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Dodd-Frank Bill Requires Adverse Action Letters

July 27th, 2011

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

The property is ready to be occupied, marketing is complete, and now you are receiving multiple inquires. At the first showing you receive two applications and it looks as though you’ll fill the unit quickly but remember only one Credit Scoreparty can be offered the property and after you have evaluated both applications – pulling credit information, confirming employment status and reviewing past rental history – it is clear that only one party meets your qualifications. So is it as simple as offering the rental to the qualified party and just letting the other party know that they didn’t get the unit?

Not so fast. As of July 21, 2011 the Dodd-Frank bill requires you to provide the consumer with a Score Disclosure letter or an Adverse Action letter if you decline their application or impose additional conditions (such as a higher deposit) in order to accept the application. This law was enacted toward creditors but does include “Property Managers” who deal with making decisions based on credit scores for potential tenants. According to the Fair Credit Reporting Act (FCRA) creditors are required to issue an adverse action notice containing the name of the credit reporting agency, notice of the consumer’s right to request a free credit report, and notice of the consumer’s right to dispute the accuracy of the report’s content. The Equal Credit Opportunity Act (ECOA) requires creditors to provide consumers with the specific reasons for a denial, or a notice informing a consumer of the adverse action taken and his or her right to request a statement of specific reasons from the creditor.

Now I’m not a fan of the Frank-Dodd law as I personally believe that it creates more expenses for business owners and like most government imposed safety measures will actually end up hurting the very parties that it was created to protect. In this case it does bring to light the importance of having written rental guidelines and rental qualifications which are posted in an accessible area (i.e. your company website) for all potential applicants to see. An example would be a minimum acceptable FICO score or monthly income ratio. Having this company standard will assist in your decision making process and bring credibility to your decision if challenged. Furthermore it will help avoid larger issues such as discrimination claims and will provide applicants who were denied a rental an opportunity to understand the reasons why.

Many credit bureau companies are now offering adverse action letters (for an additional fee) to help property management companies comply with the new rules and regulations. Our company has been issuing them since 2008 as we viewed it as good business practice. I guess the positive would be that any opportunity to limit your legal exposure is a good one. So remember an “I’m sorry you didn’t get the property” should now be follow with an “Adverse Action” letter.

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Cloud Technologies to Enable Property Managers

July 25th, 2011

By Peter Lamandre, Better by Design Realty, Scranton, PACloud Technologies for Property Managers

In many ways property management is all about being prepared; prepared in case of fire, prepared for emergency repairs. What happens when you become sick or injured? How prepared are you to run your business when you can’t actually be there?

Recently I severely injured my back and contracted an infection at or around the same time, as if one wasn’t bad enough. Fortunately, for the most part, we were very prepared.

I’d be remiss if I didn’t acknowledge the staff. I have a great staff, all of which are cross trained in some areas so that they can step in and fill in some of the gaps. Their flexibility was a key factor in enabling our company operations to continue to run during my down time.

One of largest reasons we were so prepared was almost every aspect of our business is in the cloud. Our management system, phone system, document storage, forms, etc can all be accessed anytime, anywhere.

Buildium was a huge benefit – being able to access all of my files was very helpful. Like any tool it is only as good as you choose to make it; a key decision for us several years ago was to scan all documents into the system so the online files mimic the hard paper files.

We also utilize offsite document storage in the cloud. We use SugarSync; they offer monthly and yearly subscriptions as well as a free version which gives you 5 GBs of storage. There are also ways for you to earn free storage space. With SugarSync you can back-up office files and retrieve them remotely on a mobile device or another computer. We do a large amount of offsite back-up so we do use one of the paid plans but to start out the free plan will more than suffice.

Likewise, our phone system is completely cloud based – it’s called RingCentral. It provides all the services of a top end back office PBX system, while also providing text alerts, voicemail messages that can be emailed, automatic faxes for applications or frequently requested info, and a mobile app that allows your caller ID to be masked so all outbound calls come your office even if you use your cell phone. You can also retrieve your voicemail from the cell phone app. From the office calls can be transferred to any phone, creating the appearance you are in the office. Calls can also be auto-forwarded to your house, cell, or any other number you wish. RingCentral supports multiple extensions, toll free numbers, and multiple local numbers. There are pricing plans to fit any size office, and the rates are very competitive.

None of these services were chosen to assist in the event that I was taken out of the business – they were all chosen based on value. Could they handle our needs, were they reliable, where they easy to use, would my staff revolt about my next “new tech toy” application (as they like to call anything techie I roll out)? None of us like to think about not being around (unless it is vacation, which can still be nerve racking). But from time to time it becomes necessary to step away and these tools can make things a little bit easier.

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Property Management Training – The Solution

July 22nd, 2011

By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia

I’ve always been taught that I should never go to anyone with a problem if I can’t also assist with the solution. In my last two blogs I’ve articulated my observations and opinions on just one of the reasons why this industry is so problematic. The problems are so bad they have metastasized into a systemic dilemma crippling the industry – I believe as a result of the lack of training due to the type of training available.

Due to my upbringing, I set about researching, searching, solving and testing what I believe to be the solution. Training. Training is the solution. At least it’s a major step forward in solving the problems inflicting the property management industry. The contagions that have spread a malignancy so potent that even though property management is the lifeblood of all real estate agencies, many are prepared to get out of the industry rather than let the rot spread any further. Strong words because they need to be strong. Let’s be clear about this! It’s time for solutions and action.

If you want to run a successful property management business providing optimal service then you have to be prepared to invest in the required resources, systems, training and teams. You have to be prepared to be accountable and understand this part of your business. Therefore, training starts at the top with YOU. That’s right, the fish stinks from the head down, so they say, so if you have property management as part of the services you offer then the buck stops with you. You can’t blame the continual revolving door of staff that come and go.

OK, I’ve given you all the reasons why training is so important and the validation to contemplate as to why legislative training, or as I term it ‘theoretical’ training, is not sufficient in my last two blogs. So now it’s time for the solution.

My own company, ireviloution intelligence, is releasing in late August the first ever online property management training program. This puts YOU, the business owner, back in charge of your business operations. You can actually employ someone with the right attitude and legal registration and then have them trained in accordance with their role and responsibilities.

Training and workshops are available in most areas. I understand this. However, let’s look at the negatives of this style of training. First off, the team is usually required to leave the office so you have travel time on top of that. That’s a long time away from their desk. I know in this wonderful age of technology we now have companies who participate in webinars, but have you ever observed what is ‘taught’ during these webinars and what the team is actually doing when they should be focusing on a small screen during such generalized training? It’s worth observing. Have you ever asked the team after attending training, workshops or webinars what they learned and what changes will be implemented in the day-to-day operations as a result of the training? These training sessions are too generalized and usually result in team members losing focus and gaining very little from it. Yes, they may return from the office all excited by what they heard, but honestly what difference has it ever made to your business operations and service delivery? Workshops are important, however in my view the only time a workshop is necessary is when there are changes to legislation, systems or processes. Generalized training and webinars actually have a detrimental impact on the business as each team member interprets the training differently, which becomes evident in the changes made to current processes. The result is business and operational deterioration leading to degeneration.

ireviloution intelligence training is a world-class e-learning product.  It provides a unique and comprehensive online interactive learning environment.  The training has been designed to ensure each team member can obtain extensive knowledge and skills to achieve optimal service delivery and apply operational efficiency and consistency. One of the unique components of the training system is its ability to report the participant’s competency and completion at the end of each training module  to management.  This means that you can be assured that your team member is learning what they need to know to build your business successfully.  Most importantly, the training delivery targets the specific operational systems and workflows that the licensed ireviloution operating systems, procedures (processes) and practices are based upon.

Some of the key features of ireviloution intelligence online learning product include:

  • World-class e-learning product including assessment
  • 28 comprehensive operational training modules
  • 8 management and operational performance modules
  • A self-paced nature to allow flexibility for participant completion
  • Results and competency focused learning and assessment
  • Automated reporting of participant’s results
  • Reportable completion and results achieved by participant to (Business Owner) manager
  • Measurable learning
  • Training is targeted, role specific and relevant
  • Training can be undertaken in the workplace without sending team offsite
  • Owners of the business can for the first time have ownership of the learning being achieved
  • Applied adult learning principles into learning material and presentation
  • Unlimited access to online learning product by participant for on-going referral

In next week’s blog we will discuss further the powerful impact and improvements this style of training will have on your business, team and the industry. Yes, I’m determined to revolutionize this industry…for the right reasons and with the right solutions.

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5 Fast Ways to Improve Your Property

July 20th, 2011

A guest post by Brandon Serna, Denver, CO

If it’s time for a facelift for your property there are a lot of things that you can do to give your place a fresh new look without investing a lot of time or money. If your property includes rental units, keeping it clean and Inexpensive Home Improvementsappealing can significantly upgrade the quality and duration of your tenants, which is great news no matter how you slice it.

Curb appeal
Whether it’s an apartment building, a condo complex, or a home, the largest and most significant change that you can make is to give your property some serious curb appeal. Flower beds, baskets or pots of greenery, or a well maintained parking area including custom parking signs can really improve that first impression. Custom parking signs will also show people that the property is organized and cared for.

Painting
Getting the entire exterior of your property painted can be far more than you’re willing to do on your own or pay for. However, why don’t you consider a fresh coat of paint in a vibrant contrasting color for all of the front doors or maybe the trim? This option is substantially less difficult and provides a great deal of bang for your buck.

A professional operation
If you are renting units then you’ll want to make sure all of those little details like contracts, rental ads and information for potential renters are professional in both appearance and function. This inspires confidence in your management skills and will expose you to a more serious group of tenants. Many companies online can offer free tips or marketing supplies to ensure that you have the tools you need to market your property. The marketing supplies that you’re looking for will depend on what type of property you own and whatever your individual marketing needs are.

Interior common spaces
Areas like the mailboxes or lobby are seen by all so make sure they reflect the way you want them treated. If the walls are grubby and the carpet hasn’t seen a vacuum in over a year, then chances are people won’t respect the areas or care whether there’s garbage on the floor or old flyers piled up to the ceiling. If the area is bright and clean then people will be much more apt to pick up the occasional dropped piece of trash.

The tenant factor
Making sure you have responsible tenants will automatically attract more responsible tenants because people who have the same type of lifestyle will be much more likely to be able to live harmoniously. If you have a building full of young professional families then advertising for a bunch of college frat boys looking for a party pad will not be a great long term situation for anyone. If your tenants get on well, it will drastically improve the overall vibe of your property.

At the end of the day an upgrade doesn’t have to cost a lot of money or require a lot of your time. You just have to have a clear vision of your end goal and the ability to make clever choices.

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Not Everyone’s a Property Manager!

July 19th, 2011

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

I made a quick trade, put an offer in on a property in Arizona and then closed my laptop and headed with the kids for lunch in La Jolla. It was after lunch that I had an all too familiar experience. We were playing tourist for Store Ownerthe day and on the walk back to our vehicle we stopped into a small boutique store near the cove to allow each kid to choose an item of there choice as a fun reward for good behavior throughout the day. I noticed the owner of the boutique slumping over his cash register near the back of the store and I greeted him and asked how his day was going. He responded quietly, “Better then yesterday” and we struck up a conversation. The conversation quickly went toward business and the owner proceeded to tell me that he just bought the store last year and sales were considerably down. To make matters worse the landlord was increasing his rent. I empathized with him and offered some of my ideas for a short term solution but it was obvious they were falling on deaf ears as the owner quickly interrupted me and said something that made me stop and think. He told me that he was not really worried about the slower sales at his store because he was going to start managing some real estate for a couple of friends that own rentals in the area until things get better.

I was a little shocked to hear that being the owner of a local property management company and was honestly taken back. I thought to myself, here was a small business owner of a local boutique confident that he was going to solve his financial problems by managing property. I’m not saying that he couldn’t or he shouldn’t but oddly I remember hearing a similar battle cry back in 2005 when real estate was hot and everyone was becoming a real estate agent to make some extra money on the side. Has property management become the new cool thing in real estate? A million things ran through my mind as I know what it takes to provide quality property management services and I couldn’t help but wonder about the “friends” of this individual who would be relying on him to manage their asset. The tenant laws, the banking laws, local, state and federal laws, and that’s not even going into handling the asset itself.

I left the cove that day realizing a couple things; 1) More people are going to try to manage property on the side and 2) Not everyone should be a property manager. If you own rental property it’s not as simple as just finding someone who is “willing, cheap, available, etc.” to manage your property. Take the time to do some homework on whatever firm you decided to have professionally manage your property and the benefits will always outweigh the cost. I hope things work out for the boutique owner and his friends…

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Property Management Training…What’s Gone Wrong?

July 15th, 2011

By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia

While we are on the topic of training, I would love to continue on from last week’s post.Learning

It is my belief that one of the major reasons we have so many unhappy teams, clients and business owners is the lack of training in the property management industry.

Sadly, property management has not attracted the right people to the profession and in many instances those that work in the industry do so for convenience. Now before you get upset, let’s look at the facts. Firstly, I believe that around 80% of those that work in the industry shouldn’t be there. To those property managers that read this blog I say it out of genuine respect for you. However, the fact remains we are not an industry who has employed the right people for the right tasks and for the right reasons. Let me redeem myself here and explain my views. While many property managers do start with the very best of intentions and also belief that they have the necessary qualifications for success, the industry has let them down. Yes that’s right, the industry lets them down by allowing property managers to work as fully qualified property managers with just theoretical knowledge and a certificate. How absurd!

In the past, and in most jurisdictions, to become a property manager all that is required is basic training that teaches mainly legislation, leasing and management. In some instances you may have learned housing styles. All very necessary but all terribly basic when you understand what the objectives are in leasing and managing property. This training is what I refer to as theoretical. It’s just theory with no practical training at all. It doesn’t teach how to manage a task with a process. Practical training is missing and is vital to the success of the real estate business and property owners.

So let’s think about it and reflect on other careers. Would a hairdresser be able to cut, style and use chemicals on a client’s hair after reading and passing (or rather being deemed competent in) simple theoretical hairdressing training? Most definitely NO. Would an electrician be authorized to work on electrical repairs, maintenance and installations after passing theoretical training? Absolutely NOT. Would a doctor be able to work on patients after spending 5 or more years at university simply studying to be a doctor? No way. Need I go on? Can you imagine a doctor practicing medicine just because they have studied at a university? What a disaster to even consider this. After years of studying they must undertake years of practical work training in hospitals and passing extensive tests to ensure they understand and can apply all of their theoretical training. Are you getting the picture?

Why then does this industry think we can employ a person to work as a property manager just because they have completed their required theoretical training?

Let’s take this one step further. Once these graduates are working within their chosen profession, do you think their training stops there? If it did, we would be in trouble. Yes I know that some states require extra learning each year for the individual to gain a required number of points in order to retain their license to practice as a property manager. However, the learning usually has nothing to do with what their main objectives are as a property manager. No one, until now that is, has designed practical training for the industry.

Real estate business owners listen up. The times they are a-changing when it comes to the qualifications property managers have. The power is back in your hands now and it’s time to ensure and demand that you have the right person with the right qualifications to work in any given position.

Next week’s blog will discuss in detail how this can be done. It’s important for both business owners and property managers to understand the importance and benefits of this newly available training.

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Legal Reasons for Landlords to Stay on Top of Maintenance

July 13th, 2011

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

College was fun.  Even some of the classes I took were fun.  These particular classes did not feel like work because, well, they weren’t, really.  One such class I took was “Philosophy in Literature” taught by Peter Kreeft. Our job Broken glass panethat semester was to read four books: The Lord of the Rings trilogy (this was before they were made into movies) and The Brothers Karamazov by Dostoevsky.  And then talk about them.  Yes, I know, a great class.  I got a B+ and I think that’s as good as some of the founders of Buildium… but you’d have to ask them.

One of the things we discussed about The Brothers Karamazov – in addition to the Grand Inquistor – was the concept of Sobornost.  The basic idea being that we are all part of a spiritual and physical community, and everything we do (and don’t do) effects everyone else.  Any one, small thing you do or don’t do - stepping on a caterpillar – could effect one, ten, or hundreds of other people. One of the characters in the book goes insane because he has fully embraced Sobornost and is afraid to go out into the world for fear that everything he does will adversely effect others.

As a property manager, you need not (necessarily?) fear the adverse impact of trodding upon insects to stay insulated from civil lawsuits.  But you can and should be aware that your failure to perform routine and simple maintenance could see you on the wrong end of a lawsuit.

At the beginning of this century, in California, “a jealous boyfriend broke into the apartment of his estranged girlfriend and murdered her.”*  The girlfriend and her child had just moved into the apartment, which was rented from the landlord and occupied by her parents.  No one – including the girlfriend, her parents, and the landlord – knew that the boyfriend had violent tendencies.

But there had been some violent incidents in the neighborhood and the apartment complex itself was fenced in.  The fence was topped with barbed wire.  The apartment in which the murder occurred had a front door made of wood with diamond and triangular shaped glass panes in its top half.  One of the glass panes was missing and only cardboard covered it.  The parents had asked that it be replaced because it made the apartment cold (not because they feared entry by criminals).  By the time of the murder, the landlord had purchased the materials ($16) but had not yet installed the pane.  The boyfriend testified that he gained access to the apartment through the cardboard slot and also that he would not have gotten into the apartment if the glass had been in place.  Apparently, his rage – though great – would not have compelled him to punch the glass and thus risk injury to his hand.  He was able to get in easily, he said, because the glass was missing.

The parents sued the landlord for their daughter’s death, and argued the landlord was negligent in not repairing the door and that this failure was a (not “the”) legal cause of their daughter’s death.  The landlord said it was not negligent because he did not have a duty to prevent the criminal activity of third parties that he did not know were violent.  The court used standard negligence principles to decide the case:  “all persons are required to use ordinary care to prevent others from being injured as the result of their conduct.”

The court looked at the preliminary obligation of the landlord – did he have a duty to prevent this injury, under the facts and circumstances here? On balance, the specific action the plaintiff’s had asked to be remedied was simple and cheap – replace a window pane.  (Had the plaintiffs argued that the landlords should have provided security guards, the court intimated a different result would have been reached.)  The risk of injury which resulted here from the failure was great:  death of a tenant. It thus allowed the plaintiff’s case to proceed to a jury trial.

Sobornost?

*All quotes from Vasquez v. Residential Investments, Inc., 118 Cal. App. 4th 269 (2004).

This blog submission is only for purposes of disseminating information.  It does not constitute legal advice.  The statements in this blog submissions do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients.  No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto.  If you need legal advice, please hire a licensed attorney in your state.

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Move in – Move Out Checklist (Part 2)

July 11th, 2011

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

The “move out” stage of a tenancy can be voluntary or involuntary. The voluntary move out process begins when a landlord receives notice from a tenant that they have intentions of no longer occupying a rental property. Move out checklistThe preferred method of notice as in accordance with most rental lease agreements is typically a 30-day written notice to vacate. If the tenant is currently on a lease agreement the notice should be received at least 30 days prior to the expiration of the lease agreement and if the tenant is on month to month terms the notice can be given at any time. A premature notice to vacate does not void the terms of a lease agreement and the tenant could be responsible for the remaining time and lost income suffered by the landlord until expiration of the lease agreement. If the tenant verbally states that they are going to move, it is suggested to inform them to formally put their intentions in writing along with the last date of occupancy and have them mail or email the notice to you. Having the written formal notice will guard against miscommunication and floating move out dates while allowing the initial marketing of the property to begin with certainty. The formal date will also help with calculations for rental proration if necessary.

It is then recommended to advise the tenant, once again in writing, at least two weeks prior to the move out date that they are entitled to a voluntary pre-move out inspection. The tenant may or may not want to participate in this inspection. If the tenant agrees to the pre move-out inspection, it will allow both parties to openly inspect the property and compare the condition to the already completed “move-in” checklist on file. The pre move-out inspection is an opportunity to revisit the property and advise the tenant, based on the current condition, of possible withholdings if any from the security deposit. The pre move-out inspection will also allow the tenant an opportunity to be aware of and make the necessary repairs and cleanings to avoid security deposit deductions.

If the necessary repairs and or cleanings are not performed prior to move out, it can be documented on the “move-out” checklist as a deductible item and withheld against the tenant’s security deposit funds. Comparing the “move-out” checklist against the “move-in” checklist will help you evaluate the necessary deductions. It is important to know that any repairs held against the security deposit should be itemized along with a receipt for services and copies should be given to the tenant along with the remaining funds within 21 days of vacating (California Law please check your local laws).

Having to make warranted repairs to a rental property is not unusual and should be handled in a timely fashion by the owner, but having a “move-in/move-out” checklist allows both parties to understand what is expected of them. It puts the tenant on notice that the owner is serious about keeping the property in good condition and will not hesitate to use the security deposit to assure the property will be returned in the same condition as it was received. Without the checklist it becomes difficult to prove excessive wear and tear and damages done to the property were caused by the tenants. If a dispute over the security deposit escalates to small claims court, the situation can result in the tenant’s word against the owner’s word. Without documentation the court could award the full security deposit back to the tenant leaving the owner with costly repairs. Utilize your “move in/move out” sheet and avoid unnecessary disputes.

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Training – Investing in Your Career By Design

July 8th, 2011

By Jo-Anne Oliveri, ireviloution intelligence, Brisbane, Australia

Training… the eternal debate rages amongst the property management industry. “Not enough time,” “can’t afford it it’s too expensive,” or the mother of all excuses… “I already know everything.”  Professional Development

Like in any industry, ongoing and continual development (both personal and professional) is critical. You need to make time and you need to budget. There are no excuses.

Imagine going to see your doctor and he’s an old dinosaur, but because of his years of service you see him believing that all those years will guarantee he can restore your health. Fact of the matter is you wouldn’t see a doctor who failed to continue to learn about medical breakthroughs and new cures and treatments.

Consider your accountant – like most industries they can’t maintain their designations if they fail to continue to learn and keep up with laws and changes in the way that they can manage accounts.

Many professionals have spent years and years gaining tertiary qualifications, but their learning never stops. If it did, they wouldn’t survive in their industry for too much longer. Their days would most certainly be numbered.

It is a well known fact that not only do they commit to lifelong learning and development of their particular industry and craft, they also commit to personal development by studying and undertaking leadership and management courses. And, whilst some of these courses may be funded by their employers, most are actually self funded.

So why then do many that work within the property management industry believe that once they have their certification they no longer need to commit to ongoing professional and personal development? This is a quandary! Why do they continually make excuses as to why they can’t train? It puzzles me! How do they think they can continue to offer quality service and sound advice to their clients? The simple truth is…they can’t.

It’s really not enough to rely on their employer to offer all funds for training. We value training more when we make our own personal commitment to lifelong professional and personal training and development.

Many don’t commit to this as they find it difficult to both budget for the time and the financial commitment required for ongoing training. However, like anything if you invest the time and money into yourself, you will reap rewards. You will get out what you put in.

The easiest way to make the decision and commit is to include training and development as part of your annual business plan. Work out how much time you will commit to training for the year and what type of training you would like to undertake. Is it professional development, improving current skills, or leadership, management, or technology training? Once you work out what type of training will best suit your goals and aspirations for the year, then work out how much time you are prepared to commit to training. Can you commit the time to attending conferences that require travel?

Search for different courses, seminars, and conferences that are available during the year that suit your goals for growth and find out what the costs are both in time and financial commitment.

My own personal level of commitment was reinvesting 10% of my annual earnings back into my personal and professional development so I could continue my journey of constant and ongoing learning. Everyone has different financial commitment levels so in the first year you may find that 5% is all that you can commit – a little is better than nothing. As you reap the rewards of investing in yourself, you will understand the benefits of this investment and the wonderful returns through growth, development, career advancement, networking, and friendships.

One you have decided on your financial and time commitments you are in a position to schedule into your annual diary the training dates and plan your year around these sessions, seminars and conferences.

Make the commitment today and design your own future by reaping the rewards of constant and ongoing training and development. And as a double bonus, you have lots of fun along the way and meet so many incredible people who add value and friendship to your life.

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Tenants Have Legal Responsibilities Too

July 6th, 2011

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

Recent posts have suggested onerous burdens and detailed obligations owed by landlords.  “What about the tenants?” you ask.  They have some responsibilities, too.  If a tenant in California does not adhere to these minimumLease Agreement requirements, a landlord may not be held responsible for failure to provide a tenant with a habitable residence – i.e. the bare necessities.  Let’s outline them here, ok?

To successfully prosecute a claim against you for not providing those bare necessities, a tenant probably should be able to show that:

  • He kept the unit clean and not unsanitary.  He cannot let it get dirtier than it was when he first started renting.
  • He cannot abuse or misuse the plumbing, gas, or electric fixtures in the unit.
  • He should prevent his guests from damaging the premises.
  • He should make written requests of his landlord when he wants something in the unit fixed.
  • When you come to fix it, he should not prevent you from doing so.  He should not put the chain lock on.  He should not refuse to let you come to fix it on reasonable notice.
  • He should throw out his trash and garbage.

If your standard lease agreement does not spell out some of these responsibilities, you might consult with your transactional attorney to see if such terms can or should be incorporated.

Basic equity (and some statutes) provide that a tenant should inform you if he believes the premises are or have become uninhabitable.  Any delay might not only increase whatever damage is already occurring, but also might put the responsibility for some of the damages back on the tenant.

If your tenant comes to you with a complaint about vermin, leaking roofs, holes in the floor, plumbing that doesn’t work, electricity failures, or heating failures and the like, do not wait to inspect.  Promptly and with appropriate notice to the tenant go and verify if what has been reported is true.  If it is, fix the problem.

How soon you fix it depends on the nature of the problem.  If the premises lack electricity, the fix should be prompt.  You probably would want to fix the broken floor furnace sooner rather than later if reported during the winter.  In the summer?  Not so much.  But remember to use common sense.  Even small problems – like a missing glass pane right next to the lock on the front door – might need to be addressed quickly.

This blog submission is only for purposes of disseminating information.  It does not constitute legal advice.  The statements in this blog submissions do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients.  No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto.  If you need legal advice, please hire a licensed attorney in your state.

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