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Avoiding Legal Pitfalls In Marketing Your Home or Apartment...

8/6/2011

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Having been in the property management business for more than a decade you begin to learn and understand the behavioral habits of people as they are looking for a new place to live.  It used to be that they would go get the newspaper or just drive around, but these days it is no secret that the majority of the searches begin online.  There is one crucial point you should remember about advertising: Where you advertise is often more important than how you advertise.  Fortunately, the majority of people don't seek out results in places that cost the looker or the owner a fee.  That's right...its usually a free listing site such as Craigslist or HotPads among others.  This is not the secret to your success.  According to Attorneys David Brown, Ralph Warner & Janet Portman, legally, you should have no trouble iif you follow these simple rules: 1) Make sure the price in your ad is an honest one; 2) Don't advertise something you don't have; and 3) Be sure your ad can't be construed as discriminatory.  If you have any legal and nondiscriminatory rules on important issues, such as no pets, it's a good idea to put them in your ad.

Sure you can post an ad and even get some calls but what experienced and effective management companies do to convert the lookers into renters is truly the secret.  That being said, it is not a secret method or password.  Nor is it a slimy sales pitch with a mantra of "always be closing."  Quite honestly, we at Neighborhood Property Management have found that in markets such as Fresno and Clovis, it is more about... 


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New Legal Tenant Screening Requirements

8/5/2011

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Neighborhood Property Management would like to make you aware of these new State screening requirements.  NPM is also a member of the California Apartment Association and utilizes all of the latest forms keeping up with the changing laws.  These changes took effect July 21, 2011 – CAA has Updated Forms


The federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires users of consumer reports, beginning on July 21, 2011, to also provide credit scores to applicants if the score was used in taking adverse action.

Currently the Fair Credit Reporting Act requires that an adverse action notice only include notice of the applicant’s right to receive a free copy of his or her consumer report. The Dodd-Frank Act amended that to stipulate the credit score itself must be included.

The California Apartment Association (CAA) has updated all the forms necessary to accurately comply with this new requirement. Those forms are:

3.1 – Notice of Denial to Rent 
3.2 – Notice of Denial to Rent (Agencies Listed) 
3.3 – Notice of Conditional Acceptance 
3.4 – Notice of Denial of Application to be Guarantor

Each form also includes detailed instruction sheets.

Adverse action notices are provided to rental applicants who, after the tenant screening process, are denied or conditionally accepted (i.e., subject to a cosigner or higher deposit) based on information in a consumer report. Currently the notice must include:

  1. The name, address, and telephone number of the agency that supplied the consumer report, including a toll-free number if the agency maintains files nationwide. 
  2. A statement that the agency that provided the report did not make the decision to take the adverse action and cannot give the specific reasons for it. 
  3. A notice of the individual’s right to dispute the accuracy or completeness of an information furnished by the agency and of the individual’s right to request a free copy of the their credit report from the reporting agency within 60 days of the notice of adverse action.
Click here to read the CAA Issue Insight "Checking Tenant’s Credit: Questions and Answers".

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Installation of Carbon Monoxide Detectors

8/5/2011

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Legal Questions Regarding the installation of Carbon Monoxide Detectors
Due to inconsistent installation requirements mandated by local governments and a multitude of questions raised by property owners concerning California’s new carbon monoxide alarm law, the state Housing and Community Development Department has issued emergency regulations to bring clarify to the law.  

There are a number of exceptions in the regulations concerning the installation requirements, which owners will find helpful.  At the same time, the regulations clarify that the July 1, 2011, installation date for single family homes only applies to detached homes, not to condominiums.  Here’s a look at some of the clarifications made through the regulations.
  • All single-family detached homes (owner or tenant occupied) must be equipped with an alarm on or before July 1, 2011.
  • All other residential units must be equipped with an alarm on or before January 1, 2013.
As outlined below and with specific exceptions, a carbon monoxide alarm may be battery powered, a plug-in device with battery backup, or hard-wired into the dwelling unit with a battery backup. 

“Fossil fuel” is defined as coal, kerosene, oil, wood, fuel gases, and other petroleum or hydrocarbon products, which emit carbon monoxide as a byproduct of combustion.

An open parking garage as defined in the California Building Code or an enclosed parking garage ventilated in accordance with the California Mechanical Code shall not be deemed to be an attached garage.

Exceptions

Rental property owners who have individual dwelling units that do not contain a fuel-burning appliance or a garage attached directly to the unit, but that are located in a building with a fuel-burning appliance or a garage attached to the building, need not install a carbon monoxide alarm if:
  • The unit is located more than one story above or below any story that contains a fuel-burning appliance or an attached garage; and
  • The unit is not connected by duct work or ventilation shafts to any room containing a fuel-burning appliance or to an attached garage; and
  • The building is equipped with a common area carbon monoxide alarm system that includes all enclosed common area spaces.
Carbon Monoxide Alarm Location 

Carbon monoxide alarms must be installed and maintained in the following locations:
  • Outside each separate sleeping area in the immediate vicinity of the bedrooms.
  • On every level of a dwelling unit, including basements.
Type of Alarms and Power Supply

  1. Existing Dwelling Units – Carbon monoxide alarms in existing buildings may be solely battery operated or plug-in type with battery back-up in areas where no construction is taking place.
  2. Existing Dwelling Units Where Permit Required – When a permit is required for alterations, repairs, or additions with a total cost that exceeds $1,000, owners of existing dwellings units with a fossil fuel-burning heater or appliance, fireplace, or an attached garage shall install a carbon monoxide alarm that receives their primary power from the building wiring where such wiring is served from a commercial source and shall be equipped with a battery back-up.  Alarm wiring shall be directly connected to the permanent building wiring without a disconnecting switch other than as required for overcurrent protection.  The requirement shall apply only in the specific dwelling unit for which the permit was obtained.
  3. New Construction – New residential units with a fuel-burning appliances or an attached garage must be equipped with a carbon monoxide alarm.  The alarms must receive their primary power from the building wiring where such wiring is served from a commercial source and shall be equipped with a battery back-up.  Alarm wiring shall be directly connected to the permanent building wiring without a disconnecting switch other than as required for overcurrent protection.
Exceptions Power Source:  Where there is no commercial power supply, the carbon monoxide  alarm may be solely battery operated.  Alternatively, other power sources recognized for use by National Fire Protection Association (NFPA) 720 may be used.

In existing dwelling units, a carbon monoxide alarm is permitted to be solely battery operated or plug-in with a battery backup when the repairs and alterations (for which a permit is required and which exceed $1,000) do not result in the removal of wall and ceiling finishes.  The same exception applies when work is done to the exterior surfaces of dwellings, such as replacement of roofing or siding, or the addition or replacement of windows or doors or the addition of a porch or deck.  An exception is also provided when work is done to the plumbing or mechanical systems, electrical systems, which do not result in the removal of interior wall or ceiling finishes exposing the structure.

Interconnected Alarms – New Construction and Repairs to Existing Units

When more than one carbon monoxide alarm is required to be installed within the unit, the alarms shall be interconnected in a manner that activation of one alarm shall activate all the alarms in the individual unit.

Exceptions to Interconnected Alarms – In existing units, interconnected alarms are not required where repairs do not result in the removal of wall and ceiling finishes and no previous method for interconnection existed.
 In existing units, interconnected alarms are not required where no construction is taking place.

In existing units, interconnected carbon monoxide alarms are not required where repairs or alterations are limited to the exterior surfaced of dwellings, such as the replacement of roofing or siding, or the addition or replacement of windows or doors, or the addition of a porch or deck.

In existing units, interconnected carbon monoxide alarms are not required when works is limited to the installation, alteration, or repair of plumbing or mechanical systems or the installation,  alteration, or repair or electrical systems, which do not result in the removal of interior wall or ceiling finishes exposing the structure.

Installation and Maintenance

The carbon monoxide alarm must be operable at the time the tenant takes possession. A tenant is responsible for notifying the owner or owner's agent if the tenant becomes aware of an inoperable or deficient carbon monoxide alarm within his or her unit. The owner or owner's agent must correct any reported deficiencies in the carbon monoxide alarm and will not be in violation of this section for a deficient or inoperable carbon monoxide detector when he or she has not received notice of the deficiency or inoperability.

For more information about carbon monoxide alarms, go to CAA’s Website at www.caanet.org.

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    Legal Information Is Not Legal Advice
    This blog gathers information about the existing and evolving landlord and tenant laws primarily in California, intending to help users safely navigate and appreciate their own legal needs. Please note that legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. NPM recommends that you always consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.

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