Management Mondays Blog

Out-of-State Investors

Does 24 Hour Property Management work with out-of-state investors? Of course we do. In fact, approximately 20% of our investors live in states other than California or countries other than the United States.

Communication

Our communication is excellent to begin with. In fact, some may accuse us of over communicating. Coupled with the technologies available today, there are really no barriers to working with out-of-state and international clients. Email, telephone, e-Signature, electronic funds transfers, and the occasional video conference when necessary are all that is needed for 24 Hour Property Management to provide our top-notch services to property investors, whether local or elsewhere.

Taxes

Some out-of-state investors may not realize that the California Franchise Tax Board requires a percentage of rent collected be withheld for quarterly income tax payments. Furthermore, if you are a non-resident (foreign) investor, the Internal Revenue Service requires annual withholding as well. At 24 Hour Property Management, we take care of the withholding and remit payments on your behalf so that you don’t have to worry about it.

Contact 24 Hour Property Management, Inc.

If you live out-of-state or out of the country and are interested in purchasing or already have an investment property in Southern California, please contact us so that we can answer your questions and advise you. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

How Does 24 Hour Property Management Handle Inspections?

At 24 Hour Property Management, we generally conduct the following types of inspections: Move-in/Move-out, Semi-Annual, and Renewal. 

Move-in/Move-out Inspections

During the move-in, we perform a walkthrough with the new tenant and document the condition of the premises. Additionally, when a tenant moves out, we conduct a walkthrough and document the condition. Often referred to as a MIMO (Move-in/Move-out), these inspections are compared and used to determine the final disposition of the tenants’ security deposit and are included as part of our standard property management services. However, since most leases are a yearlong, how can an investor and his or her property manager keep track of the condition in the interim?

Semi-Annual Inspections

As an optional service, we recommend that all our investors take advantage of our Semi-Annual Inspection. For a $100 per inspection, we’ll visit the property semi-annually with two goals: (1) to check on the property condition in order to address any minor issues before they become larger; and, (2) to make sure the tenants are adhering to the terms of the lease. We generally recommend the semi-annual inspection to occur at or around the sixth month, but some investors request that they be completed more frequently, for example in the fourth and eighth month.

Renewal Inspections

Finally, as part of our standard property management services, we also conduct a renewal inspection. To ensure that the property is inspected at least once a year, when a tenant elects to renew for an additional term, we will conduct an inspection similar in scope to the semi-annual one, but at no additional charge.

Contact 24 Hour Property Management, Inc.

Over the years, we’ve helped hundreds of investors rent their properties and we’ve conducted many property inspections.  If you have additional questions about the types of inspections we perform, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Owners and tenants are curious about our staff qualifications. First and foremost, the principle operators are all members of the California Association of Realtors (CAR). This means that in addition to having California Real Estate Licenses, we adhere to additional rules, regulations, and ethical standards. CAR membership also affords us access to tools, systems, and information that many other non-CAR property managers just don’t have.

Secondly, each of us are real estate investors, both locally and out of state. As investors ourselves, we manage 20+ doors in our combined personal portfolios—almost all which is residential one-to-four units. We've modeled our business based on these experiences and strive to bridge the service gaps left by other property managers.

Lastly, in the previous 15+ years working as an agent and broker in Southern California, the president and co-founder Fred Sed has completed over 1000 rental transactions. He has pretty much seen it all regarding screening applications, good and bad tenants, property condition, advising landlords, evictions, and turnover, among others. Furthermore, Fred has worked with numerous investors to help them acquire rental properties

Contact 24 Hour Property Management, Inc.

Over the years, we’ve helped hundreds of investors rent properties and we’ve helped hundreds of tenants find homes. We have the experience and know what it takes.  If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Property Management Fees

Property management is comprised of two aspects: (1) lease-up or rental aspect, and (2) ongoing management aspect. We are confident that our fees are competitive, especially when one accounts for level of service and value we provide.

Lease-Up

In the lease-up phase, the property manager markets the property in order to secure a qualified tenant. At 24 Hour Property Management, this includes taking professional photos, marketing the property to over 850 real estate websites and social media, showing the property, thoroughly screening applicants, writing and executing the lease and disclosures, and collecting the deposit and rent at move in, among other things. Our standard for lease-up fee is 35%-50% of one month’s rent with a minimum and maximum charge of $595 and $1995, respectively.

Ongoing Property Management

During ongoing management, the property manager handles everything so that the property owner can concentrate on other aspects of his or her life. At 24 Hour Property Management, this includes taking all the tenants calls, facilitating repair requests, rent collection, paying tax withholdings for out of state investors, and keeping books for each property. Our standard property management fee is 6% of gross monthly rent. However, this rate may be reduced based on number of doors or other factors.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and we know we have extremely competitive fees and would love an opportunity to discuss it with you.  If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

In California, when terminating tenancy for a lease in which terms regarding such are not stipulated—when the tenant is on month-to-month, for example—you must give a 60-day notice to any tenant that has lived at the property longer than one year. If the tenant is on a month-to-month and has been at the property for less than a year, only a 30-day notice is required. 

Conversely, if terms for terminating tenancy are written into the lease, these terms must be followed. At 24 Hour Property Management, we encourage owners to put tenants on a year lease that stipulates that either party must give 30-day notice prior to termination of the lease. Essentially, towards the end of the eleventh month of the lease, we have a discussion with the owner and notify the tenant if they are eligible for a renewal. If eligible, we give the tenant a few days to accept or notify us of their intent to vacate the property.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and we take pride in the level of communication that is needed to make the termination or renewal of a tenancy go as smoothly as possible, for both with the owner and tenant.  If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Residential Security Deposit Regulations in California

Have you ever wondered how much you should or could charge your renters for a security deposit? In California, the Residential Tenant/Landlord Law dictates that amount. The limits change depending on whether the unit is furnished or unfurnished. For an unfurnished unit, the maximum combined deposit amount that can be charged is two times (2x) the monthly rent. This means that if, for example, the monthly rent is $2000 and you want to charge for a standard deposit, a key deposit, and a pet deposit, the combined amount cannot exceed $4000. If the property is furnished, then the combined deposit limit climbs to three times (3x) the monthly rent, or $6000 for a unit with $2000 monthly rent.

At 24 Hour Property Management, we recommend to our investors that they charge deposits as follows: (1) standard deposit sum equal to one month’s rent; (2) $150 for keys/remote deposit; and, (3) $500 per animal if they are accepting pets. However, often an investor has different deposit requirements, which we accommodate as long as it is compliant with the Residential Tenant/Landlord Law.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and collected as many deposits on behalf of those investors. If interested in discussing deposits or anything related to property management, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

What is a 3-Day Notice to Pay or Quit

When a tenant signs a lease with a landlord, he or she is agreeing to pay a specified amount usually by a specified date each month.  When a tenant is late on their payment, the first step to take to remedy the problem is to post a 3-Day Notice to Pay or Quit the day after the rent is due or the day after any grace period written into the lease. For example, rent is due on the first of the month and late after the fifth. If you have not received rent by 11:59 PM on the fifth, you should post a 3-Day Notice to Pay or Quit on the sixth.

The 3-Day Notice to Pay or Quit notifies the tenant in writing of the following: (1) the rent is past due; (2) he or she has 3 days to pay the rent; and, (3) if rent is not paid, the landlord has legal right to begin eviction proceedings.

The best delivery method is to hand deliver it to the tenant. In lieu of personal delivery, you may deliver it to a person of suitable age and discretion at the residence or post the notice in a conspicuous place on the property (i.e., tape it to the front door and take a photo). You should also mail a copy to the residence for additional notification and an extra layer of protection for you.

If the tenant does not pay the arrears within three days or pledge to by a specified future date, the landlord should consult an attorney that specializes in evictions and unlawful detainer actions to determine if starting the eviction process is the best step forward.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and while we pride ourselves in screening out all but only the best tenants, we have occasionally had to deliver a 3-Day Notice to Pay or Quit. We can do the same for you if and when it is ever needed. If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Are Move-In Inspections Important?

Move-In Inspections are important because they create a record of the condition of the property as of the day that the tenant took possession. When the tenant moves out, he or she is responsible to return the property to the condition it was in when they moved in. At this time, you should perform a Move-Out Inspection to compare against the Move-In inspection to uncover any issues caused by the tenant that were not remedied prior to them moving.

What makes a good Move-In Inspection?

A good Move-In Inspection contains a checklist, usually organized by major room or section of the home. Each section contains subitems for walls, floor, and other room components. Each subitem should have some sort of scale, such as bad-fair-good or 1-5, etc., that allows you to easily and quickly notate the condition of each room component. Most important of all, however, is there should be visual evidence. You must take photos or video of the questionable items for future reference. We use an app that contains the checklists and grading scales as well as labels and attaches photos of questionable items to a detailed, well organized final report. However, one can find online forms and attach photos manually if so inclined. 

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and conducted almost as many Move-In Inspections, ranging from 30 minutes to 3 hours. We can do the same for you. If interested, you can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

What are the Benefits of Fully Screening a Tenant?

The typical screening process includes verifying income by reviewing paystubs and/or bank statements, reviewing an applicant supplied credit report, and verifying rental history by contacting the current ad previous landlords. With these basic, very important steps, a landlord can get a good sense of the applicant’s capacity and ability to pay rent. However, there is still more that can be done.

What else does 24 Hour Property Management do?

On top of the basic items previously mentioned, we run a thorough criminal background check and eviction history check. These extra steps are important because these additional services reveal things about applicants that are either not readily available in public records or occurred prior to the one or two years of recent history you are examining. Did you know that in California, a tenant can legally break a lease if he or she is a victim of domestic abuse in the leased property? Wouldn’t you like to know if one of your applicants had a criminal history of domestic abuse in order to mitigate against a broken lease?

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and the system we have in place screens out all but the most qualified tenants so that you can be at ease with the people occupying your property. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

How to Market a Rental Property

There are some basic steps a property investor should take to market his or her property. 

Professional Photos

One of things we have learned at 24 Hour Property Management is that the quality of the photos really matters. A few cell phone photos really don’t do a property any justice. 

List the Property

An investor should list the property on all the major home search sites, such as Zillow, Trulia, as well as Craigslist, etc. This process is manual and can be very tedious, however. We at 24 Hour Property Management will list your property in the California Regional MLS, which will automatically publish the listing to over 850 listing sites (including the ones mentioned above), as well as make it available to all the real estate agents in Southern California.

Social Media

Another fantastic place to market a property is on various social media channels. We create a single property website for every property we market and put it out on our various channels.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and even if you are not looking for day-to-day management, we have the system to help you market your property and locate a qualified tenant. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.