82% Of Southern California Renters Paid Their Rent On Time In June 2020

Thanks to recent data from the U.S. Census Bureau, and a report from the Daily Bulletin, we know that eight of every 10 tenants in Southern California paid their rent on time during June.

In their “pulse survey”, the Census Bureau survey showed that just 5% of tenants indicated that their rent was deferred.

Federal aid, like the recent stimulus checks, have enabled most tenants in Southern California to stay on track with their rent payments while others have benefitted from the eviction ban and have been able to defer paying their rent now for months.

What’s Comes Next For The Southern California Rental Market?

With the $600 per week in Federal unemployment benefits from the CARES act potentially coming to an end this month, it’s possible that the loss of those benefits, combined with an end to the eviction moratorium on September 30th, could bring a wave of evictions this fall unless more is done to help renters.

As of July 23rd, 2020, lawmakers in Washington are in negotiations for more stimulus aid which could potentially include an extension of the CARES Act unemployment benefits but that extension could be less than the $600 per week that people are receiving now.

Under the CARES Act, renters are protected from eviction until July 25th, 2020. Unless the CARES Act eviction moratorium is extended, tenants in California will only have until September 30th to avoid eviction because that’s when the statewide eviction moratorium is set for expiration.

What About Landlords?

Landlords also need financial help because, for those landlords in California that have been unable to collect rent since March, this represents a loss in rent totaling more than $1 billion.

So far, lawmakers in California have proposed a variety of bills that are aimed at helping the rental market get back on track including a bill that would potentially give tenants until 2034 to repay rent while encouraging some owners to forgive back rent in favor of tax deductions.

Sadly, what’s often lost in the discussion is the impact of Coronavirus on smaller “mom and pop” landlords, many of which who have been unable to collect rent from their tenants in months. Those smaller landlords can’t just walk forgive rent when they are already walking a financial tightrope, using their savings or retirement funds just to cover their mortgages.

It’s more likely that the State of California could propose an eviction relief plan which encourages landlords and tenants to enter it voluntarily, creating a favorable payment plan that tenants could use to get their rent payments back on track.

Contact GoldenWest Management, Inc

At GoldenWest Management, we offer full-service property management in California, Arizona, and Nevada.

Our company saves owners the time, money, and hassle of managing investment properties themselves.

To learn more about the services we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

Eviction Mistakes That You Don’t Want to Make

It doesn’t matter how long you own rental properties, there will be instances where you may have to evict a tenant and when those times come, there are eviction mistakes that you don’t want to make.

In this article, we will break down the most common eviction mistakes and the things that you can do to avoid making them.

Eviction Mistake #1 – Not Having A Formal Lease

The first eviction mistake that you don’t want to make is not having a formal lease in place because without a lease you literally don’t have a legal leg to stand on.

Some of the most common questions that should be covered in a lease include:

  • How much is the monthly rent?
  • When should rent be paid?
  • How should rent be paid?
  • What happens when rent is not paid by the due date?
  • How much will the late fees be, and how should they be paid?
  • What happens when the lease expires? Will it renew automatically?

Don’t operate your business on a handshake, hire an attorney and have a lease created that’s unique for your business. You won’t regret it.

Eviction Mistake #2 – Getting Emotional

Owning rental properties should be treated as a business and that means you cannot get emotional regarding any aspect of managing them.

Sadly, many owners are emotionally tied to their rentals because one of their properties may be a former family home or they invested money into improvements that they would like in the rental property.

When you remove the emotional attachment to your rental properties you will see more ROI from your investment properties because you will be handling your properties as an actual business and make sound business decisions that will help you to earn higher profits from your investments.

Eviction Mistake #3 – Playing Favorites

Last of all, but most important, don’t play favorites with your tenants. Make sure that you have a formal processes in place or every area of your business, especially when it comes to governing eviction procedures.

If you have formal procedures in place and follow those same procedures every time, you will ensure the long-term success of your business.

Get Property Management Here

For property management in Las Vegas, Phoenix or San Diego, contact GoldenWest Management today by calling us at (866) 545-5303 or connect with us online.

 

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Evictions Process in Nevada – Simple Tips for Understanding the Evictions Process

By Goldenwest Management

Las Vegas, NEVADA – Are you thinking about the Evictions Process in Clark County, Nevada for one or more of your Las Vegas rental properties?

The eviction process is one of the most complicated aspects of owning rental property, and the most common reason why property owners encounter difficulties with evictions is because they lack a real understanding of the reasons to evict a tenant and how to start the process.

Disclaimer – Goldenwest Management is not an eviction company, or attorney, we are a professional property management company with experience in managing properties in Arizona, Nevada and California.

Here are our tips on the eviction process and how you should approach eviction in the future.

What Are The Reasons To Evict A Tenant?

Some of the reasons to evict a tenant include the following:

  • Tenants not paying rent – Sadly, this is one of the most common problems that landlords face. Unfortunately, Landlords shoot themselves in the foot right away because they fail to inforce the rules for rent payment or they allow tenants to “slide” and pay their rent when it’s convenient for them to pay it. This includes accepting partial payments, paying without penalty even after the lease calls for fines, and waiting too long to start the filing process.
  • Using the rental property illegally – This includes using drugs on the property or distributing illegal drugs.
  • Failure to follow the lease rules and regulations – Often times, Landlords take this term to mean they can evict the Tenant for any slight break in the rules. This is not true…violating the rules must be to the point to cause potentially irreparable damage to the property as to include health and safety violations for the home and or the neighbors.

The Evictions Process

  1. No earlier than the 5th calendar day of the month, serve a (5) day notice to pay or quit. Must be served at the property (by a process server) or sent via proof of mail.
  2. After (5) business days, file the eviction paperwork in the appropriate Clark county court.
  3. Serve your tenant with the court filed eviction summons. Have this done by a process server.
  4. A court date is then provided. The court will notify you via mail, but the best way to follow your case is to follow your case number online at the court website.
  5. Show up with the lease and all records of appropriate service of the notices. Make sure you bring and correspondence from the Tenant (and or receipts for repairs) as often times Tenants will get into court and lob “grenades” that things are not fixed, etc…
  6. If the judge buys the basic premise that the Tenant should have paid rent and didn’t (he will give them an opportunity to pay at that time) then the eviction will be granted.
  7. If the Tenant is a no show the court will automatically grant the eviction.
  8. After a few business days (depending on the court order it could be as much as a two weeks around the holidays) you can contact the constable to have them serve a 24hr notice.
  9. After the 24hr notice, the constable will give you a time to meet at the property and they will remove the Tenant.
  10. You will be required to have a locksmith onsite to change the locks…if you don’t have a locksmith present, they will NOT grant the lockout.

What about late fees, court costs, and lost rent

The law reads one way, but based solely on experience, the judge will rarely grant you any extra money outside the rent and maybe the late fees (which if the late fees are exorbitant, the judge may waive those as well).

Obviously if you have to evict the Tenant for payment, you will then have to send the Tenant an itemized security deposit return, and can include lost rent, the fees awarded by the court, and the cost of the locksmith. Any property damage can also be included, but make sure you have solid documentation.

You can then deduct the total costs of monetary damages from the security deposit you have on file, and send the Tenant a “balance due letter.”

Collecting that balance due is a whole another matter. Consult an attorney or collection agency about the best ways to go after a former Tenant. Often times, you will hear, the juice is not worth the squeeze, but many times simply obtaining and filing a judgment is enough due to the fact that years down the line, the Tenant may want to make a purchase or clean up their credit (or rent another home) and find that they can’t do so until they pay off outstanding judgments.

This is a general process that GWM follows in Las Vegas every month when filing evictions. There are a million different scenarios where we may tweak the process to meet the specific situation. Consult an attorney for specific legal questions.

Learn More about how GWM can help you with problem Tenants.

For more information about our eviction process or property management services, contact Golden west Management, Inc. today by CLICKING HERE or calling us at (702) 685-7696.

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

The Utilities Addendum to a Lease Agreement

“What is a Utilities Addendum?”  This was a question recently posed to one of our offices.  As a way to inform all of our landlord and tenant customers interested in this topic, we’re answering this question through our blog.  Here’s our take on the utilities addendum – A utilities addendum might be something that is added to the lease for the following purpose:

Adding the monthly amount of a utility bill, usually one that can’t be placed into the tenants’ name but that they are responsible per the lease, to the monthly rent.

 

Continue reading “The Utilities Addendum to a Lease Agreement”

How Landlords can Avoid being Victimized by Squatters Rights Law

Landlords beware.  There is a bizarre and nerve-racking trend going on in certain states like California where squatters are taking advantage outdated laws to live rent-free.  This little loophole in real estate law gained exposure in a recent incident involving an Airbnb landlord and tenant.  In this particular case, an Airbnb tenant refused to leave a Palm Springs condo after his month long-lease.  Not only did he refuse to leave, but he told the landlord via a text message that “he was legally occupying the condo” and threatened to press charges against the landlord.  The dispute is ongoing, and according to the San Francisco Chronicle, the landlord, likely, have to pay thousands in legal fees and follow a 3-6 month eviction process in order to remove the squatter.  Needless to say, this is a setback for the landlord, whom works as a physical therapist and owns just the one property in Palm Springs.

How to Prepare for Squatters

Continue reading “How Landlords can Avoid being Victimized by Squatters Rights Law”

Challenges in being a landlord

At Goldenwest Management, we’ve managed properties for hundreds of landlords, and worked with hundreds more tenants over the past decade.  Most of you who follow this blog know that being a landlord isn’t easy.  Tenants come in a variety of personality and quirks.  If you are lucky enough to find the one that improves your property, then thank your lucky stars because these types of tenants are a rarity.  Most tenants will fall into an average range where the rent is paid on time, and no major issues arise.  The trick is to avoid the problem tenants.  These may be difficult to spot unless you have a seasoned screening process.  Even then, bad tenants can slip through the cracks.  For example, one article from the Durango Herald talks about undocumented pets, and tenants putting holes through the drywall.  Another article from the Hamilton Spectator, shares a sad story about a landlord whom lost her home after months of tenants not paying rent (and disappearing).  We’ve also heard stories of tenants selling illegal drugs, conducting illicit behavior, stealing materials from the property, and more.  These can be troubling situations, so make sure that you protect yourself appropriately (see our article on how to choose great tenants and/or how to handle a problem tenant).  If you really find that you are in over your head, use a property manager to help.

 

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408