As of today, July 1, a new California law limiting security deposits to one month’s rent for both furnished and unfurnished units is now in effect. According to Mike Nemeth, Marketing and Communications Director for the California Apartment Association (CAA), this legislation, AB 12 by Assemblyman Matt Haney, D-San Francisco, was signed into law by Gov. Gavin Newsom in October 2023.

Previously, landlords could charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one, except for tenants who were service members. The new law marks a significant change from these previous regulations.

The legislation includes an exception for certain small landlords. Property owners with no more than two residential rental properties, collectively including no more than four dwelling units offered for rent, may still collect up to two months’ rent as a security deposit. To qualify for this exception, the owner must hold the property as a natural person, a limited liability company (in which all members are natural persons), or as a family trust. This small-landlord exception does not apply when the tenant is a military service member.

“It’s crucial for landlords across California to understand and comply with these updated security deposit regulations,” said Whitney Prout, Executive Vice President of Legal Affairs for the California Apartment Association. “We strongly encourage all CAA members to review our updated security deposits background paper, which reflects the changes brought by AB 12. This resource is designed to help our members navigate this significant change and ensure they’re operating within the bounds of the new law.”

Stay updated with us on the latest regulatory changes and best practices in property management to ensure you’re always compliant.

Question: Are Semi-Annual General Inspections of the Unit Allowed with Proper Notice?

In Sacramento, California, the laws surrounding a landlord’s right to enter a rental unit are quite stringent. According to California Civil Code section 1954, the reasons a landlord may enter a rental unit are limited and specific. Notably, these reasons do not include conducting general inspections.

 

Legal Entry Reasons

California Civil Code section 1954 outlines the permissible reasons for a landlord to enter a rental unit, which typically include:

– To make necessary or agreed-upon repairs, decorations, alterations, or improvements

– To supply necessary or agreed services

– To exhibit the unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors

– When the tenant has abandoned or surrendered the premises

– Pursuant to a court order

 

Specific Inspections Allowed

Certain laws do allow landlords to enter rental units for specific inspections, such as:

– Smoke Detector and Carbon Monoxide Detector Inspections:** As per Health and Safety Code sections 13113.7 and 17926.1, landlords are permitted to enter a unit to inspect and ensure the proper functioning of smoke detectors and carbon monoxide detectors.

 

Tenant’s Rights

It’s important to note that a tenant’s right to exclude the landlord when there isn’t an allowed reason for entry cannot be waived in the lease. This means that even if a lease agreement suggests that a landlord can conduct general inspections, this clause would not be enforceable under California law.

 

Notice Requirements

When a landlord needs to enter a unit for any of the legally permissible reasons, they must provide the tenant with a 24-hour written notice. This notice must specify the reason for entry. For example, landlords in Sacramento can use the “Twenty-Four Hour Notice to Enter Dwelling Unit/Premises” form and check the appropriate reason(s) for entry.

 

Offering Inspections to Tenants

While general inspections are not allowed, landlords can offer tenants an inspection by using Form CA-193, known as the “Resident’s Request for Maintenance Review.” This form allows tenants to request maintenance or a review of specific issues within their unit.

Navigating the legalities of landlord entry into rental units can be complex. Understanding the specific regulations in Sacramento ensures that both landlords and tenants are aware of their rights and obligations. For landlords, adhering to these legal requirements helps maintain a positive and lawful rental relationship.

For stress-free property management and expert advice on landlord-tenant laws, contact us now!

Security deposits are a crucial aspect of landlord-tenant relationships, serving to protect landlords against potential damages or unpaid rent. However, understanding the legal procedures surrounding security deposits is essential to ensure compliance and prevent disputes. In this blog, we’ll delve into the key considerations landlords need to know when handling security deposits.

1. Know Your Legal Obligations:

   Landlord-tenant laws vary by jurisdiction, so it’s vital to familiarize yourself with the specific regulations governing security deposit handling in your area. These laws typically outline requirements regarding deposit limits, timelines for refunding deposits, and procedures for documenting damages.

2. Proper Documentation:

   Before collecting a security deposit, landlords should provide tenants with a clear written agreement outlining the terms and conditions related to the deposit. This agreement should detail the amount of the deposit, the purpose of the deposit, and the conditions under which deductions may be made.

3. Secure Deposit Storage:

   Landlords are generally required to hold security deposits in separate accounts designated for that purpose. Co-mingling deposit funds with personal or operational funds is typically prohibited by law, as it can complicate accounting and potentially lead to legal consequences.

4. Handling Deposit Deductions:

   When it comes time to return a tenant’s security deposit, landlords must adhere to strict guidelines regarding deductions. Deductions may only be made for damages beyond normal wear and tear or unpaid rent as specified in the lease agreement. It’s crucial to document any deductions thoroughly and provide tenants with an itemized list of charges.

5. Timely Refunds:

   Many jurisdictions mandate specific timelines for returning security deposits to tenants after they vacate the rental property. Failure to adhere to these timelines can result in penalties or legal action against the landlord. Be sure to understand your local laws regarding deposit refunds to avoid potential liabilities.

By understanding and adhering to legal procedures for handling security deposits, landlords can protect their interests while maintaining positive relationships with tenants. Remember, compliance with relevant laws and regulations is key to a successful and legally sound rental business.

For more insights on property management best practices and legal compliance, stay tuned to our blog. Your trusted source for expert guidance in Sacramento property management.

Managing a rental property involves various financial considerations, and keeping track of expenses is crucial for effective property management. In the dynamic real estate landscape of Sacramento, meticulous expense tracking can significantly streamline operations and enhance profitability. Let’s delve into how property owners can master expense tracking for efficient management in Sacramento.

 

1. Why Expense Tracking Matters

Efficient expense tracking provides property owners with a clear understanding of where their money is going. By categorizing and documenting expenses such as maintenance, repairs, utilities, and property taxes, owners gain insights into their financial health and can make informed decisions to optimize profitability.

 

2. Streamlining Record-Keeping Processes

Implementing organized systems for expense tracking is essential. Utilize digital tools and software to streamline record-keeping processes. Digital platforms offer features such as expense categorization, receipt scanning, and automatic syncing with bank accounts, making it easier to track and manage expenses in real-time.

 

3. Maximizing Tax Deductions

Proper expense tracking ensures that property owners can accurately report deductible expenses come tax season. From mortgage interest and property taxes to maintenance and repairs, maximizing tax deductions can significantly reduce taxable income and increase overall profitability.

 

4. Identifying Cost-saving Opportunities

Analyzing expense data allows property owners to identify areas where costs can be minimized or optimized. By pinpointing recurring expenses or areas of overspending, owners can implement cost-saving measures and improve operational efficiency.

 

5. Ensuring Compliance and Transparency

Detailed expense tracking ensures compliance with legal and regulatory requirements. Proper documentation of expenses provides transparency for stakeholders and helps mitigate potential disputes or audit issues.

 

6. Utilizing Technology Solutions

 Embrace technology solutions tailored for expense tracking in property management. Invest in property management software or apps designed to streamline expense tracking processes and provide comprehensive financial insights.

 

7. Continuous Monitoring and Adjustment

Expense tracking is an ongoing process that requires continuous monitoring and adjustment. Regularly review expense reports, analyze spending patterns, and adapt strategies to optimize financial performance continually.

 

By mastering expense tracking, property owners can navigate the complexities of property management with confidence. In the dynamic real estate market of Sacramento, efficient expense tracking serves as a cornerstone for success, enabling owners to make informed decisions, maximize profitability, and achieve long-term growth.

Ready to elevate your property management game in Sacramento? Partner with Real Property Management Select for expert guidance and stress-free property management solutions. Contact us today to learn more!

In the competitive Sacramento real estate market, updating appliances can be a game-changer for property owners looking to maximize their investment. Modern appliances not only enhance the aesthetic appeal of a property but also significantly increase its overall value. Let’s delve into the insights and benefits of updating appliances in Sacramento properties.

1. Enhanced Property Value:

Investing in modern appliances can significantly boost the value of your property. Prospective tenants and buyers are often willing to pay a premium for homes equipped with updated appliances, considering them as indicators of quality and convenience.

2. Attracting Quality Tenants:

 Upgraded appliances can attract high-quality tenants who prioritize comfort and convenience. Tenants are more likely to choose properties with modern appliances, reducing vacancy rates and ensuring a steady stream of rental income for property owners.

3. Energy Efficiency:

Modern appliances are designed to be more energy-efficient, resulting in lower utility bills for tenants and reduced environmental impact. Energy-efficient appliances not only appeal to environmentally conscious tenants but also contribute to long-term cost savings for property owners.

4. Competitive Edge:

In a competitive rental market like Sacramento, properties with updated appliances stand out among the competition. Landlords can leverage this competitive edge to attract tenants and command higher rental rates, ultimately maximizing their return on investment.

5. Increased Tenant Satisfaction:

Providing tenants with modern appliances enhances their overall living experience and satisfaction. Tenants are more likely to renew their leases and recommend the property to others, leading to improved tenant retention and positive word-of-mouth referrals.

In conclusion, updating appliances is a strategic investment for Sacramento property owners seeking to increase property value, attract quality tenants, and maintain a competitive edge in the market. By prioritizing modern appliances, landlords can optimize their rental properties for long-term success and profitability.

For expert guidance on property management and investment strategies in Sacramento, contact Real Property Management Select today!