Monthly Archives: December 2024

Ways To Keep Good Records Managing Your Rental Property

Posted on by

When it comes to real estate property you must know how to keep good records and managing your rental property at all times. If you purchase one property, you might be able to get by with stuffing receipts and cancelled checks, but if you own multiple properties, you’ll need a better way to organize your finances or you will lost a lot of accounting.

No matter how little money you earn through rental income, you need to keep track of it for tax purposes. If you have only a handful of rental properties, you could probably track your rental income using a computer program.

If you have dozens of properties, you’ll probably be better off hiring an accountant. An accountant can not only free your time but also advise you on the best way to save on taxes and keep track of rental expenses.

Create a rent roll, listing the name of each tenant, the amount of rent paid , and the date when it was received. A rent roll enables you to track your monthly rental income.

Set up a folder for each rental apartment or house you own. In this folder, put leases, correspondence with your tenants, and a maintenance log that shows when repairs were made, how much they cost, and when they were completed.

By keeping such a setup, you can quickly track down documents as evidence in case you need to settle a dispute in court between you and a tenant.

Set up a separate checking account strictly related to your rental properties. When you receive your rental checks, deposit them in this checking account. When you pay the repair or maintenance bills related to the rental property, write a check from your rental checking account.

Now when you pay yourself, write a check to yourself from this checking account. By using a separate checking account, you can easily track the cash coming in and expenses coming out. Then you can see how much money you’re making from your rental property. A separate checking account tracks your income and expenses for tax purposes.

San Diego Landlords Beware Of Eviction Control When Terminating A Month-to-month Tenancy

Posted on by

Mercifully, San Diego does not have rent control. Unfortunately, San Diego does have its close relative-the unwelcome mother-in-law of rent control-better known as eviction control or for cause eviction.

San Diegos eviction control ordinance substantially impacts a landlords right to end a month-to-month tenancy. Moreover, the ordinance can be a trap for the unwary landlord unfamiliar with its mandatory notice provisions. A notice terminating a month-to-month tenancy that does not comply with the eviction control ordinance could cause the inexperienced landlord to lose his eviction case at trial and have to start the eviction process all over again.

What is San Diegos eviction control ordinance? The ordinance applies to every tenancy of two years or greater duration. When a tenant has lived in your rental property for two years or more, you may only terminate his month-to-month tenancy, or refuse to renew his lease, for certain specified reasons. On the face of it, the authorized reasons in the ordinance dont seem unreasonable. As examples, a landlord may only terminate the tenancy for things such as nonpayment of rent, breach of lease, tenant use of the property for an illegal purpose, or landlord withdrawal of the premises from the rental market just to name a few.

The ordinances restrictions wouldnt appear too onerous to most landlords since a landlords typical reasons for terminating a tenancy match those permitted by the eviction control ordinance. However, the ordinances mandates do not end there. The ordinance further requires that the landlord serve on the tenant a notice setting out the reason or reasons for terminating the tenancy at the same time that the landlord serves the 30-day notice, 60-day notice, or 3-day notice, whichever the case requires.

In other words, to comply with San Diegos eviction control ordinance, you must first have a permitted basis for terminating the tenancy. In addition, you must serve a separate notice on the tenant setting forth that permitted reason at the same time that you serve the notice terminating the tenancy. Thus, a tenant who is protected by the eviction control law should get two notices, one terminating the tenancy (the 3-day, 30-day, or 60-day depending upon the case) plus another notice setting forth the reason authorized by the eviction control ordinance.

Additionally, to be valid, both notices must be served according to law, i.e. they must be personally served on the tenant or served through a valid substitute service or post and mail service. I cant tell you how many landlords I have seen in my practice make the mistake of not complying with the eviction control ordinance. In fact, nearly every client I see who has tried to terminate a month-to-month tenancy with a 30-day or 60-day notice either didnt comply with the ordinance or didnt serve it right.

The consequences for the landlord to not terminating the tenancy right can be dire. At a minimum, the landlord will suffer the lost time and inconvenience of having to serve a new notice. If the landlord has sued on a bad notice, the consequences can be worse. The tenant will win the eviction case and the landlord will have to start the entire process over again, thus losing more time, rent, plus costs and attorneys fees. If you want to end a month-to-month tenancy, or not renew a tenancy, on some ground other than non-payment of rent, you should consult a lawyer to make sure that you comply with San Diegos eviction control ordinance.