Management Mondays Blog

Required Notice When Terminating Tenancy

24 Hour Property Management - Monday, June 17, 2019


In California, when terminating tenancy for a lease in which terms regarding such are not stipulated—when the tenant is on month-to-month, for example—you must give a 60-day notice to any tenant that has lived at the property longer than one year. If the tenant is on a month-to-month and has been at the property for less than a year, only a 30-day notice is required. 

Conversely, if terms for terminating tenancy are written into the lease, these terms must be followed. At 24 Hour Property Management, we encourage owners to put tenants on a year lease that stipulates that either party must give 30-day notice prior to termination of the lease. Essentially, towards the end of the eleventh month of the lease, we have a discussion with the owner and notify the tenant if they are eligible for a renewal. If eligible, we give the tenant a few days to accept or notify us of their intent to vacate the property.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and we take pride in the level of communication that is needed to make the termination or renewal of a tenancy go as smoothly as possible, for both with the owner and tenant.  If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Residential Security Deposit Regulations in California

24 Hour Property Management - Monday, June 10, 2019


Residential Security Deposit Regulations in California

Have you ever wondered how much you should or could charge your renters for a security deposit? In California, the Residential Tenant/Landlord Law dictates that amount. The limits change depending on whether the unit is furnished or unfurnished. For an unfurnished unit, the maximum combined deposit amount that can be charged is two times (2x) the monthly rent. This means that if, for example, the monthly rent is $2000 and you want to charge for a standard deposit, a key deposit, and a pet deposit, the combined amount cannot exceed $4000. If the property is furnished, then the combined deposit limit climbs to three times (3x) the monthly rent, or $6000 for a unit with $2000 monthly rent.

At 24 Hour Property Management, we recommend to our investors that they charge deposits as follows: (1) standard deposit sum equal to one month’s rent; (2) $150 for keys/remote deposit; and, (3) $500 per animal if they are accepting pets. However, often an investor has different deposit requirements, which we accommodate as long as it is compliant with the Residential Tenant/Landlord Law.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and collected as many deposits on behalf of those investors. If interested in discussing deposits or anything related to property management, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

What is a 3-Day Notice to Pay or Quit

24 Hour Property Management - Monday, May 20, 2019

What is a 3-Day Notice to Pay or Quit

When a tenant signs a lease with a landlord, he or she is agreeing to pay a specified amount usually by a specified date each month.  When a tenant is late on their payment, the first step to take to remedy the problem is to post a 3-Day Notice to Pay or Quit the day after the rent is due or the day after any grace period written into the lease. For example, rent is due on the first of the month and late after the fifth. If you have not received rent by 11:59 PM on the fifth, you should post a 3-Day Notice to Pay or Quit on the sixth.

The 3-Day Notice to Pay or Quit notifies the tenant in writing of the following: (1) the rent is past due; (2) he or she has 3 days to pay the rent; and, (3) if rent is not paid, the landlord has legal right to begin eviction proceedings.

The best delivery method is to hand deliver it to the tenant. In lieu of personal delivery, you may deliver it to a person of suitable age and discretion at the residence or post the notice in a conspicuous place on the property (i.e., tape it to the front door and take a photo). You should also mail a copy to the residence for additional notification and an extra layer of protection for you.

If the tenant does not pay the arrears within three days or pledge to by a specified future date, the landlord should consult an attorney that specializes in evictions and unlawful detainer actions to determine if starting the eviction process is the best step forward.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and while we pride ourselves in screening out all but only the best tenants, we have occasionally had to deliver a 3-Day Notice to Pay or Quit. We can do the same for you if and when it is ever needed. If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Are Move-In Inspections Important?

24 Hour Property Management - Monday, May 6, 2019


Are Move-In Inspections Important?

Move-In Inspections are important because they create a record of the condition of the property as of the day that the tenant took possession. When the tenant moves out, he or she is responsible to return the property to the condition it was in when they moved in. At this time, you should perform a Move-Out Inspection to compare against the Move-In inspection to uncover any issues caused by the tenant that were not remedied prior to them moving.

What makes a good Move-In Inspection?

A good Move-In Inspection contains a checklist, usually organized by major room or section of the home. Each section contains subitems for walls, floor, and other room components. Each subitem should have some sort of scale, such as bad-fair-good or 1-5, etc., that allows you to easily and quickly notate the condition of each room component. Most important of all, however, is there should be visual evidence. You must take photos or video of the questionable items for future reference. We use an app that contains the checklists and grading scales as well as labels and attaches photos of questionable items to a detailed, well organized final report. However, one can find online forms and attach photos manually if so inclined. 

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and conducted almost as many Move-In Inspections, ranging from 30 minutes to 3 hours. We can do the same for you. If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

What are the Benefits of Fully Screening a Tenant?

24 Hour Property Management - Monday, April 29, 2019


What are the Benefits of Fully Screening a Tenant?

The typical screening process includes verifying income by reviewing paystubs and/or bank statements, reviewing an applicant supplied credit report, and verifying rental history by contacting the current ad previous landlords. With these basic, very important steps, a landlord can get a good sense of the applicant’s capacity and ability to pay rent. However, there is still more that can be done.

What else does 24 Hour Property Management do?

On top of the basic items previously mentioned, we run a thorough criminal background check and eviction history check. These extra steps are important because these additional services reveal things about applicants that are either not readily available in public records or occurred prior to the one or two years of recent history you are examining. Did you know that in California, a tenant can legally break a lease if he or she is a victim of domestic abuse in the leased property? Wouldn’t you like to know if one of your applicants had a criminal history of domestic abuse in order to mitigate against a broken lease?

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and the system we have in place screens out all but the most qualified tenants so that you can be at ease with the people occupying your property. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

How to Market a Rental Property

24 Hour Property Management - Monday, April 22, 2019

How to Market a Rental Property

There are some basic steps a property investor should take to market his or her property. 

Professional Photos

One of things we have learned at 24 Hour Property Management is that the quality of the photos really matters. A few cell phone photos really don’t do a property any justice. 

List the Property

An investor should list the property on all the major home search sites, such as Zillow, Trulia, as well as Craigslist, etc. This process is manual and can be very tedious, however. We at 24 Hour Property Management will list your property in the California Regional MLS, which will automatically publish the listing to over 850 listing sites (including the ones mentioned above), as well as make it available to all the real estate agents in Southern California.

Social Media

Another fantastic place to market a property is on various social media channels. We create a single property website for every property we market and put it out on our various channels.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and even if you are not looking for day-to-day management, we have the system to help you market your property and locate a qualified tenant. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

What Makes a Qualified Tenant?

24 Hour Property Management - Monday, April 8, 2019


What Makes a Qualified Tenant?

When making decisions about a quality tenant on paper, look for applicants that have enough money to pay the rent, have good to excellent credit with minimal debt, and an impeccable rental history. 

Income

At the very minimum, applicants should combine to gross 2.5x the monthly rent; though, a gross of 3x or more is preferable. Depending on the situation, you may want to check the reserves and ensure that the applicants have enough to cover three months rent in case of emergency. 

Credit

A good to excellent score (700+) is preferred, though depending on the area, a fair score (650+) may be acceptable. Digging deeper into the report to examine the number of lines, total amount of debt and monthly installment requirements, as well as if any delinquencies exist.

History

Verify the applicants’ rental history. Specifically look at their previous terms to see if there are any major discrepancies between what they were paying compared to what they will be and learn if they paid on time and were not a nuisance to their landlord and/or neighbors.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and we’d love the opportunity to help you locate a qualified tenant. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

4 Things to do First with your Investment Property

24 Hour Property Management - Monday, April 1, 2019


4 Things to do First with your Investment Property

When you buy an investment property, the four things you should do are:

1. Start the rehab immediately

Unless you purchased a turn-key property, you’ll likely need to put some work into it, such as update the flooring, replace the counter tops, or maybe just put on a fresh coat of paint or replace some screens. Whatever is needed to make the property appealing and inhabitable, make sure you get the contractor or handyman in there Day 1 so that the work can get completed ASAP.

2. Have the home professionally cleaned

Once the rehab is done and all the fixes are in place, make sure you hire a professional cleaner to sanitize the interior. It will show better in the photos and the prospective tenants will appreciate it.

3. Take professional photos

One of things we have learned at 24 Hour Property Management is that the quality of the photos really helps sell the property to buyers and tenants. A few cell phone photos don’t do a property any justice.

4. Get it on the market

The quicker all these steps are completed, the quicker the property can be shown to potential tenants, the quicker a quality tenant can be selected, and the quicker your cashflow will begin.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to help you take your property to market. We have vendors and specialist to help every step of the way. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.


How do you Identify a Good Investment Property?

24 Hour Property Management - Monday, March 18, 2019


How do you Identify a Good Investment Property?

If you are looking to identify a good investment property, be sure to pay close attention to these three things:

1. Geography

Does the geographic location lend itself to attracting a quality tenant that will pay on time while taking care of the property? Is community stable with good schools? Are the area industries diversified and able support a workforce for the foreseeable future? 

2. Resale Value

Most investors buy a residential property for a long-term investment, but there are many who prefer short-term holds. Whatever your plan, you should consider the ability to resell quickly, as well as the potential future value of the property if you intend to sell or are forced to sell at some point in the future.

3. The numbers

Know your numbers. Analyze the cash flow by comparing the mortgage payment, taxes, HOA, and insurance costs against your expected rent. All investors want positive cash flow, but some may be willing to take on negative cash flow with the expectations of positive cash flow in the future.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to help you locate a great investment property. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Why hire a property management company?

24 Hour Property Management - Monday, March 11, 2019


Is it possible to self-manage an investment property?  Of course it is.  But, if you’re an investor that wants to free up time to focus on your family, business, or anything else that is important in your life, we can help you do just that for a nominal fee.  If you don’t have time to answer all the tenant calls, repair all the items that need repairing, or handle any issues that happen 24/7, it may make sense for you to hire a company like 24 Hour Property Management, Inc., to take that off your plate. 

How can a property manager benefit me?  

 Tired of fielding calls late at night or stressing about collecting late rent?  Let a professional property management company handle this for you so that you can concentrate on the things that really matter in life.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to speak with you about your property, your goals, and your management needs.  You can reach us seven days a week at 949-409-8585 or you can check us out on the web at www.24hourpm.com


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