Lease Termination

By Salvatore Friscia, San Diego Premier Property Management, San Diego, CA

It was just a few months ago when the tenants were in the office signing the one year lease agreement. The leasing agent followed the office procedures and made sure to review the lease terms and obligations prior to asking for binding signatures. Then with the swipe of a pen the property was considered off the market and occupied for the year.

By Carla Toebe, New Century Realty, Kennewick, WA

They say that abandonment is a landlord’s or property manager's worst nightmare when dealing with a tenant. How do you know it is really abandonment? Sometimes it’s obvious when everything is gone, the place seems perfectly empty, and the tenant's keys are lying on the counter. But what if the place is full of furniture, the food is still in the cupboard, and you can't get a hold of them? They haven't paid their rent, they haven't returned your phone calls, no one has seen them, and you can't get a hold of anyone on the emergency contact form you had them complete when they moved in. Surely this means they must have abandoned the place. So you change the locks, and uh-oh! There they are coming back claiming you have now burglarized their place. Oh no! This can't be, they clearly abandoned the place and you took all the steps you had to take that were required by law.

For those of you who’ve met me or taken one of my classes, you know that I say what I mean and I mean what I say. I talk the talk and I walk the walk. I tell it like it is (professionally and with care, of course) but If it has to do with not sugar coating things, I’m your girl (of course, I’m not referring to using “visit us” or “live here” words during leasing… then a little fluff is just fine). But in normal every day dealings onsite and at the corporate office… I don’t see the point in wasting time beating around the bush, because TIME is MONEY!

There have been numerous occasions that I am aware of, sadly, that a property manager has not filed an eviction on a resident who hasn’t paid rent by the time it’s due. Despite the action being spelled out, very clearly, in our policy and procedures manual (and common sense if you’ve spent any time in the business).

The manager will have a wide range of reasons as to why they won’t… but the last time I heard the excuse, I nearly fell out of my chair (seriously). She said “Well… I needed the occupancy numbers”. WHAT? What good is a high occupancy percentage if you’re not collecting any rent? She didn’t know the answer. Turns out, this person was a habitual late-rent payer and eventually ended up skipping out… owning an absurd amount of money to the community. Worst yet… he’d been renewed without increase. TWICE!

By Salvatore Friscia, San Diego Premier Property Management, San Diego, CA

A vital part of reducing cost when managing a rental property is limiting the expenses associated with tenant turnover. Tenant turnover usually requires the rental property to be professionally cleaned, painted or touched up, and carpets cleaned or replaced. In order for you to know what expenses to absorb and what expenses to charge back to the tenant, you should always know the current condition of the property as well as the condition in which the property was given to the tenant.

To accomplish this, each tenant should be provided with a written “Move-In/Move-Out” checklist. The “Move-In/Move-Out” checklist allows both parties to identify in writing the initial “Move-In” condition and the final “Move-out” condition of the property. These checklists will eliminate any misunderstandings regarding which party will pay for non-normal wear and tear repairs throughout the tenancy and upon move out. Prior to giving the keys to the tenant the owner should completely inspect the property and document the existing condition on the “Move-In” side of the checklist. It is necessary to document the condition of the appliances, windows, screens, blinds, doors, walls, lighting, flooring, a/c, heating, toilets, faucets, ceiling fans, and any other necessary interior and exterior areas. During the initial walk-through with the tenants, it is important to review the findings with the tenant and have the tenant sign and date the document.

By Salvatore J. Friscia, San Diego Premier Property Management, San Diego, CA

Every property owner should require tenants to issue a refundable security deposit which is held on file to insure against non-performance of the lease agreement. Non-performance may be, but is not limited to, anything from damages occurring during occupancy to expenses accrued due to the tenants conduct or failure to pay rent.

The confusion begins with the property owner not knowing how much to require the tenant to issue for the security deposit. It is important to understand that security deposits for residential properties are controlled by statute and call for nondiscriminatory  and equal treatment. It is a prohibited discriminatory practice to charge a family a different amount then an applicant without children. It is also prohibited by law to require an excessive amount for the security deposit. In addition to collection of one month’s advanced rent, the maximum security deposit allowed (at least in the state of California) for an unfurnished unit is two months rent and three months rent for furnished properties. [California Civil Code 1950.5(c)] Check your local area laws for similar guidelines in your area.