Renting Out Property

Renting Out Property

Renting Out Property

Renting out property has its advantages and disadvantages. Especially when you consider the problems as well as the legal liability issues that can arise. On one hand, there are powerful advantages to renting out property like making money. On the other hand, there are several disadvantages such as failing to meet your legal responsibilities as a landlord. The fact is being a landlord comes with a lot of demands. It requires one to contribute a significant amount of time and effort. And, unless you hire a property management company to run your rental business. You will be the one who has to create lease agreements, screen tenants, market your rentals, and evict bad tenants. With this in mind, we offer some insight on the problems and the legal liability issues that can arise when renting out a property.

Please Note: this information is not intended to be exhaustive or a substitute for qualified legal advice. You are responsible for performing your own research and complying with all laws applicable to your unique situation.

Owning A Rental Property

Owning a rental property can be financially rewarding, but it does come with some risks. As a landlord, you are no stranger to taking on many responsibilities. And, you probably already know that if you do not handle them properly. You can find yourself facing financial trouble, or even worse, dealing with a lawsuit. For this reason, it is important for you to prevent potential problems before they happen. Or, fix them once they have occurred. With this in mind, we have listed some of the most common problems landlords face and how to resolve them.

  1. Late Rent Payments: dealing with this issue is frustrating, so to improve your chances of collecting the rent on time
    • Make sure to enforce your rent collection rules
    • Follow up with tenants as many times as necessary to collect the rent
    • Screen tenants thoroughly
  2. Tenant Turnover: when you lose a tenant, you have to spend time and money marketing your vacancy, so to reduce turnover
    • Be good to your tenants
    • Make sure you charge a fair rental rate
    • Prioritize maintenance by cutting the lawn, and making necessary repairs
  3. Evictions: an eviction can be a stressful costly process, so instead of dealing with them try proactive ways to avoid them
  4. Legal: learn all the laws that apply to landlords state, federal, and local

California Security Deposit Limit and Return

California state law limits how much a landlord can charge for a security deposit (two months’ rent), when it must be returned (within 21 days after a tenant moves), and sets other restrictions on deposits. See California Security Deposit Limits and Deadlines for more on the subject (“Overview of Landlord-Tenant Laws in California,” 2013).

Landlord Liability

To avoid legal problems with tenants in the state of California, you must follow specific state rules. There are also several federal laws that affect landlords, such as requirements to disclose lead-based paint hazards. And, if you own a rental property in a community with rent control, you also need to comply with local ordinances.

Renting Out Property

Landlord-Tenant Law

Landlord tenant laws were created to serve as a blueprint for the interactions, rights, and obligations of both landlords as well as tenants. Failure to meet your legal responsibilities as a landlord can lead to costly disputes with tenants. And, if you discriminate when choosing a tenant, you could face some hefty financial penalties. To run a successful property management business in California, here are some things you’ll need to do. 

When In Doubt

If you have questions about how to find good tenants or need help managing them, please contact us. We manage single-family homes, condos, and apartment buildings throughout the San Diego area. Whether you are interested in changing property managers, or simply looking to hire a property management company for the first time, Rancho Mesa Properties can help. We take care of all types of residential rental properties including homes, condos, multiplexes such as duplex and triplexes, and even small apartment buildings. Let us manage your rental properties, so you can enjoy your life!  Call us today at (858) 576-2176. We will save you time, money, and the stress that comes along with managing your own rentals.

References

Overview of Landlord-Tenant Laws in California. (2013, August 26). Retrieved from https://www.nolo.com/legal-encyclopedia/overview-landlord-tenant-laws-california.html