5 Reasons You Should Consider Commercial Property Management Solutions

Commercial Property Management Solutions

If you are a business owner, you may be curious as to whether or not you should consider hiring commercial property management services. In addition to property management services, this article will cover the benefits of these services and how they would benefit your business.

Reasons to Hire Commercial Property Management Solutions

Following are the reasons to hire commercial property management solutions

1. Reduced Operating Costs

Commercial property management solutions can help to reduce your operating costs. You can save on property maintenance, utilities, insurance, and other associated costs by managing your properties properly.

2. Improved Security and Safety

If you are responsible for the security and safety of a commercial building or property, a professional property management company can help improve those outcomes. They will have access to resources and expertise that you may not have, and they will be able to provide effective security measures for your building or property.

3. Enhanced Property Values

A well-run commercial property management company can help increase your property’s value. By providing top-tier maintenance and security services, they can keep your properties in excellent condition and boost their marketability. It can lead to increased revenue and overall profitability for your business.

4. Reduced Legal Hassles and Easier Management

A professional commercial property management company can handle all the paperwork and administrative tasks related to owning and managing a commercial building or property. CPM can significantly reduce the hassle and complexity of owning and running a business in this sector.

5. Greater Control Over Your Business Operations

If you want greater control over your business operations, a commercial property management company can provide it for you. They will take all the necessary steps to ensure that your properties are properly maintained, protected, and insured.6. Reduced Expenses and Improved Profitability. A commercial property management company can reduce the overall expenses of owning a commercial building or property.

That’s because they will help you Save Money by finding and recommending cheaper alternatives to expensive equipment or services you might need in the future.7. Increased Security and Safety. While, some of these improvements, are related to increasing profitability and reducing costs, another important benefit of hiring a commercial property management company is increased safety for your tenants and other parties who may use your properties. A professional property management company will put in place procedures and

How to Select the Best Commercial Property Management Solutions Firm

You know the importance of good property management if you own or operate a small business. But finding the right company to help you out can be daunting. Here are some tips on how to select the perfect commercial property management solutions firm for your small business:

1. Do your research

There are a lot of great commercial property management solutions firms out there, so it’s important to do your research and find one that best suits your needs. Look at reviews written by other businesses who have used the company’s services, as well as ratings and reviews from independent organizations such as The Better Business Bureau.

2. Consider size and scope

When looking for a commercial property management solutions firm, it’s important to consider the size and scope of their services. Some firms offer only limited services, while others offer more comprehensive coverage. Be sure to ask about specific features that are important to you, such as insurance coverage, security measures, and leasing options.

Conclusion

Commercial property management solutions can provide several benefits for businesses of all sizes. From keeping your assets safe and secure to maximizing asset utilization, these services can help your business run more efficiently and effectively. If you are considering commercial property management as an option for your business, we recommend seeking out a company with experience managing properties of all types and in all locations.

Ready to Rent Out Your Property? These 7 Tips Might Help!

Ready to Rent Out Your Property? These 7 Tips Might Help!

Are you planning to rent out your property? You might be looking for some extra income, wanting to clear a debt, or seeing it as a means to hold on to the property until the real estate market improves.

But it’s not that easy – You must ensure the property is well-maintained, well-advertised, features a competitive price, and is in a move-in ready status for tenants.

If you reside in a tourist-friendly or commercial area, renting out your home might not be as difficult – But if that’s not the case, finding the perfect tenant can be difficult.

In any case, here are 7 important tips to prepare your property rentals for the local market.

1. Get Landlord Insurance

First and foremost is having reliable landlord insurance which will shield you, the landlord, from specific things that a regular homeowner’s insurance wouldn’t. These include potential lawsuits, damage to the property caused by the tenant or a third party, and any sort of liability.

Professional insurance providers or a property management firm can help with landlord insurance and answer specific questions.

Also, in certain cases beneficial to the landlord, the tenant can get a renter’s insurance that covers them in case of lost property.

2. Hire an Accountant

You’ll need to hire an accountant because once you begin collecting money by offering a product (your house), you need someone to tactfully track your income and expenses. You must also ensure that you’re abiding by the proper requirements and reporting everything to the government.

You can also consult with a Certified Public Accountant (CPA) before you rent out your property and ask them whether you should be aware of anything to help you get started.

3. Review the Lease Agreement

Hire a professional attorney to review your lease agreement and ensure everything is in order and you’re covered. Ideally, consult an attorney that specifically handles real estate law so that your lease particularly caters to your property.

4. Decide Rent

It is important to settle on a market competitive rent that doesn’t undervalue your home, and also makes it feasible for tenants.

A rule of thumb is to fix your rent at a maximum of 2.5 percent to 3 percent of the total value of your home.

5. Get the Residential Rental Move-in Ready

Tenants always notice minute details, so make sure to take care of them and leave a strong impression. Scan your house and enlist all the areas that require any repair, replacement or any sort of maintenance before a tenant moves in. These might include lights, furniture, carpets, garbage disposal, bathroom fittings, wallpaper, etc.

Survey your house every few days before a tenant moves in. Ensure there isn’t any dust or debris lying around once a tenant visits to survey the property. Also, focus on the landscaping. Make sure the grass is cut and weeds are removed – All this helps you leave a good impression.

Remember: The first impression a tenant makes of your property is extremely important.

6. Market Your Property Effectively

Now that you’re ready to rent out your home, the next step is advertising it on the market. Make a list of the most appealing and marketable aspects that will ‘sell’ your home; commonly marketed features include a washer and dryer, air conditioners, storage room, and garage.

According to experts, certain words and adjectives help residential and commercial rentals get a tenant faster. Make sure to use any or all of these IF they apply to your home:

  • granite
  • state-of-the-art/modern/latest
  • stainless steel appliances
  • vaulted ceilings
  • maple
  • gourmet
  • hardwood floors

Once you’re done, post an ad on reputable real estate websites and in local newspapers.

You can also hire some real estate agents to help you rent out your home; however, these agents ask for commission once they find you a tenant. Moreover, a property management company can handle all the legwork for a reasonable fee generally 8 percent to 10 percent of the monthly rent.

7. Research and Shortlist Potential Tenants

Last but not least, is to shortlist potential tenants. Ask them to fill out an application form that inquires their basic information: name, employer name, salary, any previous landlords, reputable references, etc.

You’ll also need their social security number and signed consent to check credit reports and any history of criminal charges (state and local records) – An accredited agency can also do this as long as you follow the procedures of the Fair Credit Reporting Act (FCRA).

Other important paperwork you’ll require includes:

  • move-in documents
  • receipts from the tenant when they pay rent
  • move-out documents

For any further inquiries regarding renting out your home, or any other property management related queries – Feel free and reach out to Skybridge Property today!

The Skybridge Property Group is a market leading property management firm. To learn how we can help you, call us at 909-610-9780.

The Ultimate Guide to Craft a Concrete Lease Agreement

The Ultimate Guide to Craft a Concrete Lease Agreement

Thinking of renting commercial/residential property? It’s time you learn to draft a lease agreement. It is a detailed legal document intended to protect your basic interests, investments, and your tenants. In short, it is the foundation of cost-effective property management.         

When drafting a lease agreement, you must ensure that all the terms adhere to the landlord-tenant regulations in your region. Using the right resources and support, you can confidently draft a standard lease agreement.

So what are the key points of a solid residential or commercial lease agreement, you ask?
Here are the key aspects all landlords must include:

 

1. Start and End Date of Lease Agreement

Despite being obvious and one of the first things that come to mind when drafting a lease agreement, many landlords forget to state the start and end date of the agreement, known as the lease ‘term’.

Based on your requirements, you can draft a short-term rental lease agreement or a long-term agreement.

Missing this important clause in the agreement results in dealing with a ‘holdover tenant’ who refuses to vacate the rental property after the lease term has expired, and nobody wants to unnecessarily deal with evicting a tenant.

 

2. Rent-Related Details

Whether it’s a commercial or residential lease agreement, the second most important thing is the amount of monthly rent the tenant has to pay. Moreover, you should also include other rent-related details, such as:

  • Due date for payment of rent every month
  • Grace period and amount of late fees
  • Acceptable modes of payment (check, bank transfer, online transfer)
  • Charges on bounced checks

 

3. Security Deposit Terms

Security deposits are important to cover any possible damages or problems caused by the tenant after returning the property. A tenant might believe the property is in good condition when vacating it, but the landlord might think differently.

To avoid any potential misunderstanding and the consequent trouble, include the following terms about the tenant’s security deposit in your lease agreement:

  • Exact amount of the security deposit
  • Terms and conditions the tenant must fulfill to obtain a full refund
  • Terms and conditions under which the landlord may use some or all of the security deposit

 

4. Names of All Adult Tenants

It is extremely important to include the names of all the adult occupants in the residential lease agreement. Some landlords only mention the name of the person signing the agreement, but this is not recommended and may lead to problems at a later stage.

For example, if you’re struggling with nonpayment of rent and you cannot demand it from other occupants, since their name isn’t in the agreement!

 

5. Subletting Permissions

It is important to mention whether you allow subletting your rental property. If it is permitted, make sure you devise a clear policy with straightforward rules. For example:

  • The right to reject/accept the sublet rests with the landlord
  • The same qualifying standards hold for the sublet as for the other tenants

If you do not permit subletting, clearly mention it in the lease agreement. Also, notify your tenants before they sign the agreement to avoid any potential consequences.

 

6. Pet-Related Permissions

Similar to subletting, you can permit or prohibit animals on your property in the residential lease agreement. Have all tenants sign a pet agreement to avoid any future misunderstandings, just in case they decide to get a pet later on.

Here are some important terms to include in the pet agreement:

  • Types of pets allowed
  • Requirement of approval from the landlord before keeping any pets on the rental premises
  • Mandatory for all pet owners to have the required licenses, identification, and vaccinations
  • A pet fee; is for any damage the pet may inflict on the property

NOTE: these rules will NOT apply to occupants with service pets.

 

7. Landlord Visiting Rules

A landlord must respect the peace and privacy of their tenants; you can’t just enter a tenant’s unit whenever you want.

That’s where landlord visiting rules come in, stating clearly the terms and conditions in your commercial lease agreement under which you can visit your tenant’s unit. These can include:

  • Inspection
  • Showing the unit to future tenants, lenders, or buyers
  • As per official court orders
  • Under suspicion that the tenant has abandoned the unit without notice

Moreover, it is important to notify the tenant at least 48 hours ahead of a planned visit, and an appropriate time must also be considered, most suitably between 8 AM and 5 PM.

At the end of the day, a lease agreement is meant to protect both, the landlord as well as the tenant. You just need to ensure that the document is legally thorough and flexible to safeguard your property, rental income, and formulate positive relations with your tenants.

For any further inquiries regarding lease agreements, or any other property management related queries – Feel free and reach out to Skybridge Property today!

Key Essentials of Property Management

Key Essentials of Property Management

Property management might seem like a relatively easy task, but anyone who owns real estate will tell you otherwise. Property management involves major risks, and that’s why individuals and firms are always looking for ways to ensure a smooth property management workflow.

This article focuses on key property management basics that everyone who owns or deals in property management must master.

But before diving into that, let’s take a closer look at the importance of effective property management. 

The Importance of Property Management

As we said, the real estate industry can be quite tricky; slight mishandling of data or inefficient workflow management can very easily wreak havoc. That’s why effective property management and knowing how to strategize are critical.

Also, staying in touch with the latest developments in technology and otherwise is essential. A professional property manager understands that staying in touch with the ongoing trends in the industry is ideal for lowering potential risks and moving ahead.

Fundamentals of Professional Property Management

Here are 7 key essentials that property managers follow for a smoothly-driven real estate business.

1. Proper Data Management

The most important aspect of property management is managing data securely. Reliable property management solutions can assist in handling customer profiles, information about sellers, properties, and more. They help store and retrieve large chunks of data and support agents and customers to find suitable properties within specified areas.

Moreover, property management solutions offer synchronized solutions to store all manual data-related tasks by syncing their database and portal. Such unified solutions help property managers handle marketing, sales, real estate listing, and lead funnels from a sole platform without having to switch between different tools.

2. Managing Listings

Property listing features are another very important aspect of property management. If property listings are flawed, prospective buyers cannot access the listings they want.

Property management technology allows comprehensive categorization of the property giving interested buyers a quick overview. This includes:

  • Type of property
  • Number of rooms and bathrooms
  • Availability of garage
  • Availability of balcony
  • Other amenities

A property manager must manage these listings along with sellers, brokers, and agents. They should also include additional features like add, delete, edit, approve, and reject properties based on defined parameters.

3. Collecting Rent

The most common ways to collect rent include:

  • Physical cash collection
  • Credit cards
  • Checks
  • Money orders

Even though physical cash collection is quite time-consuming and requires effort to arrange the right amount of money at the right time, the most obvious inconvenience during rent collection comes from personal checks. This is because checks might bounce, often leaving a huge fee that the landlord eventually passes to the tenant.

This is why an online rent collection system should be the preferred method of rent collection. It is a secure payment method solution featuring secure and integrated payment management options.

4. Property Tours

When buyers shortlist properties the next step is scheduling a tour, preferably a physical one. However, the recent pandemic has shown us the importance of virtual tours which can also help buyers better understand and explore properties. This is where efficient tour scheduling comes into play.

Rental property management tours must easily be integrated into a physical or virtual calendar in your property management system, enabling buyers to easily confirm availability and book a tour without having to contact anyone and be put on hold.

5. Sharing on Social Media

You must’ve noticed that we’ve been stressing about using technology in the previous points. That’s because nowadays, using the latest software and providing social media sharing has become more of a necessity and less of an option.

Hence, use different social media platforms such as Facebook, Twitter, and Instagram to display and promote your real estate listings. This way, potential buyers can conveniently access and browse property information, and also share it with others on their social media profiles.

Professional property management also involves providing a location guide when displaying properties on social media. This will help buyers analyze the neighborhood as well. Share a comprehensive explanation about the surroundings, like the nearest landmarks, famous malls, etc., that will help provide a better idea to prospective customers.

6. Simplifying Means of Communication

Making communication easy through omni channel communication (providing various options to buyers to reach you) facilitates property management using a single interface.

Select a property portal that enables you to stay in constant touch with prospective buyers in real-time via multiple modes of communication. This could include:

  • Integrating a ‘live chat’ option for clients to answer their concerns and questions
  • Forward customer contact details to various CTAs allowing buyers to  interact easily

7. Using Analytics for Empowering Your Business

And the last essential element that property management real estate owners abide by is constantly staying updated about current trends. Tracking analytics helps detect effective marketing strategies and potential roadblocks.

You can hire a tech solution provider with a well-arranged admin/customized dashboard that allows setting and saving quick links to widgets. This helps monitor recent activity, counter block, etc., for your designated properties.

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.

Things to Avoid When Renting Your Property

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Things to Avoid When Renting Your Property

These are the things you must avoid to successfully rent your place out.

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

Renting a property isn’t just about finding a tenant and earning money. As a landlord, there are plenty of things that you should avoid to keep maintaining your tenants and rental property well. Not because you are the owner of the place and tenants are just renting, you can do everything you want. 

If you’re a first time landlord, here are the things that you should avoid when renting your property, and make your business prosper!

1. Barging in.

Respect your tenant’s privacy. Some landlords or property managers like to check in on their properties frequently to make sure everything is running smoothly. However, you must always remember to respect their privacy and refrain from barging in or stopping by unexpectedly. 

Having a scheduled visit that the tenants are aware of lets them feel more at ease in your property, as they won’t be surprised if someone shows up unannounced at any moment.

2. Sudden increase in rent

Not because you can see that your tenants are really liking the place and expressing appreciation of the place, that you have the right to increase the rent fee any time. Throughout the contract duration, you must adhere to the terms and conditions of your lease.

3. Evict renters because of senseless matters

Keep in mind the terms of the contract at all times. Always act in accordance with the terms that you and your renter agreed to, and avoid evicting a tenant over minor issues. If a situation arises and you must terminate your lease immediately, always be polite and provide an eviction notice to your tenants.

4. Screen tenants based on a biased opinion

Always screen your tenants fairly, regardless of their ethnicity or other irrelevant factors. Being prejudiced and racist is bad for business, and you should demonstrate that your rentals are available to anyone who agrees to the terms and conditions.

5. Charge too much on rental deposits

Don’t only think of what you will gain but what you can also give to your tenants. Avoid charging too much on rental deposits. Most potential tenants back out not because they don’t like the place or can’t afford the monthly rent, but because of how expensive the rental deposit is.

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.

2021 Technology Trends in Property Management

Technology Trends in Property Management

2021 Technology Trends in Property Management

Thinking about how to ensure a high return on your investment property? Then this article is for you. 

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

As modern technology is rapidly taking over the world, many businesses are struggling to cope up with the changes. From the traditional ways of doing things to a more automated and systematic process. These modern technological advancements have had a wide range of effects on the property management sector, from clients to property management firms.

In this blog, Skybridge Property Group will tackle some technology trends in property management that helped the industry be where it is now. Continue reading!

1.    Cloud Computing

Cloud computing refers to the delivery of various services over the internet. Data storage, servers, databases, networking, and software are examples of these resources. 

With cloud computing incorporated into property management, a property manager may now access all necessary information over the internet, eliminating the need to invest in the construction and maintenance of a network. You may save money on IT costs with this technology, and you won’t need to worry about security upgrades because you’ll always have access to the most recent version of your applications.

Out on a vacation but needs to check on assets and other documents? Worry not because cloud computing allows you to access your applications from anywhere at any time as long as you have a connection to the internet. You can also establish client portals with internet access to better service your clients.

2. Business Intelligence

To help firms make more data-driven decisions, they use business intelligence (BI) that incorporates business analytics, data mining, data visualization, data tools and infrastructure. Technically, you’re recognized to have a modern business intelligence when you have a holistic perspective of your company’s data and can utilize it to drive change, eliminate inefficiencies and quickly adjust to market or supplier changes. 

With the help of business intelligence in property management, you will be able to anticipate market conditions to ensure lower vacancy rates. It can also help to analyze past performances and predict trends across areas, and provide insights into performances of different property portfolios. 

Reports wise, you can also generate customized reports on different factors of the business. This way, you and other people working for you will have a better insight of the businesses data, and contribute to a more precise decision. 

3. Artificial Intelligence

Multiple tasks and competing priorities are common for property managers to balance. With limited time and resources, it’s critical to uncover cost-cutting and efficiency-improving opportunities across their portfolios. 

Now, many businesses have started integrating artificial intelligence into their systems and processes. Artificial intelligence can automate communication between renters, landlords and property managers. It can also be used to answer common questions from renters, automatically send emails to subscribers, process maintenance requests and more. 

The wonders of AI aren’t ending there! Artificial Intelligence can also learn in two ways: supervised and self-learning. In some fields such as property management, property managers are encouraged to use supervised learning to ensure stability and a more personalized and precise result. The use of AI in businesses doesn’t suggest that it will take over what the humans are working on, hence help on the operations and save time on tasks.

4. Smartphone Technology

Adopting the smartphone technology has made significant changes through many industries, including property management. There’s just so many ways that these little devices have provided property managers more than what they need. Now, providing mobile payment solutions make it easier for tenants to pay their rent on time, improving cash flow and lowering arrears. Smartphones also enable property managers to improve maintenance processes by allowing tenants to make requests through texts or emails, send leasing applications and process it quickly — which also adds to improving overall customer satisfaction. Money wise, these overall automated innovations help reduce administration costs because workflows are processed automatedly. 

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.

4 Things That Can Help Ensure a High Return on Your Investment Property

Investment Property | Skybridge Property Group

4 Things That Can Help Ensure a High Return on Your Investment Property

Thinking about how to ensure a high return on your investment property? Then this article is for you. 

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

Real estate is always a reliable investment. Yes, the real estate market does fluctuate, so purchasing low and selling high is not always a given. However, real estate provides the best opportunity to generate passive income and build wealth. Owning property and successfully renting it out could easily generate thousands for your yearly income, whether you rent out a room, a whole house, apartments or commercial real estate.


Whether you’re fixing up the property now or waiting until it’s safer to bring in tenants, Skybridge Property Group explains ways to ensure you get the best return on your real estate investment.

1.    Get Your Rental Business Off The Ground

If you haven’t started your rental business yet, there are few preliminary steps that need to be considered. One proven step is registering your newly clad business as an LLC. Not only does a limited liability corporation provide personal liability protection, but it also provides other benefits, including flexible tax options. You’ll also need to appoint a registered agent to act on behalf of the company when dealing with the state. In addition to tax notifications, a registered agent will also handle time-sensitive matters between your company and the state.


Another crucial step is determining where your rental property will be located. Getting advice from an experienced real estate agent can give you insight into what is currently renting and what is not being rented. Your agent can also help you navigate HOA guidelines and local laws that could impact your choice; they will be able to point you toward the right location to fit your investment plans. Having this kind of connection can also lead to future rental prospects. Lastly, pricing your new rental property fairly will guarantee that it’s always booked.

2. Hire a Property Manager

Part of the lure of investment property is that it practically makes money on its own. However, renters require a certain amount of attention, and the property requires maintenance and repairs. In order to alleviate some of the stress that comes with property management and to demonstrate to renters that they will have someone dedicated to managing their property, you can hire a property manager to take care of things. A property manager can help you choose the right tenants, regularly check and maintain the property, and collect the rent from tenants.

3. Make the Property Appealing

Your design decisions will depend on the type of property you’re investing in. Once you have chosen the type of real estate that appeals to you, then it’s time to take pen to paper and define your target tenant. Once you’ve figured that out, you’ll want to design the rental space with their needs in mind. Get to know your market by talking with your real estate agent, neighbors, property managers, similarly-situated investors and local business owners. Researching your potential tenant market will give you insight to what they want, and providing what they want will allow you to charge premium rents and increase your profit.


Depending on your property and target tenant, some design elements you may want to incorporate include:

  • Natural lightingDark spaces can be depressing. Consider opening up spaces by taking out walls and adding large windows in order to let that natural light in (bonus: natural light makes small spaces look larger).
  • Technology — Embrace the 21st century and all smart technology offers: smart locks, smart thermostats, smart lighting, etc.
  • Curb Appeal — The exterior will leave the first and lasting impression. Hire a landscaper to make the exterior chic and modern, update mailboxes and light fixtures, and apply a fresh coat of exterior paint and a statement door to wow renters.
  • Kitchens and Bathrooms — In all rentals (commercial and residential), kitchens are gathering spots, and bathrooms should be clean and beautiful. Start by updating the cabinets, which are attention grabbers in any space.

4. Add the Extra Amenities

Besides a stellar rental property, tenants love the extra perks that make high rents more alluring. You could install an on-site washer and dryer that makes it more convenient for your tenants. Also, installing high speed Wi-Fi, with the cost folded into the rent, makes life a tad bit easier for renters who would not need to worry about installation, monthly fees and removal once they vacate. Moreover, attractive and energy-efficient appliances could potentially be the tiebreaker between your property and the competition. Get the advice of your property manager on what amenities would benefit you and your tenants and still result in a profit.


Whether you already own investment property or are looking to purchase, you have chosen a great strategy to build your wealth. However, the decisions you make post-investment will determine how much return you get. After establishing your business, hire a property manager to keep up with your tenants and the property, and make the property appealing to your target tenants with design upgrades. Then, put the icing on the cake with the bonus amenities that will be sure to give you an advantage over your competitors. You won’t regret the time and money you invest in your real estate.

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.

Key Clauses to Include in Your California Lease Agreement

application-form-writing-printed-contract | Skybridge Property Group

Key Clauses to Include in Your California Lease Agreement

In order to avoid misconceptions between a landlord and his or her tenants, it is vital to have key clauses in your California lease agreement.

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

Are you still being confused between a landlord and a tenant? And can’t tell the difference between a rental and lease agreement? Don’t be concerned! Skybridge Property Group has compiled a list of key clauses in your California tenants and lease agreement that you should be aware of. We’re confident that by the end of this blog, you’ll recall these main clauses and have a better understanding of your rental and lease agreement. 

A California Lease Agreement is a contract that requires a residential or commercial property landlord to write a legally binding lease agreement with the tenant. That contract will define the land, monthly rent, and the list of both parties’ obligations and responsibilities.

Detailed lease agreements benefit tenants and landlords alike. Adding key clauses and using the right terms in contracts like California Lease Agreement prevent future misunderstandings. There is no such thing as a lease agreement that covers too much.

It is important to remember that you cannot hold your renter responsible for something that was not outlined in the agreement.

Let’s say your tenant allows a friend to move in with them. Your California lease agreement needs to contain a clause on occupancy limits. Otherwise, you will not have the grounds to evict them if they move people in without your permission.

In this article, we will examine some of the key items you should include in your California lease agreement contract.

#1: Is it a Lease or Rental Agreement?

Every rental document in California should establish whether it is a fixed-term lease or a rental agreement. These are not the same thing and call for different specifications.

Fixed-term lease agreement

  • You need to set a beginning and expiration date.
  • This document binds both sides to a specified term.
  • In many cases, the term is 12 or 18 months.

Rental agreement

  • You need to set a beginning date.
  • This document contains the notice period both sides need to end the tenancy. For both landlords and tenants, the period is at least 30 days. When tenancies last for a year or more, landlords need to give at least 60 days of notice.
  • Also, you should add a clause for the notice period to change a clause in the rental agreement. The minimum period is 30 days. Under specific rent increase circumstances, it is a 60-day period.
 

#2: Names of Tenants

Every adult tenant needs to be named in the agreements. This ensures that all of your tenants hold legal responsibility for the lease terms, such as paying rent and avoiding damages.

Should one of your tenants violate an important clause in the agreement, you can terminate the tenancy for all renters on that lease. Missing even one adult name from the California lease agreement could result in future complications.

#3: Occupancy Limits

Your California lease agreement should have a clause about the limits on occupancy. This means specifying that the rental unit is the residence of only the signed tenants and their minor children.

notice-writing-work-business

With this clause, you can take proper action when your tenant invites more people to live on your property. You will have the grounds for an eviction in case of any illegal subletting activities.

#4: Rent

Covering the rent in your California lease agreement is much more than putting down the amount. There are many details to consider, including the following:

  • How should your tenants pay the rent? For example, by mail or delivered to your working place. The latter should include the hours when they can pay the rent at this particular address.
  • What are the acceptable payment methods?
  • When is the rent due?
  • How long is the grace period (if there’s any at all)?
  • What are the bounced-check fees? (In California, the fee limit is $25 for the first rejected check. Subsequently rejected check fees are limited to $35.)
  • What are the late fees?

Note that California has communities that run rent control. Prepare to provide additional clauses in the lease agreement if your rental property is located in these areas.

#5: Pet Rules

Do you allow pets in your Orange County rental property?

Make sure to spell out any restrictions, including the number of pets allowed and any size or breed requirements in your California Lease Agreement.

pets-dog-bed-home

Any pet deposits or fees should be clearly noted in the agreement. If you do not allow pets, your California residential lease agreement has to reflect this as well. Keep in mind that keeping your property petfree could raise the vacancy rate.

#6: Security Deposit

Security deposits are a common source of conflict. It is important to detail the security deposit rules in your California lease or home rental agreement. Let’s take a look at the key details:

  • The dollar amount of the security deposit

– You can charge up to two months’ worth of rent in California.

– Is the property furnished? In this case, it is up to three months’ rent.

– You may add an extra one-half months’ rent if your tenant has a waterbed.

  • The use of the deposit

– You could use it for repairing damages that your tenant is held responsible for.

– You may specify situations that are not covered by the security deposit, such as failure to pay the rent.

  • The return of the deposit

– You have to itemize and return the deposit within 21 days of a move-out in California.

  • Interest payments

– In some cities, you have to pay interest payments on your tenant’s security deposit. Present all the details in the document.

#7: Entry to Your Property

The California lease agreement should define the legal right of access to your property. In order to avoid claims of unauthorized entry, you need to state the time period of advance notice.

California uses the term “reasonable notice.” Emergencies aside, your advance notice should be at least 24 hours before entering. However, it is 48 hours if you conduct a move-out inspection that your tenant requested. The latter has to be connected with possible security deposit deductions.

The Bottom Line: What to include in your California lease agreement

Your California lease agreement provides a legal basis for any tenancy-related actions you would pursue in the future.

Start off by defining whether the rental document is a lease or rental agreement. Move on by collecting the adult tenant names and setting the occupancy limits.

tasks-list-writing

Take extra care when covering rent and security deposits in every lease or rental agreement. Details matter.

Note that this article covered the basics of key clauses in your California lease agreement. Other clauses include:

  • Repairs and maintenance
  • Liability
  • Important rules and policies
  • Disclosures based on federal, state, and local laws

If any of this seems daunting to you, do not hesitate to contact a professional property management company to guide you through the process.

5 Mistakes Real Estate Investors Make When Budgeting for Their Property

stressed-tasks-job-desk-computer | Skybridge Property Group

5 Mistakes Real Estate Investors Make When Budgeting for Their Property

Here are 5 mistakes to look out for when budgeting your property

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

Rental properties are businesses that you can derive incredible income from. However, let’s not discount the fact that there are also potential losses if you fail to consider your budget. Just like any asset, your real estate investment should be taken care of to provide an increased value over time. Real estate investors have to be realistic in budgeting for costs associated with rental properties’ management.

Most investors just have one purpose — to earn money. And in order to be successful, we need to track our activities and efforts, along with the figures we are getting. So what’s the primary reason of real estate investors’ loss or in the worst case scenario—bankruptcy? Proper management of income is very crucial for every business out there, because getting these numbers wrong will be the root of more mistakes. 

With our experience in property management, we were able to come up with a few mistakes to watch out for and address in Orange County, California:

1. Not budgeting for unexpected repair costs

Repairs are inevitable; therefore, you need to create a budget for repair costs. Allocate a small percentage of the annual rental income for repairs, so when it’s time for emergency fixes, you can take from this part of your budget. If you fail to set up a budget, you might frequently be scrambling around for extra cash. The worst-case scenario involves having to dip into your personal savings.

There are a few repairs that may arise in your rental unit:

 

Kitchen plumbing

You may need quickly address a kitchen plumbing problem to avoid flooding from the kitchen sink. Faucet leaks and busted pipes might cause undue damage to the kitchen area.

Furnace

Furnace problems might provide less heating to the property, which can be a hassle for your tenants during winter.

Toilet plumbing

A broken tank or overflowing pipe must be fixed right away.

Electrical system

Circuit breakers can trip and result in power outages. You might need to contract an electrician’s services.

Replacements

Broken appliances, damaged flooring, peeling paint, and roof holes and leaks might cause major inconveniences to your tenants.

old paint cracking wall 

Fence

Missing pickets need to be fixed to retain the attractiveness of your property.

Garage door

Cracks and gaps in the garage door might be troublesome for the inhabitants of your unit.

 

2. Not accounting for property management costs

Owning a rental property requires in Orange County and other areas taking on heavy responsibilities, as you need to attract tenants and conduct screening. You need to attend to repairs and maintenance and be well-versed in the local and state laws. As such, there are many advantages to hiring a property management company that will help you manage these stressors.

You must carefully select the property manager that will handle your property. Be aware of the fees they charge and the extent of services they provide with each corresponding cost. Here are a few fees that could be incurred with hiring a property manager:

Monthly management fee

Different property managers have different fee structures. Some charge a flat rate per month depending on your property size and expected services. Others will charge based on a percentage of the gross monthly income. This percentage might be lower if they’re managing commercial properties compared to residential units.

Tenant placement fee

Some property managers charge a separate fee for tenant placement. This might go to advertising expenses and screening procedures.

Vacancy fee

When you have a vacant unit, a property manager might charge you a flat rate each month or a one-time monthly rental payment to spend for tenant searches.

empty-room

 

Maintenance fee

Depending on the property manager, some might charge this fee to conduct regular maintenance for common areas. In lieu of the maintenance fee, a reserve repair fund might be needed. This is a budget for specific repairs that need to be fixed immediately.

Eviction fee

There may be eviction fees associated with using the services of a property management company for evicting a tenant. This is to pay for court expenses.

Early termination fee

Breaking your contract early with a property management company may require you to pay an early termination fee. You might only be charged for a month’s rental; the company’s policies will determine the additional fees you will need to pay.

3. Not calculating for vacancy expenses

A vacant unit can be costly to manage, but sometimes this can’t be prevented. For example, a tenant may terminate the lease early or may not renew their lease. There are many expenses you have to consider even when the property is vacant:

Mortgage

You still have to make the mortgage payment when the property is vacant. If you don’t have other sources of income to deduct this cost from, it might become a stressful situation.

Taxes

You are obligated to pay taxes whether or not someone is renting your property.

house-calculator-calculations-analysis

 

Utilities

Even if the bills are lower compared to when someone is renting the unit, you still need to budget for utilities. When you show prospective tenants the property, everything needs to be in proper functioning order, including the electric and water systems.

Insurance

Absence of rental income won’t excuse you from paying the regular insurance payments for flooding, hazards, and liability for your property.

4. Not factoring for regular maintenance costs

The older your rental property, the more you need to budget for the regular maintenance costs. This will pay off in the long run, since frequent preventative maintenance will lessen emergency repairs and major damages.

Here are some areas to focus on when conducting regular maintenance:

  • Exterior curb appeal
  • Interior common areas
  • Seasonal maintenance (like tree pruning and snow removal)
  • Appliance maintenance
  • Landscaping

lawn-mower

  • Painting
  • Flooring
  • Cleaning costs
  • Pest control
  • Inspections
  • Waste maintenance
 

5. Not budgeting for miscellaneous expenses

Little expenses can quickly add up, and you should consider budgeting for miscellaneous costs. When you’re handling a rental property business, you should account for all expenditure:

Marketing

When you have vacant rental units, you need to spend money on marketing advertisements to attract potential tenants.

Visiting properties

When you live far from your rental properties, you must budget for transportation costs like vehicle maintenance and fuel. Additionally, there are time costs associated with constantly checking up your properties.

Administrative

Tax filing and bookkeeping documentation are required paperwork that must be kept updated to run a successful business. There must be an ample budget to hire professionals who will create organized systems to make the transactions easier for everyone.

The Bottom Line

Investors must set up a budget to prepare themselves against inevitable fees and bills associated with owning a property. Hiring an excellent property manager or a property management company is a great investment for first-time investors to help them lower their chances of making commonly made mistakes. Investors in Orange County should select a great property manager who will partner with them to manage their investment property and focus on maintaining an appropriate budget for the rental.