Property Management In Camarillo

Camarillo 

Camarillo is an attractive and highly sought-after community to live in, I know as I spent most of my formative years living there.  It was and still is, a great place to grow up in.  On top of that, the real estate market for Camarillo has been a little more stable through recent economic conditions and the rental market is commanding excellent rents.  As an owner of investment property, you understand how critical it is to procure and retain a quality tenant at the highest market rate. It takes on average over 30 hours of time to lease a property.  Getting the property into show condition, showing, screening, selecting and then maintaining the relationship and the property…it’s a lot of work!  Being the landlord isn’t for sissies.

 

Our name, Presidio Rental Solutions, is indicative of what we provide, a solution.  And by solution we mean relieving your work burden and instilling peace of mind.  It is our priority to lease your property with the most suitable and stable tenant.  We attract that pool of tenant prospects through our marketing efforts which includes listing the property on the multiple listing service(MLS), thus attracting all members to submit qualified applicants and we pay outside agents if they bring the accepted tenant.  We also place the listing on our own website and that site, along with the MLS pushes out the listing to approximately 40 other sites.  This creates a healthy stream of potential tenants for screening.

 

 To obtain the most qualified and longest term tenant for all of our clients, we do a very thorough vetting of the applicant’s credit history, criminal and background check, eviction history, verification of assets, income, employment and references; all this and judgment of character by personal meeting during showings of the property.  This gives a level of confidence to recommend the applicant for owners approval.  Our knowledge of the marketplace and current trends in the market allows us to determine the highest market rate rent.

 

We are confident you will find no other firm with the overall knowledge and expertise in regards to investment property management. Use our resources and expertise to quickly lease your property.  You will have peace of mind knowing you have a well-qualified tenant as well as our advice and guidance. Our programs are easy to implement and can be structured to fit any owner’s needs. 

 

Year End Tax Tips For Rental Property Owners

As 2011 comes to a close it is a good time to start thinking about the litlle things that may help you as an investment property owner save a few extra tax dollars. If you own rental property and have the ability to deduct some of the expenses related to it. Here are a few things to think about. Please consult with your tax advisor on any tax related issues. We think owning rental property in 2012 is a great idea.

 

Rental Property Repairs

Is your property in need of some repairs that you have been putting off ? Get them done before the end of the year.  Replace a water heater, install new windows, fix those nagging little problems. Repair expenses can help offset any rental income you may have. You can also purchase goods and services needed for the rental property business, and pay the bills early. Repairs and Improvements are different. Improvements are depreciated over the life of the property while repairs are treated as an expense.

Claim Your Automobile Expenses

Automobile expenses paid exclusively for your rental business can be fully deductible. You can select either the actual expenses method or take the standard mileage deduction. If you made 10 trips to the property and each trip was 100 miles, you can expense 1000 miles at .55 per mile.

Make an Extra Mortgage Payment

The additional interest you pay will help reduce your income. If you have an operating  loss and are able to deduct this, you may save on the amount of income tax you pay on monies earned elsewhere. You may also be able to pay your property tax bill that is due in Feb 2012 early.

Rental Property Asset Depreciation Expense

What are your property’s  short life assets ? They can be depreciated faster.  Assets like air conditioners, refrigerator, carpets, clothes dryer, etc can be depreciated over a five year  life while fences, patio, sidewalk, etc can be depreciated over 15 years. By separating assets and depreciating them separately, deductions are taken sooner.

Energy Saving Home Improvements

Replace old appliances, windows etc to qualify for tax rebates. To find out what applies to your property visit the Energy Star Website. Tax rebates that were offered in 2010 were changed in 2011. However there are some great rebates to take advantage of. Check the list of items here.

If you have any Tax related questions please consult our preferred tax advisors, Smith & Wooten CPA at  (805) 585-3800 or visit their website

Handling Tenant Security Deposits

In today’s challenging economic landscape tenant’s and owners are looking to save every penny they can. We have had several questions come up recently regarding how to handle a tenant’s security deposit. This is as agood as time as any to bring everyone up to speed on how security deposits should be handled and what the rules are regarding security deposits.

All too often we see owners try to keep portions of a tenant’s deposit. This is probably the number one complaint in property management. We try to avert this by making sure all parties are on the same page when the lease is signed. Having a clear and concise lease agreement can avoid headaches later. We also suggest that owners deliver the property broom clean. This means that the owner has thouroughly cleaned the unit from top to bottom. Clean the carpets, windows, baseboards, everything. Take photos to document it and you will be on your way to having a haslle free experience.

Amount

California Law allows owners to collect up to two months rent for unfurnished units and three months rent for furnished units. This includes any pet deposit or anything else. We typically encourgae owners to lump everything together and call it a security deposit. Not last month’s rent or a pet deposit. If you call, $500.00 a  pet deposit and the tenant moves out and doesn’t pay the rent you may have to return the pet deposit since that is what is was. The pet didn’t damage anything.

Use Of Deposit

Landlords are limited in what they can use the security deposit for.

1) The compensation of a landlord for a tenant’s default in the payment of rent.
(2) The repair of damages to the premises, exclusive of ordinary wear and tear, caused by the tenant or by a guest or licensee of the tenant.
(3) The cleaning of the premises upon termination of the tenancy necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy. The amendments to this paragraph enacted by the act adding this sentence shall apply only to tenancies for which the tenant’s right to occupy begins after January 1, 2003.
(4) To remedy future defaults by the tenant in any obligation under the rental agreement to restore, replace, or return personal property or appurtenances, exclusive of ordinary wear and tear, if the security deposit is authorized to be applied thereto by the rental agreement. 

Moving Out

When it is time to move out a tenant has the right to request that the landlord inspect the property 14 days before they leave. During this pre-move-out inspection the landlord should let the tenant know if they see any obvious deductions. The tenant then has the right to remedy these items before they move-out. Once the tenant has vacated the premises the landlord should inspect the home and  thouroghly document any possible deductions. Take pictures and male a list of any repairs that need to be done. The tenant has a right to copies of all invoices of any repairs that will be done.

Misc

  • Landlords have up to 21 days to return a tenants deposit.
  • Most cities do not require landlords to pay interest on a deposit.
  • Landlords can’t deduct for Normal Wear and Tear

You can download our landlord tenant handbook or email us for a free copy.

Landlord Tenant Handbook

Landlords Must File 1099′s in 2011

Landlords, Investors, the Federal Government is looking to make sure it can capture all possible income and you are on their radar. If you own rental property’s be prepared. This new rule further emphasizes another good reason to hire a property manager to keep your rental properties in order. Small mistakes will cost you dearly. Presidio Real Estate Services has an automated program to organize and disseminate 1099′s for owners each an every year.  For a brief summary read below.

Starting in 2011, there is a new tax requirements for landlords. All landlords who receive $600 or more in rent for the year must send a 1099 to all service providers that the landlord paid $600 or more during the year, such as plumbers, carpenters, yard services, and repair people.

The new requirement applies to owners of both residential and commercial property. Prior to 2011, this requirement had only applied to those involved in full-time property management, but now the requirement covers all types of landlords. Landlords will need to gather federal tax ID numbers from service providers in order to file the 1099s. Failure to file the 1099s with the IRS can result in fines of $50 per 1099 not filed with the IRS. In 2012, these requirements will expand to cover providers of good to landlords.

Please contact our office for more information or send us an email for a free handout.

The Rent to Price Ratio- What is it Telling Us ?

The Rent to Price Ratio is one barometer many economists use to gauge home values and the trends in home prices. Can we calculate the trend in Ventura County Housing using these numbers ? This will be the first article in a series where we attempt to define the trend in home prices in Ventura County using the Rent to Price Ratio and other often published figures.

Using figures published by Fortune Magazine in 2007, http://money.cnn.com/magazines/fortune/price_rent_ratios/the rento to price ratio for Los Angeles was 16.7%. (the relationship in annual rents to home prices) Orange County had a 24.3 % P/R Ratio over a 15 Year period and The Inland Empire was 18.7 %. so we will use the avg of these for Ventura County or 20.0%. This mens on average annual rents will be 20% of a homes value. Our research has found that these published numbers vary greatly depending on the publication. We will attempt to calcualte the avg. Rent to Price Ratio in Ventura county after we complete our research.

To calculate the R/P Ratio for Thousand Oaks we will take data from April of 2009. The avg. rent for a home in Thousand Oaks was $2375.00. Based on historical rent to price ratios, the value of this house would be around $560,000, well above the median priced Ventura County Home. Whats is this telling us ?

This article lays the groundwork for our series of articles on housing data and the numbers behind them which can be very deceiving. Our housing research project will aim to get to the bottom of the numbers to help our clients get a true picture of the rental and overall housing markets in Ventura County.

Presidio Rental Solutions is a leader in Property Management and Leasing in Ventura County California.

Moorpark Rental Home Inspection Policies

If you are a landlord or property manager in the city of Moorpark be prepared. The City of Moorpark has implemented a rental housing inspection/permit program to help provide quality rental housing in the city. This permit process went into effect in 2007. The city claims this is to help provide quality rental properties within city limits. The extra cash brought in doesn’t hurt either. A quick overview of the permit process is outlined below.

How the process works,

  • Pay the Permit and business registration fees. ($300 approx)  .
  • Schedule a physical inspection of the property.
  • Perform any repairs reccomended by the city.
  • Once completed, obtain permit.
  • In future years the city will do a drive-by or exterior inspection.

Links

FTB Delay’s Witholding Requirements for Property Managers

The state FTB has agreed to delay implementation of its withholding requirement for property managers who manage California residential property for out-of-state owners. The FTB will use 2009 to educate management companies and other agents about this requirement and will begin to enforce the withholding in 2010. According to the FTB they will “focus on education and outreach, [and] residential property managers will be given time during 2009 to come into compliance with the nonresident, quarterly withholding program, with the goal of full compliance by 2010.”

Earlier this year  the FTB  reviewed existing regulations and ruled that residential rental property managers must now withhold a portion of the rent collected from a California residential property before sending the proceeds to an out-of-state client. Commercial property has been subject to a withholding requirement for a number of years, but this was the first time that residential property would fall under the same rule. Under the old guidelines, residential property was  exempted from withholding requirements.

Ventura County Rental Market Update – Oxnard, California

As we start the new year we thought it would be a good idea to establish some general benchmarks for the Ventura County Rental Market. As of January 3rd there were 675 rentals homes listed in Ventura County  according to data from the CVAR Regional Datashare Database. Oxnard has the most rentals with over 150 properties for rent. The market has been flooded with homes. People who would normally be selling their homes are opting to lease them and  tight credit markets and a general sense of uneasiness amongst prospective buyers is pushing more and more people into the rental market. “We have seen dramatic price reductions in the Oxnard area as more and more homes continue to come on the market” states Presidio Rental Solutions leasing manager, Doug Collins. “The increased rental supply  is creating some great opportunities for tenants to get a very nice home for a reasonable price.” Collins said the average price for a newer 3 bedroom 2 bath home in the Oxnard area is anywhere from $1800.00 and up. For more information on the City of Oxnard visit the city’s website at www.ci.oxnard.ca.us

It is becoming increasingly important for property owners to properly price their property or the home will sit on the market. Many owners are lowering their prices drastically after the properties sits vacant for three months. This of course has an adverse impact on other rental properties. It is very similar to what we see on the sale side of the market. Prices start to spiral downward as owners panic to get their homes leased.  “I am constantly being asked by tenants if the owner will lower their price, I have never seen prices fall this fast, in October of 2008 it was no problem to lease a 3+2 well kept home in Oxnard for $2100-$2300, per month, now you are luck to get $2000 a 14% decrease in 3 months is pretty dramatic” states Collins.

Presidio Rental Solutions specializes in rental property leasing in Ventura County, California.  Doug Collins can be reached at 800-317-6411 for more information.