property management: Rekey the locks between tenants! - 06/19/08 06:29 PM
When one tenant moves out how do you really know that that past resident has given you all the keys?  They could have made a copy during their tenancy, so there is no real sure way to know they have not kept a key.

If the past tenant does have a key, and you use the same old keys for the next tenant, what do you think will happen when there is a theft (or worse, an assualt) at the house with no forced entry?  I think you could be questioned on what you did to protect the new tenant.
The … (12 comments)

property management: Property Management is About Setting and Following Rules & Procedures - 06/18/08 06:06 PM
An owner recently came to see me about their property.  They had several rentals and the portfolio was in disaray.  Vacancies, deferred maintenance, many delinquencies, poor cash flow was the result.

The way to fix the problems was to implement rules and procedures and then follow through on them. 
Let the tenants know when the rent is due and when late.  If late, serve notices to pay or vacate.  If not paid after that, evict.  Most of the time, after the first eviction, the rest of tenants either pay or move voluntarily.

Inspect the units and get them fixed … (3 comments)

property management: Professional Property Managers & Picking Good Tenants - 06/15/08 08:12 AM
There are so many essential things that make up what a good property manager is, that I hesitate to pick one item as the most important.  In fact, I think it is a mistake to do so.

But, Picking Good Tenant is certainly in the top ten of essentials.  The ability to screen out the bad apples and pick the good ones, is at the foundation of a good property management operation. 
The hard part for a landlord that hires a property manager is figuring out how to separate the property manager that can pick good tenants from the ones … (15 comments)

property management: Sex Offender Notice Required in California Rental Agreements - 05/28/08 03:25 PM

This is the language that needs to be in your California rental agreement:
Registered Sex Offender Notice:  Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at . Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.

Did you know that a landlord can fined $25,000.00 for denying a sex offender housing based on their … (10 comments)

property management: When is the Rent Due and When is the Rent Late? - 05/20/08 06:04 PM

When starting a tenancy a landlord has to figure out when rent is due and when it is late.  It makes sense to have all rents due on the first of each month no matter what day the tenant took possession and no matter when the lease ends.  This is industry standard.
So, the rent is then late on the second.  But most landlords employ a grace period before a late fee is charged to the tenant's account.  Many landlords allow a five day grace period.  The problem with this is that weekends and holidays cannot be counted as the last … (2 comments)

property management: Do Not Allow Tenants To Do Repairs At Your Property - 05/16/08 06:34 PM
Do not allow tenants to perform repairs and all requests for repairs should be in writing. Your lease should prohibit the resident from performing repairs on the property. The resident is not likely to be a repair expert, so you will probably be disappointed in their workmanship. Even if they can do the repair, what if they fall off a ladder or electrocute themselves? Can you afford a lengthy legal battle involving time and expense over a repair item? Second, you should state that all repair requests be in writing This will give you a written record of all requests … (18 comments)

property management: Why Should I Inspect My Rental Property? - 05/15/08 08:46 AM

 An annual inspection will protect you and your resident from safety and financial liabilities.  Since some residents remove smoke alarm batteries, this is a chance to verify that the alarm(s) is both working properly and that it is placed in the proper location(s).  Also, many residents do not faithfully change their air conditioner and heater filters.  The annual inspection will reveal this and give you a chance to change the filter before your AC unit gets damaged. 

The annual inspection will also allow you a chance to catch any lease violations and deferred maintenance.  Are their any pets at … (7 comments)

property management: Banks Slow Play REO's - 05/14/08 06:04 PM

When a poker player has good cards, sometimes they slow play the hand by not betting much in the hopes of attracting more players to stay in the game.  They hope the other players will put more money in than if they player with the good hand bet big early.  It is a way to make more money. 
The banks that are trying to sell there Real Estate Owned (REO) property are sometimes slow playing the offers they receive.  I have noted that sometimes they will sit on an offer for weeks on end.  I believe this is so they … (6 comments)

property management: West Nile Virus and Sacramento and Yolo Counties Part 2 - 05/13/08 04:54 PM
  Sacramento-Yolo Mosquito and Vector Control District
Of special concern for the District are the high numbers of foreclosed homes in the area that have abandoned swimming pools. For the past few months, the District has been working closely with various city and county agencies to obtain lists of foreclosed homes with pools. Pools are a significant threat because if left un-attended, they can produce thousands of mosquitoes infecting an entire neighborhood. We anticipate that this could be a significant problem during the hot summer months ahead and we urge the public to report any un-attended swimming pools by calling … (1 comments)

property management: Typical Costs of Rental House Ownership - 05/11/08 05:53 PM

If you are considering getting into or are new to the rental business you need to know what the expected costs of ownership are.  Here are some items for you to consider:

 Utilities:  Find out which ones the tenants pays and which ones the owner pays.  It varies by area.  These include water, sewer, and garbage.
Other utilities and services:  These are normally paid by the tenant unless they cannot be metered.  These include electricity, gas, propane, phone service, cable.
Taxes:  Owner pays.  Taxes can vary greatly by state, so make sure you know how they … (7 comments)

property management: Does a Higher Rent Mean I Will Attract a Better Tenant? - 05/10/08 06:28 PM
This is a belief of many newbie rental property owners.  I think it is myth that many owners want to believe because if true, it also has the benefit of making the owner more money (on the back of the tenant) and it makes them look smart and savvy.   Too many owners think their property is special.  This is probably because they are emotionally attached to the property.
 Owner's vision of their rental: 
Tenant's vision of the property they rent:
The reality is that most good tenants shop based on location, condition, and price.  Those with the best credit want the … (12 comments)

property management: Shouldn't the rent cover the mortgage? - 05/10/08 06:09 PM

Many property owners that have just purchased their first rental think that the rent should cover the mortgage payment.  Those of us in the property management business know that this is just not true. 
If it was true, would a landlord that paid all cash and had no mortgage payment rent their house for free?  The mortgage payment reflects how much the down payment was, what the interest rates were at the time of purchase, and what the loan terms are. 
Rents are determined by current supply and demand of rentals in the specific area.  If the population … (8 comments)

property management: My Scariest Day in Real Estate - 05/07/08 04:51 PM
I pulled up to a vacant house I was renting one afternoon a few years ago. I opened the lockbox, took out the key and opened the door.  My appointment had not yet shown up so I thought I would open up some of the drapes.

I walked into the kitchen and noted that the drapes at the slider were blowing into the room.  The slider door was ajar about six inches.  I went over to the door and shut and locked it.  I thought that was strange, but everything was in order so I was not too alarmed.  … (37 comments)

property management: The Reluctant Landlord - 05/07/08 05:11 AM

The current market is creating a large class of landlords known as Reluctant Landlords.  These are landlords that would prefer to sell their property, but due to market conditions, cannot.  Most live in their property and must move due to a job transfer.  The tax laws allow them to rent the property for up to three years before they have to pay any tax on their equity gain (unless they earn a really large gain of over 250-500K).
If you or a client of yours is a Reluctant Landlord, you should think about being a landlord a little differently than an investor … (9 comments)

property management: Can a tenant get my phone number and address if I use a property manager? - 05/06/08 05:09 PM
A good property management company is trained to protect the owner's confidentiality. The property management company should not release any information about the owner to anyone without the owner's approval.

But, be aware that anyone can access county tax records. If the home address is on the tax roles for the rental property they own, they may be contacted by their tenant or anyone else for that matter. 
 For added protection, you can obtain a fictitious name in your county and apply that name to your ownership records or simply use a post office box for all mail concerning your property including your tax records.  Professional Property … (8 comments)

property management: How Does a Foreclosure Affect the Tenant (in California) - 05/06/08 07:13 AM
With the large numbers of investors losing their rentals to foreclosure, it is no wonder that lots of tenants have questions about the process.  Here is some information on the subject, but be aware that HomePointe is not an attorney and you should seek legal counsel before acting on any of this information as your situation may differ.

The first step in the foreclosure process is for the bank to notify the owner of the property that they are in default on their loan.  By law, the owner has three months from the date the notice is filed with the … (16 comments)

property management: Rental Housing Inspection Program City of Sacramento Property Management Executives ONLY - 05/06/08 03:14 AM

property management: You Be The Judge - 05/04/08 05:58 PM
The Case:  A tenant has leased a house and is responsible for doing the yard work. 
 While mowing the yard, the mower kicks up a rock and breaks the glass in the glass patio slider door. 
It is a $450.00 repair.  The tenant wants the owner to pay, the owner wants the tenant to pay.  Who should pay?
Idea #1:  Tenant rented the house and should pay for any damage they caused.
Idea #2:  If the owner was cutting his own lawn, the property owner would have to pay.
Idea #3:  If this is an accident, the owner should pay.
Now … (18 comments)

property management: What are habitability requirements? - 04/27/08 07:45 AM
They are requirements that all owners of residential rental property must adhere to. They are enforceable by the local city or county building department. Failure to maintain your property to these standards may subject you to fines, lawsuits, or the shutting down of your rental.
In California habitability requirements are spelled out: 
Here is the law: Civil Code §1941.1
A dwelling shall be deemed untenantable for purposes of Section 1941 if it substantially lacks any of the following affirmative standard characteristics: (a) Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors. (b) Plumbing or gas … (5 comments)

property management: Would You Rent a Bedroom in my House? - 04/26/08 06:52 PM
I met a prospective property management client recently that had just gone through a horrible eviction of their previous tenant.  The house was now vacant, and he had fired his past property manager.  He called me to see if I could help him.
His past tenant was using the house to manufacture drugs.  All the sinks and pipes had to be replaced in the aftermath of the eviction.
This owner came up with an idea to rent out each individual bedroom instead of renting out the entire house.  He wanted to reserve one bedroom for himself so he could come and … (4 comments)

Robert Machado, CPM MPM - Property Manager and Property Management (HomePointe Property Management, CRMC) Rainmaker large

Robert Machado

CPM MPM - Property Manager and Property Management

Sacramento, CA

More about me…

HomePointe Property Management, CRMC

Address: 5896 South Land Park Drive, Sacramento, CA, 95822

Office: 916-429-1205

Mobile: 916-531-5896

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