While the rental units in a multi-unit residential complex can often look similar, the tenants that occupy them are often very different. Some may like to take long, hot showers, while others may prefer to run their air conditioning units on high nonstop during the summer months. As a landlord, you are in the unenviable position of having to divide up utility costs. Many others in your position have come to us here at Goodkin APC asking how the law requires in this regard. According to the California Department of Consumer Affairs, the first thing you need to do is disclose to tenants before entering into lease agreements that utility meters are shared across units. As such, utility costs will be shared to a certain extent. This will be with the gas and electrical utilities in most structures, as well as the water in older buildings that do not have separate water meters. Most buildings have common areas such as lobbies, hallways and laundry rooms that all tenants share, thus justifying the sharing of the costs to keep those areas both comfortable and functional. Disclosing the cost-sharing plan prior to leasing a unit also lets tenants that they will be splitting the costs of keeping their own units livable with their neighbors (giving those that do not want to the chance to walk away). To split the costs, you can either have the utilities for the building billed to you (and then simply include their costs in monthly rent payments), or you can allow individual tenants to pay for the services are measured through the meters linked to their units (with the understanding that they are sharing the costs of all services in units connected to those meters). More information on handling tenant expenses can be found throughout our site.
3 tips for a prevention plan for construction site accidents
Construction sites can be dangerous areas, but when everyone focuses on safety, accidents are easily avoidable. As the business owner, you need to put a prevention plan in place to help stop accidents. With a proper prevention plan, your California construction site has the potential to keep employees safer and put an end to downtime due to incidents. Creating a prevention plan is something eSUB suggests for all construction company owners. While you have many regulations and rules you already follow, this type of strategy enables you to provide an extra layer of protection while also ensuring your employees understand how to stop accidents from occurring and how to work safer on the construction site. Creating your plan You want to put someone in charge of the plan who understands the working conditions and demands of the job. This person may be able to create a realistic document that employees can actually follow. Make sure the document has multiple sections. Dedicate each section to specific aspects of safety, such as first aid, types of risks and personal protective equipment. Once you have the final version, give a copy to every employee and worker. Go over it in a meeting where they can ask questions and get clarification about any new policies or rules. Make sure they understand this is a mandatory plan they must follow. Repeat training on it often to keep it fresh in their minds. Benefits Creating this type of document for your company may help reduce costs associated with accidents, such as loss of equipment, reduced productivity and legal expenses. It may also allow you to be proactive and show your workers you value their safety. Plus, it protects your investments and assets. Making sure your company has an accident prevention plan is a smart move. It benefits you, your workers and your customers through making your worksites safer.
3 tips for a prevention plan for construction site accidents
Construction sites can be dangerous areas, but when everyone focuses on safety, accidents are easily avoidable. As the business owner, you need to put a prevention plan in place to help stop accidents. With a proper prevention plan, your California construction site has the potential to keep employees safer and put an end to downtime due to incidents. Creating a prevention plan is something eSUB suggests for all construction company owners. While you have many regulations and rules you already follow, this type of strategy enables you to provide an extra layer of protection while also ensuring your employees understand how to stop accidents from occurring and how to work safer on the construction site. Creating your plan You want to put someone in charge of the plan who understands the working conditions and demands of the job. This person may be able to create a realistic document that employees can actually follow. Make sure the document has multiple sections. Dedicate each section to specific aspects of safety, such as first aid, types of risks and personal protective equipment. Once you have the final version, give a copy to every employee and worker. Go over it in a meeting where they can ask questions and get clarification about any new policies or rules. Make sure they understand this is a mandatory plan they must follow. Repeat training on it often to keep it fresh in their minds. Benefits Creating this type of document for your company may help reduce costs associated with accidents, such as loss of equipment, reduced productivity and legal expenses. It may also allow you to be proactive and show your workers you value their safety. Plus, it protects your investments and assets. Making sure your company has an accident prevention plan is a smart move. It benefits you, your workers and your customers through making your worksites safer.
Are you aware of these real estate scams?
If you have the financial resources, patience and know-how for it, investing in real estate in California can be a great way to make some extra income. However, with every step you take in this industry, take care that you do not accidentally encounter an avoidable landmine. Scam Detector explores a variety of different real estate scams. Arm yourself with knowledge so that scammers do not swindle you out of your money. Unscrupulous real estate agents assigning themselves sales Some realtors take advantage of buyers in dire financial straits by assigning a client’s sales to themselves. Not only is this a conflict of interest, but these agents may scoop up a property for much less than its true market value. Hackers swiping down payments Rather than stealing passwords or financial details, some hackers impersonate real estate agents, approaching buyers and convincing them to send hackers a down payment. The way this works is hackers break into realtors’ email accounts, see which clients are about to close on a house and reach out to them (posing as the agent) to scam them into sending closing payments to a foreign account. Arc fault breaker scams When flipping a home, take care that the arc fault breakers in the electrical box are of the current variety that meets the necessary building codes. A construction or renovating company may swipe a new arc fault breaker and replace it with an inferior one, but still charge for the updated breaker. Double listing Some scammers take authentic real estate listings and duplicate them on sites like Craigslist, lowering the price to make the fraudulent listing more enticing. Buyers in desperate situations may immediately wire money to take advantage of a seemingly great house for an equally great price. They find out the hard way that they cannot see the house, nor can they get their money back. Real estate investment has its own set of hazards. Involve a real estate legal professional to help protect your money and your legal rights.
Are you aware of these real estate scams?
If you have the financial resources, patience and know-how for it, investing in real estate in California can be a great way to make some extra income. However, with every step you take in this industry, take care that you do not accidentally encounter an avoidable landmine. Scam Detector explores a variety of different real estate scams. Arm yourself with knowledge so that scammers do not swindle you out of your money. Unscrupulous real estate agents assigning themselves sales Some realtors take advantage of buyers in dire financial straits by assigning a client’s sales to themselves. Not only is this a conflict of interest, but these agents may scoop up a property for much less than its true market value. Hackers swiping down payments Rather than stealing passwords or financial details, some hackers impersonate real estate agents, approaching buyers and convincing them to send hackers a down payment. The way this works is hackers break into realtors’ email accounts, see which clients are about to close on a house and reach out to them (posing as the agent) to scam them into sending closing payments to a foreign account. Arc fault breaker scams When flipping a home, take care that the arc fault breakers in the electrical box are of the current variety that meets the necessary building codes. A construction or renovating company may swipe a new arc fault breaker and replace it with an inferior one, but still charge for the updated breaker. Double listing Some scammers take authentic real estate listings and duplicate them on sites like Craigslist, lowering the price to make the fraudulent listing more enticing. Buyers in desperate situations may immediately wire money to take advantage of a seemingly great house for an equally great price. They find out the hard way that they cannot see the house, nor can they get their money back. Real estate investment has its own set of hazards. Involve a real estate legal professional to help protect your money and your legal rights.
Will rent control affect investments?
New rent control legislation in California may have an impact on your if you are a real estate investor. It is vital that you understand the implications of such legislation before you make any investment moves. Rent control is a response to the lack of affordable housing and rising rental costs in the state. It is mainly protection for renters, which can mean a negative impact for investors like you. According to NuWire Investor, the main concern you have is the Tenant Protection Act of 2019. This law covers any property over 10 years old, with exceptions if you own less than 10 properties. This act limits your ability to raise rents over the 10-year period the act is in effect. It also places limits on your ability to evict tenants. Eviction restrictions include not having the right to evict a tenant for a lease violation without giving the tenant a chance to remedy the situation, having to provide a written eviction notice for tenants of more than 12 months and a requirement to help with relocation costs or to pay one month’s rent and fulfill lease agreement for a no-fault termination of a lease. You also cannot evict based on immigration status. As for rent increases, you will be unable to raise the rent by more than five percent. With inflation calculated in, the increase cannot be over 10%. You also cannot raise the rent more than twice in a 12-month time. The act does include some provisions for a hardship increase that allow breaking of rules if you are struggling to make maintenance and other essential changes to the property. This information is for education and is not legal advice.
Will rent control affect investments?
New rent control legislation in California may have an impact on your if you are a real estate investor. It is vital that you understand the implications of such legislation before you make any investment moves. Rent control is a response to the lack of affordable housing and rising rental costs in the state. It is mainly protection for renters, which can mean a negative impact for investors like you. According to NuWire Investor, the main concern you have is the Tenant Protection Act of 2019. This law covers any property over 10 years old, with exceptions if you own less than 10 properties. This act limits your ability to raise rents over the 10-year period the act is in effect. It also places limits on your ability to evict tenants. Eviction restrictions include not having the right to evict a tenant for a lease violation without giving the tenant a chance to remedy the situation, having to provide a written eviction notice for tenants of more than 12 months and a requirement to help with relocation costs or to pay one month’s rent and fulfill lease agreement for a no-fault termination of a lease. You also cannot evict based on immigration status. As for rent increases, you will be unable to raise the rent by more than five percent. With inflation calculated in, the increase cannot be over 10%. You also cannot raise the rent more than twice in a 12-month time. The act does include some provisions for a hardship increase that allow breaking of rules if you are struggling to make maintenance and other essential changes to the property. This information is for education and is not legal advice.
Which common landlord mistakes can be problematic?
Owning a rental property can be a lucrative business for California residents, but many do not fully realize the numerous responsibilities that come with being a landlord. These go beyond maintaining residential premises that are safe and comfortable for tenants. In fact, failing to fulfill your duties as a landlord can result in adverse legal repercussions. According to FindLaw, there are many common mistakes that landlords can make. You may find it beneficial to learn how to avoid making the same errors, which may include the following: Not disclosing problems you know about on the property to tenants, such as mold, lead paint or the proximity of known registered sex offenders Failing to make repairs when necessary or to create a safe environment for tenants to live in Asking questions that can be seen as discriminatory, such as inquiries on prospective tenants’ race, religion, disabilities or sexual orientation, or including illegal provisions in the rental contract Not keeping adequate renters’ insurance for the property Failing to return security deposits if the property was sufficiently cleaned and undamaged after the renters moved out It is in your best interests to fulfill your obligations as a landlord, not only to provide a safe and acceptable place for your tenants to live in, but to protect yourself from being sued by former residents or fined by authorities for breaching your duties. Landlord/tenant issues are often complex and difficult to represent in court. Therefore, the information in this blog is meant to educate you, but it should not replace the advice of a lawyer.
Which common landlord mistakes can be problematic?
Owning a rental property can be a lucrative business for California residents, but many do not fully realize the numerous responsibilities that come with being a landlord. These go beyond maintaining residential premises that are safe and comfortable for tenants. In fact, failing to fulfill your duties as a landlord can result in adverse legal repercussions. According to FindLaw, there are many common mistakes that landlords can make. You may find it beneficial to learn how to avoid making the same errors, which may include the following: Not disclosing problems you know about on the property to tenants, such as mold, lead paint or the proximity of known registered sex offenders Failing to make repairs when necessary or to create a safe environment for tenants to live in Asking questions that can be seen as discriminatory, such as inquiries on prospective tenants’ race, religion, disabilities or sexual orientation, or including illegal provisions in the rental contract Not keeping adequate renters’ insurance for the property Failing to return security deposits if the property was sufficiently cleaned and undamaged after the renters moved out It is in your best interests to fulfill your obligations as a landlord, not only to provide a safe and acceptable place for your tenants to live in, but to protect yourself from being sued by former residents or fined by authorities for breaching your duties. Landlord/tenant issues are often complex and difficult to represent in court. Therefore, the information in this blog is meant to educate you, but it should not replace the advice of a lawyer.
Death disclosure requirements for Calif. real estate transactions
When you purchase real estate in California, the seller and/or listing agent must disclose any material defects. A material defect is a problem or issue with the property that could negatively affect your decision to buy. The law requires sellers to disclose material defects to avoid misrepresentation or fraud. If you knew someone had died on the property in the past, would that make you less likely to buy it? For some people, the answer is yes. However, California law regards death on the property as a material defect only under certain circumstances. Three-year rule Under state law, a death that occurs on the property within three years of your purchase/rental offer is a material defect. As such, the seller has a responsibility to disclose it to you and other potential buyers. However, once the three-year time frame has elapsed, the seller is no longer under any obligation to voluntarily disclose information about a death that occurred previously on the property. Nevertheless, if it is important to you to know whether or not anyone has ever died on the premises, ask the seller about it specifically. Even though the law does not require the seller to volunteer the disclosure after three years, it does require the seller to tell the truth about any deaths that have occurred on the property if asked directly. If you find out that the seller has lied in response to your inquiry about deaths on the property, or failed to disclose a death that happened within the three-year time limit, you have grounds to file a lawsuit. One exception California law allows one exception to the rules regarding death disclosures in real estate transactions. A seller does not have to disclose a death that occurred within three years if the cause was acquired immune deficiency syndrome, nor does the seller have to tell you about a more remote death that occurred due to AIDS when questioned. The reason is that federal law regards such disclosures as discriminatory due to the condition’s classification as a disability.
Death disclosure requirements for Calif. real estate transactions
When you purchase real estate in California, the seller and/or listing agent must disclose any material defects. A material defect is a problem or issue with the property that could negatively affect your decision to buy. The law requires sellers to disclose material defects to avoid misrepresentation or fraud. If you knew someone had died on the property in the past, would that make you less likely to buy it? For some people, the answer is yes. However, California law regards death on the property as a material defect only under certain circumstances. Three-year rule Under state law, a death that occurs on the property within three years of your purchase/rental offer is a material defect. As such, the seller has a responsibility to disclose it to you and other potential buyers. However, once the three-year time frame has elapsed, the seller is no longer under any obligation to voluntarily disclose information about a death that occurred previously on the property. Nevertheless, if it is important to you to know whether or not anyone has ever died on the premises, ask the seller about it specifically. Even though the law does not require the seller to volunteer the disclosure after three years, it does require the seller to tell the truth about any deaths that have occurred on the property if asked directly. If you find out that the seller has lied in response to your inquiry about deaths on the property, or failed to disclose a death that happened within the three-year time limit, you have grounds to file a lawsuit. One exception California law allows one exception to the rules regarding death disclosures in real estate transactions. A seller does not have to disclose a death that occurred within three years if the cause was acquired immune deficiency syndrome, nor does the seller have to tell you about a more remote death that occurred due to AIDS when questioned. The reason is that federal law regards such disclosures as discriminatory due to the condition’s classification as a disability.
What should you look out for when signing a commercial lease?
To take advantage of a commercial property in California can be a great opportunity. Forbes explains how when you sign a lease, there is always going to be some amount of risk involved. If you know the risks, you may be able to make a more informed decision. When you set out to sign your commercial lease, there are a few factors to know. Be aware of guaranteed tenant improvements. Tenant improvements include costs to make improvements on the property. If you are not aware of this stipulation, then you could wind up gaining more debt without realizing it. You should always look for any hidden fees before you sign the lease. Once you sing the lease, you agree to abide by all terms and fees. Before you sign, you should break down all of the associated costs and fees. This includes the following: Rent Insurance Management Common area maintenance Add up all of your fees before you sign the lease. When you embark on signing a lease, you should also have specific goals in mind. The office space or commercial property has to meet specific business needs. You always want to evaluate how you will fit in the space that you lease. The other terms you need to pay close attention to are the ancillary terms. These have an impact on how much you will pay every month. For instance, this will cover maintenance costs, unexpected repairs, custodial services and more. The provided information is for educational purposes only. It is not intended to be legal advice.