and of interest. 

Zero Sum Gain (break even), Zap Your Energy, Zombie, Zen, Zest for Life

Zero-Sum-Gain – break even is at least where you want to be with your investment property and well on your way to positive cash flow.  We all have negatives at time with rental properties but it shouldn’t be a long term condition.  Even with write-offs you don’t want to be losing money indefinitely. 

Zap Your Energy – Yes, property management can do this.  I even have my days.  However, if you have systems in place, follow the procedures you have set and keep on top of accounting and maintenance, work to build a good relationship with your tenant you should rarely be in a state of feeling Zapped or Zombie like.

Zombie – this is how you might feel after doing a large turn over, or remodel.  This isn’t how you should feel managing your rental.  You don’t want to be in a place where you are going through the motions.  If you are then you aren’t minding the store and treating the rental as a business which if you have been reading my entries you now know this is a constant theme with me.  Your rental IS a Business.  If you are feeling like a Zombie – then hire a good property management company to take over for you. 

Zen – This is where you want to be headed with your rentals.  Yes, I live in Santa Cruz, CA and this term is probably better understood than elsewhere.  You want to be managing your properties in a way that it fits into your life, is a balanced part of your life, it shouldn’t become your life because that is when people get fed up and just sell.  People forget their longterm goal for their investment and business and often just call it quits.  Again, by following the tips and advice in this blog you will be able to manage rental properties and hopefully have a balanced relationship with your rentals.  Getting you as close to Zen as possible.

Zest for Life – remember when you inherited the property or bought your first rental?  I do.  I was so excited.  It was my first big investment, my first step into diversifying my investments away from Mutual funds and adding real estate into my portfolio, it was my first step towards my retirement planning.  My first rental was also real, physical, something you could touch and actively participate in.  I was so excited about remodeling, painting, making it mine and honoring my husband’s 96 year old grandma who had lived in the home most of her life and had passed away with no one in the family wanting to purchase the house it became my first real estate purchase.

You want your rentals to be part of an overall plan and something that should still get you excited about your goals and future.  I still have a tangible sense of responsibility for taking care of my properties.  I feel responsible to my tenants to provide a nice place to live.  I feel responsible to myself to manage my investment well.  My goal in buying my real estate was to keep it for the long term and have them as part of my retirement plan.  It was never to buy and flip.

In the past 20 years I have remodeled over 12 homes, and loved it.  I got into property management because of my business background, organizational abilities and exceptional communication skills.  I finally listened to friends and family who kept saying, “why don’t you do property management as a business”?  I took their advice, tested the field, and found I loved it.  I have been blessed to be able to buy a 20 year old business from someone who was retiring and over the past 5 years I have been able to add my own touch to it, go out on my own, build my portfolio and staff and create amazing relationships with my clients, tenants, vendors, employees and the community at large along with finding a career that is challenging every day.  I truly learn something new daily.

I have found my Zest in Life and love to share my experience and best business practices.  I teach at Cabrillo Community College, and at other Real Estate related events.  Hope to see you in the future at some of these workshops.   Look for future postings of classes and workshops.

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

Last Saturday I co-taught the Successful Landlording Class at Cabrillo College in Aptos, CA.  This class is taught 2 times a year.  It is a class packed with basic info on How to be a Successful Landlord.  This class touches on the things one needs to know to stay within the law, get a great tenant through proper advertising and screening and through good communication skills build a long term relationship with tenant.

Here are some of the comments from the class. 

“Great Class! This class could be 2 classes.” male – age 50

“The more information I get, the more I want.  Thank you!” Male – age 48

“This course covered many apsects of property management that I never considered before. This information is essential to property management of my personal assests.” Male – age 62

“Great class, thanks!” Male – age 54

“Awesome information.  Everyone was professional, knowledgeable and easy to approach with basic questions.” Female – age 41

“Outstanding in breadth and coverage.  Great communication skills.” Male – age 49

“Very valuable, educational.  I would definitely recommend this class and these instructors to a friend.” Female

“The class moved fast with lots of information.” Male – age 43

One attendee mentioned to me he has been a landlord for a long time and has been very lucky and will use the tools learned in the class to be a better landlord.

I would like to thank everyone in the class for taking their time to get educated.  I would also like to invite others to attend the class the next time around.

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards

Successful Landlording

Twice a year I co-teach this class with Karen Calcagno, Linda Murphy and this year with Paige White through the Cabrillo College Community Extension program.

Yesterday, March 6th, was a full day with 15 attendees.  I am so pleased to find investment property owners willing to educate themselves about the process, and their responsibility to being a successful landlord.

The 1 day course covers:

•  Do you have the skill set/personality to be a landlord?
• Advertising the property
• Screening potential applicants/tenants
• Fair Housing Requirements – Do’s and Don’ts
• Preparing the property to rent
• Showing the property
• Application/Credit/Lease
• Relationship Tips and Tricks
• Dealing with problem tenants
• Maintenance
• Security Deposits & Move -Outs
• The law – brief overview
• Code Enforcement
• Financing investment properties
• System setup – how to get organized
• How to hire a property manager
• Where to find help

The course comes with a binder to help landlords get organized, provides materials covering all the topics outlined, along with actual lease, addendums, and application form to use.

As a former teacher, and university instructor, I love being in the classroom and helping self motivated people get the info they need to be able to meet their goals.

At the end of the class we did a quick take away from each student and I was pleased to see that they got it!  They all walked out the door with the essentials of what they need to do and keep in mind.

I started out the morning stating that managing property is a Business and if they take that position from day one it will be so much easier mentally, physically and financially to do it themselves.  Afterall, owning an investment property is expensive.  They need to know their bottomline and future goal for what they want from the property.  Do they want to pay it off and have an income stream in retirement, do they want to build equity and do a 1031 exchange in the future, do they want to hold and sell in 5 years, do they want to pass this property down through their estate?

Linda Murphy, with RPM Mortgage reiterated the exact thing when thinking about what type of financing you will want to get on the property.  Linda shared with everyone that interest rates are low but unfortunately investors are being penalized for what happened in the past and that the points that are added onto loans for investments properties really add up so it is imperative to know your future plans when looking for financing because it will be expensive on the point side to get the loan.

Paige White, City of Santa Cruz, Code Compliance, shared some invaluable information about how landlords get into trouble with the City.  She offered solutions and made it clear that as a Code Compliance Officer she is all about being proactive to help owners not to punish them.  Her primary responsibility is to ensure that properties are safe and habitable.

Karen Calcagno, Advantage Family Business Center, shared with us her 35 years as a property owner, business owner and her expertise in building and maintaining relationships.  Everything discussed in the course always went back to having good relationships with tenants, vendors, neighbors and other family members who may c0-own the property.

What I brought to the table was my professional and personal experience as a property manager and landlord.  I covered the Do’s & Don’t of being a landlord, the Tips & Tricks to make life easier and if self-management isn’t for you then how to find a good property manager to handle it for you.

Students at the end of the class received a certificate of completion that will benefit them if they ever get a Code Compliance complaint they can show they took our class and the City will work with them to resolve the issue.

If you would like to contact any of the presenters:

Karen Calcagno, 831-475-4479, www.advantagefamilybusinesscenter.com

Linda Murphy, RPM Mortgage, 831-818-7075, www.rpm-mtg.com/lmurphy

Paige White, City of Santa Cruz, www.cityofsantacruz.com

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards