by Suzanne Rodoni-Silverberg | Feb 4, 2022 | Property Management, Santa Cruz Property Management Education
A lease agreement is signed by landlords and tenants to protect each party and the rental home itself. There are many different types of leases. Some property owners are comfortable with a two-page rental agreement and others want dozens and dozens of pages with ongoing addenda and attachments.
Most lease agreements are complex and customized to your specific property and your location. Every state has its own requirements.
As professional Santa Cruz property managers, we’ve had to take on lease agreements from owners who were managing by themselves or didn’t have great lease agreements in place. These are three common mistakes that we see. These errors can be costly and difficult, and you want to avoid them if you can.
1. Using a Lease Template that Isn’t State-Specific
If you’re not sure where to get a standard lease agreement when you’re ready to rent out a home to tenants, you might quickly go online to find one. This is understandable – we can find just about anything with a Google search. However, any lease agreement for your Santa Cruz rental property has to be specific to California. Otherwise, it’s not compliant with state laws and it’s not enforceable should you need to take your tenants to court.
Don’t download any lease template you find. Don’t borrow a lease agreement from a fellow landlord in Texas. Instead, talk to a Santa Cruz property manager or a real estate attorney so you can access a lease template that actually protects you here in California.
2. Leaving the Lease Term Open
You want to be clear about the terms of the lease. Your agreement must include a start date and an end date. What many property owners neglect to do is stipulate what happens at the end of the lease. Usually, you will offer your tenants one of these options:
- Renew the lease agreement for a specific period of time and for an identified amount of rent.
- Allow tenants to go month to month for a period of time, with a higher rental amount.
- Non-renewal and tenants move on after the lease period is over.
If you don’t clearly say what happens, there will be confusion at the end of the lease. Your tenants need to know how much notice to give if they plan to vacate. They need to know what to expect in terms of when you’ll be making a renewal offer. Don’t invite chaos and uncertainty into the end of your lease term.
3. Skipping the Rent Collection Policy
Most lease agreements state how much rent the tenant is to pay the landlord. However, a good lease will go beyond that. Not only do you want to include the rental amount, you also want to outline when it’s due, whether there’s a grace period, and what the consequences are (including late fees and eviction) if rent is paid late or not at all. Make sure you state how rent should be paid.
Including the full rent collection policy in your lease agreement will eliminate any confusion and provide support to you if your tenants pay late or claim they didn’t know how they were supposed to get you the rent.
There are other dangers that can pop up when you’re negotiating and signing the lease. If you’d like some help protecting you and your Santa Cruz investment property, please contact us at Real Estate Eight Three One.
by Suzanne Rodoni-Silverberg | Jan 21, 2022 | Property Management, Santa Cruz Property Management Education
In order for a rental property to be a lucrative investment, landlords must be able to manage themselves and their paperwork. Staying organized is not optional – it is essential. Not only do you need to protect yourself with proper documentation and careful accounting, you also need to have everything in order for tax purposes.
You should be able to easily access rental applications, maintenance invoices, leases, inspection checklists, and an accounting of what is earned and spent every month. This takes a lot of time and structure even if you’re renting out just one Santa Cruz investment property. If you have multiple units, things really need to have processes in place.
If you think you’re doing fine without a process and a lot of documentation, you could be putting your investments at risk.
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by Suzanne Rodoni-Silverberg | Jan 7, 2022 | Property Management, Santa Cruz Property Management Education
Attracting, screening, and placing high-quality Santa Cruz tenants is an important part of the rental process. Retaining those tenants is even more important, especially when you’re thinking about the cost of turnover and the value of stable and consistent income.
Tenant retention plans often don’t get the attention that they deserve. It should be a priority, especially if you want to reduce vacancy. Avoid unnecessary vacancies and increase your retention rate with these simple tips.
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by Suzanne Rodoni-Silverberg | Sep 24, 2021 | Property Management, Santa Cruz Property Management Education
Effective Santa Cruz property management relies on good communication. We are focused on communicating transparently and proactively with our owners, our tenants, our vendors, and all the other partners within our community that help us manage your property well.
Good communication requires excellent systems, innovative technology, and a willingness to be responsive and accessible.
Here’s what you can expect when you’re working with Santa Cruz property managers like us.
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by Suzanne Rodoni-Silverberg | Sep 10, 2021 | Property Management, Santa Cruz Property Management Education
No one enjoys being part of a tenant dispute, and if you have tenants who are difficult during or after the lease term, you need to know how to resolve the situation without allowing it to escalate. While the courtroom is always the ultimate option when it comes to settling problems with your tenants, the legal system is really best avoided. California is notoriously tenant-friendly, and a lawsuit or a court hearing will only cost you time, money, and peace of mind.
Here are three things you need to do when you’re trying to settle a Santa Cruz tenant dispute. (more…)
by Suzanne Rodoni-Silverberg | Aug 27, 2021 | Property Management, Santa Cruz Property Management Education
California is known to be a tenant-friendly state. There are a number of laws protecting tenants and their rights, and property owners who don’t understand those laws or violate them can find themselves facing large financial penalties and other consequences.
The legal landscape really intensifies the need for professional Santa Cruz property management. If you’re not already getting help from a property manager, make sure you’re following the law perfectly. Mistakes are easy to make.
Today we’re taking a look at one specific right that tenants have if you don’t fix something in a timely manner. This is the Right to Repair and Deduct.
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by Suzanne Rodoni-Silverberg | Aug 13, 2021 | Property Management, Santa Cruz Property Management Education
It’s basically impossible to own rental real estate in Santa Cruz (or anywhere in California) without having a grasp on the fair housing laws that are in place at the federal, state, and local levels. This is an area of the law that’s always changing, and in California, our laws are often stricter and more complex than the federal Fair Housing Act.
Mistakes are easy to make, even if you’ve been renting out a home for years. Staying a few steps ahead of the latest changes and interpretations requires a lot of work and an investment in education and professional development.
Fair housing impacts a lot of what you do as a rental property owner. It affects how you advertise a vacant home, what criteria you use to screen tenants for that property, and how you manage your tenant relations throughout the leasing period and when it’s time to renew the lease agreement.
Always consult with a Santa Cruz property management company that knows these laws inside and out, otherwise you could be putting yourself and your investment property in unnecessary legal danger.
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by Suzanne Rodoni-Silverberg | Jul 2, 2021 | Property Management, Santa Cruz Property Management Education
Buying your first Santa Cruz investment property can be an exciting time, especially if you’ve been planning to make this move for some time, and you’re finally ready.
Smart investors understand the importance of staying informed and being prepared. We have five key points that will help you have a good experience, whether this is the only investment property you buy or the start of a successful real estate career.
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by Suzanne Rodoni-Silverberg | Jun 18, 2021 | Property Management, Santa Cruz Property Management Education
Everyone is using the internet. Online resources are more common than ever, and with the exception of the occasional data breach and social media fight, it’s making life better for most people. Technology is helpful for owners, property managers, and even tenants. When rent can be paid online and inspections can be documented digitally, everyone has a more efficient and pleasant rental experience.
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by Suzanne Rodoni-Silverberg | Jun 4, 2021 | Property Management, Santa Cruz Property Management Education
A successful rental process in Santa Cruz depends on both tenants and landlords understanding and meeting their responsibilities. You expect your tenants to pay rent on time, follow the terms laid out in the lease agreement, and to report maintenance as soon as it’s needed.
Landlords who take their responsibilities seriously will have a better and more successful investment experience.
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There are other dangers that can pop up when you’re negotiating and signing the lease. If you’d like some help protecting you and your Santa Cruz investment property, please contact us at Real Estate Eight Three One.
