Some people buy real estate for purposes of making money such as renting it out to generate a good monthly income. Believe it or not thousands of people do this every year and make quite a bit on their investment. This is especially true about unattractive properties that need a little work. With a few weeks of cleaning and repair you can take a cheap property and turn it into a cash cow getting well $1,000 a month with it depending on size.
But with this type of real estate investment that requires a tenant to live in the property you do run a certain amount of risk. Even if you have a property management company which does make it easier, there can still be a couple of problems if your rent to the wrong ones. This article can show you current laws for property owners with this intent and even a few tips and pointers to tenants that can help to stop problems before they get out of hand. Think of it as common ground for both the renter and the landlord.
Real Estate: New California Laws
California laws may be different than other states but you will find in some cases it is the same. The best way to find out current laws in your state if you are looking into buying a property to rent out is to call a state office and they can direct your call or send you the information on this request.
There are two major laws that directly impact a property owner after 2006. These laws are very important and many don’t even know they exist.
Property taxes in cases with ‘Domestic Partners’, according to Senate Bill 565 registered domestic partners will be treated the same as spouses under California property tax laws. This is definitely something to think about.
In January 1, 2006, property owners can give a 30 day notice to vacate the premises to any of their month-to-month tenants, unless of course there are subsidized housing rules that apply. This, for some is a problem as the existing law that requires a full 60 days of notice before expecting a tenant to vacate no longer applies… there are, to my understanding, a few circumstances that would still be entitled to the 60 day notice but don’t count on it.
Real Estate: Tips for Tenants
If you are a tenant there are few things you should know that can help you avoid certain problems that can seriously damage your credit and leave you with a big fat eviction. If you follow these tips you can stay on top of your situation and remain the responsible party of anything should threaten your position.
First of all you should always read thoroughly your rental agreement before signing. If it states something about pets, guests or even something as simple as working from your home you should pay close attention to that before agreeing. This could land in trouble down the line.
Next, you should always correspond by e-mail or standard mail and have copies saved of everything that is written between you two. In case something were to happen regarding repairs or anything else for that matter you should be able to provide proof that you have tried to resolve the issues in a responsible manner. So, get EVERYTHING in writing.
Know your rights! There are so many rights that you, the tenant, have that should never be impeded upon. You have a right to privacy, a right to live in a secure environment, the right to have problems fixed at the property owner’s expense, and so much more.
Real Estate: Closing
It can be a difficult task to own a property but it can also be unsettling to be a tenant in the wrong circumstance. If you are in the right then the facts will prove such. This is why, for both parties, all things should be in writing and communication should always be open. Agreements in writing are usually the deciding factor in any real estate case, make the documents involved speak volumes about your credibility and responsibility.