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When does a tenant bear responsibility for repairs?

As the new landlord of a California residential property, you still have a lot to learn. For instance, when does a tenant bear financial responsibility for repairs? Apartments.com differentiates landlord and tenant maintenance responsibilities. Understand how to resolve this aspect of common landlord-tenant disputes. When tenants pay for repairs When a tenant bears responsibility for damaging a rental unit, she or he also bears responsibility for paying for necessary repairs. Examples include smoke stains and smells, pet damage, blown-out lightbulbs and worsening issues the tenant failed to bring to your attention within a reasonable time. Besides cultivating leases that protect you from irresponsible tenants and defining what repairs tenants pay for, you may take additional steps to safeguard your investment in your rental property. For instance, let tenants know they should come to you immediately about repairs, damage and other inconveniences. Taking swift action may keep an issue from worsening. When landlords pay for repairs You must also understand when you bear responsibility for repairs. Essentially, landlords take care of maintenance and repairs resulting from standard wear and tear, age and safety hazards. Examples include visible mold, plumbing problems, electrical issues, broken locks when the tenant does not bear fault and heating repairs. If you do not take action on the above repairs, tenants have the right to withhold rent or hit you with a lawsuit. Look into state regulations to determine how long you have to make repairs. Taking prompt action may reassure tenants and turn them into long-term residents. Proper knowledge helps avoid landlord-tenant disagreements. Bear the above information in mind during your time as a property owner.

Los Angeles rolls out Accessory Dwelling Unit Standard Plan Program

As Los Angeles continues to struggle with an affordable housing crisis, the Department of Building and Safety and Mayor Eric Garcetti have introduced a program designed to offer fast approval for Accessory Dwelling Units. Developers who wish to build these structures can receive one-day permits for 20 approved design options, compared to up to six weeks for a standard permit. Review the terms of the ADU Standard Plan Program, poised to change the short-term landscape of Los Angeles real estate. Basics of the ADU program Contractors, architects and other real estate developers in Los Angeles can enroll simply by meeting the requirements outlined in the approved standard plans for the ADU program. Participating firms will have direct contact with the architects of the available design options, including the 10 local firms with an eventual total of 28 approved designs. Available properties Interested investors, landlords and other ADU owners have options that fit a variety of residents. ADU plans range from studios starting at just 309 square feet to two-story homes of more than 1,100 square feet. Add-on options include outdoor features such as covered patios and decks. ADU accelerator program Under a related program introduced by the Mayor’s office in 2019, Los Angeles has attempted to improve housing stability for older adults. Landlords who have eligible ADU units can sign up to offer these rentals to qualified seniors in exchange for stable rental income and landlord-tenant case management. As the city implements creative solutions to address housing affordability, real estate developers can benefit from these initiatives while supporting the community with access to affordable ADUs.

Los Angeles rolls out Accessory Dwelling Unit Standard Plan Program

As Los Angeles continues to struggle with an affordable housing crisis, the Department of Building and Safety and Mayor Eric Garcetti have introduced a program designed to offer fast approval for Accessory Dwelling Units. Developers who wish to build these structures can receive one-day permits for 20 approved design options, compared to up to six weeks for a standard permit. Review the terms of the ADU Standard Plan Program, poised to change the short-term landscape of Los Angeles real estate. Basics of the ADU program Contractors, architects and other real estate developers in Los Angeles can enroll simply by meeting the requirements outlined in the approved standard plans for the ADU program. Participating firms will have direct contact with the architects of the available design options, including the 10 local firms with an eventual total of 28 approved designs. Available properties Interested investors, landlords and other ADU owners have options that fit a variety of residents. ADU plans range from studios starting at just 309 square feet to two-story homes of more than 1,100 square feet. Add-on options include outdoor features such as covered patios and decks. ADU accelerator program Under a related program introduced by the Mayor’s office in 2019, Los Angeles has attempted to improve housing stability for older adults. Landlords who have eligible ADU units can sign up to offer these rentals to qualified seniors in exchange for stable rental income and landlord-tenant case management. As the city implements creative solutions to address housing affordability, real estate developers can benefit from these initiatives while supporting the community with access to affordable ADUs.

Using tenant screening to your advantage

Finding renters for your property is arguably one of your biggest challenges as a landlord. Establishing your expectations early on can hopefully minimize discord and encourage compliance. As you consider renters, use tenant screening to help you identify potential risks. When you learn as much about people as possible prior to accepting them as tenants, you can make a more informed and confident decision. Aspects of screening Tenant screening can include a variety of aspects. According to Allstate, ask potential tenants for references. Look at their background and credit history. Assessing such aspects can teach you a lot about people including the following: Whether or not they were formerly evicted Whether or not other tenants complained about them Whether or not they have pending criminal charges or a criminal record Whether or not they had difficulty paying rent in the past While a tenant screening will not uncover everything there is to know about individuals, it can give you a pretty clear picture of what you will deal with. Drawing upon the information you learn; you can assess the risks and determine if prospective tenants will be a good fit for your property. Handling conflict Even with tenant screening, you may approve renters that you find challenging to deal with later on. The way you handle disputes can make or break the relationship. One thing you can do is include a clause discussing disputes in your rental agreement. Do your best to maintain open communication with your tenants. If conflict ever escalates to the point where you feel threatened, you may need to scale back and rely on the authorities to assist you.

Using tenant screening to your advantage

Finding renters for your property is arguably one of your biggest challenges as a landlord. Establishing your expectations early on can hopefully minimize discord and encourage compliance. As you consider renters, use tenant screening to help you identify potential risks. When you learn as much about people as possible prior to accepting them as tenants, you can make a more informed and confident decision. Aspects of screening Tenant screening can include a variety of aspects. According to Allstate, ask potential tenants for references. Look at their background and credit history. Assessing such aspects can teach you a lot about people including the following: Whether or not they were formerly evicted Whether or not other tenants complained about them Whether or not they have pending criminal charges or a criminal record Whether or not they had difficulty paying rent in the past While a tenant screening will not uncover everything there is to know about individuals, it can give you a pretty clear picture of what you will deal with. Drawing upon the information you learn; you can assess the risks and determine if prospective tenants will be a good fit for your property. Handling conflict Even with tenant screening, you may approve renters that you find challenging to deal with later on. The way you handle disputes can make or break the relationship. One thing you can do is include a clause discussing disputes in your rental agreement. Do your best to maintain open communication with your tenants. If conflict ever escalates to the point where you feel threatened, you may need to scale back and rely on the authorities to assist you.

How can you find reliable tenants?

Finding tenants for your rental property in California can be one of the trickiest parts of investment real estate. Reliable renters can reduce the need to find new tenants and protect you from vacancy costs. Good renters who want to extend their lease also give you the opportunity to negotiate a higher rent cost. The key to preventing bad tenants from moving in is the kinds of strategies you use throughout the screening process. Ask the right questions Asking questions is an excellent way to learn more about someone. However, you have to practice care in deciding which questions to ask prospective tenants. This is because the Fair Housing Act prohibits illegal questions based on a person’s race, gender, sexual orientation, disability and other conditions. According to The Motley Fool, you can ask questions about why they wish to move from their current residence, if they can afford your costs and whether or not they have pets. You can also ask permission to contact former landlords and whether or not a prospective tenant has recently filed for bankruptcy protection. Questions about pending criminal charges, past evictions, income stability and the number of people planning to move in can help you make a confident decision about how to proceed. Outline your expectations Another helpful way to encourage good tenants to rent your property is to clearly outline your expectations. Discuss the terms and conditions in your contract and the consequences of a broken lease agreement. Inform prospective tenants of how you will proceed with an eviction if they do not honor the contractual agreement in place. Outlining your expectations from the start can encourage your tenants to abide by your terms and avoid unruly behavior.

How can you find reliable tenants?

Finding tenants for your rental property in California can be one of the trickiest parts of investment real estate. Reliable renters can reduce the need to find new tenants and protect you from vacancy costs. Good renters who want to extend their lease also give you the opportunity to negotiate a higher rent cost. The key to preventing bad tenants from moving in is the kinds of strategies you use throughout the screening process. Ask the right questions Asking questions is an excellent way to learn more about someone. However, you have to practice care in deciding which questions to ask prospective tenants. This is because the Fair Housing Act prohibits illegal questions based on a person’s race, gender, sexual orientation, disability and other conditions. According to The Motley Fool, you can ask questions about why they wish to move from their current residence, if they can afford your costs and whether or not they have pets. You can also ask permission to contact former landlords and whether or not a prospective tenant has recently filed for bankruptcy protection. Questions about pending criminal charges, past evictions, income stability and the number of people planning to move in can help you make a confident decision about how to proceed. Outline your expectations Another helpful way to encourage good tenants to rent your property is to clearly outline your expectations. Discuss the terms and conditions in your contract and the consequences of a broken lease agreement. Inform prospective tenants of how you will proceed with an eviction if they do not honor the contractual agreement in place. Outlining your expectations from the start can encourage your tenants to abide by your terms and avoid unruly behavior.

How should I deal with a tenant who cannot pay rent?

You have every right to start eviction proceedings when a tenant fails to pay rent, but in some situations, you may want to try something else before you take this step. This is especially true if you have a positive history with the tenant or are aware that he or she has become unexpectedly insolvent. However, you should react to protect yourself. Mondaq explains that you want to minimize your loss in this situation, which means you should consider your next moves carefully. You do have a few options beyond filing an eviction. Change lease terms You can alter the lease to make it easier for the tenant to conclude his or her business and vacate the premises. Commercial leases often have conditions that can make it hard for a tenant to wrap up a business. You can waive certain requirements to allow the tenant to more quickly close the business and move on. End the lease early If you fear your tenant will file bankruptcy, then you may consider ending the lease early. You may have to pay to get out of the lease, but that may not be as much as you would lose if you wait things out. Once the tenant files, it will be difficult to get them out of the space so that you can find new tenants. Grant relief If the tenant has always been good about paying rent on time and you can afford it, you could simply offer to defer or even forgive late payments. If you do this, you will need to make the exact terms clear to the tenant. Do not allow room for the tenant to later claim that you removed the obligation to ever pay rent again.

How should I deal with a tenant who cannot pay rent?

You have every right to start eviction proceedings when a tenant fails to pay rent, but in some situations, you may want to try something else before you take this step. This is especially true if you have a positive history with the tenant or are aware that he or she has become unexpectedly insolvent. However, you should react to protect yourself. Mondaq explains that you want to minimize your loss in this situation, which means you should consider your next moves carefully. You do have a few options beyond filing an eviction. Change lease terms You can alter the lease to make it easier for the tenant to conclude his or her business and vacate the premises. Commercial leases often have conditions that can make it hard for a tenant to wrap up a business. You can waive certain requirements to allow the tenant to more quickly close the business and move on. End the lease early If you fear your tenant will file bankruptcy, then you may consider ending the lease early. You may have to pay to get out of the lease, but that may not be as much as you would lose if you wait things out. Once the tenant files, it will be difficult to get them out of the space so that you can find new tenants. Grant relief If the tenant has always been good about paying rent on time and you can afford it, you could simply offer to defer or even forgive late payments. If you do this, you will need to make the exact terms clear to the tenant. Do not allow room for the tenant to later claim that you removed the obligation to ever pay rent again.

How should you begin with commercial real estate investing?

Commercial real estate investing can be quite lucrative. If you want to get your start in this venture, you need to have a plan that will help guarantee your success. Real estate is a very unpredictable market. It can help you to become a better investor if you gain some background in the industry first. Million Acres suggest starting out working in commercial real estate first, such as becoming an agent or broker. Working in the industry By working in the industry, you can learn a lot about deals and different investing options. You will get insight into how people make deals and their expectations and some ideas about leases. It can provide you with a great hands-on education that you cannot get any other way. You can then use the knowledge you gain to help in your own investments once you are ready to take the jump and become an investor. Making a deal Before you jump into a huge investment, you should try something smaller. For example, you could flip a property. This will give you practical experience in various areas, such as permits, contracts and budgeting. Plus, you will be able to see what it takes to manage a project. It will help you to learn whether you like this industry or if you would rather deal with residential properties. Any exposure you can get to the commercial real estate market will benefit you as you enter the industry. Your goal, in the beginning, should be more about learning the ropes than making large amounts of money because it takes knowledge to work your way up to becoming a success in this field.

How should you begin with commercial real estate investing?

Commercial real estate investing can be quite lucrative. If you want to get your start in this venture, you need to have a plan that will help guarantee your success. Real estate is a very unpredictable market. It can help you to become a better investor if you gain some background in the industry first. Million Acres suggest starting out working in commercial real estate first, such as becoming an agent or broker. Working in the industry By working in the industry, you can learn a lot about deals and different investing options. You will get insight into how people make deals and their expectations and some ideas about leases. It can provide you with a great hands-on education that you cannot get any other way. You can then use the knowledge you gain to help in your own investments once you are ready to take the jump and become an investor. Making a deal Before you jump into a huge investment, you should try something smaller. For example, you could flip a property. This will give you practical experience in various areas, such as permits, contracts and budgeting. Plus, you will be able to see what it takes to manage a project. It will help you to learn whether you like this industry or if you would rather deal with residential properties. Any exposure you can get to the commercial real estate market will benefit you as you enter the industry. Your goal, in the beginning, should be more about learning the ropes than making large amounts of money because it takes knowledge to work your way up to becoming a success in this field.

Avoiding written agreements are among business startup mistakes

The excitement builds as you make plans for starting your own business, but there are so many things to do and decisions to make. Be sure to avoid basic mistakes, such as forgetting to protect your intellectual property and failing to secure your interests with written agreements. Taking a short-sighted approach Avoid taking a short-sighted approach to the future of your business. You should have a long-term plan in mind from the very beginning. Think about what you want your business to be in one year, five years or ten in terms of financial goals, future products or personnel. Underpricing products or services As with overpricing your products or services, underpricing can cause serious problems. Keep an eye on competitors. Make comparisons with the pricing of similar products and claim your space in the marketplace. Failing to protect intellectual property Remember the importance of your company name, logo, sensitive documents or photos. You may need to file for a copyright, trademark or other legal protections for your intellectual property. Avoiding the use of written agreements In large part, the days of securing an agreement with a handshake are over. Do not depend on casual business relationships always panning out. Drawing up written agreements with employees, partners, suppliers and anyone who provides services will protect your business interests, ensure accurate record-keeping and help you prevent legal missteps. Relying on professional help From bookkeeping tips to reviewing documents such as non-compete agreements and employment contracts, you will need professional guidance as you launch your business. Having timely professional assistance will help you avoid business startup mistakes and confidently clear any hurdles that arise.

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