West Hills Property Management

Property management involves leasing, rent collection and building maintenance and repair. It is a highly regulated field in California. Laws that directly or indirectly touch on property management appear in 15 separate state government codes. Additionally, any property management business is subject to all laws affecting any business in California, such as those having to do with workplace safety, sexual harassment, insurance and taxation.

California requires property managers to have or work under someone who holds a real estate broker’s license. The only exception to this law is for property owners who manage their own buildings. The state Department of Real Estate (DRE) requires broker-applicants to document experience and/or educational training in the field and to pass a state licensing exam. Continuing educational requirements apply to all brokers. Brokers are subject to license suspension or revocation for failing to uphold laws relating to the management of property, as well as other real estate laws. Property managers are not required to hold any separate certification specific to property management, but many property managers do.

Habitability

A property manager must ensure that every residential rental unit meets a minimum standard of habitability, consistent with health, safety and building codes. The California Supreme Court has determined that a manager’s failure to maintain units to this basic standard can provide a defense to an eviction action for failure to pay rent.

Security Deposits

California law limits security deposits to two times the monthly rent for an unfurnished apartment or home. It requires, if the tenant requests, a pre-moving-out inspection, at which time issues affecting the security deposit must be pointed out. The law also requires managers to either return the full deposit or fully document subtractions from the deposit within 21 days of move-out. Copies of invoices or receipts for repairs or cleaning costing more than $126 must be included. Tenants have up to four years under state law to dispute the disposition of a security deposit.

Rent Control

Rent control is a form of local legislation that restricts rent increases, often limits evictions and sometimes imposes other tenant-landlord regulations. As of 2010, more than 40 California cities have some type of rent control legislation, including San Francisco, Berkeley, Oakland and Los Angeles. In San Francisco, the rent control ordinance requires property managers to pay interest on security deposits, to inform tenants of their right to contact the rent board, and limits pass-through charges for utilities.

by Mary Gallagher, Demand Media