News: Posts by Mike Nemeth
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Six weeks remain for supporters of an assault on Proposition 13 to qualify their measure for the November ballot.
The property-tax initiative, dubbed the “Lifting Children and Families Out of Poverty Act,” would create a property tax surcharge on all commercial and residential properties in the state assessed at over $3 million.
While targeted at the wealthy, the financial burden would ultimately reach small business owners and their employees.
“In California, if you have a small restaurant, you’re probably renting from somebody who has a property of $3 million or more,” Allan Zaremberg of the California Chamber of Commerce says… Read More
Tagged: ElectionsProposition 13
It’s tax season, so we figured it’s a good time to remind members of two important tax-reporting requirements that can have rental housing providers seeing red if not done correctly.
1099 reporting
A business that purchases services in excess of $600 from an unincorporated vendor must report that payment to the IRS and to the service provider on a Form 1099.
With limited exceptions, payments made to corporations are excluded from 1099 reporting. A “business” includes a landlord or management company that is engaged in rental real estate as its trade or business for profit.
Don’t miss your deadlines. Late-filing… Read More
Tagged: Taxes
Question: I own a fourplex. Unit B has two cars, and one is broken-down. What kind of demands can I place on B about the broken-down vehicle?
Answer: You can create a lease term by requiring that all vehicles be in operable condition or be towed. To put this into place, you need to either serve a 30-day notice of change of terms to a month-to-month agreement, or wait until the lease expires and have the new condition in the renewal lease.
Question: I rented a condominium unit to a couple on a year’s lease. After one month, they had… Read More
Tagged: ColumnsComplianceLegal Q&A
Property owners can now charge a rental applicant up to $46.67 to cover screening fees, such as a credit check and time spent gathering information on the prospective tenant.
The new maximum fee, permitted since December 2015, is 68 cents higher than last year’s fee and is based on changes in the Consumer Price Index.
Members can follow this link for a more in-depth explanation of what owners can do – and what they can’t – related to application charges.
About 200 people received an economic and political forecast Wednesday from a premiere economist, several elected officials and representatives from the rental housing industry.
They all came together for the California Apartment Association’s Outlook 2016, held at the Oshman Family JCC in Palo Alto.
The event included a panel discussion with Rose Herrera, vice mayor of San Jose; Jeff Gee, a city councilman in Redwood City; and Mike Kasperzak, a city councilman in Mountain View.
Economically, Herrera said, San Jose has emerged from a strong 12 months, with more good news to come. She pointed to the city’s approval this… Read More
Tagged: Economy Tri-County
In a victory for the California Apartment Association, a pair of Northern California cities rejected rent control Monday night.
In Pacifica, the city scrapped rent control on a 2-3 vote before opting to instead pursue a more collaborative approach.
Instead of rent control, Pacifica will pursue an advisory program encouraging landlords to implement “best practices” that could include moderating rent increases and giving longer notice before raising rents. The council approved this approach on a 4-1 vote about 1 a.m.
The city will now assemble a group of landlords, tenants and homeowners to work with the city manager on creating… Read More
Tagged: Rent Control Contra CostaTri-County
Question: Can I ban alcohol in the pool area?
Answer: You can control the common areas of the premises, so you could ban the use of alcohol in the pool area.
Question: Do I give a 60-day notice on a month-to-month tenancy for a rent increase of 10 percent?
Answer: No, a 30-day notice is all that is required, unless the increase is more than 10 percent of what the rent was one year ago.
Question: In our lease agreements, we require tenants to pay their rent on the first of the month. If the first falls on a holiday,… Read More
Tagged: ColumnsComplianceLegal Q&A
The California Apartment Association is preparing to fight a property-tax initiative that could appear on the November ballot and pose significant threats to the rental housing industry and the entire real estate community.
Referred to by proponents as the “Lifting Children and Families Out of Poverty Act,” the plan directly assaults Proposition 13 by creating a property tax surcharge on all commercial and residential properties in the state assessed at over $3 million.
Starting in the 2017-18 fiscal year, the proposal would add a 0.3 percent tax on property assessed between $3 million and $5 million; 0.6 percent on property… Read More
Tagged: News
A number of Northern California cities will take up rent control early next week.
On Monday, for example, the controversial topic comes to Pacifica and Lafayette, and on Tuesday, it heads to Santa Rosa.
Below, you’ll find links to stories about the meetings, including ways members of the rental housing industry can help.
Pacifica council to take up rent control Monday
The Pacifica City Council will consider rent control during its Monday meeting, and CAA is calling on members to speak out against this flawed policy. At the meeting, rent control advocates also are expected to demand a just-cause eviction… Read More
Tagged: Just Cause EvictionRent Control