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

This month a new law was passed that stipulates if you apply for rental housing and you are denied because of your credit the property mgmt firm must give you your FICO score.  The State of California requires that if an applicant asks for their credit report you must provide it to them.

If you are looking for a great place to rent or a great property management company in Santa Cruz please contact 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

The City of Santa Cruz passed the Rental Inspection Ordinance that was to go into effect 60 days from January 1, 2011.  At this point in time the City is still putting the program in place and working out the details of the program.  So, the process will be that owners don’t need to register until they are contacted by the City.  Once contacted you will have 60 days to register.

If you are looking for management or rentals in Santa Cruz or the surrounding towns of Capitola, Aptos, Soquel check out www.PortolaRentals.com we are here to help.

Kathleen Richards – Broker

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 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

Last weeks post was about Party Houses well since then I attended a community meeting with the Mayor of Santa Cruz, Planning Dept heads at the Santa Cruz Association of Realtors office to discuss a new ordinance.

To back up a bit an emergency ordinance was passed by the City stating that if property owners got numerous complaints about noise, and the police had calls to the property the City could refuse a permit to the owner to expand living space.  This is a direct response to the slumlord landlords in Santa Cruz that pack in the students, collect outrageous rent and do nothing in the way of being a good neighbor.  As a result surrounding neighbors have had it and apparently the City has too.

One gross violation cited by the Mayor was a property near UCSC that had the basement converted with nothing but drywall separating living spaces and extension cords running to each space, no escape route and about 13 people living in the house, who knows how many in the basement paying who know how much.

Back to the community meeting.  A new ordinance to alleviate unsafe housing (health and safety, and zoning violations) is being proposed where property owners of 3 or more units in the City would be required to register for annual inspections which would be done by City inspectors.  If the property passes inspection the first time around there are provisions for not having to have another inspection done by the city for a period of 3 or 5 years.  Self inspection would be the responsibility of the owner.  However, what has property owners upset is the annual fee would still be required which is currently set for $100 per property and $40 per each additional door.

Property Management companies that already conduct annual inspections and the Housing Authority feel they should be exempt because we are already doing inspections.

In addition, vacation rentals are getting hit with a proposed ordinance that would regulate the number of vacation homes allowed in certain areas.

The final ordinance is scheduled for a vote at the July 20th city council meeting.  If you want to give your input contact the City or attend the council meeting.

I understand cities are in financial difficulties but creating a negative business environment in the city isn’t going to help our unemployment rate which in Santa Cruz County is around 13%.  There is fear that if vacationers have to pay more for rentals they won’t come and stay.  If tenants have to pay more for rent they will move.  If investors have these ordinances in place it brings down the value of their properties when it comes time to sell.

I think the focus should be on punishing the violators not the 90% who do follow the rules.  The violators will just find another way around it or will gobble up resources by fighting what the City plans to do.

My solution would be:  If you are a UCSC student you must live on Campus.  The university needs to provide housing for all its students.  Only graduate students could live off campus.

If code compliance violations are as rampant as the city suggests then there should be a fee attached to every property owner in Santa Cruz via property taxes to pay for enforcement.  I own property in Santa Cruz but I would rather pay a small fee in my property taxes than have certain property owners singled out.  That is not fair for a few to shoulder the burden of even fewer violators.

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

In the June 9, 2010 Santa Cruz Sentinel Newspaper, www.santacruzsentinel.com page B3, there is an article by Shanna McCord about the crack down on party homes in Santa Cruz.  The City Council passed an emergency ordinance not allowing repeat offending property owners from making renovations to their properties that would increase the number of bedrooms or the capacity to house more people.

As a local Property Manager, I agree with the City Council.  I think property owners should be forced to follow the same laws that we do.  I think property owners (and I am one myself) need to be responsible owners not just to their tenants but to their neighbors.

I have lived next to a party house and I can tell you it is hell on the neighborhood.  I complained but what can you do with an owner that lives out of the area or just doesn’t care.  I took the route to be friendly to the tenants and let them know when the noise was too much.  It helped until the next round of students moved in and it started all over again.

As a professional property manager, I do not allow my residents to disturb their neighbors.  If I get a complaint I check it out and then the tenants get a 3 day notice to perform or quit.  If it happens again they are given notice to move.  I make it very clear to tenants prior to moving in what is acceptable and what isn’t acceptable.

If you communicate clearly what is expected of people and what they can expect of you 99% of the time they do the right thing.

In my experience when I get calls from property owners who want me to rent their property on the west side of santa cruz I ask how much rent they get and when they tell me $5,000 for a 3 bedroom I know that I am not the property manager for them.  I don’t want to work with this type of owner.  They want to get as much money as they can, they rent rooms, they don’t maintain the property and the kids have parties and ruin the property further because their rationale is that I am paying all this money for this crappy place…

I work very hard to have an excellent reputation in the community and I realize students need a place to live and this type of owner only makes things harder on everyone, me the professional, the students who are responsible, the neighbors who want to live in a quiet area and get along with their neighbors and the city council.

Enough complaining – here are some steps to take if you do live next to a party home.

1. get to know the students
2. take pictures of problems
3. call the police, again and again if you have to
4. contact the property owner and try to work with them
5. contact the property management company if there is one
6. complain to the city council, the university
7. if all else fails, have an attorney write up something on behalf of the neighborhood and have letter sent to students, university, and owner.

Sometimes making yourself the squeeky wheel does work but I do find if you take the steps to be friendly with the students they will often respond better when you knock on the door asking for the music to be turned down.

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