Blog

Owning residential real estate in a state like California can be a great investment. That said, becoming a landlord can also be a source of great frustration without having the right tenants occupying your building. As noted by RentPrep, there is most certainly a right way to go about finding good tenants. Once you find these tenants, do everything you can to keep them in your rental property. Use the full power of the rental application Weeding out the potentially bad tenants from the good all starts with what is on the application. Ask for (and contact) personal references to get an idea of the applicant’s personality, and get the applicant’s employment history to give yourself an idea of whether the individual may have trouble paying rent. Also, contact former landlords and ask what kind of tenant the person was. If you have specific desires for your tenants, such as income requirements, make those wishes plain in the application. Check credit and criminal history You may not like having to pay for background and credit checks, but the information you uncover can help head off an avoidable disaster. Credit checks let you know how financially responsible applicants are, and background checks let you know of past criminal charges. Remember, someone with a criminal past could be a great tenant while an applicant without a record may prove to be a nightmare. Either way, you need to know what you are getting into before giving someone keys to your property. Ask the right questions Taking on a new tenant is almost like a romantic relationship; there has to be the right rapport for sparks to fly. Ask prospective tenants why they want to move in the first place, what they look for in a place to live, if they have any pets or disabilities and how long they plan on sticking around. Turn the tables and allow applicants to ask their own questions. After finding great tenants, you should focus on keeping them around. Retaining solid tenants is more cost-effective than having to find new ones.

Owning residential real estate in a state like California can be a great investment. That said, becoming a landlord can also be a source of great frustration without having the right tenants occupying your building. As noted by RentPrep, there is most certainly a right way to go about finding good tenants. Once you find these tenants, do everything you can to keep them in your rental property. Use the full power of the rental application Weeding out the potentially bad tenants from the good all starts with what is on the application. Ask for (and contact) personal references to get an idea of the applicant’s personality, and get the applicant’s employment history to give yourself an idea of whether the individual may have trouble paying rent. Also, contact former landlords and ask what kind of tenant the person was. If you have specific desires for your tenants, such as income requirements, make those wishes plain in the application. Check credit and criminal history You may not like having to pay for background and credit checks, but the information you uncover can help head off an avoidable disaster. Credit checks let you know how financially responsible applicants are, and background checks let you know of past criminal charges. Remember, someone with a criminal past could be a great tenant while an applicant without a record may prove to be a nightmare. Either way, you need to know what you are getting into before giving someone keys to your property. Ask the right questions Taking on a new tenant is almost like a romantic relationship; there has to be the right rapport for sparks to fly. Ask prospective tenants why they want to move in the first place, what they look for in a place to live, if they have any pets or disabilities and how long they plan on sticking around. Turn the tables and allow applicants to ask their own questions. After finding great tenants, you should focus on keeping them around. Retaining solid tenants is more cost-effective than having to find new ones.

The economy is a tricky thing. When one segment has an issue, it tends to bleed into the other segments. That is what is happening with the real estate market in California thanks to issues with trade in the U.S. economy. According to The Mercury News, new trade wars with China have led to Chinese investors moving out of the real estate market in California. This is taking a toll on real estate sales and investments as a whole. They are moving out of the country because the trade laws here are no longer advantageous. This means they are leaving behind empty homes. This also means there are no new investors moving in to take their place. While it is only Chinese investors, they are a large segment of the foreign buying market in the state. They make up about one-third of the total of foreign real estate investments. That is having a large impact on the market because it is a huge loss. It is bleeding over into other foreign investors as they are uncertain about what will happen for foreign trade in the future. This is making the market lag behind its normal numbers. As one of the largest foreign investment markets in the country, this is a huge blow to California’s real estate industry. It is leading to a drop in home prices, which affects everyone. So, the effects are spreading further than just the foreign market. This information is for education and is not legal advice.

The economy is a tricky thing. When one segment has an issue, it tends to bleed into the other segments. That is what is happening with the real estate market in California thanks to issues with trade in the U.S. economy. According to The Mercury News, new trade wars with China have led to Chinese investors moving out of the real estate market in California. This is taking a toll on real estate sales and investments as a whole. They are moving out of the country because the trade laws here are no longer advantageous. This means they are leaving behind empty homes. This also means there are no new investors moving in to take their place. While it is only Chinese investors, they are a large segment of the foreign buying market in the state. They make up about one-third of the total of foreign real estate investments. That is having a large impact on the market because it is a huge loss. It is bleeding over into other foreign investors as they are uncertain about what will happen for foreign trade in the future. This is making the market lag behind its normal numbers. As one of the largest foreign investment markets in the country, this is a huge blow to California’s real estate industry. It is leading to a drop in home prices, which affects everyone. So, the effects are spreading further than just the foreign market. This information is for education and is not legal advice.

California property managers have certain responsibilities regarding the health and safety of the people who live in their properties. One of the most practical ways to manage the risks associated with rental property is to ensure there are no dangerous substances or toxins present that could cause harm. Among the most potentially hazardous substances is lead paint. Lead paint can cause serious harm, and for this reason, it has been illegal to use it in new structures for a long time. However, it is still present in some places, specifically in older buildings. Landlords and property managers have the responsibility of ensuring that there is no lead paint present, and if there is, taking steps to notify renters of the hazard. What’s the big deal? It is smart not to underestimate the potential danger of lead paint in your buildings. When it chips, it can turn into small particles, even a fine dust, that a person can inhale. This can lead to lead poisoning, which will ultimately result in various types of health complications. Lead dust can also get into the soil, which can lead to environmental concerns. What should property managers do? Property managers would be wise to be especially cautious when dealing with structures built before the year 1978. For older buildings, this may mean checking to ensure that layers of other types of paint are not covering lead paint. Even if covered, lead paint poses a risk if chipped and exposed. If you are a property manager, it may interest you to note there is no law that requires you to remove lead paint. However, you will have to give renters and potential renters notice of the existence of lead paint in a rental unit. This could lead to difficulty renting your space. Failure to disclose an issue involving lead paint could expose you to litigation down the road. Dealing with this issue in an appropriate way is an effective way to minimize risks and protect your interests as a property manager. Limit risks, reduce complications One of the most critical aspects of owning or managing rental property is minimizing risks. It is prudent to work diligently to avoid problems and reduce the chance you could face legal complications down the road. You may want to speak to an experienced real estate attorney regarding the potential ways you can protect your interests and address specific concerns that could pose a health threat to your renters.

California property managers have certain responsibilities regarding the health and safety of the people who live in their properties. One of the most practical ways to manage the risks associated with rental property is to ensure there are no dangerous substances or toxins present that could cause harm. Among the most potentially hazardous substances is lead paint. Lead paint can cause serious harm, and for this reason, it has been illegal to use it in new structures for a long time. However, it is still present in some places, specifically in older buildings. Landlords and property managers have the responsibility of ensuring that there is no lead paint present, and if there is, taking steps to notify renters of the hazard. What’s the big deal? It is smart not to underestimate the potential danger of lead paint in your buildings. When it chips, it can turn into small particles, even a fine dust, that a person can inhale. This can lead to lead poisoning, which will ultimately result in various types of health complications. Lead dust can also get into the soil, which can lead to environmental concerns. What should property managers do? Property managers would be wise to be especially cautious when dealing with structures built before the year 1978. For older buildings, this may mean checking to ensure that layers of other types of paint are not covering lead paint. Even if covered, lead paint poses a risk if chipped and exposed. If you are a property manager, it may interest you to note there is no law that requires you to remove lead paint. However, you will have to give renters and potential renters notice of the existence of lead paint in a rental unit. This could lead to difficulty renting your space. Failure to disclose an issue involving lead paint could expose you to litigation down the road. Dealing with this issue in an appropriate way is an effective way to minimize risks and protect your interests as a property manager. Limit risks, reduce complications One of the most critical aspects of owning or managing rental property is minimizing risks. It is prudent to work diligently to avoid problems and reduce the chance you could face legal complications down the road. You may want to speak to an experienced real estate attorney regarding the potential ways you can protect your interests and address specific concerns that could pose a health threat to your renters.

Starting a business or establishing a partnership has the potential to bring both financial and legal risks to all parties involved. This is why it is critical for parties to do their due diligence to limit their risks and proceed thoughtfully. It is prudent for all parties to understand what to expect from the formation process. There is a perception that the process of forming a California business will be both complicated and confusing. However, that does not have to be the case. Whether your LLC will be a small business venture, real estate investment partnership or other type of operation, you can strive from the beginning to lay the foundation for a strong future and lower your chance of facing complications in the future. The time to work to minimize your risks starts now. What’s next? The reasons for forming an LLC vary from situation to situation. Regardless of the specific goals you have for your LLC, you may have to walk through the following steps: Choosing a name for the LLC — No matter what function your LLC will have, you must have a unique name for it. You have to be certain it is not the same or substantially similar name used by another LLC or contains restricted words. Filing the Articles of Organization — This paperwork offers important information about your LLC, and you will also have to pay a fee for filing. Drafting the operating agreement — You will need to draft this document that explains how you will run your company and the expectations for each founding partner of the LLC. Getting the right licenses — Before you begin operations, you will have to be certain that you apply for and obtain the appropriate licenses necessary for your company’s operations. This is just a basic overview of what you can expect to experience as you create your LLC. Preparing the appropriate paperwork and drafting certain documents is a large part of that process, and it can be enormously beneficial to work with a legal processional who can assist you by reviewing and drafting the documents you need to move forward. An LLC is a popular choice for investment partnerships and other types of businesses because it limits the personal liability of the individual owners. However, mistakes during the formation process can expose you to the possibility for various types of complications. It is a significant investment of time, money and energy to start a business and form an LLC, and it is worthwhile to have the help necessary to protect your investment.

Starting a business or establishing a partnership has the potential to bring both financial and legal risks to all parties involved. This is why it is critical for parties to do their due diligence to limit their risks and proceed thoughtfully. It is prudent for all parties to understand what to expect from the formation process. There is a perception that the process of forming a California business will be both complicated and confusing. However, that does not have to be the case. Whether your LLC will be a small business venture, real estate investment partnership or other type of operation, you can strive from the beginning to lay the foundation for a strong future and lower your chance of facing complications in the future. The time to work to minimize your risks starts now. What’s next? The reasons for forming an LLC vary from situation to situation. Regardless of the specific goals you have for your LLC, you may have to walk through the following steps: Choosing a name for the LLC — No matter what function your LLC will have, you must have a unique name for it. You have to be certain it is not the same or substantially similar name used by another LLC or contains restricted words. Filing the Articles of Organization — This paperwork offers important information about your LLC, and you will also have to pay a fee for filing. Drafting the operating agreement — You will need to draft this document that explains how you will run your company and the expectations for each founding partner of the LLC. Getting the right licenses — Before you begin operations, you will have to be certain that you apply for and obtain the appropriate licenses necessary for your company’s operations. This is just a basic overview of what you can expect to experience as you create your LLC. Preparing the appropriate paperwork and drafting certain documents is a large part of that process, and it can be enormously beneficial to work with a legal processional who can assist you by reviewing and drafting the documents you need to move forward. An LLC is a popular choice for investment partnerships and other types of businesses because it limits the personal liability of the individual owners. However, mistakes during the formation process can expose you to the possibility for various types of complications. It is a significant investment of time, money and energy to start a business and form an LLC, and it is worthwhile to have the help necessary to protect your investment.

It is difficult, if not impossible, to find property in Los Angeles that is in the exact right location and within your budget. The LA market is among the most expensive in the country, but the market could be shifting soon. If you have been hoping to buy, your chance may be coming in the near future. You may find it difficult to think of LA as a true buyers market. After all, homes are typically eight times more than the median income. However, there are more homes currently on the marke t. More homes means less competition among buyers, and that, in turn, means that homes will likely not sell above asking price. It may soon be a prime opportunity to make a purchase if that is what you have been hoping to do. What does this mean for you? At the beginning of 2019, there were over 21,000 homes for sale in the LA-metro area. This is 30 percent higher than the number on the market during the same time the previous year. In fact, there are currently more homes on the market than at any point since 2016. As a buyer, having more options is a positive thing. Shopping in a buyers market may give you a false sense of confidence. Even with home prices stable or dropping, it is still in your interests to proceed thoughtfully and carefully. Risk management is crucial for all property buyers, no matter what type of marking they are buying in. Consider the following: Fewer homes in LA are selling above asking price, which is a positive sign for a buyer. Sellers may be more likely to accept a lower offer, but that does not necessarily mean you are getting a great deal. Even with more houses to choose from, buyers still would be wise to carefully think through any important decisions they make. Protecting your interests is crucial during the home buying process. A thorough inspection of the house and careful review of the contract is prudent, no matter the market or the price of the home. Don’t buy problems when buying a home Things may be looking up for LA-area home buyers, but you will find it beneficial to make sure you are not getting ahead of yourself and rushing through the purchase process. It is smart to think about things such as underlying problems with the home, resale value, insurance and more. Working with an experienced real estate attorney can help you understand risks and decrease the chance of future complications.

It is difficult, if not impossible, to find property in Los Angeles that is in the exact right location and within your budget. The LA market is among the most expensive in the country, but the market could be shifting soon. If you have been hoping to buy, your chance may be coming in the near future. You may find it difficult to think of LA as a true buyers market. After all, homes are typically eight times more than the median income. However, there are more homes currently on the marke t. More homes means less competition among buyers, and that, in turn, means that homes will likely not sell above asking price. It may soon be a prime opportunity to make a purchase if that is what you have been hoping to do. What does this mean for you? At the beginning of 2019, there were over 21,000 homes for sale in the LA-metro area. This is 30 percent higher than the number on the market during the same time the previous year. In fact, there are currently more homes on the market than at any point since 2016. As a buyer, having more options is a positive thing. Shopping in a buyers market may give you a false sense of confidence. Even with home prices stable or dropping, it is still in your interests to proceed thoughtfully and carefully. Risk management is crucial for all property buyers, no matter what type of marking they are buying in. Consider the following: Fewer homes in LA are selling above asking price, which is a positive sign for a buyer. Sellers may be more likely to accept a lower offer, but that does not necessarily mean you are getting a great deal. Even with more houses to choose from, buyers still would be wise to carefully think through any important decisions they make. Protecting your interests is crucial during the home buying process. A thorough inspection of the house and careful review of the contract is prudent, no matter the market or the price of the home. Don’t buy problems when buying a home Things may be looking up for LA-area home buyers, but you will find it beneficial to make sure you are not getting ahead of yourself and rushing through the purchase process. It is smart to think about things such as underlying problems with the home, resale value, insurance and more. Working with an experienced real estate attorney can help you understand risks and decrease the chance of future complications.

California’s real estate market is unique. Market trends for the state can differ from anywhere else in the country, and this can make it tricky for people who invest in residential or commercial property. If you invested your financial resources into the California market, it is important for you to have the right information to protect your investment. It takes diligence, persistence and knowledge to effectively navigate the challenges of investing in real estate in California. This is especially true for residential investments, as some industry experts believe that home prices are approaching a bubble. Right now, residential real estate is quite expensive, and many people cannot afford homeownership in many areas. Home prices and your investment Owning a home in California is quite expensive, especially in high-demand metropolitan areas. One reason for this is the rapid growth that has taken place in many areas has quickly outpaced the ability of developers and builders to create more housing. The result is overpriced homes that few can afford. If you already have your money invested in real estate or you are considering this step in the future, the following facts may be helpful: Some experts predict an economic slowdown over the next few years, which will certainly impact home prices and values. Many California industries that are currently growing, such as technology, could experience a downturn, resulting in less demand for homes. Because of the unpredictability of market trends, it may be smart to go ahead and sell sooner than later if you are planning to do so. Rental properties that are in the lower and middle price ranges may be a smarter investment than higher-priced luxury rentals. If you are investing in property to flip and sell it, you may need to consider moving through this process faster so you can sell quickly. There is always a certain amount of risk involved in investing in real estate. The key to protecting your money is to manage your risks by making smart, well-researched decisions. Smart choices today will matter tomorrow It may be beneficial for you to discuss your concerns with an experienced attorney who understands both real estate transactional law and the nuances of risk management. Before you invest, it is helpful to discuss your concerns. If you already have investments in residential properties, there are certain steps you can take to mitigate the chance you will lose money in the future.

California’s real estate market is unique. Market trends for the state can differ from anywhere else in the country, and this can make it tricky for people who invest in residential or commercial property. If you invested your financial resources into the California market, it is important for you to have the right information to protect your investment. It takes diligence, persistence and knowledge to effectively navigate the challenges of investing in real estate in California. This is especially true for residential investments, as some industry experts believe that home prices are approaching a bubble. Right now, residential real estate is quite expensive, and many people cannot afford homeownership in many areas. Home prices and your investment Owning a home in California is quite expensive, especially in high-demand metropolitan areas. One reason for this is the rapid growth that has taken place in many areas has quickly outpaced the ability of developers and builders to create more housing. The result is overpriced homes that few can afford. If you already have your money invested in real estate or you are considering this step in the future, the following facts may be helpful: Some experts predict an economic slowdown over the next few years, which will certainly impact home prices and values. Many California industries that are currently growing, such as technology, could experience a downturn, resulting in less demand for homes. Because of the unpredictability of market trends, it may be smart to go ahead and sell sooner than later if you are planning to do so. Rental properties that are in the lower and middle price ranges may be a smarter investment than higher-priced luxury rentals. If you are investing in property to flip and sell it, you may need to consider moving through this process faster so you can sell quickly. There is always a certain amount of risk involved in investing in real estate. The key to protecting your money is to manage your risks by making smart, well-researched decisions. Smart choices today will matter tomorrow It may be beneficial for you to discuss your concerns with an experienced attorney who understands both real estate transactional law and the nuances of risk management. Before you invest, it is helpful to discuss your concerns. If you already have investments in residential properties, there are certain steps you can take to mitigate the chance you will lose money in the future.