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New Property Management Laws For 2026

Wed, 28 Jan 2026 02:10:51 GMT

Several new California laws affecting rental housing take effect on January 1, 2026. At Tiner Property Management, our team has been proactively developing best practices to ensure compliance while continuing to protect our Property Owners’ best interests.

Below is a practical summary of the most important new laws and what they mean for landlords.

AB-246 – Temporary Eviction Protections for Certain Social Security Recipients

Effective: 1/1/26

AB 246 provides temporary eviction protections for tenants who experience delays in receiving Social Security benefits, often due to federal budget impasses or government shutdowns.

The burden of proof is on the tenant to demonstrate that their benefits were delayed.
However, landlords may not be aware of this protection when beginning an eviction.

Practical impact:

During a government shutdown, tenants who rely on Social Security benefits may be temporarily immune from eviction. Landlords should proceed cautiously before initiating eviction proceedings in these situations.

SB-610 – Post-Disaster Obligations and Right of Return

Effective: 1/1/26

SB 610 clarifies landlord responsibilities following a disaster and strengthens tenant rights.

Key provisions include:

A clearer definition of what qualifies as a “disaster.”
Debris removal resulting from a disaster is explicitly a landlord’s responsibility as part of habitability.
If tenants are displaced due to disaster-related repairs, landlords must offer the unit back to the tenant once it is rent-ready.

Practical impact:

Landlords must plan for post-disaster compliance, including budgeting for debris removal and tracking displaced tenants’ right to return.

AB-1414 – Opt-Out Requirements for Bulk Internet Agreements

Effective: 1/1/26

This law applies to bulk internet service agreements included in rental housing.

Applies to all new leases starting in 2026.
Applies to pre-2026 leases upon renewal or when terms change.
Month-to-month agreements must comply as of 1/1/26.

Practical impact:

Landlords must provide tenants with opt-out rights when bulk internet services are included in the lease.

AB-414 – Modernized Security Deposit Refund Procedures

Effective: 1/1/26

AB 414 updates how security deposits must be returned.

Highlights:

If a tenant paid their security deposit electronically, the landlord must return it electronically.
Successor landlords (buyers of tenant-occupied properties) are exempt unless they received the deposit electronically at purchase.
Applies only to single-tenant households.
Multiple-tenant households must receive one check payable to all tenants, unless the tenants agree in writing to a different method.

Practical impact:

Landlords will need updated accounting procedures and clear documentation, especially for electronic payments and multi-tenant units.

AB-747 – Changes to Eviction Service Requirements

Effective: 1/1/26

AB 747 tightens the rules for serving Unlawful Detainer (UD) summons and complaints.

Establishes “reasonable diligence” requirements for personal service attempts before substitute service is allowed.

Best practice:

Use an experienced eviction attorney and professional process server to avoid service-related defenses that could delay eviction proceedings.

AB-325 – Restrictions on Pricing Algorithms

Effective: 1/1/26

AB 325 makes it illegal to use or distribute standard pricing algorithms in ways that interfere with fair trade.

Creates new liability for parties that “coerce” adoption of algorithm-recommended prices.
Clarifies that Cartwright Act claims have more permissive pleading standards than federal antitrust law.

Practical impact:

Landlords and property managers should be cautious when using shared pricing software or recommendations that could be interpreted as price-fixing.

AB-628 – Stove and Refrigerator as Habitability Requirements

Effective: 1/1/26 (triggered by landlord action)

AB 628 requires landlords to provide both a stove and a refrigerator as part of habitability standards.
Tenants may opt out of the refrigerator requirement in writing if they provide their own.
Tenants may later revoke that opt-out and request a refrigerator.
Landlords have up to 30 days to comply with a request for a refrigerator.

More information:
I’ve written a comprehensive blog post on AB 628, available on our website HERE .

Learn More on Landlord Logic

We also cover new landlord-tenant laws on our Landlord Logic Radio Show , airing on KFBK (AM 1530) on Sundays from 8:30–9:00 a.m. PST . Episodes are also available as podcasts HERE .

Disclosure

John Tiner is not an attorney, and Tiner Property Management is not a law firm. This blog is intended solely for general information. Landlords should consult with a qualified attorney regarding their specific legal situations.

AB 628 - New Stove And Refrigerator Requirements Added For Habitability

Fri, 19 Dec 2025 19:35:42 GMT

AB 628: What California Property Owners Need to Know About the New Stove & Refrigerator Requirements

California’s AB 628 - signed into law and taking effect January 1, 2026—marks a significant shift in what is legally required in residential rental units. These new requirements for stoves and refrigerators will be codified into the habitability (or tenantability) code for rentals ( California Civil Code Section 1941.1 ).

What AB 628 Requires: Landlords Must-Provide A Stove and Refrigerator

Starting January 1, 2026, AB 628 requires most residential rental properties to include:

A working stove, range, or oven capable of safely generating heat for cooking.
A working refrigerator capable of safely storing food.
If the manufacturer or government recalls the stove or refrigerator in your rental, you must repair or replace it within 30 days of receiving notice.
There are no requirements for size, model, or quality of the refrigerator or stove - but Landlords should provide something “reasonable” for the size of the rental.
It is illegal for a landlord to condition a tenancy upon the tenant providing their own refrigerator.

When AB 628 Applies: Owners’ Timeline & Lease Implications

AB 628 does not force immediate retrofitting of all units on January 1, 2026.

Instead, the trigger is a new contract event. The law applies to:

New leases signed on or after January 1, 2026. Any new tenant must receive a unit with a working stove and fridge.
Lease renewals, extensions, addendems, or changes of terms occurring in 2026 or later.
Attorneys differ on whether a month-to-month tenant (which automatically renews every month) constitutes a “renewal” in this new law. Court precedent will ultimately clarify this, but for now, the safe assumption is that month-to-month tenancies trigger the requirement that landlords provide a stove and refrigerator.

Fixed-term leases signed before 2026 do not require compliance until they are renewed, extended, or changed. If you own units with legacy tenants who have been on the same fixed-term lease since before 2026 and do not renew, you are not required under AB 628 to install stoves or refrigerators until the lease is altered.

Tenant May Opt Out Of The Refrigerator (and may change their mind).

AB 628 requires specific language in new leases, renewals, and changes in terms (including rent increases). These documents must have a statement substantially like this:

“ Under state law, the landlord is required to provide a refrigerator in good working order in your unit. By checking this box, ☐ you acknowledge that you have asked to bring your own refrigerator and that you are responsible for keeping that refrigerator in working order. ”

If the tenant subsequently requests a refrigerator in writing, the landlord must provide one within 30 days.

If a stove or refrigerator is recalled:

A stove or refrigerator subject to a recall by the manufacturer or a public entity must be repaired or replaced within 30 days. Keep in mind that Landlords must have knowledge of any recall to become responsible for repair or replacement. Should a property owner we manage for receive notice of a recall for their stove or oven, it is essential to let us know immediately, as we must take quick action.

Who Is Exempt?

AB 628 does not apply to:

SROs (single-room occupancy units)
Residential hotels
Permanent supportive housing
Units with shared or communal kitchens
(e.g., some senior housing, group homes, co-living arrangements)

Risk Management

AB 628 extends appliance coverage under California’s strict habitability laws. Failure to comply is prohibitive and could lead to:

Habitability claims
Repair-and-deduct scenarios
Code enforcement involvement

Ensuring compliance at each contractual trigger significantly reduces legal exposure, and Tiner Properties will take the necessary steps to remain in compliance for you.

Disclosure: John Tiner is not an attorney, and Tiner Property Management is not a law firm. Do not consider this blog legal advice - seek legal advice from an attorney for your particular situation.

How to contact us: If you need help with your rental and would like to hire Tiner Property Management, please call  916-974-6003  or email  info@tiner.com  . To learn more about our services or read our other blogs, check out our website: www.tiner.com .

About the author: John Tiner is the owner/CEO/broker of Tiner Property Management, a Sacramento-based property management company operating since 1976. Tiner Property Management manages 1,350+ homes with a 99.9% eviction-free track record.

Additional Resources:

CAA Section 8 Compliance Reminder

Consideration of Criminal History and Information in Housing

Fair Housing and Source of Income

Affordable Housing FAQ

2025 New Laws

Tue, 10 Dec 2024 22:38:43 GMT

Brief Description with links to the Bills, and Tiner full-length video and written blogs

AB 2493 Changes How Landlords Must Process and Decline Applications

Tiner Written Blog — Tiner Video Blog

Effectively makes “first come, first served” applicant processing policy a requirement rather than just a Fair Housing recommendation.
Changes the way Landlords respond to declined applicants in 3 ways:
Landlords must provide a copy (no longer by request)
Landlords must provide a receipt for their application fee that includes processing costs.
Landlords must provide a refund for any unused portion of the application fee.

AB 2801 Requires 3 Times Landlords Must Take Photos For Deposit Deductions (And Forbids Mandated Cleaning Charges)

Tiner Written Blo g — Tin er Video Blog

Modifies California Civil Code section 1950.5 (about security deposits).
Security deposit deductions must include before-occupancy photos for tenants who move in beginning July 1, 2025.
Beginning April 1, 2025, Landlords who want to utilize the security deposit for cleaning or damage must take photos before and after work photos.
Prohibits automatic charges for cleaning/carpet cleaning unless they are reasonably necessary to restore the property to its condition at the inception of the tenancy.

SB 611 Creates 3 Changes Landlords Must Follow for 2025

Tiner Written Blog — Tiner Video Blog

Landlords cannot charge tenants for preparing and serving termination notices (3-Day, 30/60/90-Day Notice of Termination).
It requires Landlords to allow tenants to pay rent and security deposits in at least one form other than cash or electronic funds transfer.
Any security over 1x the rent to a military service member must explain why the Landlord required the additional protection. In addition, any security over 1 Month's rent must be refunded within 6 months if the tenant has paid on time.

AB 2347 Extends Response Time For Tenants Responding To An Eviction Notice From 5 Days To 10 Days.

AB 2622 Raises The Daily Limit For Handymen From $500 To $1000

AB 2747 Requires Landlords to offer tenants credit reporting. Properties with 15 or fewer doors are exempt.

SB 1051 Requires landlords to rekey locks when the tenant adequately documents an incident of domestic violence.

SB 611 Creates 3 New Requirements For 2025

Wed, 27 Nov 2024 21:25:50 GMT

One of the new laws for California in 2025 is Senate Bill 611. SB611 changes 3 things that Landlords need to be aware of:

Bans Landlords from charging tenants for termination notices such as 3-Day Pay or Quit Notices.
Requires Landlords to accept rent paid in more forms than was previously required.
Addresses Landlords who require more than 1x rent for security in any form for military service members.

Here is a link to the civil code for SB 611 .

Until now, most landlords have had provisions in their leases allowing them to charge tenants when they have to prepare and/or serve a 3-Day Pay or Quit notice. That was perfectly logical, as it is the tenant’s failure to pay as agreed that causes the need for the property manager or property owner to complete and serve a 3-Day Pay or Quit Notice. It costs time and money to create the notice, drive to the property, serve it in person, and (if the tenant isn't home) to mail a certified copy… It’s certainly not the PM or property owners inaction that results in the extra effort needed to prepare and serve notice for the tenant’s lease violation.

While the language of SB 611 prohibits charging the tenants for any notice of termination, the most common notice of termination where landlords have charged is a 3-Day Pay or Quit. That’s the required first step for an eviction.

It also applies to standard 30/60/90-Day Notice of Termination but we did not typically see lease provisions that would charge a tenant a fee to prepare and serve them.
It would also apply to serving a 3-Day Notice to Quit - but those notices are rare because they are reserved for the most egregious actions by the tenant. An example would be when there was a police bust and the tenant had been using the home as a meth lab.

Best practices to consider for Notices of Termination:

If your lease has provisions for charging the tenant to prepare, deliver, or serve a notice of termination, remove it from your lease for 2025 (or just use a form service that keeps up with this requirement).
Consider using a late letter reminder rather than serving a 3-Day Pay or Quit Notice. If your tenant just needs a reminder, send them an email rather than driving out to the property.
Serve 3-Day Pay or Quit Notices only when you expect you may be moving forward with an eviction.
Consider having your eviction attorney prepare and serve any 3-Day Pay or Quit Notices. Failure to do this step correctly is the number 1 reason evictions are tossed out in court. I highly recommend having a pro do it right. That is our common practice at Tiner Property Management.
Don’t allow tenants to pay chronically late. If you allow it, your actions set up a detrimental reliance whereby a tenant can claim it’s ok to pay late because you have allowed it for so long. A late payment should be an exception.
Consider reviewing my video blog: What Landlords need to Know About Late Fees. It is a related topic. What Landlords Need to Know Abut Late Fees

SB 611 Requires that Landlords allow tenants to pay rent and security deposits by at least one form other than cash or electronic funds transfer. Landlords cannot require tenants to make wire funds and/or cash only.

The best practice for all money due before possession (Example: First month's rent and Security Deposit) is to require guaranteed funds - such as a cashier's check or electronic funds. After that, Landlords might consider personal checks, money orders, and cashier's checks as alternatives to cash or wire (electronic funds) options.
Accepting cash can be dangerous. You make yourself a target when anyone can recognize a pattern of you accepting cash.

SB 611 Contains a provision for Military Service members:

SB 611 requires that any security charged to a military service member in excess of 1x the rent after 4/1/25 requires a written statement of explanation as to why the extra security was charged. Furthermore, any security in excess of 1 month’s rent must be refunded within 6 months if the tenancy is not in arrears during that 6-month period.

Note: The security deposit for military service members has been capped at 1x rent for some time now. This provision was written to clarify some conflicts in prior laws.

Credit where credit is due: SB 611 was authored by Democrat Bill Dodd, passed with 29 Democrat votes (+2 Republicans), and signed into law by Governor Newsom (Democrat).

Disclosure: John Tiner is not an attorney and Tiner Property management is not a law firm. Do not consider this video/blog legal advice - seek legal advice from an attorney for your particular situation.

How to contact us: If you need help with your rental and would like to hire Tiner Property Management, please reach out to us by calling 916-974-6003 or by email: i nfo@tiner.com or check us out on our website: www.tiner.com

AB 2801 Requires Photos for Security Deposit deductions, new law for 2025

Tue, 19 Nov 2024 18:36:22 GMT

Another new law for Landlords in 2025 - AB 2801 - requires Landlords to take pictures before a tenant moves in, after they move out (and before any work is done), and again after the work is completed to charge them for cleaning and damage from their Security Deposit. To be most effective, the required photos should be date stamped. Additionally, landlords may not require any fixed cleaning costs in their Rental Agreements.

AB 2801 Modifies (or codifies into) California Civil Code section 1950.5 which pertains to Security Deposits. Until now, before and after photos were not required, but having them was the best practice.

Tiner Property Management has been taking before and after photos for a long time. In order to best serve our clients, we prepare to defend our deposit deductions in court every time. We have been to small claims court with tenants 50-100 times over the past 40 years - and we win a very high percentage of those cases. Every time we go to court to defend our charges, our before and after pictures have played an important role in winning.

But now, before and after photos are becoming law. I say “becoming law” because there is a phase-in period.

Before and after work is completed photo requirements:

Beginning April 1, 2025, Security Deposit deductions must be accompanied with before and after work pictures showing each item you charged for. The before-work pictures must be taken as soon as the tenant vacates - but before any work is done. Then photos must be taken of the same items to show the work after it is completed.

Example: Dirty oven, cleaned oven. Gross drawers and cleaned out drawers, broken window and new glass, broken window blinds and new blinds.

Before occupancy photos are also required:

Beginning July 1, 2025 , Security deposit deductions must include before occupancy photos as well as the before and after photos when the tenant moves out and work is done. I think marketing photos work well for this as long as you take those extra pictures of the oven, sinks, tubs, toilets, yard…

Until now, many landlords used the same marketing photos for multiple vacancies. AB 2801 will necessitate taking new photos each time you have a vacancy - and they should be date-stamped pics or have another way of proving when they were taken.

Automatic Cleaning charges are prohibited:

AB 2801 also prohibits automatic charges for cleaning and/or carpet cleaning unless those charges are reasonably necessary to restore the property to its condition at the beginning of the tenancy.

Some landlords have been charging for cleaning as if it were required every time. I have seen leases with long lists of pre-agreed cleaning charges with tenants. That policy functions as a non-refundable security deposit which is illegal. Landlords should remove that language from their lease.

This does not limit a landlord’s ability to charge for cleaning when it is needed to restore the home to its pre-rental condition (minus normal wear and tear).

Summary:

Start taking date-stamped photos of your properties (along with your marketing photos) right away. Include pictures of items that are commonly left dirty and/or damaged.
Take pictures of everything you plan to charge the tenant for as soon as they move out.
Take after photo once the work is complete.
Provide copies of the photos along with your security deposit transmittal (accounting).
Take any automatic cleaning requirements out of your leases.

Giving credit where credit is due: AB 2801 was Authored and passed exclusively by Democrats. Here is a link to AB 2801

Disclosure: I am not an attorney and Tiner Property Management is not a law firm. Do not consider this blog legal advice - seek legal advice from an attorney for your particular situation.

How to contact us: If you need help with your rental and would like to hire Tiner Property Management, please reach out to us by calling 916-974-6003 or by email: info@tiner.com . To learn more about our services, check out our website: www.tiner.com .

SB 267 and other Section 8 screening requirements

Mon, 18 Nov 2024 20:45:40 GMT

SB 267 Requires California Landlords To Process

Section 8 Applicants Differently Than All Other Applicants.

Landlords! The rules for Section 8 applicants have changed significantly in recent years. Ignoring these new requirements could result in Fair Housing or Civil Rights complaints, which are not uncommon and can lead to costly fines ranging from $10,000 to $40,000+.

Key Changes For Section 8 Applicants

“No Section 8” policies are against the law since 2020 ( SB 329 ). Landlords must respond affirmatively when someone asks if you accept Section 8 (tenant vouchers).

Income requirements for Section 8 applicants must be applied only to their portion of the rent (California Government Code 12955(o)). For example, if a tenant’s portion of the rent is $200, then a landlord can only require that they earn three times that amount—$600. This means that nearly all Section 8 applicants qualify based on income.

Blanket bans on applicants with a criminal record and policies that consider arrests without convictions are prohibited (Note - this paragraph applies to all applicants - not just Section 8 applicants).

Landlords should also be cautious about policies that automatically exclude Section 8 applicants. Under the legal principle of disparate impact , any policy that disproportionately affects a protected class may be deemed illegal. For instance, your policy could be legally problematic if your local Section 8 program only offers one-year leases and you exclusively offer month-to-month rentals.

The Latest Change: SB 267 And Credit Report Restrictions

A significant new law— SB 267 —further modifies the screening process for Section 8 tenants. Specifically, landlords cannot run a credit report on a Section 8 applicant without first offering an alternative way for them to demonstrate their ability to pay rent.

Alternative Evidence: What Can You Accept?

SB 267 allows landlords to consider alternative forms of financial verification, including but not limited to:

Government benefit payment records
Pay stubs or payroll records
Bank statements
Other verifiable documentation of income and financial standing

Additionally, I believe phone bills and utility payments are good indicators of an applicant's ability to pay.

3 Vital Areas To Comply With SB 267

Inform Applicants of Their Rights : You must notify Section 8 applicants that they can provide alternative evidence instead of a credit report. This should be part of every landlord’s written screening guidelines offered to prospective tenants before they apply.
Provide a Reasonable Timeframe : If a tenant chooses to provide alternative documentation, you must give them reasonable time to gather and submit the documents. “Reasonable” means a judge would agree with you if needed. Two weeks seems reasonable to me, but I am unaware of any court precedent confirming that at the time I wrote this blog.
Fairly Evaluate Alternative Evidence : Landlords must assess these documents objectively and reasonably.

Why This Change?

SB 267 acknowledges that traditional credit reports can be inaccurate or discriminatory when assessing the financial reliability of subsidized tenants. Many individuals have low credit scores due to factors beyond their control, such as medical debt or past financial hardships. The new law ensures Section 8 applicants are not unfairly excluded from rental opportunities.

Best Practices for Adapting Your Screening Process

While SB 267 requires adjustments to the tenant screening process, landlords can still find reliable ways to assess prospective tenants:

Focus on Rental History : Verifying past rental references and landlord testimonials can strongly indicate a tenant's reliability.
Income Verification : Carefully review pay stubs, bank statements, and utility payment records to assess financial stability.
Make a Legal and Reasonable Assessment : Ensure that your decisions comply with the law and are justifiable in court if challenged.
Seek Legal Counsel : If you are unsure how to comply with these laws, consulting with an attorney is a safer option than risking a legal violation. Any denied applicant may claim a Fair Housing or Civil Rights violation, which is costly and time-consuming.
Maintain Open Communication : Communicate with applicants throughout the process to ensure transparency and compliance with the law.

By understanding these legal changes and adjusting your screening procedures accordingly, you can remain compliant while maintaining effective tenant selection practices.

Giving credit where credit is due: SB 267 was authored and passed predominantly by Democrats, with one Republican vote, and signed into law by Governor Gavin Newsom (Democrat). You can read the full text of SB 267 here . SB 267 Amend Section 12955 of the Government Code relating to housing.

About the author: John Tiner is the owner/CEO/broker of Tiner Property Management, a Sacramento-based property management company operating since 1976. Tiner Property Management manages 1,250+ homes with a 99.9% eviction-free track record.

Additional Resources:

CAA Section 8 Compliance Reminder

Consideration of Criminal History and Information in Housing

Fair Housing and Source of Income

Affordable Housing FAQ

New Application Requirements for 2025, AB 2493

Mon, 11 Nov 2024 17:05:48 GMT

California has changed the rules for Application fees, how applications must be processed, and what landlords must do when they decline an applicant in 2025. AB 2493 effectively makes “first come first served” a requirement rather than just Fair Housing’s recommendation.

AB 2493 Also changes the way Landlords respond to declined applicants in 3 ways:

Landlords must provide a copy of their credit report whether they ask or not.
Landlords must provide a receipt for their application fee that includes costs for processing the application.
Landlords must provide a refund for any unused portion of the application fee.

Tiner Property Management has enjoyed an incredibly low eviction rate for decades

We are evicting less than 1 tenant a year with 1200 doors under management so literally 99.9% of our tenants do not get evicted each year. We attribute that to our excellent applicant screening process which, until now, utilized a “strongest applicant” process rather than “first come first served”. AB 2493 will force us to modify our process.

Giving credit where credit is due:

AB 2493 was authored and passed by Democrats. It passed with 57 Democrat votes and 3 Republicans (while 10 Republicans voted against it), and of course, signed into law by our Democrat Governor.

The drive for this legislation came from stories of applicants who paid application fees 20 times before finding a home ($1000). They were often those who could least afford it.

Until now, Fair Housing has recommended “first come first served”, but it was not the law. “Strongest applicant” policy is allowed as long as the screening criteria is applied equally and in accordance with Fair Housing law.

To be clear, AB 2493 does not say you cannot have a “strongest applicant” screening policy - but it does say you must refund every application fee to declined applicants for any reason if you do not have a “first come first served policy”.

Landlords can only keep an Application fee IF they meet ALL 4 of these conditions:

Completed applications must be considered in the order they are received (“first come first served”).
Landlords must provide screening criteria in writing WITH the application (not after).
The first approved applicant who meets the screening criteria is approved for tenancy.
Applicants are not charged an application fee until/unless they are actually considered (Don’t charge in advance anymore).
#3 is not considered a violation if the landlord/PM inadvertently collects an application fee from an applicant as the result of multiple concurrent application submissions - so long as the landlord/PM provides a Application Fee refund within 7 days.
An exception is made when a tenant and landlord agree to use the Application for another property for consideration - then if they do not qualify, the landlord can keep the Application fee.

When a Landlord meets all 4 of those considerations, they can then keep the Application fee - even if the tenant is declined.

If a landlord wants to retain a “strongest applicant” screening policy, they can (just apply your criteria equally and legally), BUT THEN YOU MUST REFUND EVERY APPLICATION FEE FOR EVERY DECLINED APPLICANT REGARDLESS OF THE REASON.

Time limits for Application Fee refunds:

The refund must go back within 7 days of you selecting a different applicant - or 30 days from when the application was submitted - whichever is first.

I considered not charging for application fees so that I could keep my better “strongest applicant” policy. Then I did the numbers. Tiner Properties would lose over $140K per year if we did not charge for application fees.

Applicants think we make a killing on application fees - but we actually lose money on them. Just the cost for running the credit report and averaging the cost of my applicant screening staff, I lose money on application fees - and there are many more costs than that. From a business perspective - it is not feasible to maintain a strongest applicant policy any longer.

Is AB 2493 best for landlords? I don’t think so - but maybe.

On the “no” side: Landlords are statistically better off with an overqualified applicant that has an 820 credit score, no debt, and a $15K monthly income - than a barely qualified applicant who arrived first with a 700 credit score, considerable consumer debt, and a $9K monthly income. The odds of late rents, eviction, rehab… all go up with the first applicant compared to the “strongest applicant”.

On the “yes” side: A “strongest applicant” policy has become increasingly more risky. Almost every declined applicant could file a Fair Housing complaint saying you declined them for some protected status in the law (Race, color, religion, sex, family status and disability, gender expression, sexual orientation etc) Fair Housing even has a testing program to seek out non-compliance. Tenant advocacy groups are assisting declined applicants, helping them file civil rights complaints… It is time consuming and expensive to respond to a complaint - even when you have done everything right. The risk of such a complaint is lower for landlords who have a “first come first served policy”. From a cost perspective, compliance in this regard may save landlords money and grief.

3 Additional requirements of AB 2493 for declined applicants:

Landlords must provide a copy of the credit report to anyone who paid an application fee and was declined within 7 days (this was formerly only required upon request of the applicant).
Landlords must provide an itemized receipt to any declined applicants. The receipt must list out-of-pocket expenses and time spent to obtain and process the information about the applicant.
PM/Landlords must refund any unused portion of the Application Fee. For example: If/When a landlord did not pull a credit report.

Conclusion:

Put your screening criteria in writing and give it out with your applications.
Pay attention to the “completed applications” portion of this law.
Example: Your written criteria may consider a completed application when the applicant has provided proof of income, proof of ID… Often the applicants who are most resistant to providing those items (everybody has “a story”) are the ones it would be better to decline anyway.
Be sure to create and use a receipt describing all associated costs for processing your applications.
Provide credit reports to every applicant you decline.
Provide a refund for any unused portion of your application fee.

Here is a link to AB 2493 .

Disclosure: I am not an attorney and Tiner Property management is not a law firm. Do not consider this video/blog legal advice - seek legal advice from an attorney for your particular situation.

How to contact us: If you need help with your rental and would like to hire Tiner Property Management, please reach out to us by calling 916-974-6003 or by email: Info@tiner.com or check us out on our website: tiner.com

Selling a Rental Home with Tenants in Place

Thu, 31 Oct 2024 19:37:03 GMT

Step-by-step instructions on navigating the tricky process.

The negotiation process for putting a property on the market while the tenant is in place is an art. If it is not done correctly, a tenant can effectively stop an owner from marketing the property until it becomes vacant. Over the years, Tiner Property Management has successfully negotiated this with tenants hundreds of times. We have seen many listing agents mess up the process so badly that they ruin their ability to regain the tenant’s cooperation in the sales process and have to remove the home from the market until it is vacant. When Tiner Properties is the listing agent for a home we manage, we acquire the tenant’s cooperation in the sales process by negotiating an On Market Addendum and we do not charge the owner for that service (when we are not the listing agent, a fee is applicable).

Before you start, it is important to understand the Tenant and Owner’s rights:

Understand the owner’s rights:

The owner has a right to show and sell their property – even while the tenant is in place. If the tenant is in the middle of a lease when the home sells, the lease runs with the property at the time of sale (the new owner assumes the tenant under the terms of the old owners lease).

Understand the tenant’s rights:

Tenants are entitled to a properly written and served 24 Hour Notice to Enter EVERY TIME someone enters the home to show it. If they insist on that right, it effectively makes it nearly impossible to set up showings (Buyers and Buyers agents’ just move on to easier homes to show). In addition, even if the tenant has been properly served a Notice to Enter, if the time comes for the appointment and the tenant comes to the door and says this is not a good time – you can’t force your way in or get the police to help you. Tenants are not obligated to allow a Realtor lockbox to be placed on the property. Lastly, a tenant can verbally run a property down to prospective buyers if they are frustrated with the process or simply do not want to move.

Start by scheduling a face to face meeting with the tenants:

With the above in mind, our practice is to call the tenant and tell them that the owner must sell their home and we would like to meet with them to explain their rights and responsibilities in the process. Assure them that they have rights and options and that you will respect them. When we meet with them to solicit their cooperation in the sale of a property, we explain that the owner has listed the home for sale (it’s a done deal) and apologetically serve them a Notice to Vacate while explaining that we may be able to rescind that notice to vacate depending on their desire and choices.

Rules for giving notice to vacate:

If the tenant is on a lease, the Landlord cannot give the tenant notice to vacate for a date that is prior to the end of the lease term.
If the tenant has resided at the home for less than one year at the time of service, a tenant may be given a 30-Day Notice to vacate. If the tenant has resided at the home for a year or more, a 60-Day Notice to Vacate is required.
Regardless of the length of the tenancy, the tenant may give the Landlord a 30-Day Notice to Vacate. This is true even if the Landlord had already given the tenant a 60-Day Notice to Vacate. For example, on January 1 the Landlord gives the tenant 60-Day Notice to Vacate the property by March 1. If the tenant finds a suitable home right away, they may in turn serve the landlord a 30 day notice to vacate which might end considerably earlier than March 1st.
With the new rent control laws (AB 1482), you need to consult with a professional with regard to Duplexes or Apartments, you may not be able to give these tenants notice to vacate.

120-Day Notice of Intent to Sell (California)

If you want to sell a rental property in California, it’s essential to know about the 120-Day Notice of Intent to Sell. This is a key legal requirement that serves as a formal declaration of your intent to sell.

This notice is mandatory for landlords selling tenant-occupied properties. It allows tenants 120 days to prepare for the change, whether that means relocating or adjusting to a new landlord.

Requirements for the 120-Day Notice of Intent to Sell:

Must be delivered in both verbal and written forms.
Clearly state the intent to sell the property.
Include the effective date, giving tenants 120 days to make arrangements (when necessary).

Post-Notice Considerations:

After serving a 120-Day Notice of Intent to Sell, the property may be shown to potential buyers with 24-hour VERBAL notice to the tenants (Note: 24 hours WRITTEN notice is required for tenants that have not received a 120-Day Notice of Intent to Sell). It is still important to coordinate showings to respect their privacy and maintain a positive relationship.

Shift to the good news:

It is important to start with the Notice to Vacate whether they end up cooperating in the showing process or not. Once they know they can’t stop the possibility that the home will be sold and that they will have to move, we give them good news:

You have many rights as a tenant and I promise to honor and respect those rights in this process: “You are entitled to stay in the home through the end of the lease regardless of the sale – the lease runs with the property so you will be safe to know you will be here at least that long".
When you just served a Notice to Vacate: “There is a very real possibility that the buyer of this home will be an investor (not an owner occupant) who would love to keep an excellent tenant like you.”
"We want to offer you the first chance to buy the home." If the tenants want it and are willing to pay the list price / fair market value, and able to get pre-approved for a loan, this can be a win-win for everyone involved.
“We can not put a lockbox on the property without your written permission.”
“Realtors and buyers will not be able to enter the property without 24 hours written notice or your advance permission.”

Ask for their help:

We say, “If you do not want a lockbox we can wait until the home is vacant – but if you cooperate with the sales process we will give you a discount in your rent AND there is a very real possibility we will be able to cancel our Notice to Vacate and you will not need to move.” We normally start by offering a $100 monthly discount for the tenants full cooperation in the sales process as outlined in our On Market Addendum (which addresses lock box, showing times, signs, and appointments with appraisers, inspectors… after the escrow is opened). Be willing to increase the amount of the discounted rent depending on how close you are to the end of the lease term, the value of the home (higher priced properties tend to require greater discounts), and the urgency of the owners need to sell.

Tiner Properties track record of success:

Tiner Properties has successfully negotiated our On Market Addendum to the vast majority of tenants that we approached. At the close of escrow, many of the tenants have thanked us for treating them with such respect in the process. Most importantly many owners have been able to sell their homes even when in the rather difficult position of trying to do so while the home was tenant occupied.

Voting Recommendation Newsletter - October 2024

Mon, 21 Oct 2024 17:02:16 GMT

Voting time is upon us. This ballot has a couple issues directly related to owning rental homes that I wanted to remind you of:

Proposition 33 is a rent control measure - please vote no . If proposition 33 passes it would allow local cities and counties to bring single family homes under rent control (single family homes are currently exempt). One of the great dangers is vacancy control which would stop owners from catching up with the market rent value at the time of a vacancy. Rental Property Owners need a NO vote on Proposition 33.

Proposition 34 is related - Please vote yes . The Aids foundation raised more money than they needed and now they have become activists for tenant rights and legislation that negatively impacts landlords (such as proposition 33). A YES on 34 would require the Aids foundation to use their money on medical related issues and stop them from using their money to be an activist organization attacking property rights.

Here is a link to the CAA (California Apartment Association) for more information on both propositions: https://caanet.org/

Rental Market Update, 3rd Quarter 2024

Mon, 07 Oct 2024 20:35:00 GMT

After 7 boom years in the rental market - we have now had 2 slow years with a softening market. The change is largely due to increased interest rates.

In 2022, interest rates more than double (3-7%) and that wiped out about 30-40% of the typical sales market since then. Some of the 40% preferred to have the “golden handcuffs” where they cannot afford to move due to the higher interest rates, so they stay where they are. But a high percentage became “Plan B” or “Default landlords”. They said, “We can’t sell so let’s rent.” …as they should have - because it makes good sense to keep their 3% home loan.

Over the last 2 years we have been getting multiple calls a day from property owners who wanted to sell - but are considering renting their homes instead. All those properties coming onto the rental market have resulted in softened rent values.

SFH (Single Family Home) rental data is difficult to obtain. Fortunately, Tiner Properties management has maintained Weekly Vacancy Report data for over 18 years. We track things like: Vacancy Rate, DOM (Days on Market), Calls & Emails, Showings, and Applications Received … and share those Weekly Vacancy Reports with our owners who have a vacancy. This is great communication, and it helps us analyze if we need to adjust the asking price. With nearly 1200 homes managed now, our portfolio is a good representation of what is going on in the Sacramento SFH and duplex rental market. I looked back at our June averages for the past 4 years and the results are telling:

SFH Vacancy rates roughly doubled from 2021-2022 …and have remained high.

Days On Market are up 40% from 2021:

Long term vacancies were almost non-existent in 2021 - and are now about 25% of all vacancies:

Days On Market are up 40% from 2021:

Long term vacancies were almost non-existent in 2021 - and are now about 25% of all vacancies:

Calls/Inquiries per vacant property are down by 78% over 4 years:

We are receiving 3x less interest for properties than we did 3 years ago!

Keep in mind that Tiner statistics are better than the actual market stats: For example, our vacancy factor is just under 2% now - but Sacramento area vacancy rate is 4-5% depending on the data source used. DOM and long-term vacancies are much worse in the open market - our success is due to our excellent marketing, an outstanding leasing team, and our regular communication with our property owners so we can adjust properties that do not rent quickly. Having said that, Tiner stats over time are a good indicator of how the market is performing - and how it is trending - in the Sacramento area.

National statistics mirror Tiner data trends.

The following graphs are from ShowMoJo which tracks rentals statistics nationally:

Both Tiner data and the National data are pointing out what we are seeing every day. The rental market is soft (not impossible) and it is imperative to market and price rentals well in order to find tenants now.

So, how does a landlord properly price a rental?

Many property owners look to Zillow rent "Zestimates". Depending on the area and amount of updating any given property has, those rent estimates are a good general indicator. At Tiner Properties, we look up Zillow rent Zestimates along with some other tools we have - but we know that Zillow rent estimates run higher than real rental market values. I took a look back at the last 150 homes we rented, and compared our actual data to Zillow rent “Zestimates” at the time we rented our properties. We found that Zillow rent estimates averaged nearly 12% higher than our actual rent value.

What is a “rental comp”? Landlords often refer to rentals on the market as “rental comps” (comparisons) - much like Realtors use “sales comps” to establish current market sales value. There is a substantial difference: Sales comps are actually sold properties which are public record. The rent comps are what other Landlords are ASKING for rent - not what they actually rented for. National data indicates about 30% of all vacant rentals have at least one price reduction. Sometimes what looks like a comp may only be a property with way too high an asking price to actually rent to a well-qualified renter.

Conclusion:

All key indicators tell us that we are in an increasingly soft Single Family Home rental market. If you are a landlord suffering with a difficult vacancy, here are some of the things that I suggest you consider:

Consider allowing pets: Pet Friendliness is on the rise: 57% of rentals nationwide allow pets. Nearly 70% of all tenants have pets. Allowing pets can significantly increase the applicant pool available and reduce the length of a vacancy.

Emphasize lease renewals: The best way to cut down on your vacancy factor is to keep tenants on leases - don't just let them roll over into Month to Month tenancies. Tiner Properties does a great inspection at the 10 month anniversary of each lease - and that timing is key. We want eyes on the property to see if the tenant has snuck in pets or people - or if they are great tenants that we want to keep. Most are great, so we work hard to come to terms on a lease renewal whenever possible.

There are 4 main factors that cause rentals to rent or sit vacant:

PROPERTY CONDITION: You can’t attract “A” quality tenants to homes in “C” or “D” condition. So get your home looking good. Shape up the yard and keep a gardener on it. Be sure it's really clean, the paint looks good, and everything works. Update if needed.
GREAT MARKETING: If your home is in good condition but no one can find it, you will fail. It's really important to have professional quality, well lit pictures. Tiner’s listings all have beautiful photos and are published to all the relevant rental websites.
TRACK RESULTS: Tiner Proper ties keeps track of how many calls we get on each property, and how many showings, and how many applications. Tracking the data will inform your marketing and pricing, if you pay attention to it.
FAIR PRICING: If you've done all you can to make the condition nice, and it's well marketed, then the 3rd leg of the tripod is pricing - and this is the one you need to adjust until you start getting good showings and applications.

The 5% principle: On a $2,000 rental property, if it takes an extra month of vacancy to get $100 more rent, a property owner will not break even for 20 months.

Price your rental to attract the best applicants: When a rental is priced too high, “A” applicants move on to better values and we get more “B, C and D” applicants. “A” applicants are the smart ones - they have great credit and rental history. We want to attract “A” applicants so sometimes that means being a little lower than others are asking for rent – especially in a declining market like we have now.

Understand the “Sticky Factor”: Even if you have to drop the rent more than you wanted to get a good tenant now, understand that you can catch it up with a rent increase at the end of a year. If the market supports it, you can raise them 10% next year and very few tenants will move over a 10% increase.

Listen to an expert: Expert property managers rent homes every day and know how the market is changing. Lean into their experience and take their recommendations for pricing.

Changes to Security Deposit Caps

Fri, 26 Apr 2024 20:15:22 GMT

New law effective 7/1/24, AB 12

Security Deposits are a vital tool for landlords to ensure they have financial recourse for a tenant who vacates their property: 1) With unpaid rent, 2) With damage (beyond normal wear and tear), or 3) in need of cleaning.

Existing law for Security Deposit caps. Historically, Security Deposit Caps are two months’ rent for unfurnished units and three months for furnished units (Military tenant’s Security Deposits are capped at one time the rent amount).

What is included as a “Security Deposit” Under the law? Security Deposit caps apply to the combined totals of the Security Deposit, Pet Deposit(s), Last Month’s… everything other than the first month’s rent.

The New Law: Effective July 1, 2024, the maximum allowed Security Deposit will be changed significantly under AB 12 (Author, Haney - Democrat). The new law reduces the permitted Security Deposit cap to one month’s rent - for both furnished and unfurnished units.

Some landlords are exempt : small landlords, defined as natural persons owning no more than two residential rental properties, consisting of 4 doors or less, are exempt and may still charge up to two months’ rent (unfurnished) or three times rent (furnished).

Examples of EXEMPT property owners:

1 house and 1 duplex.
1 house and 1 house with an ADU
1 4-plex.
1 home and one condo.
2 duplexes.

Examples of NON-EXEMPT property owners:

1 four-plex and 1 house
An apartment complex
A duplex and a triplex

Grandfathered Rental Agreements: Property owners who are already holding a deposit of more than one month’s rent are grandfathered in and will not owe a partial refund of the Security Deposit July 1, 2024, when the new deposit caps become law. Any rental agreements entered into after July 1, 2024 must comply with the more restrictive security deposit cap (unless the property owner is exempt).

How are Professional Property Managers addressing the new Security Deposit Cap limits? Many Property Management companies are reducing Security Deposit to 1x rent for all their properties because it is easier and so they don’t make a mistake about who is, or is not, exempt. Tiner Property Management is surveying all of our property owners to determine which owners are exempt so that we may charge a larger Security Deposit that is allowed for exempt properties. The Sacramento market forces have allowed us to be competitive charging Security Deposits of 1 months’ rent +$500 for most properties.

Rental Market Update

Wed, 25 Oct 2023 18:28:46 GMT

A review of vacancy trends, and advice on how to best market in the current economy.

Gone is the 2019-20 market, where homes were renting at top dollar and top speed. We carefully track vacancy data, and when we look at that data over the course of the last 3 years, the stats are shouting that the market has softened considerably.

Our average days on the market have gone from 14 to 35
Our number of vacancies has risen from 11 to 39
Our average number of applicants (Per property per week) have decreased from 6 to 1
The number of homes that we have that sit on the market over 45 days has risen from 0 to 7

Showmojo, a national company that provides leasing support, recently posted a blog about this change at a national level, which you can read HERE . The data they provide is very similar to what we have seen locally. It is imperative that we react to the changing market quickly to maximize your investment.

Here is how we recommend that you best protect your investment income:

If your home is vacant :

- Be the best deal on the block! You can still place a tenant quickly if you beat the competition. Tiner Properties will provide you with practical rent evaluations that will help you fill that vacancy quickly. Most well priced homes are still renting in 20 days or less.

- Advertise with great photos , thorough descriptions, and a broad base of websites. Tiner Properties uses a professional photographer and includes amenities and detailed property descriptions. Our advertisements are posted on over 20 relevant websites (including Zillow, rentals.com, Trulia, and tiner.com which has great local rankings.

- Make sure to be accessible and accommodate all showing inquiries. Tiner Properties recognizes that each lead needs to be carefully fostered in this market. We have increased our leasing staff and tripled our showing schedule in the last year to accommodate the rise in vacancies.

If you have a great tenant paying market rent:

- Lock them in with lease renewals to avoid a vacancy during this slow period. Tiner Properties completes annual inspections about 2 months prior to the tenant’s lease expiration, and provides renewal rent value pricing recommendations with our inspection report.

Tiner Properties works hard to always be on the cutting edge of market trends. By tracking these trends and reporting this information to you, we help Landlords pivot to maximize your investment potential.

Rent Values Are Changing

Fri, 21 Oct 2022 23:12:36 GMT

A rent market update by John Tiner October 2022

My daughter and I were in a local meeting of residential property managers last week and the #1 pressing issue for the group was the increasing amount and duration of vacancies. The hurting sales market is impacting rent demand and values such that we are seeing, for the first time in many years, a drop in rent values. We have seen our average days on the market (from clean and ready to show until an applicant is approved and signs a lease agreement) go from 14 days up to 30 days in the past couple months – and that is a trend that is happening with most all Sacramento area property managers. This change is being driven by the sales market.

Mortgage rates are now in the 6-7% range and the Federal Reserve Board is promising more interest rate hikes in 2022. Home values and sales volume have dropped significantly this year. Many markets are seeing a 10% drop in value since the peak in April/May this year. Before we get into how the rental market is impacted, here is a snapshot of what we are seeing in the Sacramento area real estate market:

Between April and September this year, closed escrows are down by 30% of what they averaged the 5 prior years.
In April 2022, only 20% of our homes were selling below the list price, in August, 64% of all sales were below list price – and I’m sure the data will continue to climb as those numbers come in.
Average Days On Market for Sacramento RE were 12 in April and now 3x higher at 36 in October.
Between April and September, the median price for Sacramento County has fallen from about $570K to $510K – about where it was one year ago.

Every day, we are getting phone calls from property owners who are tired of sitting on the sales market without selling so they are considering renting instead. That is bringing a lot of homes on the rental market now and the law of supply and demand says that an influx of supply will push rent values lower. Don’t get me wrong, the sky is not falling, but the market is adjusting. There is still generally a lack of rental homes in Sacramento so I expect a small correction and then a leveling out of rent values for a while – and that’s OK. We have enjoyed a huge run up in rent value over the past 6 years – and landlords will continue to benefit from those increased values.

Many Landlords look to Zillow to try and establish rent value. Zillow calls their rent estimates “Rental Zestimate”. Zillow Zestimates, whether you look at Sales values or rent values have some flaws: The rental Zestimates are really inaccurate for older areas where some homes are updated and others are dated. They are also inaccurate, in my professional opinion, when the market is changing course quickly – as it is now. At best, Zillow value estimates are a lagging indicator. Zillow actually knows when sales take place so it can adjust their algorithms to reflect when a home sells for less than a list price. They do not have that advantage for rentals. If a home rents for less than it was listed for, Zillow does not know that and can’t adjust their algorithms accordingly. Zillow rent Zestimates are well over market value from all I see and they may not adjust well for months. We are seeing actual rent values about 10% below Zillow Rental Zestimates lately.

Pricing a rental property right is a pretty fine art – and the market is a great teacher. At Tiner Properties we rent at least one home a day on average, so we stay in school. We track calls and applications and showings for each of our vacant homes and review that data every week. If a rental is priced too high, we have found that the “A” applicants move on to better values and we get “B, C and D” applicants. We want to attract “A” applicants so sometimes that means being a little lower than others are asking for rent – especially in a declining market like we have now. Additionally, if it takes an extra month of vacancy to get $200 more rent, a landlord may not even hit the breakeven point for a year or more.

We are coming into the holiday season now when it is the most difficult time of year to rent homes. Nobody wants to move during the holidays. Tiner Properties vacancy factor is about 2% which is very good overall – but we are seeing vacancies and days on the market nudging up. There are less applicants coming in – and more rentals coming on the market all the time. Our advice to owners with vacant homes now is to be realistic about the changes that are happening and get ahead of them with a fair asking price. Use beautiful pictures and write great ad content – and then market your rental on all the relevant rental sights. Tiner Properties does all these things well, so if you are struggling with a vacancy, feel free to give us a call and we will help you fill it. You can reach us at (916) 402-3095 or info@tiner.com .

Can’t Sell Your Home In This Market? Rent Instead!

Thu, 22 Sep 2022 23:38:07 GMT

“It’s Dejavu all over again” (Yogi Berra)

When the sales market collapsed from 2007-2012, many property owners decided to rent rather than sell in a declining sales market. We have entered a similar market now. September 2022 sales are the lowest in over 20 years, with the market crash of 2007 being the only exception. More than half of the properties on the market today have reduced the list price.

We encourage you to consider retaining ownership of your asset in this declining market, and here’s why:

Rent values have increased dramatically:

Rent values are up a staggering 80-100% over the past 10 years. Current rent values will often cover the full cost of the mortgage, taxes, and insurance. Rental properties are also in high demand and there is good reason to expect rent values to hold or continue to increase even in a recessionary economic cycle. Click HERE for a free analysis of your home’s current fair market value.

The most common way to build generational wealth in America is with real estate:

The most affordable property to buy is the one you already own! You probably have a fantastic interest rate and there are no closing costs, inspection, or appraisal needed. Real estate tends to be a hedge against inflation, as rents and home values tend to track well with inflation over the long haul. Allow the tenant’s rent to cover your mortgage and create residual income for you and your posterity.

You have an incredibly low-interest rate:

The 2.8% to 4% interest rates most homeowners have are unavailable now. Even if real estate values drop for a while, the beauty of having a very low-interest rate on your existing home is something well worth holding on to. Those rates may not come back for years – or decades. The Federal Reserve Board raised interest rates by ¾% yesterday and has plans for several more increases this year in an effort to curb inflation. Your existing low-interest-rate loan has become extremely valuable.

Tax benefits and considerations:

Repairs, utilities, and maintenance: When you convert your private residence into a rental, you pick up some valuable tax write-offs. Repairs and updating done to get your property ready for the rental market are typically deductible. Services such as water, sewer, garbage, gardener, or pool service paid by you may also be written off. Ongoing repairs, maintenance, and professional property management fees are also tax write-offs.
Capital gains tax: When you sell your private residence, there are no capital gains taxes. Capital gains tax varies depending on your income and other factors, but it commonly runs 24% of the gain you have had since you purchased the property. The rule for exemption is that you must reside in the home for 2 of the past 5 years before you sell it. This means you can convert your home into a rental and still sell it exempt from sales tax if you sell it and close escrow within 3 years of the time you moved out.
1031 Tax Deferred Exchange: If you decide to hold your property long-term as a rental, a 1031 exchange option is available, which allows you to sell one investment property and exchange it for another – deferring the capital gains tax.

NOTE: Tiner Properties is not a tax expert and we recommend you to seek the advice of a tax expert for your specific situation .

DIY Property Management is not as easy as it used to be:

New rental laws have made property management complex. In the past 3 years we have seen a plethora of new rental laws: Rent control with AB 1482, the COVID eviction moratorium and the Rent Relief program, Changes to the Housing voucher program (Section 8), Marijuana laws, ESA (Emotional Service Animals)… Hiring a Professional Property Manager who stays current with all the changes will significantly reduce the risk of owning a rental property. Case in point: Tiner Property Management manages 800+ homes. During the full COVID eviction moratorium we only had 5 tenants fall behind on the rent. We received full rent back from the Rent Relief Program on 4 of those tenants and evicted the other tenant. Our vacancy rate was also under 1% during the full 2.5 years of the pandemic. Great rental statistics are not luck, they are the result of excellent tenant screening and operating with the best practices possible.

Professional Property Management:

If you would like to grow your wealth by retaining ownership of your valuable real estate investment, it is imperative that you secure professional management. We would love the opportunity to share more information about our unparalleled service with you. Established in 1976, Tiner Property Management is a well-oiled machine with the primary function of protecting you and your investment property while generating a maximum return on your investment property. We are experts at thorough tenant screening, precise accounting, detailed inspections, and understanding property management law. Contact us today at 916.402.3095 or management@tiner.com for more information, or to schedule a free, no-obligation meeting. We look forward to getting to work for you. Professional Property Management doesn’t cost… it pays!

Why is it important for landlords to keep up with market rent values?

Wed, 19 Jan 2022 18:40:48 GMT

Protecting your investment for you and your posterity

The Sacramento area market rent has increased 30-45% over the past 5 years! With rent control and rent gouging laws in play, it can take many years to catch up with market rent rates once a landlord falls behind. If rents fall 30% below market it can take 4 or more years to catch up with the market rents with rent caps in place and market values continuing to increase.

This is backed up by data from housing and realtor organizations. Housing prices nationally are projected to raise 6.6% by the National Association of Realtors (NAR), though Zillow projects an over 13% gain this year. NAR also projects that rents nationwide will raise 7.1% in 2022 .

Many kind-hearted landlords are inclined to let their rentals fall behind market rent – especially so when the tenant pays well and keeps the home up. They ask, “What harm can come from not raising rents?” Quite possibly, it can be very costly to you and your family. As a landlord, here are some things you should be fully aware of when deciding whether to increase rents.

Rental market

There is an extreme shortage of rental properties available in the Sacramento area now and we expect that to continue for many years. When rental demand is high, multiple applicants typically compete for the few available properties making it easy to find a great tenant. Tiner Properties has enjoyed a vacancy factor of less than 1% for several years now.

Balancing keeping good tenants with keeping up with market rents

While we agree that it is a Tiner priority to keep tenants who pay timely, take great care of the property, and are not maintenance monsters, we have also found that raising rent part way between the current rate and the fair market rate very rarely results in a vacancy while allowing the property owners to stay close to fair market rent value. 4 years ago we raised rents on over 140 properties in a single month and it only resulted in one one tenant giving notice to vacate. Tenants recognize that rents are up everywhere and moving will not change that fact.

Resetting rent rates at a vacancy

Rent caps and rent gouging laws limit a landlords' ability to catch up to market rent once it has fallen behind.

The ideal way to catch up on market rent is during a vacancy. While vacancies can be expensive, they are also an opportunity to update the property and bring it up to its full market value. In many cases, the landlord breaks even the first year and is substantially ahead on their monthly cash flow going forward.

Inflation

The cost of repairs and maintenance are going up rapidly in our inflationary climate and that trend is expected to continue for the forseeable future.

Treat your rental like an investment rather than a charity

A landlord’s kind heart should not dictate that they must supplement their tenant’s rent by keeping it below market. We advocate keeping up with market rents to protect your investment and your legacy. Owning an investment property is the best way to establish multi-generational wealth. Real estate is an asset that has intrinsic value and is unlikely to have it’s value eroded by inflation. By maintaining rents at fair market value, you can protect the value of your investment property and your family’s generational wealth.

Leaving more for your family

If your children/heirs inherit your rental property when the rents are far below market rent, it can dramatically decrease the value of their inheritance. Here is a real life example.

About a year ago, I showed a duplex that was for sale where one of the tenants was paying $400 rent when fair market rent was $1200. Even assuming rent values stopped increasing, it would take 13 years of 9% annual increase to get the property to market rent. That’s $9000 per year in lost income the first year, and over $52K in lost income over 7 years.

Investors knew this and reduced their offers by $50K from what should have been market value for the duplex. The seller was not aware of the loss in value they had created by failing to keep up with rent values.

Tiner has a fiduciary relationship with the property Owner

As your representative, we look out for your best interest. We protect you financially by providing annual inspections which are accompanied with our best recommendation for an appropriate rent increase.

If you are looking for a property management company in the greater Sacramento area that looks after your best interests, contact Tiner Properties today .

The End Of The Eviction Ban - AB 832

susan@tiner.com (Susan Runkle) — Thu, 14 Oct 2021 23:25:19 GMT

New Rules for Eviction October 2021 –March 2022

AB 832 – The Tenant Relief Act - March 1, 2020 to September 30, 2021

October 2021 brought the end of the eviction ban: SB 3088, and it’s extension, SB 91.

The rules for evictions from March 1, 2020 to September 30, 2021 are described in AB 832.

Information for this blog applies to all of California , with exceptions for communities that have created their own more restrictive rules such as Los Angeles and San Francisco.

This blog covers what Landlords need to know.

AB 832 addresses three time periods with different rules for each

March 1, 2020 to August 31, 2020 - Protected Time Period

If a tenant owes money for this period only , they are protected from eviction for 2 reasons:
The statute of limitations for unpaid rent is one year.
AB 832 re-names “unpaid rent” for this period as “civil debt” – which is not grounds for eviction.
Landlords cannot sue for unpaid rent “civil debt” until November 2021.
Before filing an eviction, Landlords are required to have applied for Rent Relief and been rejected (or unanswered for 20 days).
Typically the only reason a landlord will not be contacted within 20 days is when the tenant has not responded with their proof of income.
Landlords and tenants can apply for Rent Relief through Housing is key. They can be contacted at 1-833-830-2122 or via housingiskey.com .
Landlords can file a Civil Lawsuit for the back rent (now considered “Civil debt”). Civil Lawsuits require attorney representation and are expensive.
The most cost effective remedy to collect unpaid rent from March 1 - August 31 2020 not covered by Rent Relief is to go to Small Claims Court and get a money judgement.
Money judgments last for 10 years and can be renewed 10 more years.
Small Claims court has lifted restrictions on the number of suits one can file and the amount one can sue for with regard to unpaid rent/civil judgments.
Best practice is to go after a money judgement while the tenant is still in place. It is harder to locate and serve a tenant once they have vacated.

September 1, 2020 to September 30, 2021 - The Transition Period

If a tenant has provided a COVID Declaration stating they have been negatively impacted financially by COVID:
25% of rent is due from September 1, 2020 to September 30, 2021. It can be paid in any increment and at anytime through September 30, 2021.
Landlord must have served a proper 15-Day Notice to Pay Rent OR Quit (and related COVID impact forms) BEFORE filing an eviction for the 25% due during this period.
75% of the rent in this time period is now “Civil Debt” - not an evictable default.
The same rules I cited in numbers #2-5 of the Protected Period apply to the 75% of rent which is now "Civil Debt". The only remedy is to collect the money through the Rent Relief program or through a Money Judgement.

October 1, 2021 to March 31, 2022 - The COVID-19 Recovery Period Rental Debt.

100% of rent is due October 1, 2021 on.
Landlords may evict Tenants for unpaid rent from October 1, 2021 on.
Landlords must use the NEW 3-Day Pay or Quit if full October rent is not paid. The new 3-Day Notice to Pay or Quit must include required COVID clauses.
Do not include any other rent due other than October 2021.
You may move forward with an eviction 3 days (not counting holidays and weekends) after providing formal notice.

Resource Links:

Tiner Properties is here to help!

We are thankful to our hardworking staff who have worked seamlessly together to provide our Owners with exemplary service. We have averaged less than 1% of tenants exceeding a delinquency of one month’s rent during the entirety of the pandemic - in a time when it was estimated that 25% of tenants nationally were delinquent. We were able to assist the few Owners whose tenants fell behind navigate the Rent Relief programs.

Established in 1976 in Carmichael, Tiner Properties is a 3 generation family business that has deep roots in the greater Sacramento Area. If you or someone you know has a rental and needs help navigating the ever changing rental laws and regulations, please contact us . We would be honored to provide quality service and unparalleled expertise. Property management doesn’t cost… it pays!

Disclosure:

I am not an attorney and Tiner Properties is a property management firm (not a law firm). Information on this page is not meant to be legal advice – we recommend seeking the council of a local eviction attorney. Tiner Properties uses and recommends Thomas Hogan for the greater Sacramento area. Thomas Hogan can be reached at 916-929-2255 .

Eviction Ban Overturned, Rent Repayment Promised

susan@tiner.com (Susan Runkle) — Thu, 13 May 2021 19:49:56 GMT

CDC's Federal Eviction Moratorium Overturned

There is good news for Caifornia Landlords

Tiner Properties is here to help!

Celebrating 45 years of Property Management in the Greater Sacramento Area

susan@tiner.com (Susan Runkle) — Fri, 12 Mar 2021 20:15:39 GMT

Established in Carmichael in 1976, 2021 marks the 45th anniversary of Tiner Properties. We have never drifted from our roots and as our business has grown, so has our canopy of relationships with the people and small businesses in the greater Sacramento area.

Tiner Properties provide income opportunities to over 50 local plumbers, handymen, cleaners, landscapers, and other vendors. The vast majority of the vendors have a staff of fewer than 5 employees. These specialists run small efficient businesses that provide the best service and prices for our property owners.

The homeowners for which we provide service own an average of 1.3 properties (Not large investment firms). 75% of our clients live in the greater Sacramento area, and 90% live in the state of California.

Our average full-time employee has been with us for 19 years. We would not be here to celebrate our 45th anniversary without our friendly, efficient, and dependable staff. We, in turn, are able to provide medical benefits, retirement plans, and a liveable wage to our wonderful employees.

We have managed over 2000 residential homes and placed over 30,000 tenants. Our 99.8% eviction-free record is thanks to our great tenants. Even during the uncertain times of COVID, we have less than 1% of tenants with serious delinquency. Our tenants drive our most powerful statistics and make providing quality service possible.

Tiner Properties is eternally thankful for the opportunity to serve the greater Sacramento area for almost half a century, and for everything it has given back in turn. We are dedicated to remaining your resource for local, family-owned property management services.

If you or someone you know needs property management service, John Tiner welcomes you to reach out to him directly at 916.402.3095 (cell) or info@tiner.com .

FAQ regarding SB 91 COVID-19 Relief

susan@tiner.com (Susan Runkle) — Fri, 05 Feb 2021 23:49:38 GMT

SB 91 was passed into law 1/29/21 and it is the newest COVID legislation. It provides a plan for relief for landlords and tenants who need it most.

Tiner Properties is thankful to the vast majority (over 99%) of our great tenants who have stayed up to date on their rent payments throughout the Pandemic. The FAQ in this blog will be welcome information for tenants and landlords whose rent has been adversely impacted by COVID.

State Rental Assistance Program FAQ

Extensions of Eviction Protections

Other Tenant Protections

COVID-19 Rental debt recovery in Small Claims Court

Tiner Properties remains diligent on staying up to date on best practices from day one of the pandemic. We have a wonderful team, and we have worked together to weather this storm together and maintain our quality of service. We implemented 3-D tours of vacancies, learned how to work from home, and (perhaps most importantly), have remained educated on every detail of the ever changing legal landscape. We would love the opportunity to put our experience to work for you today! Contact us at info@tiner.com or 916.974.6000 .

Sacramento's Real Estate Market Outlook (2021)

susan@tiner.com (Susan Runkle) — Thu, 07 Jan 2021 22:38:24 GMT

Is it wise to buy real estate in Sacramento when we may be near a peak in sales values?

We could be near a peak in a sales values market, which makes many investors question: Is it smart to buy when we may be near a peak in sales values? There are no black and white answers but there are important key things to consider.

We are not in the same place as we were in 2005 when the real estate market burst and the values dropped by 50%. In 2005, homes were renting for about 50% of the typical mortgage payment. Rent values did not support mortgages, so property owners who rented often carried large negative cash flow. In today’s market, however, most homes rent for enough to completely cover the mortgage. Lenders are also much more prudent with their loan requirements - so the people getting loans now can afford them much better than what we saw 15 years ago.

The rental shortage in the Sacramento area has become increasingly acute as the years have gone by. We are not building very many new homes compared to the demand put on by our population. New regulations and building permit costs are very costly. Even with the large run up in value we have had the last several years, it still costs more to build a new house than the secondary market or the used market value. Because of that, there is not a lot of incentive for builders to increase their production. Our rental vacancies are consistently receiving anywhere from 5 to 20 applications the first weekend that they are placed on the market. Our average home rents in less than 10 days. There is a housing shortage, and that alone tends to make the sales values tend to sustain or go up.

Recently, COVID has exacerbated the rental shortage in Sacramento. Many employers have discovered that their work force can function from home. Employees do not need to go into the office in the Bay Area - so Bay Area buyers are coming up to Sacramento to live …and the rental shortage has become more acute. Supply can not keep up with demand.

Interest rates are also an important aspect to consider. Right now, investors can get a mid 3% investment loan - which is fantastic. During the pandemic the US government has printed trillions of dollars, which has ballooned the national debt. That is building pressure to increase the interest rates. It may be that even if values drop over the next couple years, investors will look back at the loan they got in 2020 in the mid 3% range and say, “Wow that was a fantastic buying opportunity because we cannot just get money at the price anymore.”

I always advise investment buyers not to buy just on the anticipation of appreciation - but rather buy on cash flow and by return on your investment. If you are looking and analyzing by those factors, you are not likely to get hurt purchasing real estate now.

When an investor can buy a property where the rent will cover the mortgage, taxes, insurance, and property management costs - that is a good investment. The tenants will cover the majority of all costs and eventually the investor will have retirement income. That is true even if the rents do not go up - but we have always seen rents go up. So it only becomes a better investment as time goes on.

Cash buyers need to be thinking about the return on their investment, and be comparing that to CDs, stock market, and other options they have as investors. If you pay cash for a property, consider how much the rent return is going to net, and how that compares to other investments. If it makes sense, then real estate becomes a good value.

When an investment makes sense in terms of cash flow and return on investment then appreciation just becomes a huge bonus. Over the years, owning real estate is a great way to build family wealth - and just like rent values, real estate values always go up over the long term.

Tiner Properties provides expert services for investors, from buyer representation to expert property management. If you would like to talk to John Tiner about whether investing in Sacramento’s real estate market is right for you, click here or call for a no obligation consultation.

How Tenant Relief Act (AB 3088) Affect Evictions and Landlords Rights

susan@tiner.com (Susan Runkle) — Tue, 22 Dec 2020 00:37:31 GMT

Since 2019 the landscape of Rental Housing Law has changed drastically. Here is what you need to know.

For more information contact:

Tiner Properties - info@tiner.com - 916.974.6000

- or -

The Law Offices of Thomas Hogan - hogan@surewest.net - 916.929.2255

Hiring A Property Manager

Thu, 13 Aug 2020 22:17:03 GMT

An informational video and letter from John Tiner

Dear Reader,

I am John Tiner, owner, and CEO of Tiner Property Management. We are a three-generation family business that manages over 1,000 rental properties and we would be happy to put that wealth of knowledge to work for you.

We began professionally managing rental homes in 1976 and have become very good at it. We consistently outperform our local rental market in terms of vacancy, days needed to rent our properties, tenant selection (avoiding evictions and costly rehab), timely rent collection, and efficient repairs.

There are many considerations you should be thinking about before you make the important decision to hire someone to manage your valuable rental home.

Here are four things that I encourage you to ask any property manager before you consider hiring them:

That was just four things, but actually there are a lot of insider trade secrets that I am glad to share with you but I will need more time.

The best thing you can do is schedule a half-hour with me to come look at your property. There is no obligation. We can talk about rent value, tax strategies, and if you need to do anything to get your property ready for the rental market. Just reach out to me and we will set up a time that works for both of us.

So I promised to give you our fees and here we go:

We charge ½ the first month’s rent as a tenant placement fee when a new tenant comes into the property. That is guaranteed for 11 months. This means if the tenant moves out before 11 months, say for a divorce or job transfer, we will place another tenant and charge you nothing for that second tenant placement.
We also charge $100 per month for full-service property management. That includes: collecting rent from the tenant, coordinating the repairs for the property, anything that needs to be done so that you can live your life without worrying about the property management. It’s $100 per month for a single-family home or $150 a month for both sides of a duplex.

Thank you so much for reading and I really look forward to communicating further.

Sincerely,

John Tiner, GRI

916/402-3095 cell

john@tiner.com

CEO / Realtor

Masters Club Producer

Tiner Properties

6837 Fair Oaks Blvd

Carmichael, CA 95608

Cal BRE. #: 00973197

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How to Build an Amazing Relationship with Your Tenants

Fri, 24 Jan 2020 20:44:48 GMT

When it comes to being a Roseville property owner, it all boils down to the relationships you form. After all, if you’re looking to retire with passive money coming in from your rental property, you’re going to need happy tenants.

And the only way you can get happy tenants is to build long-lasting relationships with them.

Whether you self-manage your rental property, or use the help of property management in Roseville , the landlord-tenant relationships you build will be the key to your success. That’s why today, we’re going to take a look at how to create meaningful relationships with your tenants.

HOW TO BUILD STRONG RELATIONSHIPS WITH YOUR ROSEVILLE TENANTS

1. Choose the Right Tenants from the Start

One of the best ways to build a strong relationship with your tenants is to place the right ones in your property from the start. This means weeding out potential problem tenants with thorough tenant screening every time your rental is vacant.

When you screen your tenants, you should check the following:

Creditworthiness
Criminal background
Employment and income
References (including personal, employer, and previous landlord)

When you have access to this type of information, you can make an informed decision about those you’re placing in your rental. This will allow you to begin a solid relationship from the beginning.

2. Stay Professional

It’s tempting to want to befriend your tenants in hopes of building a better relationship with them. However, doing this opens you up to being taken advantage of. It also puts you at risk for late rent payments, broken lease provisions, and even damage to your rental property.

If your tenant feels like you’re their friend, they may behave in a way that breaches the lease agreement. This will create tension and degrade any positive relationship you hope to form.

Remember, being a landlord is the same as running a business. And even if you use property management in Roseville to help you out , you have to maintain professionalism to secure a good relationship with your tenants. Trust us, when you place the right tenants in your property, they’ll respect you for your professionalism

3. Maintain Open Communication

Your tenants want to know they can get in touch with the right people at the right time – no matter what.

That means being able to contact you or your property manager any time there’s a problem.

One of the biggest complaints tenants have is lack of communication. They feel as though landlords or property managers don’t communicate enough when it comes to:

Expectations
Rules about the property
Property maintenance and repairs
Tenant satisfaction

It’s important you communicate with your tenants throughout their entire tenancy, not just when things go bad. In fact, conducting routine property inspections gives you a chance to check in with your tenants and make sure they’re happy. This shows you care, gives you an opportunity to make minor repairs before they become costly, and continue to solidify the landlord-tenant relationship.

4. Respect Your Tenant’s Privacy

While checking in with your tenants is a great way to monitor your property and see how happy your tenants are, you have to be careful not to cross the line and become invasive. People call your rental home. The last thing they want to deal with is unexpected visits from you or your property manager.

In California, there are strict laws regarding the rights of landlords to enter their investment properties. Unless there’s an emergency, such as a fire or water leak, a landlord must receive permission to enter. In addition, landlords or their property managers must give proper notice and only enter during business hours.

Inconveniencing your tenant is not going to earn you any bonus points. In fact, it may cause a tenant to leave once their lease is up, leaving your property vacant. And don’t think that your tenants want to deal with multiple emails and voicemails either, because they don’t. Respect your tenant’s privacy and they will be much happier with you.

5. Ask for Feedback

One of the best ways to find out whether your tenants are satisfied or not is to ask them. When you conduct your routine property inspections, you can collect feedback from your tenants at the same time.

Doing this is beneficial because:

It shows your tenants you care about their experience leasing from you
The feedback can be used to make repairs, improvements, and upgrades
You’ll be able to better gauge whether to expect a signed lease renewal at the end of the lease term

Sometimes you’ll discover your tenants are unhappy with the way you or your property management in Roseville are managing things. If you wait until the end of the tenancy to find this out, you’ll have no time to turn it around. This will likely lead to a vacant property.

However, if you find out during a property inspection that your tenants are dissatisfied, you’ll have an opportunity to fix whatever is bothering them. This shows your tenants you appreciate them and help convince them to renew their lease at the end of the term.

In the end, collecting tenant feedback is crucial for building stronger relationships. It will also help you improve your rental property business.

6. Balance Flexibility with Firmness

If you’re hoping to supplement your retirement with rental income, the key is to secure long-term tenants.

As a Roseville property owner, you don’t want to be a pushover. This will only lead to late rent payments, property damage, broken lease agreement rules, and much more.

That said, making some exceptions to the rules will help you forge a better relationship with your tenants. And the better the relationship, the longer the tenant is likely to stay.

Here are some of the things you might consider taking a chance on changing, especially if your tenant is a great one that you want to keep:

Changing the no pet policy
Allowing temporary interior changes (g., paint, fixture changes, and wall hangings)
Upgrading an old appliance to a new and energy efficient one
Changing the flooring (upon your tenant’s request) at the time a new lease term starts
Allowing additional people to move in (complete with a new lease and signatures)

Of course, there will be some things you just won’t budge on, and that’s okay. The point is, if your tenant comes to you with a request, you should at least consider it. Doing so shows your tenants that you’re approachable and open to suggestions.

7. Using Property Management in Roseville

Managing your own rental property can take up a lot of your precious retirement time. But that doesn’t have to stop you from earning a generous income during your golden years.

If you have an investment property and want to generate passive income during retirement, consider hiring property management in Roseville to help.

The right property management company knows what it takes to make tenants happy. They understand how to create long-lasting relationships and earn the trust of tenants. And this all on top of everything else they know how to do, such as:

Screen for the right tenants
Draft legally compliant lease agreements
Collect rent
Maintain records
Perform maintenance and repairs
Conduct property inspections
Help tenants with questions or concerns
Be on call whenever there’s an emergency
And so much more

If you’re ready to take your retirement to the next level financially, but don’t want to do the work required to lease a rental property, get in touch with us today . At Tiner Property Management, not only can we help you manage your rental so you don’t have to, we can build those long-lasting relationships with your tenants.

Not quite ready to retire, but looking to jumpstart your savings? Let us manage your investment property for you now so when the time comes to retire, you have great tenants living in your property and rent coming in each month.

What You Need to Know about Statewide Rent Control Rent Caps

Fri, 27 Dec 2019 19:56:52 GMT

Rent increases are capped at 5% plus CPI, or up to a hard cap of 10%, whichever is lower.

All rent increases since March 15, 2019 count towards the rent cap
Increases since March 15, 2019 above the permissible rent cap, must be rolled back effective January 1, 2020
This law sunsets January 1, 2030 after 10 years
Only applies to residential property

WHEN STATE AND LOCAL RENT CONTROL DO NOT AGREE

The more restrictive law to the landlord (tenant friendly) rules.

EXEMPTIONS

The exemptions listed will apply to up to both rent cap and just cause.

Single-family properties and condos if:
1. Notice of the exemption is provided to the tenant AND
2. The owner is not a REIT, a corporation, or an LLC where an owner is a corporation
Housing built in the last 15 years
Owner-occupied duplexes

HOW TO CALCULATE CPI

The regional Consumer Price Index (CPI) published by the US Bureau of Labor Statistics (Using the 12-month period from April to April). If regional index is not available then the California Consumer Price Index for All Urban Consumers shall apply.

JUST CAUSE EVICTION

Applies to tenants who have been continuously and lawfully occupying the property for 12 months. Landlords may only evict for “just cause.” There are 15 reasons categorized as “at fault” or “no fault.”

EXEMPTIONS TO JUST CAUSE

Owner-occupied single-family properties renting no more than two bedrooms including Accessory Dwelling Units (ADUs). If a property is exempt from just cause, the owner can evict without cause.

BASIS OF CAUSE – “AT FAULT” AND “NO FAULT”

“At fault” is based upon a tenant’s breach of the lease and does not require the landlord to make any payment for relocation assistance. “At fault” includes:

Non-payment of rent
Nuisance
Criminal Activity
Refusal to allow entry
Refusal to sign a new Lease
Breach of material term of Lease

“No fault” is allowed when the tenant has not breached the lease and requires the landlord to pay one month’s rent in relocation assistance. “No fault” includes:

Owner occupancy
Withdrawal from rental market
Substantial remodeling
Compliance with government order to vacate

THE NEED FOR PROFESSIONAL PROPERTY MANAGEMENT IN CALIFORNIA

The overlapping City and State rent control laws make it more important than ever to use a professional management company that is able to sort through all the often confusing new laws and keep landlords in compliance.

Apply These 4 Techniques to Become a Successful Rental Property Owner

Thu, 24 Oct 2019 18:45:45 GMT

Did you know that one in three Americans have less than $5,000 saved up for retirement? Or that 21% of Americans have no retirement savings at all?

Worse yet, for the first time in 57 years, 20% of retirement-age people are still working.

If you are close to retirement, we hope these statistics don’t ring true for you. However, if they do, or you’re looking for a way to supplement what you do have in retirement savings, you might consider looking into real estate investing.

While investing a rental property is not as easy as some make it out to be, the truth is, it can help fund your golden years so you can enjoy retirement without a worry in the world.

That’s why today we’re going to explore the secrets behind becoming a profitable investment property owner. This way, you don’t have to worry about becoming a scary retirement statistic yourself.

THE SECRETS TO BECOMING A SUCCESSFUL INVESTMENT PROPERTY OWNER

1. Crunch the Numbers

Believe it or not, one of the best ways to become a successful investment property owner is to crunch the numbers before you buy a property.

To start, narrow down the areas you like most. Then, determine how many vacancies there are in the general area and what types of properties are being leased. Next, find out the average rent rate for properties like the one you think you’d like to invest in.

Once you know about how much rent you’ll be able to collect, estimate your expenses:

Mortgage
Property and city taxes
Insurance premiums
HOA fees
Maintenance and repair costs
Vacancy rate ( 8% of the rent)
Property management fees

Don’t forget to include any other income you’ll be expecting during retirement, such as social security or a 401K withdrawal.

Crunching these numbers will give you an estimate on how much cash flow you’ll actually have if you buy an investment property. If everything comes out in the green, you’re well on your way to success.

2. Treat Your Rental Property Like a Business

Running a business is tough. And so is managing a rental property.

If you want to make a profit and fund your retirement with your investment property, you’re going to have to approach your rental property like a business.

Take a look at some of the things all successful business people do:

Stay up to date in their industry . You don’t have to be a real estate agent to be a successful landlord. But you do have to be knowledgeable about the housing market. Make an effort to research the area you plan to invest in, so you know what it has to offer tenants looking to rent. Don’t look to buy the best property in a run-down area. Instead, do the opposite and look for a property that needs a little TLC (and has a great price tag) in an up-and-coming area so you have room to grow.
Learn to be tough, but fair . You’re going to have to be tough as a landlord. After all, there are going to be tenants that will pay their rent late or break the rules. If you want to be successful, you’ll need to stick to the rules and consequences (such as evicting a tenant), no matter what they say. If not, you risk being taken advantage of and losing money.
Keep your emotions at bay, but don’t be cold . When you run a business there is little room for emotion. Emotions get in the way of good decisions and cause people to make poor decisions instead. That said, you don’t want to be so unemotional that your tenants don’t like interacting with you. This will cause them to want to leave as soon as their lease is up, which is not ideal for anyone.

When you decide to invest in real estate to fund your retirement, remember to take a proactive and business-like approach to the entire process. Trust us, you’ll be thankful you did once you’re established and generating a positive cash flow.

3. Create a System

There’s a lot that goes into self-managing a rental property. If you’re not organized from the very beginning, you could end up losing important documents or missing essential steps.

Here are some surefire ways to get your system in place from the beginning, so you can handle everything with ease:

Keep meticulous records about your rental property, the people you screen, and the tenants you place in your property
Invest in a bookkeeping software to keep track of important paperwork and make sure it’s secure
Never forget to pay your insurance premiums
Keep copies of each lease agreement and all rent payments
Track maintenance and repair costs, so you always know the status of your finances
Schedule routine property inspections to check on your tenants and handle routine maintenance

Of course, this is just a glimpse into some of the things you’ll need to do as a rental property owner. But for someone that’s just getting into real estate investing, this is a great starting point.

4. Learn About Being a Landlord

As a landlord, you’ll be responsible for many things. And while it’s impossible to name them all now, we can provide you a brief look at some of the most important ones:

Advertising your rental as available
Screening every single prospective tenant
Drafting legally compliant lease agreements that both parties sign before move-in
Handling all maintenance and repairs quickly
Avoiding discrimination (follow the Fair Housing Laws)
Creating move-in and move out inspection checklists
Collecting a security deposit
Considering online rent payments
Performing routine property inspections
Adding lease provisions to address things like alterations, pets, and smoking
Setting a reasonable rent rate that will generate profit but make tenants happy
Outlining the rent rate, grace period, and consequences for late or non-payment
Requiring renter’s insurance

Sounds like a lot, right?

Well, it is. And the truth is, if you’re investing in real estate to fund your retirement, the last thing you probably want to do is spend all your time managing your rental property.

That’s why our last tip for becoming a profitable investment property owner is to consider hiring property managers in Roseville.

With the right property management company by your side, you won’t have to deal with the day-to-day operations of managing your rental property. Yet, you’ll still reap the financial rewards of your investment and be able to fund your retirement just as you hoped.

ARE YOU INTERESTED IN HAVING US MANAGE AN INCOME PROPERTY FOR YOU?

At Tiner Property Management, we know how much work goes into self-managing an investment property. We also know how much there is to gain from a profitable rental property with the right tenants in it.

If you want to get into real estate investing to help fund your retirement, but aren’t wanting to deal with the hassles that comes with owning a rental property, get in touch with us today. Not only can we help you buy the perfect rental property, we can help you manage it too, so you don’t have to.

With most properties leasing within 10 days or less, you can start enjoying your golden years in no time. And if you’re a few years off retirement age, that just means more time to generate a lot of profit so when the time comes to say goodbye to the workforce, you’re ready.

6 Actionable Ways to Spark Interest in Your Roseville Rental Property

Mon, 23 Sep 2019 17:11:23 GMT

Vacancies are the one thing all landlords try to avoid at all costs. After all, if your rental property is empty, you’re not bringing in any money. Unfortunately, having a vacant rental property is going to happen at one point or another.

That’s why knowing how to advertise and fill a vacancy as soon as possible is the best plan of action.

If you don’t want to worry about your vacant property more than you have to, read on for some actionable vacancy ad tips. Whether you run newspaper ads or rely on your property manager in Roseville, CA to advertise your property, these tips will serve as the perfect resource.

VACANCY AD TIPS FOR LEASING YOUR RENTAL PROPERTY FAST

1. Price Your Property Right

Before you start creating the perfect vacancy ad, it’s crucial you evaluate the current market. The rent rate you set for your property should be competitive enough for you to attract the right tenant pool. But you want to make sure that people aren’t having sticker shock every time they see an ad for your available property.

Don’t guess when it comes to setting a rent rate for your property. Now that it’s vacant, you have the chance to research the current market and similar properties. You can also consult with a property manager in Roseville to make sure the rent you’re asking is appropriate. If it’s not, you risk having an extended vacancy.

And don’t forget to check if your investment property is in a rent controlled portion of Sacramento, because this will make a difference in the rent rate you set for your property.

2. Take New Pictures

Your vacancy ad should have the most recent information about your rental property. This means there should also be recent pictures of the property.

If you can’t afford a professional photographer, follow these best practices:

Use natural light to enhance the beauty of your property and prevent exposing flaws
Take photos of the most used parts of the property, so people can imagine themselves living there
Add minimal furnishings to your property to give people a better perspective of its size
Deep clean the property before taking pictures
Use a tripod to prevent shakiness
Don’t forget the exterior of the property, including the backyard

Lastly, always review every single image you want to include on your vacancy ad to make sure it highlights your property in the best way possible.

If you really want to take things up a notch and impress prospective tenants, add a 360-degree virtual tour of your property to the ad. After all, 81% of tenants use virtual tours when considering a rental property, and only 15% tour a property in person.

3. Offer Multiple Contact Points

There’s no sense in advertising your vacant property if interested tenants have no way of inquiring about the property or scheduling a showing.

On your vacancy ad, you should offer multiple ways to get in touch with you or your property manager in Roseville. For example, there should be a phone number for you, your property manager, or the property management company’s office.

In addition, consider including an email address, an online contact form, or even a way to connect with a live chat representative. Of course, the points of contact you include on your vacancy ad will depend on the medium you’re using. That said, whether the vacancy ad is in print or online, it should give potential tenants more than one way to get in touch.

4. Add an Incentive

Using compelling copy on your vacancy ad to gain the attention of high-quality tenants is great. But there’s one thing people love more than persuasive copy: an incentive to rent.

In competitive marketplaces, prospective tenants are going to be on the hunt for a great deal. There’s a chance that your rental property may be right in line with the competition when it comes to location, amenities, and even rent rate. Because of this, you may need to add a little extra to your ad to encourage people to lease from you instead.

Here are some examples of incentives you can offer to tenants agreeing to lease from you:

One month of free rent
Money off first month’s rent
Free cable for a year
A $100 gift card
A free TV
A dedicated parking space

It may not seem like a good idea to put up some of your own money while advertising an empty property. But trust us, giving people an incentive to lease from you will get your property leased quicker and net you more profit in the long run.

5. Include the Best Amenities

You may not have enough space to list everything that makes your Roseville, CA property great on your vacancy ad. However, that doesn’t mean you can’t add two or three amenities that set your rental property apart from the competition.

Here are some of the top amenities your tenants are looking for:

Flexible Pet Policies : According to the National Pet Owners Survey , 67% of US households own a pet. While having a pet-friendly rental is not always ideal for the property owner, it’s definitely something many tenants want.
Outdoor Oasis : Tenants love the thought of being able to host their family and friends in a beautiful backyard. Things like custom decks, pools, and extra storage are all pluses. If this is something you have to offer, make it known on your vacancy ad.
Added Security : Your rental property is a home to your tenants. Everyone wants to feel that their family is safe at all times, whether they own the house they’re living in or not. That’s why extra security measures such as motion lights, a security system, and keyless entry are all great amenities to mention on your advertisements.
Dedicated Parking : If your property has off-street parking (especially if this is a rarity in your neighborhood), be sure to include that point on your vacancy ad. Play up features such as garages, dedicated parking spots, and covered parking.
Energy Efficient Appliances : More than ever people want to do their part to reduce their carbon footprint. That’s why renovating your rental property with energy-efficient appliances is so appealing. Not only do they reduce energy use, but they also reduce energy costs, which tenants love too.

To be a successful Roseville, CA landlord, you must try to give your tenants what they want. And, there’s no better way to do this than to advertise that you do indeed have what tenants are looking for in your vacancy ads.

6. Use a Property Manager in Roseville

Being a landlord is a tough job when you’re self-managing your property. And while it can be done alone, sometimes getting the help of a property manager in Roseville makes your life that much easier.

This is especially true if you’re using your investment properties to fund your retirement. The last thing you want to do is worry about advertising your vacant rental and then managing it once you place a tenant in it. Instead, let your property manager take care of everything for you.

INTERESTED IN HAVING YOUR ROSEVILLE RENTAL PROPERTY PROFESSIONALLY ADVERTISED?

At Tiner Property Management, we can help with renting and managing your investment property, so you don’t have to. We aggressively market your property across the web, including all rental sites and Craigslist. And since most of the homes we manage rent within 10 days or less, you won’t lose any more money than you have to when an inevitable vacancy happens.

So, contact us today to see how we can help you fill your vacant rental property. Then, sit back and enjoy the reward of being a successful property owner.

How to Get Most (Or All) of Your Security Deposit Back When You Move Out

Mon, 16 Sep 2019 18:48:00 GMT

Many tenants feel they are unfairly treated when the landlord keeps more of their security deposit than seems fair when they move out.

The fact is, the Security Deposit is the Tenant’s Deposit (not the Landlord’s) and the law leans in favor of tenants when there is a dispute between the landlord and tenant. You do not need an attorney to fight for your deposit – small claims court does not allow attorney representation. If the court finds that your landlord held your Security Deposit unfairly and in “bad faith”, they MAY award you up to 3x the amount that you were owed.

KNOW THE LAW

Civil code 1950.5 covers this process in detail but here are the highlights:

The landlord has 21 days from the time you give them full possession of the property to account for (and refund the balance of) your security deposit. If the landlord is unable to complete the process in 21 days, they must, in writing, inform you that they need and extension and provide you an estimated refund. Then they must complete the process as soon as is reasonable. Property Owners who do their own work (rather than using an outside vendor) must break down materials cost and time/labor amounts on their receipts.

Security Deposits may only be used for these 3 items:

Unpaid rent.
Damage beyond normal wear and tear.
Cleaning. NOTE: Late fees, utility bills… may NOT be deducted from your security deposit.

KNOW THE LAW

1. Take pictures before you move in and after you move out and clean.

Pictures are much more convincing than anything you say. In many cases your landlord will have marketing photos from before you move in – but they may not show the dirty oven…

2. Do a good written Move-in Condition Report.

This document is your opportunity to note pre-existing dirt, damage… Too many tenants move in and sign that everything is “OK” then later try to claim their was pre-existing damage and that will never work well for the tenant.

3. Ask for a pre move-out inspection.

When you are within the last couple weeks of living in the home, ask the landlord (always in writing) for a pre move-out inspection. The landlord must then provide you with a written list of all you need to do to get your deposit back (there are exceptions for hidden damage). This limits the scope of what landlords can later charge you for – if it was not on their list and it was not hidden – they cannot withhold for it.

4. Do the needed repairs and cleaning BEFORE you move out.

Clean it at least as good as you received it. Haul away ALL of your personal property and/or trash. Hire someone to fix any damage that happened while you were there. Once you are out you have no control over who the landlord chooses to hire or what they charge to fix or clean things you could have done before you gave keys back.

5. Be realistic.

Crayon marks on the walls is damage even if the house needed paint. Holes in the walls are not normal wear. If you damaged the home, be willing to fix it or pay to have it done.

6. Do not withhold rent for fear that the landlord will use all your deposit.

The landlord may start an eviction on you even if you are (in theory) within the last 30-60 days of living in the home. An eviction on your record is a DISASTER to your ability to rent homes for the next 7+years.

7. Submit a request in writing.

If the landlord has not given you a written accounting of how your deposit was used (and an appropriate refund) within 21 days, request what is fair in writing to him/her. Do not use hot and angry words – just the facts. A judge may be looking at the same letter later and deciding how reasonable you are. If the landlord does not correct the situation fairly within 21 days, file a small claims action and get your photos, paperwork in order.

How Is Sacramento’s New Rent Control Going To Affect Landlords?

Wed, 04 Sep 2019 15:47:31 GMT

Many of our property owners have heard about rent control coming to Sacramento and asked for more information – so we are sending this update to all of the owners we manage properties for.

Rent values have increased by up to 40% over the past 5 years and homelessness has increased dramatically too – so there has been tremendous political pressure to enact some kind of rent control.

In response to that pressure, the Sacramento City Council recently passed a new rent control measure (The Tenant Protection and Relief Act) that will cap rent increases and limit evictions for some renters in some properties of certain renters.

Here is what property owners of rental properties need to know:

WHAT PROPERTIES ARE IMPACTED?

Only properties in the CITY of Sacramento (not the County or any surrounding cities or counties).
Only duplexes and Apartments built before 2/1/95 (Condos and single family homes are exempt).

WHAT ARE RENT INCREASES LIMITED TO?

As of July 1, 2019, a landlord cannot increase the rent by more than 6% plus CPI – but not to exceed 10%.
Rent cannot go up more than once a year.
Exception: New tenants are not subject to the same rent limitations.

WHAT PROTECTIONS DOES THE ORDINANCE PROVIDE TENANTS?

After living in a unit for more than a year, a Landlord must renew and cannot terminate a rental housing agreement.
Exceptions include but are not limited to: Failure to pay rent, breach of rental agreement, criminal activity and failure to give access, Owner or their immediate family need to move in.

WHO WILL PAY TO ADMINISTRATE THE NEW RENT CONTROL MEASURE?

The property Owner.
The annual, per unit administrative cost is not yet known.

WHAT ARE THE PENALTIES FOR NONCOMPLIANCE?

Failure to comply with the ordinance may make the landlord subject to sanctions, civil actions and/or administrative penalties.

DOES THIS MEASURE HAVE A SUNSET CLAUSE?

Yes. It expires on Dec. 31, 2024.

JOHN TINER’S THOUGHTS ON THE TOPIC OF RENT CONTROL:

While I am always opposed to rent control, this measure impacts a very limited number of properties we manage, and it provides reasonable boundaries.

My greater concern is the concept that, “As goes the city of Sacramento, so goes the County of Sacramento followed by surrounding cities/counties.” That is what has happened with the property inspection programs: They started with Sacramento City a few years ago and now include Sacramento County, Elk Grove, Rancho Cordova, and most recently, Citrus Heights. I ask that all our property owners take an active role in opposing rent control whenever possible.

Rent control is a Band-Aid on the real housing problem which is a large lack of supply of affordable housing compared to the demand. The better way to address affordable housing is to drop the cost of permits and fees for builders of affordable housing while reducing the regulations that make it cost-prohibitive to build.

However these issues develop over the years ahead, Tiner Properties is committed to staying within compliance for all rental laws for the properties we manage.

New CA Property Management Law for Eviction Related Notices in Effect September 2019

Mon, 02 Sep 2019 15:25:04 GMT

Starting September 1, 2019, a new California law is giving tenants extra time to respond to eviction related notices.

As a Sacramento income property owner, it’s crucial you stay up to date on all California property management laws. After all, a judge is never going to accept the ignorance excuse. This means you must be diligent when it comes to learning about new laws.

To help get you up to speed on the newest law, Assembly Bill No. 2343 , we’re going to outline what the current law says and what changes took place September 1, 2019.

EVICTION RELATED NOTICES

Currently, tenants have 3 or 5 calendar days to respond to these eviction related notices:

Currently, tenants have 3 or 5 calendar days to respond to these eviction related notices:

Notice to Pay or Quit : When your tenant is late with their rent, you can give them a Notice to Pay or Quit. This informs your tenant that they have 3 days to either pay the rent or leave the property. If the tenant does not pay or leave within the 3-day timeline, you can begin eviction proceedings.
Notice to Perform Covenant or Quit : If your tenant violates the lease agreement, you can give them a Notice to Perform Covenant or Quit. This gives them 3 days to either remedy the issue or leave the property. If the tenant does not fix the problem within 3 days, you can begin eviction proceedings.
Unlawful Detainer Summons : This summons tells the courts that you need help removing a tenant from your property. This is often seen when a tenancy has expired and the tenant won’t leave. Tenants have 5 days to respond to this summons with an official answer. If they don’t, they lose the case and eviction proceedings begin.

California Law AB 2343

Current law says that tenants receiving an eviction related notice must respond in 3 or 5 calendar days (depending on the notice).

For example, a Notice to Pay or Quit served on Monday will need a response by Thursday. That same notice served on Friday needs a response by the following Monday.

Under the new law, court holidays and weekends won’t count towards the 3 or 5-day response time for eviction related notices.

Why you ask?

Organizations protecting tenant rights claim that notices served on a Friday make it hard for tenants to seek legal counsel. After all, law offices are closed over the weekend. And if a tenant receives a notice on a Friday before a 3-day weekend, they definitely won’t have time to consult with a lawyer.

IN OTHER WORDS, THE CALENDAR DAY STRUCTURE DENIES TENANTS THE ABILITY TO SEEK PROPER LEGAL COUNSEL.

So, using the same example mentioned above, a Notice to Pay or Quit served on Monday will need a response by Thursday. That same notice served on Friday needs a response by the following Wednesday.

That’s a big difference.

WHAT DOES AB 2343 MEAN FOR SACRAMENTO LANDLORDS?

When AB 2343 goes into effect, tenants may have an extra 2 or 3 days to respond to eviction related notices. This means Sacramento landlords won’t be able to start eviction proceedings as fast.

That said, if you serve a notice on a Monday or Tuesday, and there are no holidays, the same 3-day timeline remains. The new law will only affect landlords serving tenants at the end of the week or around holidays.

In addition, the new law does not apply to 30-day and 60-day termination notices. It also doesn’t apply to Notices to Quit based on nuisance, unauthorized assignment, subletting, or waste.

FINAL THOUGHTS

It’s important to know that ending a tenancy is one of the most regulated California property management laws. And while it’s tough to keep up on changing legislation, it’s your responsibility to follow the law at all times.

If you feel like keeping up on landlord-tenant laws is too hard, contact us to see how our property management approach can help.

Here at Tiner Property Management, we know how important landlord-tenant laws are. Because of that, we’re dedicated to staying up to date on all legislative changes, such as AB 2343. Not to mention, we strive to maintain our eviction-free rate of 99%, which outperforms the local market, so you never have to worry about eviction related notices in the first place.

Reduce Tenant Complaints with These 5 Rental Renovations

Mon, 05 Aug 2019 23:19:41 GMT

Happy tenants mean a steady rental income and more lease renewals. Not to mention, the happier your tenants are, the easier it is to grow your rental property business. After all, a solid reputation helps a lot.

That said, keeping tenants satisfied can be challenging. Every other landlord in the area is vying for the same high-quality tenants as you. And when tenants catch on that there are similar properties offering a lot more than you, you’re bound to run into some complaints.

That’s why so many Sacramento landlords consider making renovations to their investment properties.

Renovating your rental property can dip into your profits and hurt your ROI – initially. But in the long run, making renovations can actually lower tenant complaints, lead to more lease renewals, and help you raise the rent. This means eventually you’ll end up with a higher ROI than ever before and beat out the nearby competition.

If this sounds like something you want to do, check out the best renovations you can do to your rental property to lower tenant complaints.

RENTAL PROPERTY RENOVATIONS TO LOWER TENANT COMPLAINTS

1. Replace the Flooring

Carpets can quickly turn into a Sacramento landlord’s worst nightmare. Many tenants don’t like them, they’re hard to care for, and replacing them on a regular basis can become expensive. Not to mention, poor quality carpeting has the potential to drag down your property’s value.

Luckily, there are plenty of alternative flooring options including:

Tile: tile is one of the most versatile flooring options you can have in your rental. It’s tough to stain and comes in a variety of styles and colors. Plus, it’s perfect for the humid conditions Sacramento is known for.
Hardwood: hardwood in another great option for your investment property. It’s beautiful, easy to clean, and can act as a natural insulator during any season. Plus, once hardwood wears down, you can sand and re-stain it instead of replacing it.
Laminate: laminate is an inexpensive flooring option that looks and feels like hardwood. You might be able to install yourself since the planks are easy to place.
Vinyl: vinyl works well in highly trafficked areas that need water resistance. For instance, many properties use vinyl in bathrooms and kitchens. Though not always the most stylish choice, you can use vinyl planks to make your floor look like wood, tile, or stone.

If you really want to impress your current tenants and are looking for a way to increase the value of your rental property, start with the floors.

2. Beautify The Kitchen and Bathrooms

Your tenants are likely to spend a lot of their time in your property’s kitchen and bathrooms. And no one wants an outdated kitchen with old appliances or a bathroom that looks like it has never had any TLC.

In general, kitchen and bathroom renovations give you about an 80% return on investment. This is higher than most other renovations, including decking (75%), family room additions (78%), and master suite upgrades (74%) to name a few.

No matter how big or small the upgrades are in your property’s kitchen or bathroom, trust that your tenants will love it. If you need some inspiration, here are some ideas to get you started:

Kitchen appliances such as the refrigerator, stove/oven, dishwasher, and microwave
Fresh coats of paint in light and airy colors that are inviting
Hardware changes in the bathroom: door knob, cabinets, faucets, and even the shower door
Counter space resurfacing or replacements
Kitchen backsplash
New sink and disposal in kitchen
Shower/tub replacement
New lighting fixtures

If anything, the next time your rental property goes vacant (and it will), having a freshly remodeled kitchen and/or bathroom will attract high-quality tenants willing to pay for the amenities you’ve added.

3. Minor Landscaping and Exterior Finishes

Any property manager in Sacramento will tell you that the exterior of your rental property is crucial for making a good first impression. But more than that, tenants already living in your rental will want to give visitors a great impression too.

That’s why renovating the yards and exterior of your property is such a good idea.

To start, handle the basics like mowing and edging the grass, trimming the brushes, and cleaning the rain gutters. It’s also a good idea to look at remodeling or fixing up the:

Walkways
Decking
Patio cover
Windows and sills
Doors and hardware
Trees and flowers
Outside storage
Roofing

If you can make the front exterior of your rental look inviting, your tenants will like it. If you can make the backyard an oasis tenants can enjoy with friends and family, they’ll love it.

4. Upgrade All Appliances

We mentioned earlier that changing out old kitchen appliances and putting in new ones is a great way to satisfy your tenants. But don’t forget about the other major appliances too.

For example, look into getting an energy efficient washer and dryer or replacing the outdated HVAC system (complete with temperature controls). You might even try throwing in a free TV for an added wow factor. The newer and better your rental property appliances are, the happier your tenants will be. You’ll also find yourself receiving less complaints because new appliances don’t break down like old ones do.

5. Extra Storage Space

One of the most sought after rental property amenities is extra storage space. That said, not a lot of tenants are likely to turn down a great rental just because it doesn’t have a walk-in closet.

That’s why if you’re looking for a way to reduce the grumblings your tenant have about not having anywhere to put their stuff, adding in extra storage space is a great place to start.

You might consider adding an extra closet or installing shelves in an existing closet. The same can be done to your property’s garage. After all people have camping gear, holiday decorations, and other items that need a place to stay. And don’t forget about renovating the bathrooms with more storage space or extending the hall closet.

Giving people a way to store their personal belongings without feeling cramped will make them feel more at home in your rental. And if your tenants feel at home, they’ll want to stay there long-term.

Are you interested in finding out how to maximize your rental income? Check out Tiner Property Management and see how making renovations to your investment property using your rental income is likely to affect your rent rates.

THINGS TO CONSIDER BEFORE RENOVATING YOUR RENTAL PROPERTY

When it comes to rental property renovations, it’s important you make sure the money being invested is worth it.

To help you decide, Brick Underground has some possible answers to your tenant’s question: Can you renovate X, Y, or Z in this rental property?

Yes, and I will pay. If your tenant complains about something that clearly needs renovating, you might be willing to pay to get it done. After all, you can make many low cost renovations to your rental that will improve your tenant’s life. Examples of this include replacement weather-stripping, new toilet seats, or a fresh coat of paint.
Yes, but your rent will increase. Some things that need renovating will also increase the value of your rental property. Plus, they might be nice to have, but aren’t actually necessary. If this is the case, you can agree to pay, but remind the tenant their rent will increase. Examples of this include: bathroom vanities, high-end kitchen appliances, and ceiling fans.
You pay for it. Some things your tenants are complaining about are not worth the time or effort to pay for and install. But that doesn’t mean you can’t give them approval to make the changes themselves. This might include things like window treatments, room dividers, or extra electrical outlets.
No way. There might come a time when your tenants want a renovation that isn’t in your best interest and you have to say no. This might be a request to have a waterbed or a custom paint job in dark colors.
You pay for it and avoid the rent increase. Tenants with complaints often worry about asking for a renovation because they’re afraid the rent will increase. One way around this is to have your tenants pay for the renovation and then discount their monthly rent. This is your way of paying them back and getting them to do all the work too.

In the end, renovating your rental property is not something to take lightly. The ROI on your renovations has to be worth it for them to make sense.

Luckily, at Tiner Property Management, we understand the market well enough to know which renovations are worth the money, and which aren’t. After all, the point of buying a rental property is to make money and encourage good tenants to renew each year.

If a renovation will help you generate a higher profit and satisfy your tenants, we’re going to advise you to move forward with your ideas. From there, we’ll help you manage your property so you don’t have to worry about a thing.

So, contact us today and ask us what we think about your potential renovations. We’re here to help you in every way possible so both you and your tenants have zero complaints.

8 Important Questions to Ask Sacramento Property Management Companies

Wed, 22 May 2019 23:24:06 GMT

Hiring a property management company to manage your rental property is a big deal. It can ensure your investment is well-cared for, your tenants are happy, and you generate a profit. Plus, it can relieve the day-to-day stress of managing a rental property on your own.

This is especially true if you’re looking to grow your portfolio.

That said, knowing which property management company to hire can be tough. There are so many property management companies in Sacramento, CA to choose from. And if you don’t know what to look for, you might hire a company that isn’t capable of doing what you need them to do.

That’s why knowing what to ask while interviewing property management companies is so important.

Check out the top questions you should ask property management companies before making a final decision.

QUESTIONS TO ASK PROPERTY MANAGEMENT COMPANIES IN SACRAMENTO, CA

1. How Many Rental Properties Do You Currently Manage?

Knowing how many properties a management company handles is important.

If they manage too few rentals, they are either in a building phase or provide poor customer service. If they manage too many properties, there’s a chance they are spreading their managers too thin.

You want to the property management company you hire to be somewhere in between. Look for a company managing around 200-600 units. Also, find out how long the company has been in business. Well-established property managers with proven records are the most reliable.

Tiner Property Management has managed over 3,000 properties over the last 30 years. We also boast an impressive 230 combined years of experience in managing rental properties.

2. What Kind of Properties Do You Manage?

There’s no sense hiring a property management company that doesn’t manage the type of property you own.

Here are the main types of properties investors tend to own:

Commercial Properties . Hotels, offices, storage facilities, and restaurants.

Industrial Properties . Research facilities, warehouses, distribution centers, and manufacturing plants.

Retail Properties . Grocery stores, clothing shops, and furniture outlets.

Residential Properties . Single and multi-family homes, apartments, condos, and townhomes.

The property management company you hire will depend on the type of property you own.

Tiner Property Management manages single family homes, condos, and duplexes.

3. What Property Management Services Do You Offer?

Property management services can vary. You’ll want to ask about the services provided so you know you’ll get the what you need.

Some of the most important property management services to look for include:

Aggressive marketing of vacant properties across many channels
Thorough tenant screening, tenant placement, and lease agreement drafting
Strict rent collection procedures and easy deposit of funds
24/7 property maintenance and repair services
Routine property inspections
Turnkey services between tenants to make your property rent-ready
Detailed financial reports and accounting (monthly and annual)
Routine property inspections, complete with reports and photographs
Knowledge about landlord-tenant laws in Sacramento and eviction procedures
Advanced technology for managing properties
Superior customer service to answer all questions you and your tenants have

With Tiner Property Management, you can expect all these services and more. Most notably, for over 30 years, 99% of all client properties managed have been eviction free. Thanks to success-proven tenant screening, we rank #1 in placing high-quality tenants.

4. Do You Offer Any Guarantees?

Before hiring a property management company, you should ask about their guarantees. After all, you want to make sure your money isn’t lost if the company doesn’t follow through on their promises.

Tiner Property Management has an 11-month tenant guarantee. It promises that if your tenant is evicted within 11 months of being placed, we’ll find you a new tenant at no cost to you.

5. What Kind of Technology Do You Use to Manage Properties?

Your Sacramento property management company should provide you with the best service possible. One of the best ways to do this is to use advanced technology.

It’s also a good idea to ask if there’s a company website that you can use for things like:

Advertising a vacant property
Monitoring monthly rent payments
Finding information about property management services
Viewing satisfied client testimonials
Reading blog posts and articles with valuable information
Having a company website is also good for your tenants. For example, they can find available rentals to lease. Also, they can learn helpful tips from the blog, pay their rent, and make maintenance requests.

Tiner Property Management uses cutting edge technology to help with advertising properties and setting rent rates. It also helps with screening tenants, collecting rent, and handling maintenance requests.

6. How Do You Set Rent Rates

An important part of being a landlord is making a profit. If you’re going to hire a property manager to do things like set rent rates, you’ll want to know how the rate is set.

A good property manager will perform a comparable market analysis of properties near yours to set a competitive rent rate. The key is to price your rental high enough to generate a profit, but low enough to lease quickly.

If you use Tiner Property Management, your property manager will view real rent rates of properties like yours. This way, your investment is priced right and you maximize your revenue. Plus, your property will lease faster. Most Tiner Property Management properties rent within 10 days or less.

7. How Do You Collect Rent from Tenants?

It’s not enough to have a competitive rent rate for your property. You need to make sure the property manager you hire has a consistent method for collecting rent.

Here are some things your property management company should do:

Outline when rent is due, how to pay, and the consequences for non-payment in the lease agreement
Explain to your tenants upon move-in how serious rent payment is
Offer many ways for your tenants to pay rent to increase the chances of timely payments
Record all rent payments and make those financial reports available to you
Start the eviction process immediately upon non-payment of rent

If you hire Tiner Property Management, you don’t need to worry about how rent will be collected. Our AppFolio software gives tenants three convenient ways for paying: cash, e-check, or credit card.

8. How Will I Get Paid Each Month?

You should ask about how you’ll receive payment each month. Most property management companies in Sacramento, CA offer direct deposit. If you want payment in another form, bring this up during the interview to make sure your needs can be met.

At Tiner Property Management, you can receive your rent via check or direct deposit. Either way, your property manager will deliver payment quickly and securely. You’ll also get an itemized monthly statement, so you always know where your money is being spent.

Final Thoughts

You can ask many other questions a property management company, including:

How much do property management services cost?
How do you screen potential tenants?
Do you perform routine property inspections?
How are maintenance and repairs handled?
What control do I have over the tenant lease agreement?
Are there any fees when my property is vacant?
Can I cancel my contract? If so, what’s the process?

Are you in need of Sacramento Property Management? If so, contact Tiner Property Management today and see how we can help.

We’re ready to take on the headaches of having tenants and managing your property so you don’t have to worry about a thing. From tenant screening to lease agreements, property inspections to rent collection, we’ve got you covered. In fact, our specialty at Tiner Property Management is handling everything when it comes to property management.

tiner

New Property Management Laws For 2026

AB 628 - New Stove And Refrigerator Requirements Added For Habitability

AB 628: What California Property Owners Need to Know About the New Stove & Refrigerator Requirements

What AB 628 Requires: Landlords Must-Provide A Stove and Refrigerator

When AB 628 Applies: Owners’ Timeline & Lease Implications

Tenant May Opt Out Of The Refrigerator (and may change their mind).

If a stove or refrigerator is recalled:

Who Is Exempt?

2025 New Laws

Brief Description with links to the Bills, and Tiner full-length video and written blogs

AB 2493 Changes How Landlords Must Process and Decline Applications

AB 2801 Requires 3 Times Landlords Must Take Photos For Deposit Deductions (And Forbids Mandated Cleaning Charges)

SB 611 Creates 3 Changes Landlords Must Follow for 2025

AB 2347 Extends Response Time For Tenants Responding To An Eviction Notice From 5 Days To 10 Days.

AB 2622 Raises The Daily Limit For Handymen From $500 To $1000

AB 2747 Requires Landlords to offer tenants credit reporting. Properties with 15 or fewer doors are exempt.

SB 1051 Requires landlords to rekey locks when the tenant adequately documents an incident of domestic violence.

SB 611 Creates 3 New Requirements For 2025

AB 2801 Requires Photos for Security Deposit deductions, new law for 2025

SB 267 and other Section 8 screening requirements

SB 267 Requires California Landlords To Process

Section 8 Applicants Differently Than All Other Applicants.

Key Changes For Section 8 Applicants

The Latest Change: SB 267 And Credit Report Restrictions

Alternative Evidence: What Can You Accept?

3 Vital Areas To Comply With SB 267

Why This Change?

Best Practices for Adapting Your Screening Process

New Application Requirements for 2025, AB 2493

Tiner Property Management has enjoyed an incredibly low eviction rate for decades

Giving credit where credit is due:

Landlords can only keep an Application fee IF they meet ALL 4 of these conditions:

Time limits for Application Fee refunds:

Is AB 2493 best for landlords? I don’t think so - but maybe.

3 Additional requirements of AB 2493 for declined applicants:

Conclusion:

Selling a Rental Home with Tenants in Place

Step-by-step instructions on navigating the tricky process.

Before you start, it is important to understand the Tenant and Owner’s rights:

Understand the owner’s rights:

Understand the tenant’s rights:

Start by scheduling a face to face meeting with the tenants:

Rules for giving notice to vacate:

120-Day Notice of Intent to Sell (California)

Requirements for the 120-Day Notice of Intent to Sell:

Post-Notice Considerations:

Shift to the good news:

Ask for their help:

Tiner Properties track record of success:

Voting Recommendation Newsletter - October 2024

Voting time is upon us. This ballot has a couple issues directly related to owning rental homes that I wanted to remind you of:

Rental Market Update, 3rd Quarter 2024

After 7 boom years in the rental market - we have now had 2 slow years with a softening market. The change is largely due to increased interest rates.

We are receiving 3x less interest for properties than we did 3 years ago!

National statistics mirror Tiner data trends.

So, how does a landlord properly price a rental?

Conclusion:

Changes to Security Deposit Caps

Rental Market Update

A review of vacancy trends, and advice on how to best market in the current economy.

Rent Values Are Changing

﻿ A rent market update by John Tiner October 2022

Can’t Sell Your Home In This Market? Rent Instead!

“It’s Dejavu all over again” (Yogi Berra)

Why is it important for landlords to keep up with market rent values?

Protecting your investment for you and your posterity

The End Of The Eviction Ban - AB 832

New Rules for Eviction October 2021 –March 2022

AB 832 – The Tenant Relief Act - March 1, 2020 to September 30, 2021

This blog covers what Landlords need to know.

AB 832 addresses three time periods with different rules for each

Tiner Properties is here to help!

Eviction Ban Overturned, Rent Repayment Promised

CDC's Federal Eviction Moratorium Overturned

There is good news for Caifornia Landlords

Tiner Properties is here to help!

Celebrating 45 years of Property Management in the Greater Sacramento Area

Established in Carmichael in 1976, 2021 marks the 45th anniversary of Tiner Properties. We have never drifted from our roots and as our business has grown, so has our canopy of relationships with the people and small businesses in the greater Sacramento area.

FAQ regarding SB 91 COVID-19 Relief

A rent market update by John Tiner October 2022