It’s tempting to think that the “atmospheric rivers” that have deluged California and neighboring states with more than 32 million gallons of rain and snow mean that the drought is finally over. Many reservoirs are at close-to-normal levels for the first time in years, and some areas have actually experienced dangerous flooding. But Californians need to remain vigilant about water consumption and saving water. Why?

Kimball, Tirey & St. John LLP

1.  Question: How long do I have to mail the tenant the itemized security deposit?

Answer: You need to send an accounting for the use of the security deposit within 21 days from the date you took back possession.  If you do not have all of the amounts or receipts in time, you should give the tenant an estimate and then send the final amount within 14 days after you receive the final amounts and/or receipts.

I don’t pay particular attention to health scares, so when talk of a spreading pandemic started dominating the news cycle I largely shrugged and went about my business. I was staying at a cheap motel in Calexico, taking photos of the New River and the Salton Sea for my book about California water policy, when my wife called from Sacramento and said, “You better get home. And I mean now.”

That was the weekend when the shutdowns began. I recall stopping at a grocery store near Modesto, when I noticed meandering lines and a run on toilet paper. The rest, as they say, is history. Like most people, I never could have predicted the coming shutdown of the economy, government orders to stay at home, an end to restaurant dining and public gatherings, and profligate “relief” payments.

Don’t Miss the West Coast’s Largest Income Property Expo – Attendance is Free!

Explore Investment Opportunities Both Large and Small, Meet 100’s of Vendors

The Income Property Management Exposition (IPME) returns to the Pasadena Convention Center Tuesday, May 23^rd, and this year promises to be bigger and better than ever before.  IPME provides rental property owners, managers, and investors with the latest insights to succeed in the changing rental housing market. In response to the high demand for rental housing, rising inflation, interest rates, and pandemic-driven challenges, IPME offers an opportunity to learn how to adapt and thrive in this ever-changing marketplace.

By Ted Kimball, Esq., Partner, Kimball, Tirey & St. John LLP

• Question: What are my legal rights regarding maintaining a full deposit on a unit when one roommate moves out and another stays?  My understanding is that I am entitled to maintain the full deposit while at least one of the original tenants remain in residency, and it is that remaining person’s responsibility to refund the deposit.

• Answer: Unless your lease provides otherwise, you do not have to account for the use of the deposit or do an inspection until you regain possession of the unit.  The roommate who vacated is not entitled to a refund or inspection at this time unless your lease specifically requires it.

Inspections and Maintenance Are Key

By Steve Pinkus, Royal Roofing Company

Preventative maintenance is always better than waiting for a problem to occur and having to fix it in a panic. If you ignore the “check engine” light in your car for too long, you could end up stranded on the side of the road. If you do the same to your roof, you could be awake at 2:00am during a storm begging for an emergency leak repair. Even after the clouds pass, you’ll be left with property damage, angry tenants, and a big bill from your roofer.

By Christopher Miller, MBA

Specialized Wealth Management

Each year, California seems to make the real estate business much more difficult.  The state’s hostility to employers, landlords and investors is clear. It seems like California wants us gone.  Maybe we should start listening.

Los Angeles Eviction Moratorium and Expansion of Rent Control

On January 20^th, the Los Angeles City Council formalized its decision to end the COVID eviction moratorium on January 31 – but also issued a slew of new eviction and rent increase limitations: including expanding these rules to single family residences and condominiums.  Then on January 24^th, the city council voted to extend the eviction moratorium by an additional two months to the end of March, 2023.  Since this has been extended repeatedly since the pandemic’s start 3 years ago, will March really be the end of it?

By Edward Ring

If at first you don’t succeed, try again. This adage applies well to ideas for new ways to tax Californians. Every election cycle we see new ways to be taxed, and higher tax rates, but rarely will we see a tax get repealed.

So it is that Assemblyman Alex Lee (D, San Jose) has introduced Assembly Bill 259, the Wealth Tax Act, which will impose an annual “worldwide net worth” tax of 1 percent on net worth above $50 million, rising to 1.5 percent on net worth over $1.0 billion.

As long as water runs through pipes and people live on a property, there will be leaks and spills. This is nothing new to us.

But after historic rainfalls, we have never seen such widespread water damage. It was saddening to see hundreds of residents displaced from an East Oakland apartment complex after the parking garage flooded and PG&E cut power. Tenants ushered in the New Year in a cold, dark, and smelly apartment building with instructions to leave. Weeks later, they remain transplanted and it’s become a multimillion-dollar crisis for the management of Coliseum Connections.

Property management can be a rewarding career path for those who love helping others build a life and settle into a community. But along with the joys of the business are costly legal pitfalls you need to know and avoid at all costs. Some are easier to avert than others. Let’s take a look at the most common property management legal issues along with steps to avoid them.

As you read, you’ll notice a common thread: better technology and standardized procedures and routines can protect you from most legal issues in property management.

1. Locking a late-paying resident out of their home

It’s understandable to feel frustrated when a resident doesn’t pay rent on time. It’s against the law, however, to retaliate in any way that doesn’t conform with federal and state statutes. You cannot change the locks on a resident for nonpayment, no matter how many times you’ve warned them or reminded them to pay. The only way to deny a resident entry to their dwelling is through the eviction process. Even so, eviction can take weeks or months to complete and must be resolved in your favor.

If mediation doesn’t work and eviction is your only option, lean on your attorney to keep everything above board.

COMMUNICATE THROUGH OFFICIAL CHANNELS

It’s best to send important notices through official means, such as a professional email sent via your property management software and/or letter delivered to the residence. (State and local laws around correspondence apply.) The nice thing about software is that it ensures permanent, paperless evidence of all correspondence for your records.