Introduce Yourself (Example Post)

Posted on June 17, 2020     Leave a Comment

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

• Because it gives new readers context. What are you about? Why should they read your blog?
• Because it will help you focus your own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

• Why are you blogging publicly, rather than keeping a personal journal?
• What topics do you think you’ll write about?
• Who would you love to connect with via your blog?
• If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.

Introduce Yourself (Example Post)

Posted on June 17, 2020     Leave a Comment

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

• Because it gives new readers context. What are you about? Why should they read your blog?
• Because it will help you focus your own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

• Why are you blogging publicly, rather than keeping a personal journal?
• What topics do you think you’ll write about?
• Who would you love to connect with via your blog?
• If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.

ACCESSORY DWELLING UNITS – 2020 STATEWIDE RENT CONTROL

Posted on May 18, 2020     Leave a Comment

ACCESSORY DWELLING UNITS – 2020 STATEWIDE RENT CONTROL

Accessory Dwelling Units.

It is possible to accidently convert an exempt single family dwelling into a California statewide rent controlled property by constructing an Accessory Dwelling Unit.
If the owner of a single family residence constructs an Accessory Dwelling Unit on the property, then that property becomes a “duplex” for purposes of California statewide Rent Control. A duplex is generally not subject to California Rent control as long as one of the units is owner-occupied.
An often overlooked aspect of statewide Rent Control is that an owner of a single family residence will lose the exemption if he/she rents more than two bedrooms at the property. This means that you will lose your exemption if you rent more than two bedrooms from your home at the same time.
Civil Code section 1946.2(e) exempts from statewide Rent Control:
“Single Family owner-occupied residences, including a residence in which the owner-occupant rents or leases NO MORE than two units or bedrooms including, but not limited to, an Accessory Dwelling Unit or Junior Accessory Dwelling Unit.”
An Accessory Dwelling Unit is defined as a secondary unit, or self-contained apartment, cottage or small residence located on a property that is separate from the main house (“ADU”). A Junior Accessory Dwelling Unit is defined as a separate housing unit created within the walls of the original house (“JADU”). JADUs are attached to and part of the main house.
There are two ways an owner can lose the exemption with an ADU. First, if an owner constructs and rent out a two bedroom ADU for extra cash, and then rents one bedroom in the main house to a college student, both the main house and ADU are now potentially subject to Rent Control under Civil Code section 1946.2(e). Second, if the owner-occupant moves out and decides to rent the main house, now both the main house and ADU are potentially subject to Rent Control as a duplex.
There is a limited exemption for structures that are less than 15 years old. However, there is no clear rule as to whether the age of the ADU/JADUs or age of the main house controls. At this point, assume both units are subject to Rent Control as long as one of the units is at least 15 years old.
In summary, the take-home message is that construction of an ADU or JADU on your property may inadvertently trigger new statewide Rent Control. This means that both rent increases and termination rights would be limited.

Owners beware.

LANDLORD’S RIGHT OF ENTRY

Posted on March 11, 2020     Leave a Comment

LANDLORD’S RIGHT OF ENTRY – RESIDENTIAL
When can an owner “lawfully” enter a rental unit without written Notice of Entry?
When is written Notice of Entry required prior to an owner “lawfully” entering a rental unit?
What constitutes proper written Notice of Entry.”
A landlord’s right to enter his/her rental property is set forth in Civil Code section 1954, and may be modified by terms of the written lease agreement.
Right of Entry – without notice.
Civil Code section 1954(e) provides that a landlord may only enter a rental unit without written Notice of Entry under the following limited circumstances:
1. To respond to an emergency (i.e. fire, flood or emergency repair);
2. Tenant is present and consents to the entry (i.e. agreement);
3. Tenant has (a) abandoned or (b) surrendered the rental unit.
4. The Landlord obtains a Court Order for possession.

Right of Entry – with written notice.
Civil Code section 1954(a) provides that 24-hour prior written Notice of Entry is required before a landlord can “lawfully” enter a rental unit for the following reasons:
1. To make necessary and/or agreed upon repairs or improvements;
2. To show the rental unit to prospective tenants
3. To show the rental to lenders, appraisers or contractors;
4. For a pre-move out walk-through to evaluate damage at tenant’s request.
Contents of “Written Notice of Entry.”
Civil Code 1954(c) requires that the landlord’s written Notice of Entry contain the following information:
1. Name of Tenant
2. Address of Rental Unit
3. Date of Proposed Entry
4. Time of Proposed Entry
5. Purchase of Proposed Entry.
The written Notice of Entry must be served to the tenant at least 24 hours prior to the Date of Proposed Entry.
Service of “Written Notice of Entry.”
The written Notice of Entry may be served in any of the following manners:
1. Personally delivered to the Tenant;
2. Personally delivered to someone over 18 years old at the Premises;
3. Left “on, near or under” the usual entry door in a manner most likely to be discovered by the tenant.
Alternatively, the landlord can mail the written notice to the tenant. If mailed, then the landlord must be able to show that he/she mailed the notice at least six (6) days prior to the Date of Proposed Entry.
California law does not presently allow for e-mail Notice of Entry. 120 Day Notice of Entry to Show Property to Prospective Purchasers.
Special notice rules apply when the landlord is selling the rental unit. Those special rules are found in Civil Code section 1954(d)(2) which states as follows:
“If the purpose of the entry is to exhibit the dwelling unit to prospective or actual purchasers, the notice may be given orally, in person or by telephone, if the landlord or his or her agent has notified the tenant in writing within 120 days … that the property is for sale and that the landlord or agent may contact the tenant orally for the purpose described above.”
In other words, landlord can send a “120 Day Notice of Entry” immediately upon listing the rental unit for sale. Landlord may then simply give the tenant 24 hours oral or written notice that the rental unit will be shown to a prospective buyer. Landlord or the agent must then leave a business card after each visit during that 120 day period.

NEW HOME WARRANTY

Posted on December 18, 2019     Leave a Comment

I receive a call nearly every week asking me about statutory new home warranty rules.
Some builders provide express new home warranties to buyers that are included with the closing documents when the buyer closes on his new home.
For those buyers where the builder did not provide an express home warranty, California law implies a new home warranty. These new home warranties are found in Civil Code section 896, and are also know as the Right to Repair Act, and are summarized as follows:

ONE-YEAR WARRANTY ITEMS:
“Manufactured items” such as appliances, air conditioners, and fixtures have a one-year warranty.
“Fit and finish” items such as interior/exterior walls, paint finishes, counter tops, flooring, cabinets, mirrors and trim (i.e. baseboard and moldings) have a one-year warranty.
“Exterior” irrigation, drainage, landscaping systems have a one-year warranty.

TWO-YEAR WARRANTY ITEMS:
“Untreated Wood” posts installed in contact with soil have a two-year warranty.
“Dryer Ducts” have a two-year warranty as to material and function.

FOUR-YEAR WARRANTY ITEMS:
“Plumbing” and Sewer systems have a four-year warranty.
“Electrical” systems have a four-year warranty.
“Exterior” pathways, sidewalks, patios, hardscape, and driveways have a four-year warranty. “Untreated” steel fence and related components as to corrosion have a four-year warranty.

FIVE-YEAR WARRANTY ITEMS:
“Paint” and related staining caused by deterioration of building surfaces (deteriorating stucco, drywall, texturing) have a five-year warranty.

TEN-YEAR WARRANTY ITEMS:
“All other components not specifically referenced such as retaining walls, structural framing and foundation have a ten-year warranty.

You cannot just file a lawsuit against the builder when you discover a defect. California law requires that you submit a written claim to the builder stating the defect with reasonable specificity and provide builder a reasonable period of time to repair the defect.
The builder then has an option to (1) repair the defect at no cost to the buyer, (2) provide cash in lieu of repair to the buyer or (3) demand mediation of the dispute with the buyer. Builder is responsible for all costs of the mediation if it selects that option.
The Right to Repair Act provides narrow time frames for the builder’s response. Once a claim is sent by a buyer, the builder has 14 days to acknowledge it in writing. Then builder has 14 days to inspect the defect. Builder then has another 30 days to complete a second inspection, if desired. Builder then has 40 days after the date of the last inspection to offer a resolution.
If the builder and buyer agree to a list of repairs, then builder has 14 days to commence the repairs. The builder must then make best efforts to complete repairs within 120 days thereafter.
Buyer can proceed with a lawsuit against the builder only after (1) the matter is mediated unsuccessfully or (2) builder declines to mediate the dispute.
The Right to Repair Act also allows the builder to provide its own non-adversarial dispute resolution program as long as provide prior to or concurrent with close of escrow.

2020 CALIFORNIA RENT CONTROL LAWS

Posted on October 23, 2019     Leave a Comment

Effective January 1, 2020, California will be one of only two states to impose statewide Rent Control on its residential property owners. Oregon is the only other state that imposes statewide Rent Control.
Exemptions.
Let me start with the good news. The good news is that the new Rent Control Law exempts individual owners of single family residential properties. This means that a husband and wife who own two or three single family rentals are exempt from the new laws.
Unfortunately, the new Rent Control Law applies to every other residential property, including a duplex, triplex and apartment except the following:
1. Residential properties that are less than 15 years old;
2. Rooms rented within an owner-occupied single family residence;
3. Guest houses rented within an owner-occupied single family residence; and
4. A duplex only if the owner occupies one of the units.
Fortunately, most families purchasing single family residences as rentals will he exempt from the new Rent Control Law. I will refer to this group of properties as Exempt Properties.
Disclosures for Exempt and Non-Exempt Properties.
All Leases for Exempt Properties must include the following new disclosure:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Section 1947.12(d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
All Leases for Non-Exempt Properties must include the following new disclosure:
“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946 of the Civil Code for more information.”
I recommend that all residential leases commencing on or after January 1, 2020, include the appropriate new disclosure. If you have an existing lease, then I recommend supplementing it with an addendum including the appropriate new disclosure on January 1, 2020.
Remember, Exempt and Non-Exempt Properties require different disclosures. Rental Cap.
The Rent Cap only applies to Non-Exempt Properties. The new Rent Control Law prohibits all landlords of Non-Exempt Properties from raising rent more than 5% plus cost of living during any 12 month period.
Cost of living is defined as the Consumer Price Index in the County where the residential property is located. By example, if Consumer Price Index (“CPI”) for Los Angeles is 2.7%, then the landlord can raise rent by 7.7% (i.e. 5% plus 2.7% CPI).
However, under no circumstance can the landlord of a Non-Exempt Property raise rent more than 10% during any given 12 month period.
In addition, under no circumstances can a landlord of a Non-Exempt Property raise rent more than twice during any given 12 month period.
In addition, landlords of Non-Exempt Properties forfeit their right to raise the rent if they fail to do so during any given 12 month period.
The new Rent Control Law guarantees “higher” rents for all tenants as landlords who may not have otherwise raised rent on an annual basis will now do so.
Termination (Just Cause).
Without Just Cause, a landlord of a Non-Exempt Property will no longer be able to terminate a tenant, even after expiration of the lease. This restrictions applies only to tenants who have continuously occupied a Non-Exempt Property for 12 consecutive months.
If a tenant has occupied the property for 12 consecutive months, then a landlord cannot (1) refuse to renew the lease or (2) terminate the tenancy without Just Cause. The new Rent Control Law distinguishes between (1) At-Fault Just Cause and (2) No-Fault Just Cause
At-Fault Just Cause includes the following:
a. tenant’s failure to pay rent;
b. tenant’s material breach of the lease;
c. criminal or nuisance activity by the tenant;
d. assigning or subletting the property without landlord consent; or
e. tenant’s refusal to allow landlord to inspect the property;
. No-Fault Just Cause includes the following:
a. owner/spouse/children/grandchildren intent to occupy the property;
b. withdrawal of property from the rental market;
c. owner intends to “substantially remodel” the property;
The term “substantially remodel” means any structural, electrical, plumbing, or other improvements that requires a permit. This provision could be a landlord escape hatch as landlord can terminate any lease as long as permit is pulled for work.
Note that for leases entered into after July 1, 2020, a landlord wanting to move back into his own property will not be considered Just Cause unless a provision is included in the lease agreement allowing him to do so.
For all Non-Exempt Properties, termination notices must state whether termination is based upon At-Fault or No-Fault Cause or they are deemed defective and void.
Right to Cure for At-Fault Just Cause Termination.
It is important to note that any termination for At-Fault Just Cause requires landlord to first serve a 3 Day Notice that gives the tenant 3 days to cure.
Remember, effective January 1, 2019, the law was changed to provide that a 3 Day Notice no longer includes Saturday, Sunday or Holidays. This means that if you serve a 3 Day Notice on Thursday, it would not expire until midnight on the following Tuesday.
Relocation Fee for No-Fault Just Cause Termination.
Just when you thought it couldn’t get worse, it does. The new Rent Control Law requires
a landlord to pay an amount equal to one month rent to any tenant as a Relocation Fee for all terminations based upon No-Fault Just Cause.
Payment must be made within 15 days after serving tenant with the Notice of Termination based upon No-Fault Just Cause. This means that you are required to pay your tenant prior to them moving out. If they fail to move, then you still need to evict them.
City of Los Angeles Rent Control.
The new Rent Control Law does not apply to cities such as Los Angeles that already have more stringent rent control in place.
Remember, the City of Los Angeles includes several communities which you probably believe are independent cities, such as San Pedro, Van Nuys, Studio City and Porter Ranch.
The City of Los Angeles, and all of its communities, are subject to rent control, as well as the infamous 9a Disclosure Report required for all residential property sales in the City of Los Angeles.
Summary.
In summary, the new statewide Rent Control Law contains many traps for innocent landlords and must be carefully reviewed..

RE; COMMERCIAL LEASES – CANNABIS OPERATIONS

Posted on October 8, 2019     Leave a Comment

I receive calls every month by landlords wanting to know the risks associated with leasing to a tenant in the business of cultivation, production, and/or distribution of cannabis.

Cannabis businesses must obtain both (1) a California permit and (2) a city/county license to operate. Not all cities/counties allow cannabis business to operate in their cities/counties. In those cases, leasing to a cannabis operation would be unlawful from the start.

It is important for every landlord to understand that even if the tenant complies with all state and local laws regarding cannabis, it still violates federal law. Federal law prohibits a landlord from “knowingly leasing property for the purpose of making, distributing or using any controlling drug.” See 21 USC section 881(a)(7).

This means that landlord’s property could be seized by the federal government at any time even though the tenant’s use complies with California cannabis law. California law is in direct conflict with federal law.

Commercial Leasing.

If a landlord understands the risk that his property may be seized by the federal government, and wants to proceed to lease to a cannabis tenant anyways, then landlords should consider the following points in negotiating a cannabis lease.

1. Commencement Date. Since California will not issue a license to any cannabis tenant without a signed lease, it is important to condition any lease agreement on the tenant obtaining necessary state permits and local licenses for its cannabis business. Since this process can take several months, landlord will want to negotiate some amount of monthly rent during this contingency period. This means that the tenant will be paying rent prior to actually receiving permits and licenses required for its cannabis operation.
2. Early Termination Rights. The lease should require tenant to provide copies of valid
permits and licenses for tenant’s cannabis operation. The lease should require tenant to forward any notices, violations of cease and desist letters from any federal, state or local government affecting tenant’s cannabis operation. The lease should provide that landlord has a right to early termination if the tenant is no longer in compliance with state, local or municipal laws necessary for tenant to lawfully operate a cannabis business. This would allow landlord to terminate the lease if tenant’s cannabis operation becomes unlawful at any point during the term of the lease.
3. Operating Expenses. Cannabis operations usually result in excessive electricity and water usage, as well as increased insurance premiums for the landlord. It is critical to make tenant exclusively responsible for all utilities in addition to increased insurance premium due to tenant’s cannabis operation. If the tenant’s business is operated from a multi-tenant building, then additional risks relate to other tenants at the project.
4. Compliance with All Laws. The lease should include a provision placing the burden solely on the tenant to comply with all federal, state and local laws, including zoning and landlord use ordinances existing at the time of lease commencement or become effective thereafter. Landlord should have early termination rights if tenant breaches this provision.

These are just a few of the concerns for landlords leasing to any cannabis operator. The take home message is that landlord’s property is always at risk of seizure by the federal government when leasing to a cannabis operator, even if the operator is 100% compliant with state law.

Landlord Tenant Law

Posted on September 18, 2019     Leave a Comment

LANDLORD TENANT LAW

The following rules apply to residential tenancies. Commercial tenancies have different rules.

30 DAY NOTICE.
A 30 Day Notice is required to terminate a tenancy when the tenant has occupied the premises for 12 months or less. See California Civil Code section 1946.
The 30 Day Notice expires 30 days after the service date. The service date does not count towards calculating 30 days and should be considered as day “zero.”
Each Tenant (a) identified in the lease and (b) each person that Landlord knows resides at the Property should be served Notice separately.
If expiration of the 30 Day Period falls on a Saturday, Sunday or legal Holiday, then Tenant is not required to be out until end of the next business day.

60 DAY NOTICE.
A 60 Day Notice is required to terminate a tenancy when the tenant has occupied the premises for more than 12 months. See California Civil Code section 1946.1.
The 60 Day Notice expires 60 days after the service date. The service date does not count towards calculating 60 days and should be considered as day “zero.”
Each Tenant (a) identified in the lease and (b) each person that Landlord knows resides at the Property should be served Notice separately.
If expiration of the 60 Day Period falls on a Saturday, Sunday or legal Holiday, then Tenant is not required to be out until end of the next business day.

NO NOTICE REQUIRES AT EXPIRATION OF WRITTEN LEASE.
There is no 30 Day or 60 Day Notice required to evict a Tenant at expiration of a written lease. If Tenant’s 12 month written lease expires on October 31, then Landlord can start an eviction on November 1″ without any Notices.
If the Landlords accepts rent after expiration of a written lease, then a new Month-to-Month tenancy is created that will require either a 30 Day or 60 Day Notice to terminate.
Rent Control Laws have special rules that override these standard rules. NEW RULES: 3 DAY NOTICE TO PAY OR QUIT.
In the past, a 3 Day Notice served on Friday would expire Monday. Saturdays, Sundays and legal Holidays counted towards calculation of 3 days. A Landlord could then start an eviction on Tuesday morning.
Effective January 1, 2019, Saturdays, Sundays and legal Holidays no longer count towards calculating 3 Day Notices.
By example, if you serve a 3 Day Notice to Pay or Quit on Friday, Saturday and Sunday no longer count, and the 3 Day Notice would not expire until the following Thursday.
PROPER SERVICE OF NOTICE.
A Judge will dismiss the eviction if service is improper or irregular. There are three options for service of 30 and 60 Day Notices, and Landlords must strictly comply:
1. Personal delivery to the Tenant; or
2. If Tenant cannot be personally served, then (a) personal service to anyone over 18 years old at the residence and (b) copy sent by standard U.S. mail to Tenant’s residence (certified mail not required); or
3. It Tenant cannot be personally served, then (a) posted in conspicuous place at the property and (b) copy sent by standard U.S. mail to Tenant’s residence (certified mail not required).
At least one case has held that service by Certified Mail is not sufficient service of either a 30 Day or 60 Day Notice. If you elect to serve a 30 or 60 Day Notice by Certified Mail, then you must also serve by standard U.S. mail. See Liebovich v. Shahrokhkhany (1997) 56 Cal.App.4th 511, 514-515.

Landlords must strictly comply with these service rules or the Judge will deny the eviction.
PAYMENT OF RENT.
Tenant must continue to pay rent after being served a 30 Day or 60 Day Notice. If Tenant stops paying rent after receiving either a 30 Day or 60 Day Notice, then Landlord can immediately serve a 3 Day Notice to Pay or Quit and evict the Tenant if Tenant fails to pay the rent during the 3 Day Notice Period.

SALE OF PROPERTY BY LANDLORD.
If the Landlord has contracted to sell the Property to someone who intends to occupy the Property for at least a year, the Landlord only needs to give Tenant a 30 Day Notice (not a 60 Day Notice) regardless of how long the Tenant has been at the Property.
In order to qualify, the Landlord must satisfy the following conditions:
1. Property must be sold using a licensed California Broker
2. Property must be in escrow at a licensed Escrow Company
3. Landlord must give Tenant a 30 Day Notice within 120 days after opening escrow.
This exception only applies when Landlord has sold the property to someone who intends to occupy it for at least a year.

PROPERTY PHOTOGRAPHS

Posted on February 1, 2019     Leave a Comment

PROPERTY PHOTOGRAPHS
Who owns residential real estate photograph? The general rule provides that the photographer owns the copyright to photographs absent a written agreement or provision transferring ownership to the seller or broker.
Most written agreements offered by photographers issue a revocable license for the broker to use the photographs under a “license” agreement. This means that the photographs continue to belong to the photographer, not the broker or seller who paid for them.
If you or your seller want to own the photographs, and not be restricted on future use of those photographs, then the following language should be included as an Addendum to each Real Estate Photography Agreement:
“All photos, graphics and digital images delivered to the (broker), and all rights therein, shall be the sole and exclusive property of the (seller) and (broker). The (seller) and (broker) shall have sole discretion to reproduce, publically display, and distribute the photos, and may upload any and all photos to any MLS listing service for promotional, advertising, or for any other purpose related to the sale of the Property. Terms of this Addendum shall prevail over inconsistent provisions in the Agreement.”