Home Choice security deposit laws

California Security Deposit Laws

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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.

California security deposit law

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.

Security deposit law in California

  • 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.

walk-through inspection of rental property

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.

California Rental Laws – An Overview of Landlord-Tenant Rights in Anaheim

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In California, a lease agreement can be oral or written. Once signed, it gives both parties certain rights and responsibilities. A tenant is entitled to rights such as the right to live in a habitable property, to privacy, and to be treated fairly. Their responsibilities include consistent rent payment and maintenance of their rented premises.

As a landlord, you are also entitled to rights such as the right to collect rent, enter the rented premises, and the right to ask for a security deposit. Your responsibilities include responding to maintenance requests and disclosing certain information to renters.

These rights and responsibilities exist regardless of whether they are stated in the lease or not.

The following is a basic overview of the California landlord-tenant laws.

Required Landlord Disclosures in California

California landlords must make certain information known to tenants before lease signing. You must let them know about:

  • Lead Paint. Lead paint is a health hazard and causes a variety of health issues. So, if your rental property was built prior to 1978, you must let tenants know of any potential lead hazards.
  • Mold. It is a health risk and can cause long-term damage to both the tenant and your home. Just like lead paint, you must let your tenant know of any known mold in the unit.
  • Bed Bugs. California requires landlords to disclose certain information regarding bed bugs. Landlords are also prohibited from renting out a unit that they know is infested with bed bugs.
  • Common Utility Use and Payment. As a landlord, you are required to disclose to your tenants what utilities they’ll be responsible for.

landlord-tenant laws California

Renters’ Rights & Responsibilities in California

Renters in California have rights to:

  • Live in a habitable unit that meets all the local, federal, and state health and safety codes.
  • Live in privacy without unnecessary noise pollution.
  • Join or form a tenants’ union to advocate for tenant rights.
  • Receive a proper notification when the landlord needs to access their rented premises.
  • Remain in the property until the landlord has followed the proper judicial eviction process.
  • Receive a proper notification when changes have been made to the lease or rental agreement.

California tenants are also equally responsible for certain things. They are as follows:

  • Ensuring their rented premises are always clean and in good condition.
  • Letting their landlords know when maintenance problems arise.
  • Not disturbing the peace and quiet of other tenants/neighbors.
  • Providing landlords with a proper notification when looking to move out.
  • Providing landlords with a proper notification when going out of town for an extended period of time.

Landlords’ Rights & Responsibilities in California

California landlords have a right to:

  • Be served proper notification by a tenant who’s looking to move out of their premises.
  • Evict a tenant for certain reasons, such as failure to pay rent and property damage.
  • Enter a tenant’s unit to carry out important responsibilities. Such responsibilities include inspecting the unit, carry out needed or agreed-upon repairs, and showing the unit to prospective tenants.
  • Collect rent when it becomes due.
  • Make changes to the lease agreement, so long as they do so with the consent of the tenant.

Landlord responsibilities California landlord-tenant law

Similarly, landlords in California are accountable for certain things. These include:

  • Ensuring their rental premises meet all habitability codes.
  • Treating all tenants respectfully, fairly, and equally as per the state’s Fair Housing Law.
  • Drafting a legal lease document.
  • Responding to tenants’ issues within a reasonable time frame.
  • Letting prospective tenants know of all important disclosures prior to them signing the lease agreement.

Overview of California Landlord-Tenant Laws

Tenant Evictions

As already mentioned, landlords in California have a right to evict tenants from their rented premises. The reasons must be justified, however. Common reasons to evict a tenant in California include missed rent payments and violation of the lease agreement.

To evict a tenant for a legitimate reason, you’ll need to serve them an eviction notice first. There are different types of notice depending on the violation committed. For instance, for nonpayment of rent, you must serve the tenant a 3-Day Notice to Pay or Quit.

If the tenant pays or moves out on their own, no further action would be needed from you. However, if they don’t take either option, you may move on with their eviction by moving to court.

Security Deposits

California, just like any other state in the U.S., has a security deposit law in place. The law provides landlords with guidelines on the handling of tenants’ deposits.

Security deposit law california

For example, you cannot ask for a deposit exceeding what would be equivalent to two months’ rent. So, if you’ve priced your rental at $2000 per month, then the maximum security deposit you can charge must not exceed $4,000.

Landlords also must return the tenant’s deposit, or whatever remains of it, within 21 days. Wrongfully withholding a tenant’s deposit can have serious financial ramifications.

Housing Discrimination

You must treat your tenants equally in all matters to do with housing. The Fair Housing Act prohibits discrimination on grounds of sex, race, color, disability, religion, familial status, and national origin.

California also provides additional protection to tenants on the basis of immigration status, gender identity, citizenship status, ancestry, sexual orientation, primary language, and source of income.

Summary

As a California landlord, it is your responsibility to stay up-to-date on all rental laws including security deposit and eviction laws. This can be very time-consuming as the laws are often changing and being updated.

To help you stay informed on policy changes consider hiring the services of a trusted and qualified property management company link Home Choice Property Management.

Disclaimer: The information herein is not meant to be a substitute for professional legal advice. For further help, kindly hire a qualified attorney or a qualified property management company.

Quick Guide to Effective Tenant Screening

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Tenant screening can make or break the success of your rental business. You want to choose a tenant that will observe reasonable care over your property. Someone who pays the rent on time and can live in harmony with their neighbors or other tenants.

But how do you find someone with these qualities? Our effective tenant screening guide will help you find the right tenants for your rental properties!

 

The Fair Housing Act

The first step is to familiarize yourself with the Fair Housing Act. Always make sure that while performing the tenant screening, you abide by the Fair Housing Laws. You cannot discriminate against someone on account of their religion, race, color, national origin, familial status, sex, and disability.

Through every stage of the screening process make sure that you aren’t asking discriminatory questions. If you have to reject someone’s rental application, your reason must be solid and based on the income, credit score, or rental background.

 

Make a Criteria List

Your objective is to have a list of qualities you look for in a prospective renter. When screening a possible tenant you should always:

  • Ensure that they have a stable income and can afford to pay the rent
  • Make sure they don’t have a criminal record
  • Check their rental and credit history

Evaluate the applicants by matching them to the criteria list. This is a quick method to find out if the renter is considered high quality or a potential risk.

 

Tenant application checklist

 

Having no criteria can leave entertaining a large pool of applicants which will take longer to discover if they’re the right fit or not. So list down the important factors you look for in a tenant so your screening process is more effective.

 

Initial Pre-Screening Test

The full screening process, while important can take a long time. It’s best to narrow your search by asking preliminary questions to gauge the interest and to spot warning signs. For example, if you don’t accept pets in your rental, you can ask if the tenant has a pet. Even simply asking about the move-in date is already helpful.

Pre-screening filters out the wrong matches for your rental space and saves you the time of conducting a full tenant screening and background check.

 

Create a Procedure to Review Applications

Going through the information on the rental application can help you identify worthy applicants quickly. Check that the application:

  • Is complete and contains the contact information of the applicant
  • Lists the address of the applicant’s present residence, including the contact information of the current landlord
  • Includes details of past rental information with the landlords’ names and contact information
  • Has the names of employers, salary and references, to assess if the applicant can afford to pay the rent per month

Finally, you’ll need the applicant’s consent and authorization to review their credit score status and perform other important background checks.

 

Verify the Tenants Income and Employment History

It’s important to carefully look into the tenant’s income and employment history. Find out if the information they provided on their application form is accurate and make sure that the references are real. To determine if the tenant’s perspective is telling the truth, you can get in touch with the employer to authenticate their employment status and any other information listed on their application.

 

property manager tenant verification

 

Interview an Applicants Prior Landlords

Asking for various references and contacting them is critical. This allows you to get a sense of what a prospect will be like if you rent to them.

You want to identify potential red flags, like past lease violations. These can include causing property damages, consistently paying rent late, or failing to pay rent altogether. Aside from that, learning if an applicant was able to live amicably with other tenants and neighbors is also important.

Be wary however of possible untruths, it’s, unlikely but possible that someone might submit fake references and asking friends to act as a prior landlord. Be sure to learn more about the former landlord’s rental property to gauge the authenticity of the contact details.

 

Credit Reports and Background Checks

Be sure to look at a prospective renter’s credit score. If it’s lower than 680, that can be cause for concern. Be sure to also verify if they’ve ever faced eviction or if they have any outstanding debt. These can indicate that they won’t be able to make consistent rent payments.

It’s also recommended to look into someone’s criminal history. You want to ensure that a prospective tenant has not engaged in any dangerous criminal activity that might put others at risk.

 

renter taking up residence

 

Master Accepting or Denying Potential Tenants

When you complete all the stages of tenant screening and are satisfied that the information is factual, it’s time for your decision. If you accept the prospect, let them know the schedule for lease signing. On the other hand, if you have to reject a prospect,  let them know through a written notice like an email or a letter.

 

Conclusion:

To ensure the success of your rental property and minimize your stress as a landlord it pays to put in the time and effort of performing thorough tenant screenings.

You’ll want to verify a prospect’s rental, employment, and criminal history and reach out to their reference to confirm all the information. Most importantly you want to ensure that you are abiding by the laws of the Fair House Act through every step of the screening process.

This may feel like a daunting task, that why you should consider hiring the services of a professional and trusted property management company like Home Choice Property Management. They’ll help you rent to qualified tenants while ensuring that the screening process follows the letter of the law.

making a video tour of rental property

Ultimate Guide to Creating a Video Tour of Your Rental Property

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In the past century, technology has continuously cemented its place in our lives. It is now an essential part of society. The internet, computers, and gadgets are able to connect people together and make work easier.

One of the positive impacts of technology is the use of virtual tours. Through the use of video equipment, investors, property managers, and buyers are able to ‘interact’ with properties.

A virtual tour is essentially a visual walk-through. It allows prospective buyers to have a virtual inspection of a property. Typically, virtual tours are used by agents/ landlords as marketing tools to out-of-town buyers and also to differentiate themselves from the competition.

The use of virtual tours has seen a substantial increase due to the Covid-19 pandemic. Prospective investors want to sink their funds in real estate but are limited by health and safety restrictions. A virtual tour allows both buyers’ and sellers’ market and interact with properties in a safe manner.

Some landlords and agents avoid using virtual tours, citing high costs and a laborious exercise as the reasons. To help them out, the real estate experts at Home Choice Property Management have compiled the following guide!

The Proper Hardware and Software

The idea that virtual tours are very costly is a common misconception. The reality is, you don’t need expensive video and photography equipment for this task. What you need is a panoramic camera.

Camera and lens

Compared to the high-end, expensive photography gear, panoramic cameras are more affordable and also more user-friendly. You would only need to read the instruction manual and conduct a test run or two. In terms of specification, choose a camera with high-resolution depth, stabilizer options, and remote operation.

For a virtual tour to be an effective marketing tool, the quality of the picture/ video must be top-notch. Software plays a big part in this as it can help to accentuate the colors of your pictures and create a more interactive virtual experience.

Lastly, you must invest in a stable tripod, possibly one with a panoramic mount. A tripod will allow you to film your videos at a uniform height and provides a stable image. The end product will be a seamless virtual tour!

Planning

It is recommended that you create a shot list before filming a virtual tour. Itemize the important spaces/ rooms that will matter to a prospective renter. Walk through the space and put yourself in the renter’s shoes. Which space is a draw for them? Are there any specific features/ details that would interest them?

Once you have created the list, it is time to plan your camera shots. As you walk through each room, look for a spot that will enable you to capture the highlights of a room. Once you have identified that spot in each room, mark it with some like chalk or tape but nothing permanent.

property interior

Take a few photos with your camera as you try to find the perfect spot. Make sure the lighting and colors look good in the test shots. Once you’re satisfied with the setup, you can start shooting your virtual tour!

Set-up

Even with high-end photography and the best software in the market, you need to make sure that every room is perfect. Call in a professional cleaning service to ensure the space is spotless. Once you set up the lens, you should get a flawless shot.

You should also remove any distracting obstacles or objects from the room. From the viewfinder, you have to have an uninterrupted view of the room.

There is also the issue of lighting to consider. If a room has poor lighting, you’ll either need to bring your own additional lighting or you might need to consider hiring some for the shoot.

Test Shots

Moving down your shot list, take a test shot of every room. Study it and ask yourself if it highlighting the prominent features of the room. From there, adjustments can be made in terms of placement of props, lighting, and camera settings.

One important tip during the test shot is to check the tripod level. The tripod level should be uniform as you move from room to room. Otherwise, the final placement of photos will be misaligned, which can interfere with the seamless nature of the virtual tour.

Taking The Photo

Once everything is ready, you can move through your shot list and take the photos. Locate the best spot in every room, set up your tripod stand, adjust the camera settings and take the photos.

photo of property

Always check each image on the camera screen and verify the image quality. Don’t be afraid of taking several photos in the same room. For the purposes of editing using the software, it’s better to have many options.

Virtual Tour Software

Once you have selected your final shots, it is time to create your virtual tour. There are a lot of software options available on the market but they all essentially offer the same thing.

The software will prompt you to add the still images to the program. The images will be stitched together to produce a virtual tour. For your panoramic photos, these can be assembled into a 360-degree tour.

To make your virtual tour memorable, you can add in some extra features. The software you use should have add-in functionalities which can include music, hotspots, text, or an audio description.

While it may sound straightforward, this process can be daunting. To win over a potential buyer, there is no room for compromise in the quality of the final product. If you’re feeling overwhelmed, look for an experienced freelancer who can offer the service at an affordable fee.

Last Word

A virtual tour is an innovative way through which potential buyers can view the property. A virtual tour could enable reach more prospective tenants, lock one down and get some stable revenue.

 

If you need help with the video tour, marketing your property, or managing it, you should consider hiring a professional property management company. To get the most out of your rental property, call Home Choice Property Management today and we’ll work together to make your property investment thrive!

Maintenance Tips for Your Rental Properties

Maintenance Tips for Your Rental Properties

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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.

hire a professional exterminator

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. 

getting a tankless water heater can be expensive

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. 

replace caulk before water damage occurs

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!

8 Tips for Getting Your Property Ready to Rent

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A tenant packing up and not renewing a lease is a natural phenomenon. Instead of letting the frustration engulf you, it’s best to meet the situation head-on. Instead, focus your time towards preparing your property for the next batch of renters. Here are tips to make your property rent-ready:

1. Market right away

Since it may take time to find quality renters that meet your standards, start your advertising campaign early. Post on property listings, spread the word in your community and tap into your network. You should make sure to post enticing photos and even a video tour of your rental to find potential tenants quickly.

You can even talk to your tenant about showing the property to interested prospects before the actual day of moving out. This lessens the gap between tenants and ensures your maintenance expenses will be kept at minimum levels.

2. Evaluate items for repair or replacement

Check out if there’s any furniture that needs fixing. Some furniture and appliances may experience wear and tear. Life expectancy of objects around the property may also reach their limit. In this case, it’s time to purchase a new one.

Keeping your furnishing and appliances up-to-date and properly maintained will be noted by tenant prospects. By inspecting everything before any showings, you’ll prevent further damage down the road. Think in terms of investment rather than costs. Imagine showing a property with a rough looking carpet that would lead to prospects deciding not to rent.

3. Prepare a checklist for inspection

Between scheduling repairs and handling security deposit refunds, you might overlook major items. This can compromise the security of the rental unit. The best thing to do is to have a checklist ready.

keep a checklist during property inspections

Being organized allows you to inspect each room. You’ll be able to properly evaluate which areas of the property need more attention. You can quickly surmise whether to repaint the property, replace lighting or fix the drainage systems.

4. Arrange for cleanup maintenance

Some areas of the home are hard to reach for deep cleaning. This is where you can engage the services of professional cleaners. Doing so will give your rental unit a refreshing and bright glow.

If the last tenant has left the property in a mess, you can add the cost of the cleaning service as deductions from the security deposit. You’d need to check the level of cleanliness first. If the space is reasonably clean, you can also conduct the cleaning yourself to save on costs.

5. Change locks or passcodes

As a safety precaution, part of a landlord’s duty is to rekey locks. You’re never quite sure if the last tenant obtained several copies of the old keys. Since providing security to your renters is one of your duties, this is an essential task in preparing your property.

If your lock system is electronic, this is easier to accomplish. However, it’s also easily forgotten, so make sure this is part of your checklist. You want to assure your new tenant that you prioritize their security. For maximum security, you can even purchase a deadbolt and further comfort new tenants.

6. Consider improving curb appeal

A tenant moving out results in your chance to improve the curb appeal of your property. Focus on keeping the lawn neat, replacing withered plants and attending to the landscaping. Update the lighting and evaluate the need to repaint exteriors. The prettier the outside front looks, the more you attract prospects.

improve curb appeal

Double check the tree branches while improving your curb appeal. If you notice wires crossing, then it’s best to cut the branches to avoid potential accidents. If a portion of the tree foliage covers the roof then it’s best to look into that to avoid blocking drainages for possible water damage.

7. Check for mold presence

Typically, mold can be found in moist-rich environments, such as basements and laundry rooms. Spare some time to inspect the washer and bathrooms. You want to promote a habitable home and nothing announces a clean space more than a mold-free property.

If there’s any sign of mold, start a remediation process right away. Preventing this health hazard will eliminate your liability as a landlord. Upon reviewing, if a tenant’s behavior caused the mold to develop, you can opt to charge the mold removal expenses as deductions from the security deposit.

8. Eliminate pest infestation

As one of the top tenant complaints, pest infestations must be dealt with immediately and doing so prior to a tenant moving is wise. You don’t want to greet new renters with bed bugs, rodents or a growing nest of termites. At the start, you want tenants to feel that they’ve made the right choice in moving to your property.

deal with infestations before tenants move in

When you minimize potential friction between you and your tenant, you help increase your tenant retention. As much as possible, you seek renters who stay for the long-term. By making sure that pest control strategies are in place, such as regular inspections and exterminations, you’re on your way to tenant satisfaction.

Benefits of a Rental-Ready Property

Even if specific actions must be performed to make sure that your property is ready to rent, the direct results are positive. You can defend the rental price you’ve set, considering the value you’re providing. All the furnishing and appliances can be used right away without worries. The rental unit is refreshingly clean, mold-free and pest-free.

It will also require minimum effort to advertise since prospects can see the level of maintenance conducted in the home. When interest is high, you’ll naturally have multiple options and can select the best tenants for your rental property.

Another benefit is the shorter period it will take to rent out. This prevents you from shelling too much maintenance expenses for months and months. Thus, investing in sprucing up your property pays off.

Guide to Making a Solid Lease Agreement for Your Rental Property

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Lease agreements are the backbone to building a sound, professional relationship with your tenants. Create a bad one, and you’ll find yourself continually resolving disagreements. On the opposite end, by crafting one that’s clear, comprehensive and transparent, conflicts will likely be minimal.

 

If your leasing agreement leaves more questions than answers, then a tenant can find loopholes. It would be unfair to subject a tenant to strict prohibition when you don’t clearly state a condition in your agreement. 

 

For example, a tenant brings in a pet in a rental property, and you disallow it. Upon checking the lease, there’s no pet policy mentioned. This leads to more discussions with the renter.

 

As a landlord who wants to be more thorough, learn to focus on details. Set out to include important clauses. Avoid leaving things open-ended and subject to misinterpretation. You can’t fault a tenant for committing actions that have not been tackled in the lease agreement.

 

Consider this as a guide to creating a useful lease agreement that will serve you and your renters. Below are items that can further solidify your contract:

 

Clauses

These are provisions in your lease agreement that a tenant can use as a reference when certain situations come up.

 

Tenant possessions

It’s expected that tenants move out. They may do so when their tenancy expires, or they’re forced to vacate, resulting from an eviction. In some cases, possessions may get left behind. 

 

Different states have their own guidelines on what to do with abandoned belongings. It’s best to review this before disposing or selling the former renter’s items.

 

Pet policy

With the rising popularity of pet ownership, landlords must decide on a pet policy. If you choose the pet-friendly rental route, do specify the size and breed of the pet permitted. 

include a pet policy as a clause in the lease

Conditions must be set, especially if you’re renting out an apartment complex where several common areas exist. If you do decide to be closed off to accepting pets, you must clearly state a non-pet clause. You want to discourage your renters from sneaking in a pet or two.

 

Subletting

Subletting or subleasing refers to a tenant allowing another renter to share the rental unit. This can be a way to share the expenses of renting. Either the new tenant pays the entire rent or a portion of it to the original tenant. 

 

If you decide to allow your original tenant to sublet the unit, you can require written permission beforehand. You must also conduct tenant screening to ensure your property remains damage-free. 

 

Occupancy limits

This is related to subletting. Your lease agreement must specify the maximum number of occupants allowed to stay in your property. This is where you can emphasize that additional roommates or housemates require permission. 

 

Check your local laws first since the limits can vary per city or state. Restricting the number of occupants means preventing overcrowding and hastening the possibility of wear and tear in your rental space.

 

Security deposit

Since landlords normally collect a month’s worth (or twice that) from a renter as a security deposit, this is a crucial clause. It’s a tenant’s right to know where and how you store the security deposit. 

include all information about the security deposit required in the lease

You need to inform the tenant if it’s in an interest-bearing account and the rate of interest. A renter should also be privy to the information about the types of deductions that can affect the security deposit. Further, the procedure for the refund should be part of the clause.

 

Late payments

When late payments occur, a landlord must provide conditions on how a tenant can best proceed. This is where rules about late payment charges, the fee structure and the grace period will be mentioned. With this clause, you can ensure that a tenant will be guided towards the right action to follow. Without this, a disagreement can occur, and an absence of consequences will be a breeding ground for a renter to pay beyond the due date.

 

Breaking of lease

As much as landlords want to have absolute control over a tenancy, this is impossible. Situations may surface when a tenant has left the property without notice. A tenant may also want to move for a variety of reasons. 

 

Providing a clause when it comes to a tenancy breach help clarify the repercussions. For example, if domestic violence occurs, or a tenant is called to military duty, they can be exempted from being subjected to penalties.

 

Termination of lease

Another important clause that must be part of the rental agreement is the termination clause. This is where you can outline behaviors that will result in an eviction. 

the lease should detail the behaviors that would result in eviction

Usually, landlords evict tenants on the grounds of property damage violation and non-payment of the rent. The landlord can expand the list by providing more detailed conditions. Discussing the procedure for vacating, such as sending a notice, is also part of this clause.

 

Basic Terms

These are items that typically comprise a rental agreement:

 

Names

The landlord or agent’s complete name and the tenant’s name will be stated. Additionally, mention the property name as well.

 

Address

The landlord or agent’s full address, as well as the tenant’s address, will be stated. Moreover, mention the property’s complete address, from the unit number to the zip code.

 

Rent amount 

State the full rent amount per month, with figures for clarity. Other fees such as security deposit and pet charges will be separately mentioned.

 

Rent due date

To encourage tenants to pay on time, a specific date must be stated. This should be the exact day, month and year.

 

Rental period

Exact dates for the rental period, from the start and end date, must be written down. 

 

Signature

The leasing agreement will be legally binding through the signatures of the parties to the contract. The landlord and tenant will affix a signature with the date to signify their mutual agreement to the terms contained in the document.

 

Bottom Line

Building a solid lease agreement will protect both the landlord and the tenant. It will also cultivate a stronger relationship, create boundaries and define what is acceptable behavior.

How to attract long-term tenants

How to Attract Long-Term Tenants

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The private rental sector is praised as being one of the largest industries around the globe. As more people move into rental residences, these kinds of housing solutions become more likely to host long-term stays. A long-term tenancy is a win-win for both the landlord and tenants.

Tenants are on the lookout for a place they can call home, and landlords experience more benefits from renting to tenants who remain loyal to the property. This results in fewer tenant turnovers and a more consistent stream of income from the rent.

There are several techniques and tips that you, as a landlord, can incorporate to attract long-term tenants. Although one can never accurately predict how long a tenant will stay, certain factors maximize the chances of tenants extending their leases.

A Blank Canvas

Give your tenants a free hand and let them decorate the place according to their own taste. People who are looking for long-term deals will want to change the property into their home. To ensure that they get that cozy feeling of home, turn the rental into their blank canvas.

When landlords give tenants the freedom to decorate, there is a greater chance they will renew their lease. Make them feel like they are living in their own home instead of someone else’s. In turn, they will want to reside for longer.

Pay Attention to the Kitchen

Most individuals are very particular about the kitchen. Its appearance and practicality are considered as the primary factors when tenants are picking a place to move into. Therefore, make sure that your kitchen is up-to-date with the proper appliances.

make sure the kitchen is a comfortable space for tenants

Tenants are more likely to choose to live in a property that already has a dishwasher installed. Pre-installed laundry machines, as well as a refrigerator, are a bonus. If you can add even one of these appliances, you will make your house look like a more tempting, suitable choice.

Additionally, a kitchen renovation will also motivate your tenants to renew their contracts. For example, you could replace old kitchen tiles with modern ones. This improvement will instantly accentuate the entire presentation of the kitchen.

Robust Security Measures

A secure house is definitely more attractive, as safety is a crucial determining factor. No one would ever prefer to move into an unsafe property. Security is every tenant’s number one priority.

To make your property more secure, you must incorporate safety precautions. The property must have a proper fence, door locks and even security cameras. By ensuring that the surroundings of the rental are monitored 24/7, you are more likely to get long-term tenants, as such features of a home are greatly valued.

Don’t Overpromise

Always promise your tenants what you can actually deliver. For example, most landlords initially agree to take care of all renovations. However, after securing tenants, they take a U-turn on their agreement. This leaves a negative impact on tenants who may not want to stay under a landlord who does not keep promises.

The same goes for tenants, for example, if they decide not to pay the rent on the date agreed, leaving you agitated. If you under-deliver, don’t expect your clients to stick around for long.

Excellent Tenant Support

Just like customer support is an integral part of every business, extending support services to tenants is crucial as well. If you want long-term tenants, always ensure that you address their concerns promptly.

be a landlord whom tenants can trust

This will help you foster a trustworthy relationship with your tenants, which in turn can maximize the chances of tenants staying for longer. You can discuss timelines for urgent requests while signing the lease, so both you and your tenants are on the same page.

Professional Cleaning

Make sure that your property is clean and tidy. Professional cleaners can be hired once or twice a year to leave the house squeaky clean. Not only will this get rid of any infestations, but it will also give your property a fresh look. Tenants are more likely to stay in a house whose owner is concerned about its cleanliness as much as they are.

Privacy

No one likes people poking into their personal affairs for no reason. While you own the property, you must distance yourself once your tenants move in. Most landlords fail to understand this.

Showing up unannounced at the property, for example, might be intrusive to tenants. Therefore, schedule every visit, if you can. The rental unit is their personal space. If you need to inspect the property, properly schedule an appointment.

Just like you wouldn’t appreciate unannounced visits, your tenants won’t either. Hence, if you want long-term tenants, avoid invading their privacy.

Laundry

The more comfort you offer in your rental, the greater are the chances of your tenants sticking for longer. Add in-unit washing and drying machines so that tenants don’t have to worry about their laundry.

having a washer and dryer in the property is a plus for tenants

Have the system installed beforehand so that no problems occur later on. Although it may be an extra expense, it will definitely reap long-term benefits.

The Right Price

Most individuals avoid renting overly expensive places. Always conduct a market survey first to make sure that the rent you’re charging is not too high or too low. With the rental sector gaining momentum, it’s not difficult to find a rental property these days. Therefore, to ensure that you don’t lose prospective clients to others, offer a reasonable price to your tenants.

Bottom Line

As a landlord, you can implement certain measures to make sure that your tenants stay long-term. This can only happen if you effectively listen and address your tenants’ concerns. By understanding their needs and requirements, you can develop trustworthy relationships with them. In turn, this increases the chances of tenants renewing their lease agreements.

You must provide a safe, clean, comfortable and homely rental unit that your tenants will cherish. A tenant who can call the rental their home is more likely to stay, after all.