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.

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Evicting a commercial tenant for nonpayment of rent in California is not an easy process, as California laws heavily favor tenants. However, though difficult, eviction is not impossible. By adhering strictly to the state’s eviction laws and procedures, which SFGate lays out for your convenience, you can free up the space for use sooner and lose less money in doing so.

To begin the eviction process, draft a three-day notice. This notice informs the tenant that he or she has three-days to pay the past due amount or face eviction. Serve the notice to the tenant at his or her place of business.

Next, fill out a “proof of service” form to indicate the date of service for your records. Wait for three days for the tenant to pay the past-due rent. If the tenant makes any partial payments, accept the money but be sure to inform the tenant, in writing, that your acceptance of partial payments does not waive your right to evict him or her. If the tenant makes a full payment within the three-day grace period, you lose your right to evict him or her for nonpayment.

If the tenant does not pay but refuses to leave, hire an attorney. An attorney will help you draft and serve an unlawful detainer notice. Upon receipt of the notice, the tenant has five days to contest the eviction. If the tenant contests the proceedings, your case will go to court. If the tenant does not contest the proceedings, you can appeal to the court for a judgment for possession. If the court grants you the judgment, a sheriff will perform a tenant lockout.

The sheriff will post a “five-day notice to vacate” to the front door. The tenant must leave the premises within that five-day period. If he or she does not, the sheriff will lock the door, thereby completing the eviction process.

The tenant has 15 days from the date of lockout to reclaim his or her possessions, or 18 if he or she left of his or her own accord. For your records, make sure you mail a “notice of belief of abandonment” to the tenant’s last-known address.

If the tenant does not collect his or her belongings, dispose of them if the total value is $300 or less. If the total value is greater than $300, auction the property through public sale. If you hold an auction, you must publish the auction information in a local newspaper for two weeks prior to the sale. You can hold the auction five days after the last published date.

This article is for educational purposes only. You should not use it as legal advice.

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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.

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Some banks in the Los Angeles area and other parts of the United States currently have concerns about the state of the economy, and for this reason, they are not eager to lend money to investors. This has created new opportunities for alternative lenders to step in and meet the needs of investors who need capital to purchase properties featuring commercial leases. In fact, these lenders have already raised significant amounts of capital for secondary real estate financing.

Banks remain wary of financing non-residential real estate, even though more than 10 years have passed since the Great Recession of 2008. These institutions are especially cautious about financing new construction. This has caused more developers to become lenders themselves, essentially acting as shadow banks.

These alternative lenders usually have staffs that include commercial real estate experts — for example, institutional investors with global experience. The benefit of using these lenders is that they understand commercial development’s complexities. In addition, they tend to provide much better terms than a traditional lender does, and they also do not face as many regulatory restrictions as banks do. For instance, whereas a bank might refuse to go above a loan-to-value, or LTV, ratio of 60%, an alternative lender may be okay with an LTV ratio of 80%.

Whether an investor uses a traditional lender or an alternative lender to finance a property with commercial leases, the process of buying real estate can no doubt be daunting. In addition to dealing with the financial aspect of the deal, an investor must also navigate its legal components. Fortunately, an attorney can help to make sure that the investor’s rights are protected and that his or her best interests are upheld during such a transaction in Los Angeles.

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Many industries in Los Angeles and other parts of the country are increasingly focused on being environmentally friendly. Commercial real estate is no exception. For this reason, it is reasonable for investors to expect the market for properties featuring commercial leases to incorporate green technologies now and in the future.

The benefit of green technologies is that they drive cost savings for buildings on utility bills and also promote energy efficiency. They also help with conserving resources. However, in addition to lowering operating costs and saving on capital expenditures in the future, green technologies draw business leaders as well as workers who are passionate about the earth.

It is for these reasons that green technologies are becoming increasingly in demand in various types of real estate, including multi-family, office, retail and industrial buildings An example is light-emitting diode lighting. Other examples include motion sensors as well as floor plans that maximize natural light. A large amount of new commercial real estate construction is also certified by Leadership in Energy and Environmental Design, or it at least aligns with these increasingly popular green standards.

The fact that the industry for properties featuring commercial leases is constantly evolving can certainly be exciting for investors in the Golden State. At the same time, it can make investing in this field tricky and even overwhelming. Fortunately, an attorney in Los Angeles can help investors to confidently navigate the legal side of their real estate transactions, making sure that their rights are preserved during their transactions.

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Technology continues to transform the landscapes of many sectors of the economy in Los Angeles and elsewhere, and real estate is no exception. Specifically, augmented reality is expected to have an increasingly major impact on the market of properties featuring commercial leases. Here is a glimpse at what augmented reality is and how it may impact property owners in the years ahead.

Many consumers have become familiar with the term of virtual reality — an experience that is immersive, as it fully covers people’s fields of vision. However, augmented reality takes things a step further. Augmented reality is a type of additive experience that enhances people’s fields of vision with extra elements.

The benefit of augmented reality is that only a smartphone is needed to access augmented reality, whereas more expensive headsets are required to experience virtual reality. Augmented reality can impact the commercial property world by making it easier to capture business customers’ attention through digital ads. In this way, augmented reality offers major revenue stream opportunities for commercial buildings in areas that receive a lot of shopper traffic.

Owning properties featuring commercial leases can certainly be a lucrative career area, but it can also be complicated due to the market’s quickly evolving nature. One aspect of the market that can be especially complex is the legal aspect, particularly for those who are trying to purchase or sell commercial real estate for the first time. Fortunately, an attorney in Los Angeles can provide buyers and sellers with the guidance they need to complete their transactions while, most importantly, making sure that their rights and best interests are upheld from start to finish.

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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.

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Experts recently described the first few months of the year of 2019 as positive with regard to the market for non-residential properties. Part of the reason for this is that more investors are optimistic about the market for properties with commercial leases, in Los Angeles and elsewhere. Another reason for the positive view of the commercial real estate market is that people in general feel good about the United States’ economic conditions overall.

Real estate executives recently reported that the real estate market sentiment has increased since volatility in the capital market in the latter part of 2018 has subsided. In addition, investors are less worried about what may happen to the interest rate now compared with last year. On top of this, equity and debt are still broadly available for high-quality investments in commercial properties.

When it comes to lending in particular, the current underwriting process for commercial property loans is being viewed as strong, with lending standards remaining rigid. This discipline among debt and equity providers is expected to continue to help the commercial property market to remain robust whether the economy continues to grow or experiences a slowdown. Experts also recently acknowledged that various properties’ asset values are approaching their peaks, which is good news for property owners.

Getting into the quickly moving and evolving market for properties with commercial leases can be thrilling but also intimidating. However, an attorney can help investors to take the right steps to protect their best interests when approaching deals. The attorney will also make sure that the investor’s legal rights are not violated during any stage of the transaction in Los Angeles.

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According to experts, the market of non-residential properties is currently valued at $10 trillion. For this reason, investors who have been contemplating purchasing properties featuring commercial leases may be wise to jump into the real estate market this spring. Here is a look at a few ways in which investors in Los Angeles can figure out the values of the various commercial properties they are targeting.

The first common property valuation approach is called the cost approach. With this method, investors look at how much money they would need to rebuild properties. Factors considered in this approach are current land costs and construction material costs. This approach is ideal to use when locating a comparable real estate property is difficult.

Another approach involves the use of income capitalization. With this approach, investors look at how much money they will likely derive from specific properties. This approach involves comparing a property to other local properties that are similar. It also involves factoring in income decreases based on necessary expenses, such as maintenance costs.

Although purchasing properties featuring commercial leases can be a smart move this year, real estate investing is a risky business. For example, the wrong deal may cause an investor to lose money. For this reason, it is critical that an investor consult an attorney before embarking on a potentially lucrative transaction. An attorney in Los Angeles can help the investor to make wise decisions related to the deal and ensure that the investor’s legal rights are protected from start to finish.

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Taking the plunge into the non-residential property industry in Los Angeles can most certainly be intimidating. The reason for this is that owning a property featuring commercial leases involves more than simply overseeing a physical building: it also involves managing people, and a business in general. However, a few tips may help new investors to navigate the world of property ownership.

First, it is paramount that individuals who are interested in buying commercial properties set aside ample time for assessing a potential deal. Many new investors underestimate how much time is needed to determine how expenses will be handled in a lease situation. These expenses include utilities, parking lot maintenance and exterior maintenance, for example.

In addition, it is critical that new investors have plenty of capital reserves. The reality is that, in real estate, everything usually costs more than a person may initially expect. Having adequate capital will enable an investor to cover daily costs as well as cover emergency costs, even if his or her tenants are not quick to deliver cash flow as expected.

Buying properties featuring commercial leases is not a straightforward endeavor, as no two real estate transactions are alike. However, an attorney in Los Angeles can walk an investor through the legal aspects of the property buying process, ensuring that his or her rights are protected at each step. With the attorney’s guidance, the investor can enter the world of commercial real estate ownership with confidence, with the hope of enjoying a great return on his or her investment long term.

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