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

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

We just observed the 10 year anniversary of 9/11. The take away for me was the reminder of how precious life is and the fact that our lives as we know it can be turned upside down in an instant.  So how does that impact owning rentals?

We need to be prepared.  Once you own real estate you need to have a living trust, a will, written instructions for family, insurance such as Term Insurance, that would cover the mortgage on the rental so the loan would be paid off and the surviving family members can receive the income from the rental.  Have a list of all your contacts associated with the rental – plumber, accountant, gardener, insurance agent etc. Have a file with everything related to the rental so people know where to go to get info. 

Make sure bank accounts have appropriate names on the accounts for the rentals.  I added my husband to my bank accounts even though I own the rentals so that in the event of my passing he can still access the accounts, pay bills etc.

Life can get complicated when things happen unexpectedly try to be as prepared as possible.

I have a client that knew he was ill and terminal and came to me to take over management of his rentals so that when the time came it wouldn’t be a burden to his wife.  Now, we are educating his wife about the properties and working with her.  Her comment to us all the time is, “Thank you for handling all this for me.  It is such a relief.”  I really admire her husband for taking action to protect his wife.  He truly loved her.  I feel blessed to be able to lift the burden and to protect her.

If you have property management needs in Santa Cruz County check us out we might be able to help you.  www.PortolaRentals.com

Kathleen

Today it is law that all homes have Carbon Monoxide Detectors installed in them. Having personally known people who have died from Carbon Monoxide it is well worth putting the detector in your home.

Rental properties have until July 2013, but in our company we have already installed them in all of our units.

If you have interest in rentals in Santa Cruz please visit my website www.PortolaRentals.com.

Kathleen

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

Interest is due annually on Security Deposits held within Santa Cruz County with the exception of Scotts Valley.   Interest needs to be paid at the end of each calendar year.  Our office pays in January and if under $5.00 we give tenants a rent credit if over $5.00 we send a check.  For 2011 the interest is .06%.

If you have other questions about security deposits or the interest due please let us know. 

If you need help with rentals in Santa Cruz or are looking for a great place to rent please visit my website:  www.PortolaRentals.com

Kathleen Richards

I just had a fire in one of my rental homes and thankfully the tenant had renters insurance.  Moreover, we had a copy of the owners insurance and were able to get in touch with the insurance company on behalf of the owner.  It is important that you are listed as additionally insured on the clients insurance.  This way you get copies of the insurance for the file.

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

Rental properties always need maintenance here is a list of To Do’s to get ready for the season and to prevent you getting that call on Christmas Eve when you have a house full of guests and aren’t in the mood to deal with a maintenance emergency on your rental.

1. Check heater and install new filter.  Have heater cleaned annually by heating company.
2. Check stove and oven to make sure it works correctly.
3. Clean gutters so water drains away from the property
4. Check sump pumps if the property has one
5. Clean the fireplace so no fires in the flue
6. Install weather stripping around doors and windows.
7. Clean roof of debris that can catch fire (embers from fireplace) or create leaks in home because water can’t drain away properly. Have roof inspected every 5 years to make sure it is still sound.
8. Have trees on property trimmed annually and checked for safety by an arborist. 
9. Make sure outside lighting on property is working. 
10. Install new batteries in smoke detectors and carbon monoxide detectors 
11. Ensure walk ways are safe – repair cracks to sidewalks.
12.  Make sure tenants have a fire extinguisher in the kitchen area and flash lights in case of power outage – candles can be dangerous in an emergency.
13.  Lastly, check with tenants regarding plumbing – is everything draining properly?  If not, get plumber to clean lines before all the guests show up and the toilet backs up.

Keep in mind tenants often are afraid to mention small fix it items and live with it because they don’t want their rent increased.  They don’t call you until there is an emergency so be proactive.

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