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Are you looking for new investment opportunities? Real estate investing is a very fruitful option! 

Investing in California can be a little intimidating since it’s viewed as being relatively expensive especially for new investors. However, the benefits of real estate investment keep attracting new investors daily. California offers high rental rates and also has some of the highest return rates in the United States. 

Some of the factors that heavily influence California real estate include low housing stock, strong demand for property, and its reputation as a hub for tech and business ventures. The good weather also works in investors’ favor as people can live in the area comfortably. 

Having real estate in California is a good investment option, and particularly in the Anaheim region. Anaheim real estate offers a variety of options to investors. In this article, Home Choice Property Management provides you with several reasons why you should invest in Anaheim.

Top Reasons You Should Invest in the Anaheim Area

Very Affordable 

As an investor, the price is often the main factor that will determine the type of property you invest in. The good thing about Anaheim is the affordability and diversity of real estate. 

The area is more affordable than neighboring regions such as Fullerton that have the same amenities and convenience. It has even been said that Anaheim is one of the most affordable places to buy real estate in Orange County. 

The real estate market is also favorable to various types of investors, from first-time homebuyers or rental property investors.  

Great Neighborhoods

In addition to the great housing values available in Anaheim, there are also several exceptional neighborhoods in the area. Whether you’re looking for a neighborhood with adequate walking and outdoor spaces, great schools, or a relaxing atmosphere, the city has many neighborhoods to suit your needs. Some of the top Anaheim neighborhoods have been discussed in brief below. 

• Anaheim Hills – This notable neighborhood is located in the east. It’s a luxury neighborhood with several architectural beauties. The neighborhood also enjoys a high security rating and has several highly rated public schools. This area is admired for its city views and good quality of life. This can be attributed to the availability of several family amenities. It’s however important to note that the neighborhood is a little more expensive than other neighborhoods in Anaheim.
• Platinum Triangle – This is an up-and-coming region that stands out from the surroundings of the Honda Centre and Angel stadium. It’s a neighborhood that is experiencing a transition from commercial and industrial space to incorporate a mix of high-density housing. The area is mainly comprised of young professionals and has a more relaxed feel to it. Most of the properties in the region are newly constructed condos and apartments.
• The Colony – This neighborhood is also known as Anaheim’s historic district, is filled with beautiful trees and well-kept vintage-inspired architecture. The neighborhood offers residents a nice community with plenty of local activities. The neighborhood is also home to several rated public and private schools.

High Demand for Various Property Types

As you have seen from the neighborhoods above, different areas attract different demographics. To add, each segment of the population will need different types of housing with specific amenities and features. Thankfully, Anaheim offers diversity in terms of property needs. 

Whether it’s a condo, single-family home, or apartment, there are plenty of properties to choose from. All come with varying price tags, depending on the location, the amenities, and demand for that type of housing. That being said, the properties can generate a steady stream of income for their owners and have a great return on investment.

Numerous Activities

Anaheim is a vibrant city that offers a number of activities for residents to enjoy. Some of the activities include seeing a concert at Honda Centre, catching a baseball game at the Angel Stadium, or trying some of the local eateries. It’s also great if you looking for a fun night out at there are several trendy bars and breweries and live concerts.

These and many other activities help keep the city alive and vibrant all year long. The busy city also aids in the growth of the economy and therefore boosts the rate of return on properties around the area. 

Great Tourism Market

The excitement and warmth of the city attract many visitors yearly. Some of these visitors later become residents because of their love of the area. As an investor, you may decide to invest in short-term rentals like Airbnb’s due to the substantial number of annual tourists. 

Tourists today no longer want to stay in expensive hotels. They are looking for a more cozy and inviting touch when they visit an area. Airbnb’s has grown to become a huge and profitable real estate business. Investing in Anaheim offers you the chance to explore this business arena due to its great tourism market.

In Conclusion

Anaheim is a great place for any real estate investor. With research and a proper strategy, you can enjoy the great benefits of being one of the city’s investors. The reasons above are just a few of the many examples of why you should consider Anaheim as a place to make your real estate business come to life. 

For more information on the various prospects available to you as a potential real estate investor, call upon the experts at Home Choice Property Management. We operate from the city of Anaheim in Southern California and have been offering full management solutions to property owners in Riverside County, Long Beach, and Orange County for the past 10 years. 

A lease agreement spells out the responsibilities of both the landlord and the tenant. It’s a legal document that binds the signing parties to its terms for a certain period. So, when your California tenant breaks it, you may be able to hold them liable both financially and legally.

Generally speaking, most tenants who sign a lease agreement intend to stay for the entire leasing period. But, life may get in the way and the tenant may not be able to stay for the entire time.

The following are some of the common reasons why your California tenant may break their lease:

• They could choose to move in with their partner 
• They may need to move closer to family
• They could be beginning an active military duty
• They may need to move for work or school
• The tenant may need to upsize or downsize

The list of reasons why a tenant may need to break the lease is long and varied. What landlords need to be aware of, is which of these reasons is legally justified. 

If the reason for breaking the lease is legally justified, all the tenant may need to do is provide you with proper notice and proof before moving out. But if they don’t have a legal justification, then you may have a right to hold them liable for all rent due under the lease.

 

What Rights and Responsibilities do Landlords in California have When They Sign a Lease?

Just like your California tenant, you have certain rights under the lease agreement and landlord-tenant laws. To begin with, you have a right to require rent from your tenant for the entire time the lease will be active.

So, if the lease is running for a year, your tenant is contractually obligated to pay rent for the entire 12 months. And this is regardless of whether they live in the unit or not.

Next, you have a right to be properly notified by a tenant who is looking to move out. A tenant on a weekly agreement must give you notice 7 days before moving out and they must provide 30 days notice if they have a month-to-month lease.

Similarly, landlords have certain responsibilities under a typical lease agreement. One such responsibility is to respond to maintenance issues within a reasonable period. If the issue impacts your tenant’s habitability and you don’t respond in time, your tenant may have a right to break the lease.

Furthermore, you also have a responsibility to respect the privacy of your tenants. According to California statutes, you must provide your tenant with “reasonable notice” before accessing their rented units.

 

When is Breaking a Lease in California Legally Justified?

The following are the legally justified reasons a tenant can use to break their lease without incurring any financial or legal burden.

 

Active Military Duty

The Servicemembers Civil Relief Act protects active servicemen and women who are deployed or receive a permanent change of station. The protection starts from the day they enter duty and ends between 30-90 days after getting discharged.

To break the lease, your tenant must provide the following per the relief act:

• Show proof that they signed the lease before entering active duty.
• Show proof that they intend to serve in the military for at least the next 90 days.
• Provide you with a written notice and accompany it with a copy of the deployment letters from their commanding officer.

It should be noted that the Servicemembers Civil Relief Act only applies to the following members:

• Armed Forces (Army, Navy, Coast Guard, Marine Corps, and Air Force)
• National Guard
• National Militia
• State Military Reserve

Once your tenant has met all these requirements, their lease will end 30 days after the next rent period begins.

 

Early Termination of Lease Clause

Some landlords have clauses in their lease agreement that allow their tenants to terminate their lease. In exchange, landlords require tenants to give them proper notice and pay a fee.

Typically, the notice is usually two months and the fee amount is normally equivalent to the rent of two months. The notice allows the landlord ample time to look for a replacement tenant, while the fee helps pay for the tenant qualifying process.

 

Unit is Uninhabitable

California tenants have a right to live in a unit that meets basic habitability standards. If your unit doesn’t meet them, a court would likely rule that you have “constructively evicted” your tenant. As such, all the tenants obligations under the lease agreement would remain suspended.

Examples of a unit that isn’t habitable are ones that don’t have:

• Code-conforming heating facilities
• Drinkable water
• Working electricity
• Heat during cold weather
• Up-to-date conformity to building codes
• A functioning ventilating system

 

Landlord Harassment

Landlord harassment is an adequate reason for a tenant to break their lease in California. The following are two examples of how it can occur:

• Entering your tenant’s unit repeatedly and without notice. In California, landlords may only enter a tenant’s unit after serving the proper notice.
• Changing your tenant’s locks. In some states, changing the locks on a unit can amount to “constructive eviction.” There is no statute in California, however, when it comes to lockouts.

Other actions that would be deemed harassment by a landlord include:

• Turning off utilities
• Removing windows or doors
• Removing your tenant’s personal belongings

 

Issue of Domestic Violence

In California, domestic violence victims have certain special protections. An example is a protection from termination. As a landlord, you cannot refuse to rent to a potential tenant because they are domestic violence victims.

 

Do Landlords Have a Duty to Re-rent in California?

No. Unlike some other states, landlords in California have no duty to “mitigate damages.”

 

Summary

There are justifiable reasons for a tenant to break the lease, as a California landlord, it’s important that you know and understands leasing laws. It’s also important that you stay informed of security deposit laws, the legal eviction process, squatter’s rights, rent increase laws, and more.

If you would like help keeping track of rental laws or managing your rental properties, contact the experts at Home Choice Property Management today!

Disclaimer: This blog isn’t a substitute for professional legal advice. For help, kindly hire a qualified attorney or an experienced property management company.

 

 

 

 

 

 

 

 

 

 

No law in California requires a landlord to collect a security deposit. That being said, landlords do have the right to require it from their tenants before lease signing. That’s because security deposits offer protection against a myriad of potential liabilities.

If a tenant, for instance, fails to pay rent, you may be able to use part or all of their deposit to cover your losses. Another scenario is in case the tenant causes negligent property damage, such as breaks a window or a door.

That said, California landlords must handle their tenant’s security deposits in accordance with the statewide law. The following is everything you need to know about California’s security deposit law.

Are there limits to how much you can collect from your California tenant?

Yes! How much to charge your tenants depends on whether a unit is furnished or not. If it’s furnished, then the maximum you can ask your tenant should be equivalent to 3 months’ rent. And if unfurnished, then you can charge them the equivalent of 2 months’ rent.

Exceptions to those rules, however, do exist. One exception is if the tenant is a service member. In such cases, you must lower the security deposit by one month for either a furnished or an unfurnished rental.

Can you charge tenants a non-refundable security deposit?

In California, all security deposits are refundable at the end of the lease term. As such, charging your tenant a non-refundable deposit is unlawful. Whether pet fees or cleaning fees, all tenants’ deposits are refundable when the lease term expires.

How must you store your tenant’s security deposit?

In some states, landlords are required to store their tenant’s deposits in a certain manner. For instance, in Florida, landlords must store their tenants’ deposits in one of three ways. They must store it in either an interest-bearing account, a normal account, or post it as a surety bond.

Does California have similar requirements? Not at all! You are under no obligation to store your tenant’s deposit in a particular way.

What can you deduct from a tenants’ security deposits?

The return of security deposits is a common source of conflict between tenants and landlords. To minimize issues as a landlord, always follow proper procedures when it comes to handling and returning a tenant’s deposit.

The following are instances where you may be able to make deductions to a tenant’s deposit:

• Breaking the lease agreement. There are several potential consequences on a tenant when they break a lease early. And among them is the risk of losing part or all of their security deposit.
• Unpaid utilities. You can use your tenant’s deposit to cover any unpaid utilities once they move out.

• Unpaid rent. You can make deductions to a tenant’s deposit if they move out without clearing their rent.
• Unreasonable messes. Most leases require tenants to leave their rental premises in a good state. If your tenant leaves a big mess, you may have a right to deduct part or all of their deposit. This should help cover the costs of bringing the unit back to the same level of cleanliness it was in when the tenancy started.
• Major property damage. Landlords expect their tenants to leave their rental premises in the same condition they found it, minus normal wear and tear.

Do California tenants have a right to an initial inspection?

Yes, California tenants have a right to an initial inspection. This inspection allows a tenant to see what damages they have inflicted on their property and gives them time to fix them before moving out.

This helps minimize any deductions that may be due on their security deposits.

When planning to have it, you must notify your tenant well in advance. Specifically, you must do so 2 weeks before the lease expires. Your tenant can choose to waive their right to have the inspection, though.

But if they choose to appear, then you must provide them with an itemized list of deductions if there are any damages present. The damages must exceed normal wear and tear. For example, missing fixtures, broken windows, holes in the wall, broken tiles, and pet damage.

It’ll then be upon the tenant to choose whether to fix the issues before the lease expires or not.

When should you return your tenants’ security deposits?

Once a tenant moves out, you have 21 calendar days to return all or part of their deposit. If you have made any deductions, then you must send the remaining deposit with the itemized list of deductions.

What happens if the property changes hands?

You have two options if you choose to sell your rental property. One option is to transfer the deposit, or whatever is left of it, to the incoming owner. The other option is to return the deposit to the tenant, minus any allowable deductions.

Summary

It’s important as a landlord that you have a solid grasp of California security deposit law to protect yourself and your property. You should also stay informed on the landlord-tenant laws, the legal eviction process, lease laws, and more.

If this seems overwhelming, consider hiring the services of a qualified property management company like Home Choice Property Management. Their team of experts will assist you in all aspects of property management including helping you stay up-to-date on any changes in legislation!

Disclaimer: This blog isn’t a substitute for professional legal advice. Laws change and this post may not be updated at the time of your reading. If you have questions, kindly consider hiring a qualified attorney or an experienced property management company.

There are many benefits to keeping your rental property well maintained. It not only preserves a home’s value but also makes it more attractive and helps keep tenant turnover rates low. 

Rental property maintenance can, however, become tricky. It can be especially if you lack sufficient time or own multiple rental units. In such cases, little problems can go unnoticed until they become costly and serious. 

When such issues impact the rental’s habitability standards, you may have more to worry about than simply fixing the issue. Depending on the state you’re in, the tenant may have a right to:

• Move out without further obligations under the lease agreement
• Make the repairs themselves and then deduct the costs from the rent
• Report you to local authorities

Of course, none of these options are ideal!

With that in mind, the following are 8 maintenance tips for your rental property:

Tip #1: Carry out regular exterminations

As a landlord, it’s imperative to carry out regular exterminations. Ideally, you want to do these monthly or every other month. Even without any telltale signs of current rodent infestation or insect infestation, you’ll want to prevent such issues from happening in the first place. 

Naturally, critters will travel from one place to another. As such, if you’re managing an apartment, then you’ll want to exterminate the whole property. 

However, should you do it yourself or hire a professional? Well, while it’s possible to do it yourself, it’d usually be best if left to an expert. A professional will have the experience, skills, and resources to ensure the work is done well.

Sure, regular extermination will cost you money. However, it should turn out to be much cheaper than losing out a good tenant. Suppose you charge $1000 in rent, and monthly extermination costs $25 per unit. Now, which one would be better – spending $25 in monthly extermination or losing out $1000 in rent? 

Just make sure to hire the right person for the job by carrying out an interview. 

Tip #2: Clean the gutters

Out of sight out of mind, right? It’s easy to forget about maintaining your gutters due to their location. 

Now, regular gutter maintenance is key. You see, leaves and debris easily clog up gutters. When this happens, this can lead to leaks at your property. Also, the water that is trapped can find its way through the property via the roof. 

Luckily, gutter maintenance is as easy as a walk in the park. With an hour or so to spare, it’s a simple DIY task that anyone can do. The only things you’ll need are a bucket, ladder, and gutter scoop. 

Tip #3: Flush your water heater

Another maintenance tip for your rental properties is regularly draining your water heaters. That’s because, over time, sediment builds up in the unit from the municipal water supply. 

When there is too much sediment build-up, your water heater’s efficiency can reduce. It can also clog up the drain valve. 

Moreover, replacing a water heater is costly. According to HomeAdvisor.com, a tankless one can cost you anywhere between $1000 and $3000. 

If you’re comfortable flushing the water heater yourself, then make sure to follow the specific procedures. However, if you aren’t, then consider hiring someone else to do it for you. 

Tip #4: Change the water filters in your HVAC system

Preferably, you should do this at least twice every year. Dirty filters can drive up utility costs, cause the system to work extra hard, or malfunction. 

To determine the optimum efficiency, consult your HVAC manufacturer. 

Regularly changing the filter will prevent contamination of the air duct. When that happens, you will usually need an assessment from a professional. Of course, this is an expense that you’ll want to avoid. 

Regardless of who foots the utility bill, paying proper attention to your HVAC system is key. Among other things, it’ll help keep utility bills reasonable, and lower your tenant turnover. 

Tip #5: Test the smoke and carbon detectors regularly

You’ll also want to check your smoke and carbon detectors regularly to ensure they are working perfectly. You should test both hard-wired and battery-operated devices. You can schedule the testing when it’s most convenient for you. For example, when collecting rent or when performing a random inspection.  

Tip #6: Replace the caulking or grout to prevent potential water damage 

Over time, the caulk surrounding the tub can crack and weaken. Once this happens, water can leak through and damage the floor below or surrounding walls. 

So, if you notice any holes or cracks, replace the grout or caulk immediately. Caulk and grout between tiles act as a waterproof seal and prevents water from seeping through the tiles. 

Tip #7: Respond to tenant maintenance requests promptly

Responding to tenant maintenance requests promptly is also another way of ensuring your property is well taken care of. Evaluate the urgency, and give the tenant an estimated time for the scheduled repair. 

Even if their request isn’t a high priority, then, at the very least, make sure the tenant knows that their request has been noted. This will go a long way in keeping the tenant happy. And as you probably know, a happy tenant means a happy you!

You’ll also want to notify the tenant well in advance before accessing their unit for repair. In most states, including California, landlords are required to provide a notice of at least 24 hours. 

Tip #8: Hire a qualified property management company

Property maintenance requires experience, time, and resources. Do you have all of these? If not, hiring an experienced property management company may be in your best interest. 

Besides property maintenance, a good property management company can also help you in all other aspects of property management. From finding tenants to collecting rent to financial reporting, you can achieve peace of mind. 

There you have it – 8 maintenance tips for your rental property? Did you still find this daunting? If so, Home Choice Property Management can help. Contact us today!