There is an old saying in the trades that goes something like this, “there is a high price to the low bid.” Unsuspecting homeowners and property managers who hire independent contractors who subsequently get injured on the property could potentially be liable for the injured person. California Labor Code Section 2750.5. Several factors determine the ultimate liability, but I imagine this fact situation will make several of you reading this think twice before you hire your next tree trimmer.
http://www.siliconvalleypropertymanagementgroup.com Rental property owners usually desire three things from the professionals helping them; trust, transparency, and guarantees. Specifically, they want to know their properties are being taken care of properly by a trustworthy professional. To accomplish that first goal SVPMG performs pre-market rental property inspections of the properties we are considering to represent to determine compliance with the California Habitability Standards and state building codes. Most of our competitors don’t have the broad based experience and knowledge to competently accomplish this task. Our principal owner/broker, David Roberson, Esq., is a former building inspector (certified in 12 separate and distinct building codes and standards) and has inspected over 2,500 single family residences, 12,000,000 square feet of new construction commercial space and is very knowledgeable about each and every building he inspects. Having your rental property inspected prior to marketing and leasing it can save hours of troubleshooting and headaches after the tenant moves into the property.
Unfortunately, at least five souls lost their lives during the most recent devasting Northern California forest fires because their garage door openers did not function after power failed at their properties. In an attempt to help prevent unnecessary loss of life in similar situations the California Legislature passed SB 969 which will take effect July 1, 2019. The law effects any and all residential properties going forward because it imposes new requirements on all garage door openers installed into the future. Homeowners, residential rental property owners and property managers managing rental units who are replacing automatic garage doors will now be required to install garage door openers with battery backup systems.
In the state of California, every employee (not a family member) working for a contractor must be covered by Workers Compensation insurance. Not having proper Workers Compensation insurance in accordance with California Business and Professions Code Section 7125 et seq. can lead to serious ramifications for contractors, including having to pay back any compensation provided to them on any given project, no matter where the project is at in the construction phase. California Business and Professions Code Section 7031 et seq. Workers Compensation insurance is serious business in California and contractors must abide by the laws to avoid significant legal issues and potentially lose their license. To defraud the state of California by failing to pay insurance for employees or under report the type of work or amount of work being conducted has equal penalties for contractors. Importantly, consumers are the ultimate losers as insurance claims against uninsured or underinsured contractors end up being distributed to California citizens.
What are the repercussions for the tenant and the homeowner for an unpermitted Accessory Dwelling Unit? David Roberson, Esq. answers the question at the “Tiny Homes, Micro Units & Community” event presented by the Winchester Neighborhood Action Coalition. If you need a property management professional to help you with your rental or investment properties call us today. www.svpmg.net 1-408-838-5113
When you’re thinking about advantages and disadvantages of owning a rental property, it’s easy to narrow the thinking down to the equation of rental income minus expenses equals your profit. This is a basic formula to start with, but there are so many different factors and variables that go into making it more complex than it seems. Many rental property owners don’t realize how much of their own time and effort is required for upkeep, taking tenant calls, collecting rent, enforcing leases and more. This brings us to the point of whether it’s worth the investment of your own time to handle these duties, or if paying a property management company to handle them for you is the way to go. Everyone views these perspectives differently but getting an overall understanding of both sides will help you make the decision that fits your lifestyle best. Finally, most people I meet don’t realize there are actually four (4) different ways to make money in rental properties – spending your time managing the property might not always be in your best interests.
For some people, owning a rental property can seem like a dream scenario. For others, it may seem like a nightmare they’ll never wake up from. It’s only natural to have mixed feelings about owning a rental property, since there are so many different pros and cons to think about. Even when you take the time to weigh them all out, it can still seem like there are just as many risks as there are rewards. Most of the time, a person’s experience owning a rental property won’t be a complete dream scenario where there aren’t any issues and the rent checks just keep flowing in. But the experience won’t be a complete nightmare either. It will be somewhere in between. There will be plenty of ups and downs, things you can plan for and things you get blindsided by. Everyone has a different risk tolerance, so making a list of the pros and cons of owning a rental property can help you decide whether the risks are worth the rewards for you.
I rarely use the “M” word because I’m not an industrial hygienist or a laboratory. However, mold is commonly talked about in the real estate world and is everywhere – that simple fact doesn’t take away from the seriousness of it. A mold infestation or contamination can be extremely damaging to a property and to investment property managers. Not only does mold put your tenants/residents at risk, but you and the property owner may have to spend a significant amount of time and money to properly mitigate the environmental condition and make the rental unit a safe and comfortable place to live. Moreover, mold creates a significant stigma on a property which most certainly attaches and affects value and desirability. In addition to educating yourself about mold, one of the best things you can do is focus on the common areas (bathrooms, kitchens, laundry rooms) where mold grows and do your best to prevent it by keeping these rooms, walls, ceilings as dry as possible. However, if mold/mildew growth is already there, it’s time to take care of it before the issue becomes more serious. Remember, a property manager and/or landlord’s primary duty is to provide a habitable rental unit – a unit with mold is not habitable.
AIRBNB, VRBO, and Other Short-Term Rentals (STRs) Uses Continue to Escalate Causing Cities, Counties and HOAs to Make Regulations or Outright Restrictions Before We Lose Our Neighborhoods
Transitory residencies, also known as STRs are expanding and growing everywhere we look. Internet based services like AIRBNB, VRBO, help owners rent out their properties on a short-term basis for a small percentage fee. Many owners, especially those on fixed income budgets see this as an opportunity to have an additional income stream save for the personal privacy issue they must grapple with. Moreover, with the current housing shortage in the San Francisco Bay Area most local jurisdictions welcome any additional avenue of increased housing including STRs and accessory dwelling units ADUs, notwithstanding the potential frictions caused by them within the neighborhood they reside in.
After performing a comprehensive and exhaustive analysis and identifying realty as your next investment, one of the most important tasks real property investors can do before pursuing an investment strategy is to determine the risks associated with it. It’s virtually impossible to completely avoid risks so the more you can understand about your investment by conducting due diligence, the more you learn about your risk strategy and mitigation options, the better your chances will be of making a successful and profitable investment. Doing homework, asking many questions, and performing comprehensive investigations are just some of the things that needs to be done before you pull the trigger. Just winging it is not a strategy.