| 2011 Real Estate News You Can Use
UNLAWFUL RENTAL OF RESIDENTIAL DWELLING
SB 1800: Under California Penal Code Section 602.9, it is a misdemeanor for a person to claim ownership or take possession of someone else’s residential property for the purpose of renting or leasing it to another without the consent of the owner. Effective January 1, 2011, this new law increases the penalties for this offense to a maximum of $2,500 or imprisonment in a county jail not to exceed one year or both fine and jail time.
ENERGY UPGRADE CALIFORNIA
Energy Upgrade California is a collaboration between the California Energy Commission, the Public Utilities Commission, utilities, local governments, non-governmental organizations and the private sector to promote and finance energy efficiency and renewable energy projects for homes and businesses, reduce energy use and help train contractors and building professionals. Using the program's website, www.energyupgradeca.org, property owners can enter their zip code or county name to learn about available upgrade programs, rebates, financing options and participating contractors. All 58 counties have their own page that highlights the services and energy efficiency opportunities available for their residents. Initially, the program will be available for single-family homes and multi-family properties up to four units. Later in 2011, the program will expand to multi-family properties of five or more units. In fall 2011, the program will be expanded to include commercial properties.
Second Quarter
GROWING RENTAL MARKET
In the first half of 2011, 86 properties in the Multiple Listing Service have leased – 46 single family homes and 40 units, either apartments or condos. The highest percentages for single family were $3000+ (33%), $4000+ (20%), $5000 (20%) and $7000 (13%). The highest percentages for units were $2000+ (28%), $3000+ (20%), $4000+ (20%) and $1000+ for studios and one bedrooms (18%). The latest trend is offering furnished properties for short terms as vacation rentals. There were a total of 10 or 12% ranging from $3000 to $7000 that leased during this period.
NEW CALIFORNIA CARBON MONOXIDE LAW
Effective July 1, 2011, all existing single family homes that contain a gas heater or appliance, fireplace or an attached garage must install carbon monoxide alarms. The alarms must be either battery powered or plug-in with battery backup and must be installed outside of sleeping areas and on every level of a dwelling, including the basement.
Third Quarter
GROWING RENTAL MARKET
In the third quarter of 2011, 54 (86 in the first half) properties in the Multiple Listing Service leased – 26 (46 in the first half) single family homes and 28 (40 in the first half) units, either apartments or condos. The percentages for single family were $4000+ (27%), $7000+ (27%), $2000 (15%), $5000 (15%), 2000+ (8%) and 6000+ (8%). The percentages for units were $4000+ (32%), $3000+ (29%), $1000+ for studios and one bedrooms (18%), $2000+ (14%) and $5000+ (7%). A total of 13 (24%) single family homes and units ranging from $3200 to $11,000 were leased as short term vacation rentals during the third quarter.
TENANTS SMOKING BAND
SB 332: Effective January 1, 2012, a residential landlord can prohibit the smoking of cigarettes and other tobacco products on the property, including and dwelling unit, building, other interior or exterior area, or the premises on which the property is located. For new tenants on or after January 1, 2012, the areas where smoking is prohibited must be stated in the lease or rental agreement. For preexisting tenants before 2012, a new provision prohibiting smoking is a change in the terms of tenancy that requires adequate written notice, depending on whether the tenancy is month-to-month or for a fixed term.
Fourth Quarter
RENTAL MARKET
In the fourth quarter of 2011, 37 (54 in the third quarter) properties in the Multiple Listing Service leased – 14 (28 in the third quarter) single family homes and 23 (26 in the third quarter) units, either apartments or condos. The percentages for single family were $3000+ (23%), $4000+ (23%), $5000 (15%), $6000 (15%), $2000+ (8%), $9000+ (8%) and $10,000+ (8%). The percentages for units were $2000+ (32%) for 1 and 2 bedrooms, $4000+ (32%), $1000+ for studios and one bedrooms (18%), $3000+ (9%), $5000+ (5%) and $6000+ (5%). A total of 2 single family homes (one at $3000+) and units (one at $5000+) leased as short term vacation rentals during the fourth quarter (13 in the third quarter).
RENTING OUT CONDOMINIUMS
SB 150. Starting January 1, 2012, an owner in a common interest development is exempt from any prohibition in a governing document against renting or leasing the unit, unless that prohibition was in effect before the owner acquired title to his or her unit. When renting out a unit, the owner must give the HOA verification of the owner’s acquisition date, and name and contact information of the prospective tenant.
TENANT RECYCLING RIGHTS
AB 341. Starting July 1, 2012, a multifamily residential dwelling of five or more units (or a multifamily residential dwelling or business that generates more than four cubic yards per weeks of commercial solid waste as defined) must arrange for recycling services. The intent of this law is to address the challenges local governments are facing in reducing solid waste disposal in multifamily properties. The required recycling services are to be consistent with state or local laws, to the extent that these services are offered and reasonable available from a local service provider. The property owner of a multifamily residential dwelling may require tenants to source separate their recyclable materials to aid in compliance with this law.
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