Friday, April 16, 2010

We just signed a Property Management Agreement for a 5-unit in San Gabriel. Big day!
Just signed Property Management Agreement for an 8-unit building in Hollywood.

Monday, April 12, 2010

Securing the Security of a Security Deposit -- Los Angeles & California

There are several misconceptions about security deposits. Tenants often think that this money can be used for the last month of rent. This is absolutely not the case and should be explained up front so that there are no surprises. Landlords are required to keep security deposits in a non-interest bearing account. The landlord can vary the amount of the security deposit required but cannot collect more than two months worth of rent for unfurnished rental properties. We recommend varying the amount of the security deposit by credit score, you may want to maximize the amount collected for tenants with credit scores less than 650.

The landlord has 21 days from when the property is vacated to refund the security deposit. All deductions must be itemized. Common deductions include unpaid rent, repairs that are above and beyond normal wear & tear, and reasonable cleaning charges. The landlord is required to give the tenant the option to schedule a joint walk through to review the condition of the property within the last two weeks of the tenancy. We recommend a move-in/move-out procedure that allows good transparency and accountability for both the landlord and the tenant.

Finally, security deposits become interesting when a foreclosure is involved. In California, the tenant essentially loses the ability to have his/her security deposit refunded. If a tenant knows his residence is in the pre-foreclosure process, we recommend that the tenant work with the landlord to have the security deposit put into an escrow account.

While some security deposits are small, most can equal a significant amount of money and the guidelines for processing such transactions should be clear for both the tenant and the landlord.

Friday, April 9, 2010

Just Rented 5359 S Centinela Ave. Obtained a 2 year commercial lease agreement with above market rents and annual rent increase.

Wednesday, April 7, 2010

Certificate of Occupancy received for 635 N Normandie Ave, Los Angeles! SFR converted into a 4 unit apartment building!
Just rented! 8828 Pershing Dr #206! Terrific tenant with 740 FICO score and very low rent-to-income ratio.

Tuesday, April 6, 2010

Just Listed! REO at 25766 Via Lomas #94, Laguna Hills! $149,500, 3bed 1ba 1,173sf see for more details
Just rented! 527 Hennipen Ave! Terrific family with great income and credit.

Thursday, April 1, 2010

Although many rules, Californians have a brief window in order to receive up to $18,000 in combined federal and state homebuyer tax credits.