For over 20 years (1972-92), I visited the different courts across Southern California while managing properties and doing my own Unlawful Detainers, small claims actions and disputes and while waiting for my cases to be called, I heard everyone else's case.
FROM THE JUDGES MOUTH TO MY EARS
Anytime they ruled in favor for or against a clause in a contract, I took note and changed my contracts accordingly. The result? I had the premiere rental agreement in the business for years...it was coveted by landlords, treated tenants fairly and all the courts always agreed and honored it...
REAL ESTATE: RISKY BUSINESS
It was a gift given to me. Back in the eighties, when there was a dispute, everyone ran to court. Landlords were at risk because the courts were clogged making your issue take months to be heard. Tenants knew this too. Even if you charged large deposits, they still never covered a long drawn out outcome. Often the Landlord would lose even if they won
UNTESTED AGREEMENTS ABOUNDED
Back then there were so many untested rental agreements all over the place. Stationary stores sold a generic form that barely covered the relationships. Mom and dad landlords would scribble something out and many made contracts that were just not enforceable because they weren't legal according to contract law. Finding this out afterwards can be very expensive
LEGAL AID WAS PRO TENANT
Legal aide was also available to help any tenant that was being oppressed (?) and they would tear your agreement apart as well as make motions that dragged out a simple pay the rent agreement. An agreement has to hold up or Real Estate enters into severe jeopardy. They would attack the agreement and prevail. Meanwhile, I took note after note...
PSYCHOLOGICAL WARFARE
I learned a long time ago that the effect of the agreement was more than just clauses and law. The psychological aspect is enormous. People knew what they signed and agreed too and if it was presented in easy to read and follow dynamics, fighting it was hopeless and foolish. Often people who did oppose it used it to buy time. Legal aid was good at buying people time
COURTS WERE IFFY ON SMALL PRINT
I did away with small print. The courts frowned on it and many a tenant would remark they never even seen the very clause point I was making. Stating paragraph 13, item 1 second line after item b seemed and sounded ridiculous. The courts more than not agreed. I wanted people not only to see certain clauses, but initial too. There is no way around denying the clause after that.
AN AGREEMENT IS LIKE A FOUNDATION
A good agreement works before, during and after a tenancy. Back in the eighties, renting property out was high risk and many landlords stood to lose their properties with disputed rents, damages and vacancies. Something had to be done until the courts became more balanced. This agreement was part of our management services back then and many of our clients signed on because of it. IT WAS OUR BRAND. Some just wanted the agreement only. I used to give it to them freely with this statement:
THE PITCH THAT BEAT A PATH TO MY DOOR
Sure, have no doubt you are now holding the finest most effective agreement in the business of Real Estate property management bar none. However, the more shrewd investors and owners seek out the author of this agreement for the full coverage and pay-off value.
HIRE A PROFESSIONAL
Business boomed....and for the people who paid the rent and obeyed the common sense rules, the agreement was near worthless. If one hired a professional and went the 20-30 year distance on rental property, it all pays off in $$$$$$$...Getting there however is another story
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