Maintaining your San Diego investment property means paying attention to the quality of work that’s done at your home. Costs are rising, thanks to inflation and a high demand for labor, materials, and housing supplies. That can make it tempting to cut corners. Maybe you’re putting off maintenance projects at your rental property or perhaps you’re thinking about looking for cheaper labor.
We understand the inclination. It’s important to think about your bottom line.
But, you don’t want to cut the corners that protect you and your property.
Even in the current market, it’s not impossible to find cost-effective repair work. But, it should never be at the expense of quality and safety.
We recommend that you only use licensed vendors and contractors when repairs are needed at your rental property. Make sure they have insurance as well. You can get into a lot of legal trouble if something goes wrong with an uninsured, unlicensed worker. You’ll end up spending far more than what you thought you were saving.
Good maintenance is an investment, not a commodity.
When your investment property needs something fixed or replaced, you want the problem taken care of correctly the first time. This is why it’s so important to work with licensed vendors. A professional plumber, electrician, painter, roofer, or other repair person will have the experience and the expertise required to complete the repair correctly and maintain your San Diego investment property.
If something goes wrong or the issue isn’t completely resolved, a licensed vendor will come back to check on their work and make sure they find a solution.
Licensed vendors and contractors are committed to keeping their customers happy. They’re going to stand by their work, and they’re going to make sure that all of your expectations are met. If you’re putting together a preferred list of vendors (which you should), make sure you’re assembling a team of professionals who take pride in the work they do and never stop earning your business.
What if something happens to an unlicensed, uninsured worker at your property?
Someone could fall off a ladder. Get electrocuted. Cut off a finger.
There’s danger inherent in a lot of maintenance work. Licensed and professional workers will insure themselves against these risks. If the people you hire to work at your property get injured and cannot pay for their own medical care, they’re going to come back to you. Expect a lawsuit or a claim.
That’s a lot of liability.
It’s not worth the risk. Don’t hire anyone who doesn’t have adequate liability and worker’s compensation insurance. Ask for proof of that insurance before you hire a company or a vendor.
You also owe it to your residents to send high quality, professional workers over to the property. Tenants don’t want to open the door to someone who has not been properly screened. Your residents want to know you’re sending a professional who is licensed, insured, and respectful.
Using the right vendors also shows your tenants that you care about the property and their needs. This will help with tenant satisfaction and improve your tenant retention rates.
We know you’re trying to save money on maintenance. Don’t downgrade your vendor selection. Stick to professionals who care enough about the work they do and the services they provide to be licensed and insured.
Better yet - leverage the relationships and resources of a San Diego property management company. Contact us at Mercer Properties, and we’ll talk about our preferred list of vendors and contractors who we trust.
]]>The eviction moratorium has finally ended in California, which gives San Diego rental property owners a bit more flexibility when it comes to removing tenants who are not paying rent. If you have tenants in place who are currently or continuously receiving government benefits to avoid eviction, you’ll need to honor those programs.
However, if tenants stop paying rent or give you any other just cause for eviction, you’re now permitted to move forward.
Remember that eviction restrictions remain in place through the Tenant Protection Act of 2019.
Since the Tenant Protection Act went into effect, you need a reason to evict that tenant from your property. This is your just cause. You can evict for:
In any of these cases, if you have a problematic tenant and you feel you have to prove just cause, documentation is going to be essential.
When you’re preparing to evict a tenant, you need to follow a set of specific steps in order to legally remove your tenant.
Your lease should have a specific and enforceable rent collection process. Tenants need to know how much rent is due, when it’s due, and how it should be paid. After any grace period has expired and rent is officially late, the first step any landlord needs to take is to complete and serve a Three Day Notice to Pay or Quit. This essentially and officially informs the tenant that rent has not been paid, and they have three days to catch up with the payment or vacate the property.
If the tenants do not respond, you’ll need to file the necessary unlawful detainer lawsuit in court. The tenants will be served with a summons and complaint and a court date will be set.
On the scheduled date, go to court with all the necessary documentation, where the judge will either require a mediation, reject your eviction, or provide a judgment for eviction.
If you are going to move ahead with an eviction now, prepare to be patient. A lot of landlords have been waiting for the opportunity to begin evictions again. There’s going to be a backlog, so working out a payment plan or working with your tenants to get them current might be a better use of your time than waiting for an eviction hearing date.
If you’re looking for San Diego property management services so you don’t have to worry about the costs and risk of eviction, please contact us at Mercer Properties. The eviction moratorium has ended, but it’s still a tricky process to evict a tenant in San Diego.
Should you allow pets in your San Diego rental property?
That depends on your tolerance for risk. We’re talking not only about the risk of damage that animals can do, but also the risk of longer vacancy periods and lower rents.
San Diego tenants love their pets. Animals are like part of the family, and more than half the tenants looking for homes in our area have at least one pet.
Today, we’re discussing why allowing pets may or may not be a good idea for you, and what you can do to protect yourself if you do decide to offer a pet-friendly rental home to prospective tenants.
Pets are good for rental property owners in many ways. Providing a pet-friendly property can actually increase your rent and your long term ROI.
When you allow pets into your property, you’re going to have a shorter vacancy period because pet-friendly homes rent faster. There’s a larger pool of tenants who will be interested in looking at your property if you allow them to move in with animals.
This doesn’t mean you have to allow all pets. In your marketing materials, you might say something like “pets considered.” That leaves the door open for a well-qualified tenant with a well-qualified pet. But it doesn’t require you to accept the tenant with 10 Pit Bull puppies.
You can charge a bit more in rent when you allow pets. Pet owners expect to pay a pet fee and they’re also not surprised when they’re charged pet rent. All of this adds up to better ROI for you, even if there is extra cleaning and minor damage at the end of the tenancy.
Not everyone wants to invite the mess, the liability, and the potential for pet damage into their homes. Maybe you’re planning to live in the home yourself one day and you’re fiercely allergic to pet hair. Maybe you have a lot of children in the neighborhood and you’re worried about a loose dog biting one of them. You also might worry about your landscaping, your wood floors, your walls, and your carpet.
Pets can be problematic for rental properties. We get it.
They can also be dangerous. We don’t recommend that you allow any dangerous dog breeds. Most insurance companies still won’t cover them, and even if a tenant has the sweetest Doberman in the world, it’s still an additional liability for you.
We understand your hesitation if you want to keep your property pet-free.
However, if you decide you do want to allow tenants to move in with pets but you still have concerns, we can help you create a pet policy that protects you and your investment home. It’s perfectly acceptable to restrict breeds, and you can also restrict the size, age, and number of pets. Maybe you want to allow adult cats and dogs only, or just one dog that weighs less than 20 pounds. We can help you put together a reasonable and protective plan.
Remember - service animals and companion animals are not pets. You cannot disallow a service animal, emotional support animal, or any other accommodation protected by fair housing laws and the Americans with Disabilities Act.
Contact us at Mercer Properties with any questions you might have about pets or anything pertaining to San Diego property management.
Are you new to being a landlord? Many people find themselves in this role when they decide to rent out a home that they once lived in. Or, perhaps you’ve inherited a property and you don’t want to sell it just yet.
You’re in a good position. Renting out a property that you already own can bring you regular monthly rental income. It can also set you up for a lot of wealth in the future. Your asset is going to appreciate in value while you build equity and your tenants pay down any mortgage and contribute to expenses.
Here are some of the most important things that you don’t want to lose sight of as you begin your new endeavor as a landlord.
If you’ve lived in this home and created memories there, renting it out and detaching emotionally isn’t always easy. You can’t pop in unannounced and you don’t want to become too friendly with your tenants.
You’re running a business, and all of your decisions have to be made based on what’s good for the business. Real estate is fairly emotional, especially for new landlords. Make sure you can set the necessary boundaries and treat your property like the income-producing business it is.
Maybe you’ve had a window that locks funny but it never really bothered you. Or a couple of kitchen drawers that stick. It’s time to fix all those things and make the property rent-ready.
All of those minor issues that you noticed but didn’t fix while you lived in the home yourself will now need to be taken care of. Before you put it on the rental market, you’ll need to conduct a thorough inspection and take care of all repairs - no matter how major or minor they might be.
You’ll also have to continue maintaining the home. Emergency maintenance issues are expensive and stressful. You’ll want to avoid those by taking a preventative approach to maintenance and by making small fixes while you can.
This will require resources for things like HVAC inspections and service, plumbers, electricians, roofers, and other calls to vendors and contractors. If you don’t think you’ll be able or willing to put some money aside every month for potential maintenance, renting out your property probably isn’t a great idea.
Not only do you need the funds to pay for these repairs, you also need good relationships with vendors who are reliable, licensed, insured, and affordable. When tenants call with a problem, you’ll have to respond quickly, especially if it’s a habitability issue.
By focusing on preventative maintenance and a good team of vendors, you can save money on maintenance costs and keep your property well-maintained.
The legal landscape is challenging, especially in California. When you’re renting out a San Diego property, you have to be compliant with all state, federal, and local laws. If you don’t know the rent control laws, the just cause eviction requirements, and the regulations that cover security deposits, Section 8 screenings, and service or support animals, you could find yourself making an expensive legal mistake.
California fair housing laws are actually stricter than the federal laws. Your lease agreement needs to include specific language that addresses rent control and whether it applies to your property.
Recovering from a legal misstep will be expensive. If you want to rent out your home, you’ll need to educate yourself on the current laws and commit to staying updated on all the changes.
Be willing to listen to people who can help. San Diego property managers, for example, can play a big role in helping you succeed. Instead of trying to figure everything out on your own, don’t be afraid to ask for help. You can leverage years of experience, a keen understanding of the local rental market, and a vast network of contractors and vendors.
We know these things can seem overwhelming. And these are just a few of the things you need to consider. Our team would love to help you lease, manage, and maintain your San Diego rental property. Please contact us at Mercer Properties.
]]>How organized are you?
When it comes to renting out a San Diego property, you need to have your paperwork and your records in order. Whether you’re using digital or paper files or some combination of the two, make sure you’re easily able to produce the documents that might come into question during or after a tenancy.
We’ve put together a brief list of all the documents you need to have on file if you’re a San Diego landlord.
There’s no law that says how long you need to hold onto a tenant’s rental application. Best practices say that landlords should hold onto those records, even those of the applicants you may have denied, until the tenant is no longer permitted to make a legal claim. Keep applications of former tenants for at least five years. You should always retain the applications of the tenants you currently have in place.
One of the reasons to keep applications on file and easily available is that they often include an emergency contact for your resident. Make sure you can quickly access that contact information in case something goes wrong and you need to get in touch with someone close to your tenant.
Every potential conflict, dispute, and question during the lease period will require a careful review of the lease agreement that you and your tenant signed. You’ll need to access the lease if there’s a misunderstanding about who is responsible for maintenance or landscaping. You’ll need the lease if a tenant is late with rent and you need to charge a late fee. It will be required in court if you have to evict a tenant.
The lease is a critical document. Both you and your tenant should easily be able to reference it when necessary.
Before a tenant moves into your San Diego rental property, you’ll need to conduct a thorough inspection to document the condition of the property. This can help you avoid problems later if you and the tenant have a dispute over damages to the home during the course of the tenancy. Take photos and even videos. Make sure your notes are clear and specific.
After your tenant vacates the property, conduct another inspection and keep the report. If there are any inspections during the tenancy, make sure they’re well-documented and on file.
Tax time can be stressful, but if you have a good accounting program, you’re fine.
Keep detailed records and statements that document your income and expenses from the previous twelve months. Track your expenses for things like advertising, legal fees, mortgage interest, maintenance, and San Diego property management. These are deductions you’ll be able to take, so you’ll want to have those numbers easily accessible when you’re filing.
Finally, if you’re working with a San Diego property management company, make sure you have a copy of your management agreement. You may need to refer to this throughout the tenancy, and you’ll want to understand the fee schedule and any notice periods you have to provide when you’re ready to move on.
These documents need to be easily accessible, whether you’re in your office or on the road. With all of the technology available, maintaining digital records is easier and more efficient than ever.
If you’d like some help getting organized, please contact our team at Mercer Properties.
A vacant property comes with all kinds of risks. You want to keep your San Diego rental property occupied with quality tenants who can help you take care of it while paying rent on time every month.
Vacancies do happen, however, and you’ll need to protect your investment when there isn’t a tenant in place. It’s going to require more than driving by the property once a week.
Here are some noteworthy ways to protect your vacant San Diego rental property.
First, you need to understand the risks of long vacancies.
The obvious problem with a vacant home is that it’s not earning you any money. Missing out on even a month of rental income can hurt. When your vacancy stretches on for longer, you’re looking at a real cash flow problem.
But that’s not all. You’re also paying for things like utilities and landscaping without earning any income. Your out-of-pocket costs will only increase the longer the property stays vacant.
A vacant home is also vulnerable to acts of vandalism and crime. You could have squatters move in. If there’s a slow leak occurring under a sink or a problem with an outlet, you’re not going to know it because there aren’t tenants to report it. That’s going to lead to more expensive maintenance problems.
One way to keep your vacant property safe is to inspect it frequently. Make sure everything is working and look for potential trouble spots such as leaks, appliances, electrical systems, and security. Are the doors and windows locking? Is the smoke alarm working?
If you can get into your rental home at least once or twice a week, you can ensure there’s nothing terrible going on. You can also check for potentially damaging maintenance issues.
Installing a video or security camera and/or an alarm system is a good way to protect your San Diego property when it’s vacant. There’s a lot of great technology right now that provides cameras so you always know who is coming and going from your property. With systems like the Ring doorbell, you can see who is approaching your property. You can record the video of who is coming and going and you can even stream it if you want to check in on things in real time.
These types of investments are a good idea when you’re worried about people breaking into your rental home.
Leave your contact information with people who live close to your property. If your rental home is in an HOA, make sure the board knows how to reach you in case something goes wrong.
Insurance companies often allow your home to be vacant for 30 days before your coverage is in danger. If your home is going to be vacant for longer than that, consider buying insurance that will cover the vacancy period. A vacancy policy will likely be expensive, but you want to make sure you’re covered if something happens at the home while it’s empty.
The best way to reduce the risks associated with vacancy is by working with a San Diego property manager. We work hard to retain tenants and when there is a turnover period, we work quickly to ensure a well-qualified tenant is quickly found and placed.
If you’d like to talk more about this topic, please contact us at Mercer Properties.
]]>When you respond professionally to tenant maintenance requests, you’re protecting the condition of your investment and you’re also working towards better tenant retention. You’ll have a positive relationship with your San Diego residents and you’ll be able to count on them renewing their lease agreement when you’re responsive to their maintenance needs.
You’ll need a process for handling requests, whether they’re emergency repairs or routine fixes.
You’re partnering with your tenants to ensure your property is well-maintained.
It’s important that they make their maintenance reports right away so you can avoid the cost of deferred maintenance. Your tenants, therefore, will need your contact numbers. They’ll also need to know whether they should report a routine repair need via email, text, or by phone call.
For emergencies, we recommend that you have your tenants call you as soon as it is safe. But for routine maintenance, a good process is to report the necessary repairs in writing.
Why? Because it will keep the process well-documented, and it will hold you and your vendors accountable. As San Diego property managers, we have a fantastic software system that allows tenants to make their maintenance requests online. You can have tenants send an email or text you with the problem. Then, you can respond in writing and follow up with them after the work is complete.
With everything in writing, you have the documentation you need when future maintenance needs arise or if there’s a dispute about work that was completed.
Emergencies require an immediate response. You cannot leave safety and habitability issues alone for even a few days. Tenants need running water and electricity.
Your process should include a plan to respond to routine maintenance requests with the same sense of urgency. It’s good customer service and it will keep your tenants happy. If a tenant reports that a garbage disposal is clogged or a window screen is frayed, these might not seem like requests you need to handle right away. But, you should still get to them as soon as possible. When you are fast, it shows the tenants that you’re responsive and you care about their needs. It also means your property is better protected. Don’t leave deferred maintenance for later.
You’ll need some professional help when it comes to managing maintenance requests from your tenants.
Vendor partnerships are important and you shouldn’t cut corners when it comes to the work that’s performed at your property. Every owner is occasionally tempted to hire cheap labor to have your house painted or the trees trimmed back from your roof, but if that uninsured worker falls off a roof or gets injured, you may be liable for medical expenses and additional losses. Work with vendors and contractors you can trust, who guarantee their work. Make sure they’re licensed and insured.
We know maintenance requests can sometimes be challenging, and it’s one of the best reasons to work with a San Diego property management company. We can help you put together a process that serves you, your tenants, and your property. Contact us at Mercer Properties.
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If you’re investing in multifamily San Diego properties, you’ll have different considerations than you might when you rent out single-family homes or independent condos. In an apartment building, you have multiple tenants, a revolving door of people moving in and out, and extra attention needed to maintenance since several different systems and appliances are being used in each unit.
One thing you might be wondering if you’re renting out even a small apartment building is: should you hire an onsite property manager?
Legally, the answer is pretty simple - it depends on how many units you’re renting out.
Before you invest in a multifamily San Diego rental property, it’s important to understand California law and how it pertains to larger buildings.
According to California law, any buildings with more than 16 rental units require an onsite manager. You can work with a professional San Diego property management team for all of your leasing, management, and maintenance needs, but you also need a manager in residence at the building.
When you own a building that has fewer than 16 units, you do not have to follow this requirement, although sometimes a property owner will want to hire an on-site manager or maintenance expert to keep an eye on things and respond to any repair needs that might come up.
With smaller buildings, the decision is completely up to you. There may be pros and cons to having an onsite manager, and it’s important to consider what you’ll be taking on when you have an employee who is living in one of your residential units.
Putting an onsite property manager into your building means that you’re hiring an employee for your property. According to California law, you’ll need to treat the property manager living there as an employee. This brings you extra responsibilities, liability, and expenses.
Because your on-site property manager is an employee, you are legally required to provide workers compensation insurance. You also have to withhold all required federal and state income taxes from their salary and contribute to social security. Many owners will discount the rent on the unit their onsite manager lives in.
If, as a condition of employment, the on-site property manager must live at the place of employment or occupy quarters owned or under the control of the property owner, then that property owner is not allowed to charge rent in excess of the values set forth under California law.
If your investment property has more than 16 units, you know that your decision is made. You are required to hire an onsite manager for the property. If you’re not legally required to, is it something you should consider?
This will largely depend on the property itself, the tenants you have, and whether or not you’re working with a full-service San Diego property management company already. If you’re renting out six apartments in a smaller building and you’re already working with a reliable property manager, you probably won’t need an onsite person responding to maintenance and tenant issues. It would only take up one of your available rental properties.
If you need some help thinking through what this means for your larger rental properties, please contact us at Mercer Properties. We’d be happy to talk about our experience and offer some advice.
Rent collection is one of your most important jobs as a San Diego landlord.
The best way to ensure that your rent gets paid on time every month is by providing a few good options for tenants when it comes to how they pay. When you offer a variety of ways to pay, they can choose the method that works best for them, and you’re more likely to get your rent paid on time. You can accept checks, credit cards, money orders, and bank transfers. You can even use PayPal or Venmo. There are creative ways to let tenants pay in cash.
Collecting rent starts with a strong lease that includes a consistent and sensible rent collection policy. As a landlord in San Diego, you’ll have to communicate that policy to your residents.
Your rent collection policy needs to be clear, consistent, and well-enforced. This starts with your lease agreement.
In your lease, you can include a section that indicates the following:
That last point is especially important. Your tenants need to know how to pay the rent. Don’t leave them unsure about this, or you may have a tenant who tries to pay in cash when you don’t accept cash.
Nearly everything can be paid for online, and that includes rent. Most San Diego property management companies have been collecting rent online for years, and we have found that tenants appreciate it because it’s easy, secure, and can be done from the comfort of their own homes.
Today, most tenants are going to expect some sort of online rental payment system. They’re not going to want to write out a check and mail it to you. We highly recommend that you offer online rent payment as an option. This may be difficult if you’re managing on your own and you don’t have access to a sophisticated property management software platform like those available to professional managers. However, you can set up a system for your tenants to use an online payment system that already exists. You can have money transferred from their bank to yours as well.
Electronic or online payments are often the preferred way to pay.
But, that’s not the only way. Some of your residents may be less comfortable with technology, so give them other options when it comes to paying rent. Let tenants pay with a check or a money order if they’d prefer. There are programs you can join where a tenant can pay at 7-11 or a convenience store. As long as your tenants have options, they’re likely to meet their rent payment obligations.
It’s in your best interests to make rental payments as simple and stress-free for your San Diego tenants as possible. If you have any questions about how to collect rent or you’d like to talk about the online rental payment systems we use, please contact us at Mercer Properties.
]]>In the San Diego rental market, demand is high and so are rents. There are lots of outstanding opportunities, especially if you already own a property that you’d like to rent out or you’re considering an investment in one.
There are some great things about renting out a home and some risks. If you’re thinking about becoming a landlord, make sure you understand the pros and cons.
There are several financial benefits to owning San Diego rental property and being a landlord. You can plan on short term income and long term returns.
You’ll earn income as a landlord. Not only do you have a consistent, predictable sum of money coming in every month as a rental payment, you’re also in possession of an asset that will increase in value. While you’re making more money on your property through appreciation, your tenants are helping you pay down the mortgage as well as additional costs like insurance, taxes, HOA fees, and other expenses.
Another good reason to be a landlord is that you can access a number of tax benefits with your rental property. You’ll have to declare all the rent you earn as income, but you’re eligible for tax deductions. You can write off things like maintenance, mortgage interest, depreciation, and professional services like property management.
Investing in real estate allows you to build a solid financial foundation. You’re the landlord of one property now, perhaps, but you can leverage that property to continually acquire additional investments. That’s where the real money is made.
While you have a lot of opportunity as a landlord, you might find you run into your share of headaches and stress as well.
It takes more time to lease, manage, and maintain a rental home than you might imagine. You’ll need to advertise your home, show it, screen tenants, and negotiate lease agreements. Then you must collect rent, respond to maintenance issues, manage tenant complaints, keep accounting records, and work on renewing the lease at the end of the year. If you have a full-time job or family responsibilities, you may find your time really limited.
You’ll need the right insurance and you’ll need to know the laws. You could face tenant disputes, lawsuits, and even fair housing claims if you’re not careful. You’re also responsible for providing a safe, habitable home for your tenants to live in. Landing in court because you couldn’t tell the difference between a service animal and a pet is an expensive problem.
Budget for emergency repairs, routine maintenance, and preventative service calls and inspections. You’ll need to keep your property looking good if you want it to be attractive to tenants. This requires you to find vendors you can trust, and you’ll also need to know which upgrades and updates are essential during turnover periods.
You can enjoy all the benefits of being a landlord with few risks when you hire a San Diego property manager to take care of your rental property. When you partner with the right property managers, you won’t have to worry about wasting time or money. You will likely earn more on your investment, have a better rental experience, and be glad you decided to become a landlord after all.
If you’d like some help, we’re here to answer all your San Diego property management questions. Please contact us at Mercer Properties.
]]>Even tenants who are carefully screened can leave behind property damage when the lease ends and they vacate your San Diego rental property. You’ll need to document the damage, repair it, and then deduct the cost from the tenant’s security deposit.
This isn’t always as easy as it sounds.
Tenant disputes are likely to erupt when you withhold security deposit funds, especially when it comes to parsing the difference between tenant damage and wear and tear.
Here’s what you should do.
Good documentation will help you effectively withhold money from a tenant’s security deposit when there’s damage to your rental property.
The move-in inspection report should detail exactly how the home looked before your tenant took possession. Take hundreds of pictures. Photograph everything, including the doors and windows, the ceilings, the floors, the closets, and every appliance. You want irrefutable proof that everything was in excellent shape when your tenants moved in.
The move-out inspection report needs just as much detail. Take photos that will show the difference in property condition before and after the lease period. Document the damage clearly.
Always offer your tenants a pre-move out inspection. They do not always accept this offer, but it’s an opportunity to get inside the property before they leave so you know what you’re dealing with. You’ll also be able to point out any damage for which they’ll be responsible.
When you are dealing with tenant damage, you’ll need to make the repairs and then charge the cost of those repairs to your tenant’s deposit. This will require a collection of all estimates, invoices, and repair bills.
You cannot make a vague or general charge against the deposit for damage. It has to correspond to what you’ve spent to repair it.
Security deposits must be returned within 21 days in California. Depending on the amount of damage to your property, you might be keeping all of the deposit or some of it. Return anything that’s left to the tenant, and include a letter that details what was withheld and why. Include your receipts.
If the work is not completed within those 21 days, send your estimates. You can deduct a good faith estimate of the deduction amount. Send the estimated accounting and then the finalized bill with any necessary adjustments within 14 days of when the repair is complete.
Do not wait beyond the 21 days to return the security deposit and/or the disposition letter. Otherwise, your tenant can sue you and you won’t be able to make any claims against the security deposit.
In the unlikely event that the amount of damage you find at your property exceeds the amount of the security deposit, you’ll need to send all the same documentation to explain why the tenant is not receiving any of that money back. You’ll also want to include a bill that outlines the outstanding charges. Instruct your tenants on how to pay you and in what timeframe.
It’s going to be difficult to collect that outstanding balance from your tenants, unless they are willing to pay it. You can hire an attorney or put forth your best collection efforts, but a lot of effort will be involved in collecting what is due.
Avoid your security deposit and damage nightmares by working with a San Diego property management company. We have systems in place to reduce the risk of property damage, and we know the security deposit laws to the letter. Contact our team at Mercer Properties.
]]>Read the California Real Estate Escrow Survival Guide by clicking here.
At its essence, escrow is the process whereby parties to the transfer or financing of real estate deposit documents, funds, or other things of value with a neutral and disinterested third party (the escrow agent), which are held in trust until a specific event or condition takes place according to specific, mutual written instructions from the parties. Escrow is essentially a clearinghouse for the receipt, exchange, and distribution of the items needed to transfer or finance real estate. When the event occurs or the condition is satisfied, a distribution or transfer takes place. When all of the elements necessary to consummate the real estate transaction have occurred, the escrow is “closed”.
Read the California Real Estate Escrow Survival Guide by clicking here.
]]>Whether you’re an experienced real estate investor or just starting out, it’s hard to know everything.
This is not a market where you want to be caught off guard. There’s a high demand for well-maintained rental properties. Interest rates are still relatively low, and investors are making a lot of money on their rental homes in San Diego.
Here are some of the things that every San Diego real estate investor should know about buying rental property.
We’re always encouraging people to invest in San Diego rental properties. It’s a good way to earn and protect your money. However, real estate investing doesn’t come without its risks and challenges. Make sure you know what you’re signing up for. This isn’t a get-rich-quick scheme, and you want to make sure you’re prepared for potential difficulties.
The Pros are pretty easy:
Then, there are the Cons:
Real estate investing is often described as passive, but unless you’re working with a San Diego property management company, you’ll have to spend time and resources managing tenants, coordinating maintenance, staying up to date on rental laws, and keeping detailed accounting records.
You can’t make money on real estate if you buy the wrong property.
You’re looking for an investment that will make a good rental home, so think like a tenant. Your San Diego tenants will want a good location, near schools and shops. They’ll want a home that’s well-maintained, attractive, and welcoming. Consider some cosmetic upgrades if the floors look worn or the appliances are dated.
Buy something that won’t need a lot of work before it can hit the rental market.
Calculating your return on investment is also going to help you choose the right property. You’ll need to know how much rent you can expect to earn, what you’ll likely spend on maintenance, and what your other expenses will be. Some of those costs, like your insurance and taxes, will be fixed. Others will be variable. You might spend $0 on maintenance one month and $800 on maintenance the next month.
Positive cash flow in the San Diego rental market might be difficult to earn in the first year or two. Plan for that. Make sure your financial plan makes sense and gives you a path to earnings that make the investment worth your money.
San Diego is a great rental market for investors. It’s also highly regulated. You need to know the state, federal, and local laws. You especially need to know how they apply to your property. Will you be subject to rent control? Do you understand what a just cause eviction is? There are Section 8 laws you must follow, security deposit requirements, and of course habitability standards. Make sure you know the laws so you don’t put yourself at risk. Mistakes are expensive.
Consider working with a San Diego property management company before you even buy an investment property. This will give you some insight into what you can expect to earn and spend. You’ll start from a much stronger position.
When you’re ready to talk about your investment goals, please contact us at Mercer Properties. We work with owners like you throughout San Diego.
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The relationship you establish with your San Diego tenants will impact what you earn on your investment property. Good relationships lead to better tenant retention, on-time rental payments, and an easier rental experience for everyone.
The cornerstone of any good relationship, of course, is communication.
Be mindful of the way you communicate with tenants before the lease period begins and during the tenancy. Here are 5 tips that will help you improve your communication and your relationship.
Your tenants need to know what to expect in terms of communication. This starts with the first moment of contact - when they get in touch about your property. Answer them promptly and schedule a showing. If you don’t return calls and you’re slow to answer messages, you’re signaling that you won’t be the easiest landlord to communicate with if they do rent your property.
When you’re signing the lease and managing the move-in details, make sure your tenants have all your contact information. Let them know when you are available and how they should contact you. It’s okay to set boundaries. For example, you might invite them to call or text you between 9:00 a.m. and 7:00 p.m.
You’ll need to be available after hours for emergencies. Make sure your tenants know what qualifies as an emergency.
San Diego tenants have different preferences when it comes to communication. Some of your residents might prefer phone calls while others might be more comfortable texting or emailing. Keep yourself open to all different types of communication and provide platforms that make it easy for your tenants to get in touch.
Good communication requires responsiveness. Tenants need to feel like you’re going to listen when they come to you with a problem.
Always respond right away, even if the resolution might take some extra time. You want your tenants to know that you care and you have a plan in place.
This is especially important during maintenance requests. Don’t let those things linger. When a repair request comes in, get in touch with your tenants right away to talk through the problem and share your plan for making the necessary repair or replacement.
Tenant satisfaction is important, especially when it comes to maintenance. If they report a plumbing problem, contact your tenants after the plumber has finished the work. Ask if the problem was solved and if they were happy with the way the repair was handled. You need to know that it was a good experience. You also want to provide an opportunity to hear their feedback if something could have been handled better.
Don’t forget to just be nice. This can come through with positive communication. Thank your tenants when rent is paid on time. Check in from time to time to see if there’s anything they need from you. Your San Diego residents shouldn’t hear from you only when something is wrong. Tell them you appreciate their quick reporting of any maintenance issues. When you communicate your appreciation for your tenants, they’re likely to stay longer and take good care of your property.
Remember that tenants are your customers, and you need to communicate with them that way. If you aren’t sure you have the time or the resources to manage tenant relationships and improve communication, it’s likely time to work with a San Diego property manager who can make it a priority. We’d be happy to help. Contact us at Mercer Properties.
Think about some of the most expensive features and systems in your San Diego rental property. There’s the HVAC system, the roof, the plumbing, and the electrical system. You also have to think about flooring and foundations - appliances and landscaping.
Routine maintenance accomplishes a number of things. It helps you protect the condition of your investment, it helps you attract and retain good tenants, and it helps you increase what you earn in rent every month.
When you’re taking care of routine maintenance issues, you’re less likely to respond to emergencies.
Here are some of the benefits to putting together a strong and consistent routine maintenance plan.
Routine maintenance is important because it protects your property. If you are left to deal with deferred maintenance because small problems were put off for a few weeks or months or even years, you’re going to find that your home deteriorates quickly. It won’t be worth as much and you’ll have to invest more funds than you’d like in fixing it up.
Part of routine maintenance should be preventative maintenance. Fix the problems that are reported right away. And, don’t stop there. Try some of these money-saving preventative maintenance tips:
You want to protect your property and its value. So, keep it well-maintained.
Good tenants want well-maintained homes. They earn more in rent.
Good tenants also expect a fast maintenance response when they report that something is broken or in need of a replacement.
When you pay attention to routine maintenance, you attract better renters. You also retain those renters because they’ll appreciate your responsiveness.
Put together a process for routine repairs so tenants can quickly and easily let you know that something’s wrong. Then, make a plan to address the issue and share that plan with your tenants. This will increase your rental earnings and protect you against vacancy and turnover costs that come when tenants leave a property due to shoddy maintenance responses.
Perhaps the best reason to stay on top of routine maintenance is that your emergency repairs will be minimized. You won’t have to worry about things breaking down in the middle of the night, because you know exactly where you stand in terms of the condition of your home. Those preventative service calls and minor routine fixes will ensure that nothing is left to chance.
Routine maintenance costs are a lot lower than emergency costs.
If you’d like some help putting together a maintenance plan for your San Diego rental home, please contact us at Mercer Properties.
Rents are on the rise in San Diego, which is good news for rental property owners, but how can you really maximize what you earn and ensure your property stays competitive? There’s not much you can control about the strength of the local rental market. But, you can make some renovations to maximize your rental income.
Providing a well-maintained property is expected and required of every landlord. But, if you can make your rental home really stand out from the competition, you’ll find that you attract better tenants who are willing to pay a bit more to live in your property.
Renovations don’t have to be complex and expensive. You can make some important upgrades during your next turnover period to really make an impact on your rental value.
Take a look at these ideas.
A fresh coat of paint on all the interior walls is required before you have tenants move into your property. This will make a dramatic difference in your ability to rent the home for a higher price tag.
When you’re preparing it for the rental market, don’t make tiny touch-ups here and there. It’s noticeable, and it doesn’t look as new and fresh as a completely painted wall. Remember to stick to neutral colors, and don’t be afraid to paint the trim and the baseboards. Even the ceiling deserves a fresh coat, especially if there are stains or areas of discoloration.
Lighting is important in the kitchen and the bathrooms. Look for overhead lights that are bright and energy-efficient. New fixtures will make the room look new, especially in the bathroom where your tenants are likely getting ready for school, work, or other activities.
Exterior lighting is especially important for security and safety purposes. Consider installing a motion-activated flood light on the outside of the property, near the front door and windows. You should also make sure there’s good lighting in any parking lots or near garages and outbuildings.
Tenants want landscaping that’s attractive but also low-maintenance.
Evaluate your landscaping. You don’t have to invest thousands of dollars in fountains and koi ponds, but you do want to make sure the exterior of the property is appealing. Have the lawn mowed. Trim the bushes and any overgrown trees. Make sure your driveway and walkways are free of any debris, trash, or belongings.
Curb appeal counts when it comes to rental value. It also helps tenants decide if they’ll bother seeing the inside of the property.
Carpet is pretty standard in rental homes, but it doesn’t have to be the cheapest and ugliest carpet that’s available. Put in a nice, medium-grade carpet that will last for a few years and not scare away your tenants.
Even better - tear out the carpet entirely. While it might be good for bedrooms, hard surface flooring is growing more and more popular among rental property owners. It’s not terribly expensive, especially if you work with a faux hardwood finish or a high quality laminate. It’s easier to maintain and your tenants will appreciate fewer allergens and stains.
You don’t have to spend a lot of money, but what you do spend will more than pay for itself when you attract good tenants quickly, thereby reducing your vacancy rate. You’ll also be able to charge more rent, which is the goal of every San Diego real estate investor.
We’d be happy to take a look at your property and give you some personalized recommendations for cost effective upgrades and renovations. Please contact us at Mercer Properties.
]]>California’s rental laws aren’t always easy to navigate, especially if you’re struggling to keep up with the latest requirements. In addition to state laws, there are federal fair housing laws that need your attention, including those pertaining to service animals.
What is a service animal, exactly?
Service animals are protected accommodations that people with disabilities are entitled to when they rent your home. A lot of San Diego landlords struggle with how to define a service animal and what it means for their rental property, especially if they’ve always had a strict policy against allowing pets.
What you need to know is that service animals are not pets. You cannot treat them that way. Instead, they’re accommodations, and legally protected.
It’s easy to make a mistake when it comes to service animals, and we want to spend some time talking about how to keep yourself in compliance when you’re renting out a home to a tenant with a disability.
To avoid any confusion, we’re sharing the definition of a service animal according to the Americans with Disabilities Act 2020 updates:
“Service animals are defined as dogs that are individually trained to do work or perform tasks for people with disabilities. Examples of such work or tasks include guiding people who are blind, alerting people who are deaf, pulling a wheelchair, alerting and protecting a person who is having a seizure, reminding a person with mental illness to take prescribed medications, calming a person with Post Traumatic Stress Disorder (PTSD) during an anxiety attack, or performing other duties. Service animals are working animals, not pets. The work or task a dog has been trained to provide must be directly related to the person’s disability. Dogs whose sole function is to provide comfort or emotional support do not qualify as service animals under the ADA.”
Two important things in that definition should stand out for anyone who owns a San Diego rental property:
Service animals are certified and trained. Sometimes, they wear something identifying that they are a service animal.
Companion animals may be emotional support animals or therapy dogs. The law treats them just a little differently. You cannot disallow them, but you can ask for documentation if the disability is not immediately apparent.
Companion and emotional support animals are different from service animals in that they can be any type of animal and they aren’t trained to do a specific task or serve a specific purpose. They offer comfort and support.
In these cases, you can ask your tenant for documentation from a medical professional explaining the disability and why the animal is required. Don’t be confrontational about it. Asking for documentation is permitted, but being difficult or expressing doubt can get you into legal trouble.
Now that you have an understanding of how to handle service animals in your rental property, make sure you aren’t setting yourself up for any mistakes. Screen tenants in accordance with all fair housing laws, and make sure you aren’t treating a service animal like a pet.
If you’d like some help figuring out how to manage this, please contact us at Mercer Properties. We will happily serve as your San Diego property management resource.
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According to the FBI Uniform Crime Reporting Statistics, rental homes are more likely to be burglarized than homes where owners are the occupants. That’s a sobering fact, and a good reason to do everything you can to increase the security at your San Diego rental property.
Tenants expect to live in a home that’s maintained, habitable, and safe. Today, we’re talking about some of the things you can do to make your property more inviting to qualified tenants and less inviting to criminals.
Take a look at these three security methods that we recommend.
Most crimes begin with opportunity. If you can reduce the opportunity at your rental property, you’ll have a good chance of protecting your investment and the tenants who are living there.
Start with good lighting. Exterior lighting should be bright, well-placed, and reliable. Motion-detecting lights can be especially useful. For single-family homes and even townhouses, you can install a floodlight around doors and windows and even garages. Ground floor apartments can also benefit from an automatic light that responds to movement. Lights around the building or the house that come on with timers are also a good investment.
Make sure there aren’t any bushes or trees blocking the windows. You don’t want to give someone an opportunity to hide there and you also want your tenants to have a clear view out their windows so they know who is at the door or what kind of vehicle has stopped at their home.
One of the most popular security features to arrive in the last few years is the video doorbell.
When you install a video doorbell, tenants will have the opportunity to see who is at the door before they answer it. They can even sync the doorbell with the phones or smart devices so they can see who is at the property even when they’re not home.
Smart home technology can make tenants feel a lot safer, and when you can offer things like video doorbells, you’ll not only increase the security you provide, you’ll also have the opportunity to increase your rental value. Good tenants are willing to pay for features such as this.
Some people are uncomfortable with security cameras because of privacy concerns. But, they can be incredibly useful when it comes to keeping your San Diego rental property safe for residents. Those cameras are an ideal way to see who is coming and who is going. You can track activity at the property, and if something goes wrong, there will be footage to review.
Installing a security camera will allow you to alert your tenants if you notice any unusual visitors or strange activity near the property. It will record any attempts criminals may make at breaking in, allowing the police to identify suspects.
Simply having a security camera visible is likely to deter would-be burglars from attempting to get into your property.
These are just three of the best ways to increase your security. We’d be happy to provide a more customized plan for your San Diego rental property. Please contact us at Mercer Properties.
]]>Disputes between tenants are difficult for everyone. When you’re renting out multi-family units in San Diego, you’re likely to come across tenants who complain about noise from their neighbors. Perhaps there are other residents of the building who are disruptive and loud. You may be hearing about parties that go all night long or children upstairs bouncing a ball on the hardwood floors or dogs that won’t stop barking.
Landlords are expected to provide tenants with the ability to enjoy the quiet enjoyment of their home. When they can’t enjoy their home quietly, you may be called upon to manage tenant disputes and personality problems. This is a great time to contact a San Diego property management company with experience in tenant relations.
Here are some of the steps you can take to stop a noise dispute from escalating.
Communication is always important, and if one neighbor is being too loud for the other residents in a building, a simple and non-confrontational discussion can sometimes take care of the problem pretty quickly. If your tenants are comfortable talking to their neighbors, encourage them to do so.
Noise can be especially disruptive at night, so if tenants are kept awake by barking dogs, loud music, or constant parties, a simple conversation between neighbors may make things better. Encourage your resident not to be accusatory or angry, but to approach it in a way that’s respectful and open.
It’s possible that the neighbors don’t realize how easy it is for your tenants to hear them. If they’re reasonable and respectful, a simple chat may be all that’s required, and things will quiet down right away.
Opening a discussion on noise and respecting each other’s quiet times is also something that you can facilitate as the landlord. If your tenants are nervous about talking to their neighbors because they’re combative or difficult, it might be up to you to have the conversation. Don’t let your tenants escalate the situation if their neighbors are rude and angry.
Having a strong lease in place will protect you and your residents.
In that lease, you should outline exactly what tenants need to do if there’s a problem with noise or some other general complaint. When you receive a complaint from a tenant about the noise, take a look at the lease.
You can also use that lease agreement to address the problem with the tenants who are causing the noise. Show them where it states they’re responsible for respecting quiet hours or keeping noise to a minimum. Always use the lease agreement to reinforce expectations and responsibilities.
We know it’s hard to mediate these disputes. But remember that there’s an answer: professional property management. San Diego property managers have encountered noisy tenants before.
There are many ways that a management company can deal with loud tenants and tenants who are likely to complain about the noise in their building. And, you won’t have to be involved. You can expect your property manager to have a strong lease in place that protects you. Excellent tenant relationships are another benefit. Property managers skillfully deal with tenants and tenant disputes without getting emotional.
We can help. If you’re dealing with tenants who are not respectful of their neighbors, contact us at Mercer Properties.
]]>Screening tenants should involve all the necessary checks and systems. You’ll want to run a credit report and do a criminal history check. You’ll want to talk to former landlords and verify employment.
These things are all part of what we do as professional San Diego property managers. We’ve also found that having a conversation with prospective tenants before they even fill out an application can also give us a good idea of whether or not they’ll qualify for the property we’re leasing.
A few specific questions need to be asked before you even show a property. This will help you pre-qualify residents, saving your time and theirs.
Remember to follow all fair housing laws and requirements. It’s easy to make an unintentional mistake, so contact a local San Diego property management company or real estate attorney if you have any questions about what you’re permitted to discuss during the leasing and screening process.
The most important thing you want to know when you’re choosing a resident is whether or not that tenant is capable of paying rent.
Ask what the tenant earns up front. You don’t have to wait for them to fill out an application and provide pay stubs or tax returns. Simply ask about their income and their budget. If they say they’re looking for a rental home that’s $3,000 a month but they only earn $5,000 a month, you aren’t going to feel very confident about their ability to pay that amount every month.
Ideally, your tenant will earn at least three times the monthly rent. Do the math early to figure out whether the tenant who is inquiring about your property earns enough to satisfy your income requirements.
Another important question to ask before you journey too far into the application and screening process is when the prospective tenant wants to move in. Your San Diego rental property cannot remain vacant for too long, so if the tenant isn’t planning to move for another three months, this might be a problem. You don’t want to lose potential rental income on a tenant who isn’t ready to move in once the property is ready for occupancy.
It’s also a good idea to be wary of a tenant who wants to move in tomorrow. Ask questions and settle on a comfortable move-in date that meets your needs as well as theirs.
Find out why they’re moving. Maybe they’re looking for something more affordable or maybe they’ve been waiting for the perfect property to become available in the neighborhood they’ve wanted to live in for years. Perhaps they’re downsizing because the kids are out of the house or maybe they’re looking for a home with more space because they have a growing family.
A red flag might be a list of complaints about the current landlord and property. Some complaints are valid, of course. However, asking this question will give you a good idea of whether the tenant works well with landlords or property managers. You’ll learn a lot.
Before you begin the application and screening process, make sure you ask some pre-qualifying questions and provide your prospective tenants with your written rental qualifying criteria.
If you have any questions about tenant screening or any of the San Diego property management services we provide, please contact us at Mercer Properties.
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Renovating a rental property may seem like an unnecessary expense. After all, you’re not living in the property yourself, so why invest in upgrades and updates?
Well, the right renovations can be cost-effective and improve your property’s rental value. You’ll also attract high quality tenants when you have a modern, well-maintained home to offer them.
At Mercer Properties, we’ve been renovating and improving homes in San Diego for more than 30 years. We know how to strike the right balance between cost and value.
Here are some of the renovations we recommend.
New paint makes a big difference. It looks clean and fresh. Good tenants aren’t going to rent your property when there are smudges and scratches in the paint. When it’s fading, it looks old and sloppy.
Many landlords touch up the paint on their walls between tenants. This is one way to make a small fix, but painting the entire wall – or even better, the entire property – will really provide an upgrade that doesn’t cost a lot of money or take a lot of time. It gives you the opportunity to present a clean, updated home that tenants will be eager to rent.
If you’ve been steam-cleaning the carpets in your San Diego rental property year after year, it’s time to try something else. While installing new carpet is one option, why not consider a hard surface flooring? You don’t have to buy something expensive like hardwoods, but a laminate floor, tile, or even vinyl can make the home look new and a lot cleaner.
This will be attractive to tenants because it’s easier to maintain. It’s better for you too, because you don’t have to worry about carpet stains and you’ll have a longer shelf life with hard floors.
Kitchen remodels are expensive. Instead of re-doing the entire space, consider something small that will have a lot of impact. A creative and clean backsplash can do the job. You will only have to buy enough materials to cover a small space, and for the investment, you’ll get a lot back. We also recommend new hardware on drawers and cupboards. The cost is minimal.
Think about upgrading your appliances, especially if they’re old and difficult to keep clean and functional. Energy efficient stoves, refrigerators, and dishwashers can help update your space, increase your rental value, and keep utility costs down.
Bathrooms are almost as important as kitchens, and if you really want to make a renovation that will stand out, consider upgrading the lighting, the faucets, and even the sinks in your bathroom. You can also do an upgraded floor. Small bathrooms make tile floors possible, and your residents will appreciate the functionality and the aesthetics.
Mercer Properties can design and supervise your project and work with our independent roster of trusted partners to complete your home renovations. If you’d like to increase your rental property value, contact us at Mercer Properties. We also invite you to visit our before-and-after portfolio on our website.
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It’s often stressful for property owners, too. You want to make sure your property is left in good condition, and you know you’ll have to reconcile the security deposit. It’s easy to make mistakes, and we want you to feel comfortable with the move-out process you have in place.
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Moving out can feel stressful for residents. They’re managing the details of the home they’re leaving as well as the home they’re moving to, and that can cause confusion and concern.
It’s often stressful for property owners, too. You want to make sure your property is left in good condition, and you know you’ll have to reconcile the security deposit. It’s easy to make landlord mistakes, and we want you to feel comfortable with the move-out process you have in place.
A checklist always helps.
Here’s what we recommend for the three main items on that move-out checklist:
Ask your San Diego property management how the move-in and move-out process is handled. It has an impact on how you effectively begin and end a lease period.
Before your tenants move out, provide them with a list of the things they’ll need to do. This may include making any minor repairs such as changing the filters and replacing light bulbs that aren’t working, cleaning the property thoroughly and professionally, and returning any keys, garage door openers, and other pieces of property that belong to the owner or the community. Remind them that you’ll need a forwarding address so you can return the security deposit.
If you work with professional San Diego property managers, this inspection will be handled for you, and you’ll receive a detailed inspection report with photos. If you’re managing your home on your own, you’ll need to know what to look for after your tenants move out and you’re inspecting the home for damage.
The first thing on your checklist is to offer your tenants a pre-move out inspection. This is their legal right in California, and while not many tenants take you up on the offer, you still have to be available if they want it. This is actually a good opportunity to walk through the property with a tenant and point out anything that needs to be repaired in order to receive a full deposit refund.
After the tenant has vacated, you’ll need to conduct another inspection, which allows you to evaluate the cleanliness of the home. It should be in the same clean condition that it was when your tenants took possession. Your lease agreement might require your tenants to have the home professionally cleaned or the carpets steam-cleaned before they move out. Check to see if that’s been done.
You’ll want to look for damage. Make sure you understand the difference between damage and wear and tear. As a landlord, you’re responsible for the general wear and tear of the property. Those nail holes in the walls from where pictures were hung or scuffs from where furniture rested are your responsibility to repair and restore. Tenant damage is anything beyond that, due to the abuse, misuse, or neglect of the home. A broken window or screen or appliances that are dented are examples of damage.
California security deposit law requires you to return your tenant’s deposit within 21 days of move-out. This doesn’t give you much time, so be prepared to work quickly. If the tenants left the home in excellent condition and you’re returning the full deposit, simply send it to their new address. If you’re making deductions, make sure you indicate what you’re deducting for and why. You’ll want to include any invoices, receipts, or estimates to show that the amount you’re withholding is reasonable and valid. You don’t want to find yourself in a dispute with your tenant.
Remember that you’re permitted to deduct for damage, but not for wear and tear issues. Those small nail holes or scuff marks on the wall cannot be considered damage.
The final item on your move-out checklist is getting the home ready to re-rent. You’ll want to quickly make any repairs that are needed so you can start showing the home and get a new tenant moved in. This will ensure the disruption to your rental income is minimal. Make sure you check the home for things like leaks under sinks, working outlets, and functioning locks on doors and windows. Turning the property over quickly and efficiently can usually be done with the help of San Diego property managers.
If you have any questions about how to effectively move a tenant out of your home, please contact us at Mercer Properties. We’re happy to serve as your San Diego property management resource.
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Landlords should allow service animals in their San Diego rental property because it’s a legal requirement.
While you can decide whether or not to offer a pet-friendly property or to prohibit pets altogether, that’s your decision.
When it comes to service animals, however, you don’t really get to decide whether you do or don’t want to allow them. You must allow them because if you don’t, you can be accused of violating a tenant’s rights. Fair housing laws as well as the Americans with Disabilities Act protect tents who require service animals.
Many owners don’t want to open their rental properties to pets. They’re worried about the damage that can be caused and the liability that often comes with dogs and cats living in the rental home with the tenants.
That’s perfectly within your rights. However, service and support animals are not considered pets. The law considers them to be accommodations, and that means you cannot deny a service animal, companion animal, or emotional support animal.
You cannot ask your San Diego property managers not to allow service animals. Our hands are tied when it comes to fair housing laws and anti-discrimination statutes. You cannot deny a tenant who is otherwise qualified for your home just because he or she is moving in with a support animal.
There’s a difference between service animals and emotional support animals.
A service animal has an actual job. These animals have been trained in specific functions, and they help people with disabilities to perform tasks that they wouldn’t be able to manage on their own. The most common service animal is a Seeing Eye Dog. These animals are certified and come with documentation.
Emotional support animals are a little different. They do not have specific jobs, but they provide psychological benefits and emotional support to people who have anxiety, depression, PTSD, or other kinds of disabilities.
Since emotional support animals are not certified, you are entitled to ask for documentation from a certified healthcare provider that states why the animal is needed and what it does to reduce the impact of the owner’s disability.
You cannot legally deny tenants with service or support animals, and you cannot collect pet fees, deposits, or rents. But, you can take some steps to protect yourself and your property.
Ask for the documentation if your tenant has an emotional support animal, and call the healthcare provider to verify who they are and that they sent the letter certifying the tenant’s need for a support animal. This can be part of your screening process.
You can also deduct any damages left by the animal from the tenant’s security deposit after they move out. Conduct an inspection during the course of the tenancy to make sure you don’t see any damage caused by the animal.
This is still a confusing areas of the law for many rental property owners and landlords. If you’re not sure about what the law requires in terms of service animals, contact us at Mercer Properties. We can protect you from liability and expensive legal mistakes. We can answer any San Diego property management questions you may have.
]]>Property management doesn't end when you decide to sell. Have a look at a before-and-after transition as we prepared this Kensington rental property for sale. After we made repairs, remodeled, and staged, the property was listed for $989,000 and sold 10 days later for $1,015,000.
]]>Most people make a mistake and move on. The problem, of course, is that these mistakes can usually be expensive.
]]>Most people make a mistake and move on. The problem, of course, is that these mistakes can usually be expensive.
Today, we’re talking about some of the most common mistakes we come across, and how you can avoid the cost and the headaches that come with these situations.
Your home’s rental value will depend largely on the market.
This is sometimes difficult to accept, especially if you’re hoping to earn a certain amount in order to cover your mortgage and expenses. But, if the San Diego rental market doesn’t support the rental value you’re hoping for, there’s no point in pricing it that high. It won’t rent, and the vacancy will cost you a lot of money.
Take a look at what homes similar to yours are renting for in your neighborhood.
Price your home competitively, otherwise it will sit vacant, and that vacancy cost will be far more damaging than bringing the asking price down by $150 or $200 per month.
There are other factors that impact your rental value, and you have to consider them when pricing your home. These things include:
If you usually operate on instinct, that’s fantastic, but it won’t work when you’re screening and selecting your tenants.
Screen each applicant thoroughly and consistently. Have a set of written rental criteria in place so you can demonstrate that everyone is screened against the same standards. Check income and employment, look for past evictions or criminal convictions, and always check landlord references. Not screening tenants is a big mistake. Screening tenants improperly is also a big mistake. There are local, state, and federal fair housing laws that need your attention. Violating one of them can cost you $16,000 in penalties and fines.
Place a tenant that can be counted on to pay rent on time and take care of your property. A bad tenant will cost you time, money, and a lot of stress.
If you’re not responding to routine and emergency maintenance issues with a sense of urgency, you’re making a big mistake.
Emergencies obviously require immediate action. When a tenant calls because the property is flooding or there’s no air conditioning during the hottest days of the summer, you need to take action right away to keep the property habitable.
A lot of landlords make the mistake of not being responsive when routine repair requests are made. Quick response times will show your tenants that you care, and that will increase your retention rates. Immediate maintenance responses also lead to a property that’s better maintained. Don’t avoid maintenance.
We think it’s a mistake not to hire a San Diego property manager. While you might think that being a landlord is as easy as finding a tenant and collecting rent, there’s a lot more to it. A local property management company can help you save money by reducing vacancy expenses, placing better tenants, and responding to maintenance issues with professional and licensed vendors.
More importantly, your local property manager can keep you in compliance. Renting out a property in San Diego or anywhere in California has become a lot more complicated. The new Tenant Protection Act has implemented statewide rent control and there are new requirements for evictions and screening Section 8 tenants. If you’re not able to stay up to date on the constantly changing laws, you’re going to find yourself in trouble.
Hire a professional San Diego property management company if you want to protect yourself and your investment. You’ll save money, and you won’t have to worry about these expensive mistakes.
We’re always happy to help. Contact us at Mercer Properties for local property management assistance or to ask further questions.
]]>As local San Diego property managers, we have seen a lot of trends in the sales and the rental markets. The real estate market is always changing, and with everything that’s going on right now, it’s hard to say where we’ll be as buyers, sellers, investors, and owners at the end of the year. Anyone who owns San Diego real estate is probably feeling pretty comfortable because this is a stable market that has weathered recessions and downturns before.
Today, we’re discussing why San Diego has grown in popularity as a place to invest in rental real estate. There are a number of reasons for this market trend, and we expect it will continue to impact the rental market throughout 2020 and beyond.
One excellent reason to invest in the San Diego market is the strength of the local economy. We are California’s second largest city, and the opportunities for growth are continuing to present themselves. The employment rate has remained high, and our military bases have sustained the local economy even during periods that the private sector has struggled.
Military personnel from the Navy and Marines especially are coming into the area on a regular basis, and data on the local economy is continuing to outpace nearly every national average. We’ve always had steady job growth and a stable market in San Diego. Investors know that when they buy property, they will have access to a financially secure tenant pool.
Talk to any local property manager and you’ll hear about the abundance of residential single-family homes and multi-family properties. There’s new construction and established neighborhoods. There’s even plenty of commercial real estate.
You can find nearly every type of real estate investment in San Diego. Investors can take the time to diversify their real estate portfolios or add an asset that cannot be found in other markets. Whether you’re looking for residential or commercial real estate, you’ll be able to find something that fits your investment goals in San Diego.
Landlords are quick to invest in San Diego because of the tenants. There are a lot of military families looking for housing, and there’s also a heavy population of tenants who work in the healthcare and tech fields. There are students and academics.
Investors have access to a pool of tenants with stable financial histories and a good track record of maintaining rental homes. Demographically, San Diego is at an advantage. It’s one of the most desirable retirement destinations in the country, and a lot of people in that age group are choosing to rent or downsize. They enjoy the flexibility and the low-maintenance that comes with a rental lifestyle. This gives investors and landlords a lot of opportunity in terms of tenant access.
There may be some concern statewide about the rent control that’s in place, but we don’t know a lot of landlords who plan to raise the rent on their good tenants more than seven or eight percent a year anyway. We’re also comfortable that the rental market will be stable, even with the global economy shifting in response to the latest pandemic.
In the last few years, the cost to rent a one-bedroom apartment was over $2,100. Rents are even higher in San Diego suburbs such as La Jolla. Even as rents stabilize and even if they drop a bit, investors will still be able to rely on a strong investment position especially as the economy builds itself back up to where it was before things began to slow.
Investing in real estate brings you a number of financial and tax benefits. When you’re looking for a great place to buy your next investment property, consider contacting us at Mercer Properties. We’d be happy to serve as your local San Diego property management resource.
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