Rent Sense: A Lease Requires Your Attention- Part 2

Rent Sense: A Lease Requires Your Attention By Neil Fjellestad and Chris De Marco FBS Property Management Part 2 Here are some suggestions to give you more confidence during the leasing process – • Ask the individual that shows you the rental property (house, condo, and/or apartment) whether you can rely upon the lease agreement […]

KTS- Legal Questions Sept 2013- Part 1

Kimball,Tirey&St.JohnLLP Landlord/Tenant Questions & Answers Ted Kimball, Esq. September, 2013 1. Question: After a 60-day notice expires, can I change the locks and have the resident’s belongings removed? Answer: No, you must go through the eviction process if they did not comply with the 60-day notice. In any case, before you act, you should consult […]

Best Practices- New Laws- Are you compliant?

Best Practices- New Laws

By  Lucinda Lilley

We have asked FBS Vice President, Lucinda Lilley, to present a series of articles “Best Practices for Independent Rental Owners” that will be available in various publications from time to time and become a regular feature at Rent Sense.

Lucinda is a Certified Property Manager (CPM) and a Graduate of the Realtor Institute (GRI). Her 25-year distinguished property management career has been refined with earning these internationally recognized professional designations. Ms. Lilley is an industry leader currently serving as a board member for the local chapters of two of the most influential national trade organizations within the real estate industry; the National Apartment Association and the Institute of Real Estate Management. She is an expert on “best practices” and therefore an indispensable resource to our independent real estate investors. Neil & Chris

On August 19, 2013 Governor Jerry Brown signed Senate Bill 612 (Leno) into law. The legislation expands the protections afforded to domestic violence victims when terminating a residential lease. Under current law, a resident who is a victim of domestic violence, stalking, sexual assault or elder abuse may terminate their lease by providing a police report or a protective order issued by the court.

The new law, which goes into effect January 1, 2014, allows for additional forms of documentation that a resident may present to a property owner or manager to end their lease. Documentation from a “qualified third party” or a “health practitioner” must now be accepted. Additionally, these protections are extended to victims of human trafficking.

A “qualified third party” is defined as a domestic violence counselor, sexual assault counselor, or human trafficking caseworker, while the law defines “health practitioners” as physicians, surgeons, psychiatrists, psychologists, registered nurses, licensed social workers, licensed marriage and family therapists, or licensed professional clinical counselors. Prescriptive language for the Tenant Statement and Qualified Third Party Statement is also included in the law.

Under the new law, a landlord is prohibited from disclosing any information provided by the tenant regarding the early termination of his or her lease based on documented abuse unless: (a) the tenant consents in writing to the disclosure; or (b) the disclosure is required by law or order of the court. However, a landlord may contact a qualified third party to verify the legitimacy of the statements.

The law includes a sunset provision for the definition of “qualified third party” for legislative review. In addition, Judicial Council was given an extended deadline of July 1, 2014 to develop or revise a form for an affirmative defense to an unlawful detainer action.

 

BBB Article- Avoiding Rental Scams

To be a successful property management company in the modern economy you must become a respected rental housing provider in your market. Experience is imperative and solid reputation within the industry is important but beyond this you must engage the consumer audiences within your market.

We maintain ourselves accessible as rental housing experts throughout the 69 zip codes in which we operate rental properties. We do this by writing an informative column for local newspapers, service several large blog audiences and participate in the Better Business Bureau to raise integrity standards.

As a partner of the BBB, we value their continued support and education. The BBB is a trustworthy source to consumers. Read below a recent BBB article!

 

http://sandiego.bbb.org/article/hand-over-the-keys-avoiding-apartment-rental-scams-43448

 

 

Rent Sense: Another Economic Perspective

Rent Sense: Another Economic Perspective

By Neil Fjellestad and Chris De Marco

FBS Property Management

We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. More than four decades with properties in 69 zip codes throughout the region provides us a realistic view of the local economy in real time.

Here are some highlights –

  • Most renters pay their rent on time every month. Especially during uncertain times this becomes a financial priority.
  • Rent is clearly their largest household expense and growing as a percentage of household income. In this region a significant number pay more than half of their income as rent.
  • Renters want the privacy, security and convenience of paying their rent online. Those using this alternative pay sooner and avoid additional late charges.
  • Rental owners faced with vacancies that improve their properties even if forced to borrow funds to do so and/or must perform capital improvements gradually are rewarded with more qualified applicants to lease.
  • Existing residents will more likely renew and/or pay a higher rent to live longer at a property that is well managed and maintained.
  • Most rental owners are concerned about leaving a property vacant and will adjust rent realizing that number of days rented is more important than holding out for the highest rent rate.
  • Real estate investors that are buying are satisfied. Those that are selling or re-financing in the current market environment remain frustrated with the lack of expected results and/or inadequate estimate of time to accomplish.
  • Many of the jobs lost over the last 3-5 years are gone. Though other jobs are being created with different requirements and rewards the transition is longer than hoped.
  • Existing small businesses will create jobs when and if they can control risks (the cost of doing business) while believing that the benefits of growth outweigh the alternatives.  Much of this risk will be driven by new businesses.