San Diego Property Management & Real Estate

Mistakes housing investors make

noreply@blogger.com (Jeremy L. Sine) — Fri, 16 Sep 2011 01:31:00 +0000

With traditional investments delivering low returns, some are considering buying rental housing. However, potential investors should do their homework and avoid the following common mistakes.
Making sense of the story

Investing in real estate right now can be profitable, if everything goes as planned. Rents are increasing in many areas, and more properties may be coming on the market.
Last month, the Obama administration asked for proposals on how to convert at least some of Fannie Mae’s and Freddie Mac’s inventories of foreclosed homes into affordable rentals.
Traditionally, investors rented out properties for 1 percent of the purchase price per month. However, according to one property management firm, today, some investors are receiving as much as 2 percent of the purchase price.
While it may be true that in some areas home prices are relatively low, that doesn’t mean the property can be rented out. Homes in deserted subdivisions aren’t any more appealing to renters than they are to buyers. The same is true for less-attractive properties or those in less-desirable school districts.
Prior to purchasing a property, investors should also factor in closing costs of 3 percent to 6 percent, the costs to fix up the place and maintain it, and the holding costs.
Investors become landlords, and as such, need to keep in mind that, just like homeowners, tenants may not always be able to pay rent. Evicting tenants can take several weeks.
It’s also important to remember that owning a rental is not the same as owning a home. An owner may put up with flaws in a home that a renter wouldn’t tolerate. Additionally, many states and communities have strict laws for landlords, even for those who own only one property.

Read the full story

History of Home Prices

noreply@blogger.com (Jeremy L. Sine) — Tue, 23 Aug 2011 21:03:00 +0000

I get asked all the time about the market, home prices, and the the trends that will help investors and homeowners make informed, intelligent decisions. Below are two charts that I think really demonstrate where we are and what is going on with this market.

First, here is a history of home values (adjusted for inflation) from 1890. The important trend to note here is the general stability of the housing market. Despite everything you hear from the media, home values have actually been fairly consistent over the years, just keeping up with inflation. This comes as a huge shock to the younger generation who feel homes values should be appreciating year over year. This is simply not the historical case. Home values traditionally have not been a source of wealth or wealth creation as demonstrated in the chart below. The average home price tics up & down around the 100 mark. The only exceptions are WWI through WWII, and the recent bubble.

The second chart shows home prices from 1970 on. This is another way of supporting the reasoning above, just on a shorter time-frame. You can clearly see the bubble, and the reset back to normal, trending values.

What does this mean?

In simply terms, it means that we should return to a normal market once we work through all the bad loans, short sales and foreclosures that are currently clogging up the inventory. But remember, a normal market is one where home values keep with inflation, not wild appreciation year over year.

New Law: All Rental Properties Must Have Carbon Monoxide Detectors

noreply@blogger.com (Jeremy L. Sine) — Wed, 23 Feb 2011 05:55:00 +0000

The Carbon Monoxide Prevention Act of 2010: SB 183 (effective Jan. 1, 2011) creates the need for homeowners and landlords to install carbon monoxide detection devices in any existing dwelling "intended for human occupancy" that has a fossil fuel burning heater or appliance, fireplace, or attached garage. These devices must be installed in existing single family dwelling units on or before July 1, 2011, and in all other dwellings on or before Jan. 1,2013. For general information regarding carbon monoxide, go to www.epa.gov/ iaq/co.html.

Attention Military: It's Easy to Rent from Us when You are Oversees or Out of State

noreply@blogger.com (Jeremy L. Sine) — Thu, 27 Jan 2011 20:13:00 +0000

We often work with returning military to help secure great homes that are ready upon your arrival. Everything can be done online - from signing the lease to making your rent payments. Just follow these simple steps:

Submit your application online at www.4SDrentals.com
Upon approval we will email you the lease. Simply sign it and email a copy to us.
We will then set up your secure online Tenant Account. You can log in and pay the security deposit so we can hold the property for you. From your Tenant Account you can also download a copy of your lease if you need it.
You will have to pay your 1st month's rent anytime before you move-in. You can pay your rent online as well.
We'll leave a lockbox on the property for you so when you arrive you can go straight home!

It's that simple. We also offer the follow Military Discounts:

We waive all application fees
We reduce your security deposit by 25%!
And we always honor the military clause if you are deployed

Start your home search now at www.4SDrentals.com.

The Unlawful Detainer Process

noreply@blogger.com (Jeremy L. Sine) — Thu, 16 Dec 2010 00:44:00 +0000

This is a good Q & A for someone who wants to familiarize themselves with the eviction process. If it sounds confusing to you, don't feel bad. Evictions are very confusing. And very specific. One misspelling or typo can set your entire case back months and force you to start all over again. Good thing you have professionals managing your investments.

Q 1. When and how may a landlord lawfully evict a tenant?

A A landlord may evict a tenant who refuses to pay rent or otherwise abide by the terms of the rental agreement. It is necessary to obtain a judgment from a court of law before actually evicting the tenant. This form of court proceeding is referred to as an unlawful detainer action. The most common circumstances in which landlords initiate unlawful detainer actions are when tenants:

^. do not pay rent that is due;
^. breach a covenant in the lease; or
^. fail to move after proper termination of the tenancy.

If a satisfactory solution cannot be reached with the tenant, the landlord should obtain legal advice before giving the required notice and initiating an unlawful detainer action. Since eviction causes tenants to forfeit their rights, landlords are required to comply with certain detailed procedures. (Cal. Code Civ. Proc. § 1161.)

Q 2. When is an unlawful detainer action appropriate?

A It is appropriate only after the underlying tenancy is properly terminated. In most situations this involves giving the tenant some form of notice. Typically either a three-day, thirty-day or sixty-day notice is used to terminate a tenancy.

Before January 1, 2003, thirty-day notice was standard. Now, a landlord must give sixty-days notice to terminate month-to month tenancy when the tenant has lived in the unit for one year or more. (Cal. Civ. Code § 1946.1.)

Q 3. When can a landlord terminate a tenancy?

A If the tenant fails to pay rent or breaches the rental/lease agreement in some other way, the landlord may terminate the tenancy. The landlord/tenant relationship or tenancy is created by contract. A tenancy contract is known as a "lease" or "rental agreement." When and how a tenancy may terminate depends on factors such as whether the rental period is for a fixed term or is periodic (e.g., month-to-month) and whether or not the tenant has breached the lease or rental agreement in some way.

Q 4. How does the eviction process work?

A:

STEP 1: THE TERMINATION NOTICE:

In order to evict a tenant, you must first correctly fill out and properly serve a termination notice. The most common notices are the " Three Day Pay or Quit" and the "Thirty Day Termination of Tenancy." Unless you are experienced, you should hire a lawyer to advise you what type of notice to use and how to fill out the notice. Any mistake can invalidate the notice and force you to start over again.

There are a number of ways to properly serve the notice. Again, unless you are experienced at serving notices, you should have an attorney handle it or give the job to a licensed process server. Keep in mind that those tenants who cannot be "personally" served must be served "constructively" or by way of "substituted" service. The rules for these types of service are different and it is essential that the landlord comply with them in every detail.

Generally, the day of the service of the notice is not counted and the period of the notice (i.e. 3 days, 7 days, 30 days, etc.) is then counted to determine when the notice period has expired. If the law requires that the notice also be mailed to the tenant, you must add 5 days to the notice period to allow for mailing.

STEP 2: THE "UNLAWFUL DETAINER" LAWSUIT:

If the tenant does not voluntarily vacate after the service and expiration of the notice, you must prepare an "Unlawful Detainer" lawsuit. This lawsuit must be filed with the court, served on the tenant and prosecuted to a judgment.

A Complaint is prepared and filed with the Court. A copy of the Complaint must then be served on the tenants. Once served the tenants have five days to file and serve an Answer to the Complaint.

STEP 3: ANSWER OR DEFAULT:

After service of the Complaint the tenants have five days to file and serve an Answer. If they answer, the matter is "contested" and a trial must be set. If they do not file and serve an Answer, their default may be entered and judgment may be obtained either by way of a short uncontested trial or by way of a declaration.

TENANTS' DEFENSES: The most common defense to an unlawful detainer action based upon failure to pay rent is that the premises lack the minimal standards of habitability. The classic defects are lack of heat, plumbing problems, missing screens, leaking roof, non-functional appliances and electrical outlets and infestations. Additionally, anything cited in a health department notice can constitute a habitability defect. If you do not maintain the premises, the tenant may not have to pay the rent.

STEP 4: TRIAL OR DECLARATION FOR DEFAULT JUDGMENT:

In order to obtain a Judgment, it will be necessary for the landlord to present the facts of the case to the Court. This must be done whether or not the tenants put up a defense. At minimum, the landlord will have to establish that there was a written or oral landlord/tenant relationship, that the relationship has been properly terminated with a properly served notice, and that the landlord is entitled to possession of the property and (in most cases) rent damages.

UNCONTESTED MATTERS:

CONTESTED MATTERS: If the case is contested, you will have to go to trial. You can expect that trial will take an average of two hours of your time. Generally, you will need to bring the following to trial:

a. The person who served the notice;

b. Your rent receipts (pay or quit cases);

c. All written complaints and correspondence with the tenant concerning problems with the unit (pay or quit cases);

d. All receipts and repair records for the unit (pay or quit cases);

e. The evidence which backs up your reason for evicting the tenant (30 Day Notice Cases)

STEP 5: JUDGMENT AND WRIT:

After the facts of the case have been presented to the court, the court enters a Judgment either for the landlord or for the tenant. The Judgment is a document prepared by the landlord or his attorney and presented to the court for the Judge's signature.

The court clerk then issues a "Writ Of Execution" based on the judgment. This is the document which empowers the Marshal to execute upon (collect on) the judgment.

Note: Unlawful Detainer lawsuits are limited in the relief available. The judgment may only provide for possession of the premises, forfeiture of the rental agreement, past due rent up to the date of judgment, court costs and costs of service of the summons and attorney fees if a written rental agreement provides for such.

STEP 6: REGAINING POSSESSION OF THE PROPERTY:

After issuance of the Judgment and Writ, the Writ is delivered to the Marshal for execution. At that time, the Marshal is also issued instructions to execute and the Marshal's execution fee is paid.

The Marshal then goes to the property and posts a 5-day notice on the door. This notice advises the tenants that the Marshal will return in five days to remove the tenants from the premises if they are not gone by that time.

At the expiration of the 5-day period, the landlord meets the Marshal at the property. If the tenants are still on the property, they are removed at that time, the tenants are instructed not to return, and the landlord is then in a position to change the locks.

STEP 7: POST-POSSESSION ISSUES

SECURITY AND RENT DEPOSITS: Landlords must account for all deposits within 21 days of obtaining possession of a unit. Failure to properly account may result in a Small Claims judgment against you for the full amount of the security deposit (even if you properly applied some or all of it).

ABANDONED PERSONAL PROPERTY: Personal property left on the premises must be disposed of in accordance with the California statutes covering abandonment of personal property. The process begins with the service of a Notice Of Abandonment and ends with an auction.

COLLECTION OF MONEY JUDGMENTS: Collection of the money part of the Judgment is beyond the scope of this article. Collections is another legal battle all together, and is best left to professional collection agencies.

Q 5. What are the reasons for serving a tenant with notice?

A Landlords and property managers usually give the tenant notice when:

^. the landlord wants to terminate a periodic tenancy;
^. the tenant has failed to vacate after giving the landlord notice or after expiration of the lease;
^. the tenant has failed to pay rent;
^. the tenant has violated the rental agreement in some other way; or
^. the tenant has committed an unlawful act, waste or nuisance.

Q 6. What types of "notice" may the landlord or property manager give the tenant?

A Actually, there are three types of "notice," the "three-day," "thirty-day" and "sixty-day" notice (Cal. Civ. Code §§ 1946, 1946.1).

Q 7. When is a three-day notice used?

A Three-day notices are used when:

^. the tenant has not paid the rent;
^. the tenant has violated the rental agreement in some other way; or
^. the tenant has committed an unlawful act, waste or nuisance.

(Cal. Code Civ. Proc. § 1161.)

Landlords and property managers may use any of three types of three-day notices discussed below, depending upon what the notice concerns. (Cal. Code Civ. Proc. § 1161.)

If the tenant has not paid rent, the tenant receives a "three-day notice to pay rent or quit." The language of this notice gives the tenant three days to either pay the rent (and stay) or leave.

If the tenant has violated the rental agreement in some way, the tenant receives a "three-day notice to perform covenant or quit." The language of this notice also gives the tenant three days to perform the covenant (e.g., ensure that no pets are on the premises) according to the rental agreement (and stay) or leave.

If the tenant has broken the law, destroyed the premises (waste) or is terrorizing the neighbors with continuous partying and loud music (nuisance), the tenant receives a "three-day notice to quit." This notice is unconditional. It means "get out within three days."

Q 8. What is the proper procedure for serving a three-day notice?

A The "three-day notice" may be served by the landlord, manager, or any other person over the age of 18. A copy of the notice should be delivered to the tenant personally.

If the tenant is absent from the premises and his/her workplace, the notice can be delivered to a person of "suitable age and discretion" at either the tenant's residence or workplace, and an additional copy must be mailed to the tenant at his/her place of residence. This method is known as "substituted" service.

If the place of residence and business cannot be ascertained, or a person of "suitable age and discretion" cannot be found, the landlord can post the notice conspicuously on the property, serve a copy to any resident on the property, if one can be found, and mail another copy addressed to the tenant at the place where the property is situated. This method is known as "conspicuous" service. (Cal. Code Civ. Proc. § 1162.)

Q 9. Does the landlord have to accept the tenant's offer to pay rent within those three days?

A Yes. If the tenant offers to pay full rent within three days of receiving the notice to pay rent or quit, the landlord must accept the payment and the tenant may remain in possession. (Downing v. Cutting Packing Co., 183 Cal. 91, 95 (1920).) Generally, a landlord can refuse payment by check if all previous payments have been by cash, cashier's check or money order. However, if the tenant has tendered a check in the past, the landlord cannot safely reject the check unless the tenant has been notified otherwise in advance. (Strom v. Union Oil Co., 88 Cal.App.2d 78, 84 (1948).)

If, however, the tenant offers partial payment, the landlord can properly refuse to accept and continue the eviction process. Acceptance of partial payment by the landlord invalidates the three-day notice.

Finally, if the rent is not paid within three days or if the landlord refuses to accept partial payment, and the tenant has not vacated the premises, the landlord can then file an unlawful detainer action to terminate the tenancy and recover possession. (Cal. Code Civ. Proc. § 1162(2).)

Q 10. When is a thirty-day or sixty-day notice used?

A When a tenant has lived in the unit for less than one year, the thirty-day notice is most commonly used to terminate a month-to-month tenancy. (Cal. Civ. Code § 1946.)

When a tenant has lived in the unit for one year or more, a landlord must give a sixty-day notice to terminate a month-to-month tenancy (Cal. Civ. Code § 1946.1). This notice may also be used to modify the terms of a month-to-month tenancy.

Q 11. Must the landlord state any reason for serving a thirty-day or sixty-day notice to terminate a month-to-month tenancy?

A No, unless required by local ordinance. By law, a month-to-month tenancy is terminable by the landlord upon the serving of sixty-days notice (thirty-day notice if less than one year of tenancy).

However, the landlord cannot be motivated by a desire to retaliate against the tenant for exercising his/her legal rights, such as requesting the landlord repair an item for which the landlord is responsible. In such circumstances, the tenant may claim the legal defense of "retaliatory eviction." (Cal. Civ. Code § 1942.5(a).) See Question 30.

Q 12. When and how should a landlord or property manager serve a tenant with a thirty-day or sixty-day notice?

A The thirty-day or sixty-day notice can be served at any time. The notice must be in writing and can be served by the landlord, manager, or any other person 18 or older.

A thirty-day or sixty-day notice may be served in any of the ways that three-day notices are served (see Question 8) or by certified or registered mail. (Cal. Code Civ. Proc. § 1162.)

Q 13. Should a landlord or property manager ever give both a three-day and a sixty-day (or thirty-day) notice at the same time?

A It is legally permissible to serve both notices at the same time. However, using two notices is more likely to confuse the tenant and complicate the eviction process. Therefore, it is suggested that the matter be discussed first with the attorney who will handle the eviction, if this becomes necessary.

Q 14. Is there any reason to use a thirty-day notice to terminate a month-to-month tenancy rather than a three-day notice?

A It really depends on what the landlord wants. If the landlord wants to evict the tenant, a sixty-day notice (or thirty-day notice if the tenant has lived in unit for less than one year) might make the most sense. However, if the landlord only wants the tenant to pay the rent due or perform a covenant, such as removing a prohibited animal, then a three-day notice would suffice. Three-day notices typically can be "cured." If the tenant pays the rent and/or gets rid of the prohibited pet, the tenant has the right to stay in possession. An unconditional three-day notice to quit, such as for committing an unlawful act, is more unusual.

In either three-day notice situation, if the case goes to court, the landlord must prove that the tenant violated the rental agreement or committed an unlawful act, waste or nuisance. With the sixty-day notice, however, the landlord need only prove proper service of the notice itself in order to evict the tenant. In other words, the landlord does not have to prove that the tenant violated the rental agreement unless additional requirements are imposed by local ordinance.

Q 15. What if the tenant gives the landlord a thirty-day notice but then refuses to move after thirty days?

A The landlord can proceed with the unlawful detainer action after the tenant has already terminated the tenancy by serving notice and allowing thirty days to elapse. However, the landlord's acceptance of rent for a period after the termination date in the notice would invalidate the notice. (Cal. Code Civ. Proc. § 1161(5), Cal. Civ. Code § 1945.)

Q 16. Is there an easy and quick reference to use when determining what type of notice to serve?

Basis for Eviction	Notice Required
Nonpayment of rent	Three-day notice to pay rent or quit
Landlord wants to terminate agreement	If tenant has lived in unit one year or more: Sixty-day notice to terminate tenancy If tenant has lived in unit less than one year: Thirty-day notice to terminate tenancy
Tenant has committed an unlawful act, waste or nuisance	Three-day notice to quit (unconditional)
Tenant fails to vacate after giving the landlord thirty-day notice or after expiration of the lease	No notice required unless required in rental agreement, or unless landlord has accepted rent for a later period
Tenant is in violation of the rental agreement	Three-day notice to perform covenant OR sixty-day notice to terminate tenancy (thirty-day notice if tenant lived in unit less than one year)

Q 17. What if a tenant's fixed- term lease expires but the tenant refuses to move?

A The landlord can proceed with the unlawful detainer action under California Code of Civil Procedure Section 1161(1). The lease itself provides the tenant with notice of termination of the tenancy. A prudent landlord, however, should notify the tenant in writing at least 30 days ahead of the upcoming lease expiration date, and indicate that there will be no renewal of the lease or any continuation of the tenancy.

Q 18. What happens if the landlord accepts a tenant's payment after the lease expires?

A Typically, this means that a month-to-month tenancy is created between the landlord and the tenant. The terms of the original lease continue except that the length of tenancy is now month-to-month. As a result, the tenancy can then only be terminated by a sixty-day written notice (thirty-day notice if the tenant has lived in the unit for less than a year) unless the tenant breaches the lease or fails to pay rent. (Cal. Civ. Code §1945.)

Q 19. What is the next step after serving the tenant with notice?

A After serving the tenant with notice, the landlord must allow the appropriate notice period (i.e., three, thirty or sixty days) to elapse. When the notice period elapses, the unlawful detainer action can be filed in court and the summons and complaint can be served upon the tenant. (Code Civ. Proc. § 1161.)

As of January 1, 2005, the landlord must attach specified documents to the unlawful detainer complaint, including a copy of the notice of termination and the rental agreement. The complaint must also be "verified" (signed by landlord under penalty of perjury). (Cal. Code Civ. Proc. § 1166.)

Q 20. Should a property manager pursue an unlawful detainer action on behalf of a landlord?

A It is not recommended that any property manager attempt the unlawful detainer process on behalf of a client. Instead, the landlord should be directed to appropriate legal counsel.

Q 21. What court hears unlawful detainer actions?

A The Superior Court in the county where the unit is located will hear the unlawful detainer action. The small claims court no longer has jurisdiction over this type of case.

Q 22. Does an appeal prevent enforcement of a judgment in an unlawful detainer case?

A No. There is no automatic stay of execution when a tenant appeals an unlawful detainer judgment.

Q 23. How long does a "typical" eviction take from notice to eviction day?

A It depends on the action taken by the tenant. A "contested" eviction case generally takes one or two months until an enforceable judgment can be obtained.

Q 24. Can a claim for monetary relief be made in an unlawful detainer action?

A Yes, but a claim for monetary relief is incidental to the main purpose of the unlawful detainer action (i.e., recovery of possession).

Depending on the basis of the unlawful detainer action, the landlord may recover delinquent rent and/or damages. (Cal. Civ. Code § 1951.2.)

Attorney's fees and costs may also be awarded to the prevailing party if there is a provision in the rental or lease agreement providing for their recovery.

Q 25. How does the landlord remove the tenant once a judgment has been obtained?

A When the landlord obtains a judgment against the tenant, the landlord may request that the court clerk issue a writ of possession or writ of execution. The landlord should deliver the writ of possession or execution to the local county marshal or sheriff's office and instruct the marshal or sheriff to evict the tenant. (Cal. Code Civ. Proc. § 1174(a), (d).)

The marshal or sheriff will then notify the tenant that he/she has five days to vacate the premises. Generally, this is served personally or by posting and mailing. If the tenant fails to leave within this time, the marshal or sheriff will physically remove the tenant from the premises. (Cal. Code Civ. Proc. § 715.020.)

Q 26. What is an "Arrietta" claim?

A The term "Arrietta" comes from the case Arrietta v. Mahon, 31 Cal. 3d 381 (1982), in which an occupant was not named in the unlawful detainer action. That occupant then objected to enforcement of the landlord's judgment for possession claiming he had the right to be notified of the proceeding and given a chance to respond to the unlawful detainer complaint. Therefore, an Arrietta claim is one in which an occupant claims to have been in possession of the premises at the time the unlawful detainer action was filed and was not named in the unlawful detainer proceeding.

If this situation arises, the eviction of that person will be delayed until service of the notice of the unlawful detainer action is effectuated on the Arrietta occupant.

California law now contains detailed procedures for the filing of an Arrieta claim. (Cal. Code Civ. Proc. § 415.46.)

Q 27. What is a "retaliatory eviction"?

A Retaliatory eviction most often refers to a situation where the landlord serves the tenant with a thirty-day or sixty-day notice to terminate a month-to-month tenancy and the landlord's dominant purpose is to retaliate against the tenant for the exercise of his/her legal rights.

If, for example, the landlord attempts to evict the tenant for making repairs after the landlord failed to do so and deducting the cost from the rent due, or for reporting an unhealthy condition to a governmental agency, this is retaliatory eviction and is in violation of the law.

If the tenant exercises his/her legal rights, then so long as the tenant pays the rent, the landlord may not evict the tenant, raise the rent or decrease any services on a retaliatory basis, for 180 days. Any attempted waiver of these rights by the tenant is void.

The law provides for actual damages, and punitive damages against the landlord from $100 to $1,000 for each retaliatory act if fraud or malice is involved. Reasonable attorney's fees may also be awarded to the prevailing party. (Cal. Civ. Code § 1942.5.)

Q 28. What can the purchaser at a foreclosure sale do if the occupant refuses to leave the premises?

A It depends on (1) whether the party occupying the premises is the former owner or a tenant and (2) for a tenant, the "priority" of the tenant's interest. In other words, if a tenancy is created and recorded prior to the recording of the deed of trust in question, the tenancy generally will not be affected by the completed foreclosure and the tenant will be allowed to remain. (Cal. Code Civ. Proc. § 1161a.)

On the other hand, if the deed of trust was recorded first, the purchaser at the foreclosure sale can evict the former owner and/or tenant by an unlawful detainer action. In this situation, the purchaser must first serve the tenant of the former owner written notice to quit at least as long as the term itself but not exceeding thirty days. (It is unclear whether a sixty-day notice is required for tenancies of one year or more in this situation. (See Cal. Civ. Code § 1946.1.) Local ordinances can affect those results.

If the occupant is the former owner who was foreclosed upon then the purchaser, however, need only provide the former owner with a written "three-day notice" to quit.

Q 29. If property is sold using an installment contract of sale (land sale contract) and the contract provides that upon the buyer's breach the buyer becomes a tenant, can the seller simply enter the property and take over immediate possession?

A No. If the buyer breaches the installment contract of sale, the seller should use a "quiet title" action or other formal court procedure to recover possession of the property. The contractual provision mentioned above is frequently used to entitle the seller to compensation for the time it takes to eject the buyer. Even if this language is used, however, the seller will not always be entitled to recover rent.

Q 30. What happens if a tenant files for bankruptcy either before or during the unlawful detainer proceeding?

A Filing for bankruptcy triggers an "automatic stay." This means that the landlord temporarily can do nothing to enforce the lease or rental agreement. For example, the landlord cannot serve a three-day notice, file an unlawful detainer action, continue on in an action previously filed against the tenant, or even enforce a judgment that was obtained earlier. (11 U.S.C. § 362(a).)

Generally, the landlord must file a "Complaint for Relief from Automatic Stay" in the tenant's bankruptcy action in the U.S. Bankruptcy Court and obtain bankruptcy court approval before proceeding with the eviction. (11 U.S.C. § 362(d).)

Bankruptcy law is very complex. When faced with this issue, the landlord should immediately consult an attorney for advice and assistance.

Q 31. What should an owner do if squatters have taken over a property?

A First, the owner should contact the local police and seek their help. The police should be willing to assist the owner so long as the squatters concede that they were not given lawful possession. However, if they claim they have a legal right (for example, an alleged oral agreement with the owner) then the police probably will not remove them from the premises.

To remove unwilling squatters, an owner should make a demand that they leave the premises. If after five days, the squatters have not left the premises, the owner should proceed with a forcible detainer action rather than unlawful detainer action. (Cal. Code Civ. Proc. § 1160.) A forcible detainer action involves different rules and procedures. The owner should seek legal advice prior to starting this action.

Should I Repair or Replace? Life Expectancy of Home Components

noreply@blogger.com (Jeremy L. Sine) — Thu, 09 Dec 2010 18:58:00 +0000

The National Association of Home Builders have published a brochure called Life Expectancy of Home Components. This may help with the question - Should I repair or replace? Sometimes a repair may cost $200, but a new appliance is only $350. Should you pay the extra money for a new appliance or save a few bucks and only do the repair, and hope nothing else goes wrong.

This is a great resource that provides general guidelines as to the life expectancy of various home components, like HVAC, dishwasher, etc., and can help answer the often posed question - Should I repair or replace?

Home Warranty for Your Rental - Is it Worth It?

noreply@blogger.com (Jeremy L. Sine) — Thu, 09 Dec 2010 18:51:00 +0000

Home Warranty's are not just for new home purchases. They can be a valuable asset to any rental property. The average cost for a protection plan is between $300 and $450, depending on if you add items like AC. Most minor repairs can cost around $100, so a few repairs per year and you the warranty has paid for itself. If you have one major repair, like with the heating or air conditioning, the warranty will pay for itself in one trip.

Insurance is (sort of) like making a bet - Will the costs of potential repairs be more than the premium? If the answer is yes, you made a good bet. Our experience tells us that if you have a newer home, or have never had too many maintenance issues, you may be better off just paying maintenance costs as they come up.

However, if you have an older home or appliances, if there is deferred maintenance building up, (we recommend addressing deferred maintenance issues but sometimes it just not in the budget), or if you have a rental property that always seems to have minor issues popping up a Home Warranty is probably a good idea.

We recommend Home Warranty of America. They have competitive pricing and great service. You can Click Here to view a brochure with detailed price and coverage information.

Another good resource is Life Expectancy of Home Components. This brochure published by the National Association of Home Builders gives you a good outline as to how long home components should last.

As always if you would like to talk to us about Home Warranty options for your rental please call our office.

Renting Rises as Demographics Shift

noreply@blogger.com (Jeremy L. Sine) — Thu, 09 Dec 2010 18:10:00 +0000

America seems to be growing into a renter nation, according to Census figures. Homeownership rates fell to 66.9 percent in the third quarter of 2010, down from a high of 69 percent in the fourth quarter of 2004, not all that surprising given the troubled economy. In the first half of the year, the number of occupied apartments in 64 U.S. markets rose to double the level of all of last year, according to MPF Research.

Indeed, recent demographic shifts appear to favor the rental market. Two groups that traditionally favor homeownership are on the decline: married couples and families with children under 18 — which are down 5 percent and 4 percent, respectively, between 1990 and 2009.

Meanwhile, a group that favors renting is rising: In 2009, single mothers grew to 24 percent of all families with children under 18, from 20 percent in 1990. Families with children under 18 are more likely to be renters than homeowners. That's a consequence of the aging population — more empty-nester owners — and the housing bubble, which put the price of homes out of reach of younger parents. Prior to 1990, families with children under 18 were always more likely to own. Single-family rentals grew to one-third of the rental stock in 2009, up from 31 percent in 2005.

But even though population changes bode ill for homeownership, the attitude toward owning remains positive, according to a report released Thursday by Fannie Mae. A survey of 3,600 people found that the vast majority of homeowners say they prefer owning to renting — even those who are underwater on their mortgages. Asked whether they'd be better off owning or renting given their current household finances, 84 percent of owners with negative equity said they were better off owning. Four in five people in the general population say they'd prefer to live in a neighborhood where most of the residents own their homes.
The impact of the housing crisis on homeownership aspirations is mixed. Half of the population says the housing bust has had little or no effect on their intentions to buy or rent; 27 percent said it's made them more likely to buy; and 19 percent say it's made them more likely to rent. Among homeowners with negative equity, a surprising 34 percent say the crisis has made them more likely to buy, while just 18 percent say it has made renting more likely.

Finally, the report suggests the McMansion trend is petering out: The median square footage of new homes fell 6 percent between the peak of the bubble in 2006 and the second quarter of this year.

Cited from Yahoo! Finance

Start Your Home Search Here

noreply@blogger.com (Jeremy L. Sine) — Thu, 02 Dec 2010 06:03:00 +0000

Thinking of Buying? Looking for that first home - Or maybe another investment property. No matter what you are looking for you can find it with this easy to use interactive map.
You can see every property listed for sale in San Diego, all without signing up or giving out your email.

Click Here to Start House Hunting.

Or start your search below.

Renters’ Insurance Links

noreply@blogger.com (Jeremy L. Sine) — Fri, 26 Nov 2010 02:29:00 +0000

Renters’ insurance can give your tenants peace of mind — and while it’s not your job to ensure that all of your tenants have a policy, it is certainly in your best interest to make all new tenants aware of the benefits of coverage.
A basic policy can protect tenants living in your building from damages caused by natural disasters, theft, or even injuries taking place in their unit. Best of all these policies are often very inexpensive — and you can often get an even better deal by purchasing a renters’ insurance policy through the company you get your car or other insurance policies from.

Insure.com provides a great article on the basics of renters’ insurance, including a list of what standard policies tend to cover.
This article provides an example of why renters’ insurance is so important — make sure you are being savvy and protecting yourself.
Check out this website if you are thinking of purchasing a renters’ insurance policy — the site will compare quotes from multiple renters’ insurance providers.
Still not sure if it’s worth it for you to buy a renters’ insurance policy? This article is a great resource as to what you should consider before buying a policy.

New Requirements for Smoke Detectors

noreply@blogger.com (Jeremy L. Sine) — Fri, 19 Nov 2010 19:03:00 +0000

Recently new requirements for smoke detectors were enacted by the local authorities that administer Section 8 and other HUD voucher programs.

While the overriding legal legislation for smoke detectors in rental properties has not changed, it is a good idea for all everyone to protect their investments and follow these guidelines.

Ceiling mounted alarms should be installed at least 4 inches away from the nearest wall; wall-mounted alarms should be installed 4-12 inches away from the ceiling.
A smoke alarm must be installed outside each separate sleeping area in the immediate vicinity of the sleeping rooms and on each level of the dwelling unit.
For peaked ceilings the smoke alarm shall be located within 36 inches of the peak but not closer than 4 inches of the peak.
Smoke alarms shall be mounted on inside walls and not placed within 36 inches of the door to a kitchen or a bathroom that contains a tub or shower.
Smoke alarms should not be installed within 36 inches of a forced air heating or cooling register/vent.
Smoke alarms should not be installed within 36 inches from the tip of the blade of a ceiling fan.

Visit our website at www.CoSineRE.com for all your San Diego Property Management and Real Estate questions.

Running Reports from the Owner's Website

noreply@blogger.com (Jeremy L. Sine) — Thu, 18 Nov 2010 23:36:00 +0000

It's incredibly easy to view detailed financial information with the online Owner's account. Follow the steps below to start creating custom financial reports.

First, sign in to your account. You can do this from either of our two websites: www.CoSineRE.com or www.4SDrentals.com. It's usually easiest to go to www.4SDrentals.com, so I'll start from that address.

When you are at www.4SDrentals.com, you want to click on the "Sign In Here" link in the Management Sign In box. (Do not enter your user name and password under the tenant sign in box - it won't work.) After you click on the Management Sign In link, enter your email address and password and click on "Sign In". (First time users will be prompted to enter a permanent password.)

Once you have signed in, to view reports click on the "Reports" tab at the top of the page. From here you can see all the various reports that you can run. If you scroll over a report link a description of the report will appear in the window. Click on any report to go to the next screen.

The most common report is "Income Statement Detailed". This report will show you a line itemization of all the income and expenses for the date range you enter.

When you click on a report link, the next screen will allow you to customize the report. Once you enter the date range and other customized settings, simply click the "Submit" button and the report will automatically be prepared and downloaded to your computer.

For more advance users you can set all sorts of different parameters for your reports:

Choose the type of download. You can download reports in a PDF, Excel spreadsheet, or a CVS format compatible with most finical software like Quickbooks.
If you own multiple properties you can use the drop down box in the upper right corner to sort by properties.
You can set your accounting basis to cash or accrual accounting.
You can select to see only income or expenses, or both from this drop down list.
You can view a sample report by clicking on the sample report link. The sample report will automatically be downloaded to your computer in PDF format.

Need more help? Try viewing one of our help videos below.

Paying Rent Online has Never Been Easier

noreply@blogger.com (Jeremy L. Sine) — Wed, 17 Nov 2010 03:04:00 +0000

Paying your rent online has never been easier. Sign in to your tenant account, enter your account information, and enter a payment! You can make a one-time payment or even set-up automatic payments, and you can pay from any bank account. It's simple, convenient and secure.

Here are few things you should know:

It must be a checking or savings bank account. We do not accept credit cards.
The bank account must be in your name as it appears in our system. (Click on the "My Info" link under the Home page to see what your name is in our system.)
The funds are withdrawn from your bank account 1-2 days after you enter the payment online.
Do not use the number off a debit card linked to a bank account. It must be the actual account number.
You can find your account and routing number off any check.

If you have any questions please call our office or visit us at www.CoSineRE.com.

3 Easy Steps to Comprehensive Property Management

noreply@blogger.com (Jeremy L. Sine) — Thu, 11 Nov 2010 01:16:00 +0000

After making the decision to sign with us for Property Management, new clients often ask "What is the next step?" We strive to make everything as easy as possible for our clients and tenants. Signing with us for Property Management is no exception. Here are the simple steps to worry-free management:

Complete the New Client Questionnaire. We will email you a simple form to complete which asks for contact and property information. This form gives us everything we need in order to prepare the Property Management Agreement and set you up in our system. Click to get a head start and complete the form now.
Sign the Property Management Agreement. We will prepare and email you the Property Management Agreement for signatures. Simply initial and sign and return a copy to us.
Keys and Documents. We will make arrangements to obtain keys for the property. If the property is tenant occupied, we will need copies of any current leases, applications, etc.
Preparing the House for Rent. If the home is currently owner occupied, we will meet with you at your home to inspect and discuss what needs to be done to make it a successful rental.

That's it. From here on we will provide worry-free management for every aspect of your rental property. All for our flat 5% management fee.

Please feel free to call our office at (619) 793-5484 with any questions, or visit our website at www.CoSineRE.com.