
Owner's Frequently Asked Questions
Explore answers to our most frequently asked questions.
Getting Started
Start by understanding local rental regulations, setting a competitive rental rate, and preparing the property for tenants. It’s also essential to familiarize yourself with Santa Cruz’s landlord-tenant laws.
While California doesn’t require a specific license to rent out property, Santa Cruz may have local requirements, such as obtaining a business license or complying with vacation rental permit regulations.
Research the rental market in Santa Cruz to understand current trends and average rental rates for similar properties. Consider factors like location, property condition, and amenities when setting the price.
A rental agreement should include key terms such as the rental amount, lease duration, security deposit, maintenance responsibilities, and any specific rules or restrictions. Ensure it complies with California's rental laws.
Conduct thorough tenant screenings by checking credit history, rental history, employment verification, and background checks. Make sure to follow California's fair housing laws during the process.
Landlords must provide a safe, habitable living environment, make necessary repairs, and maintain the property according to local and state laws. Additionally, they need to handle security deposits, lease agreements, and tenant communications.
Establish a system for addressing maintenance requests promptly, whether you choose to handle repairs yourself or hire a property management company. Regular maintenance helps avoid costly repairs and keeps tenants satisfied.
Hiring a property management company can be beneficial if you prefer a hands-off approach. They handle tenant screening, rent collection, maintenance, and legal compliance, but will charge a management fee.
Evictions in California must follow a legal process that includes providing proper notice and filing with the court if the tenant does not comply. Common grounds for eviction include non-payment of rent, lease violations, or property damage.
Leasing
To apply for a lease, interested parties typically need to fill out a rental application form, provide identification and proof of income, and pay any required application fees. Once the application is submitted, the leasing office will conduct a background and credit check before making a decision.
Commonly required documents include a valid government-issued ID (like a driver's license), proof of income (such as pay stubs or bank statements), rental history, and references. Some landlords may also require a credit report or background check.
Pet policies vary by property. Some rentals allow pets with certain restrictions, such as breed or size, while others have a strict no-pet policy. If pets are allowed, there may be additional pet deposits or monthly pet rent.
The security deposit is typically collected at the time of signing the lease. It is held by the landlord to cover any potential damages or unpaid rent. Upon move-out, the landlord will conduct a walk-through to assess the property's condition and return the deposit within a specified timeframe, minus any deductions for damages.
Lease terms can vary but are commonly offered as one-year agreements. Some landlords may offer month-to-month leases or shorter-term options. It’s important to read the lease carefully to understand the terms, including renewal procedures and notice periods for termination.
Tenants should report any maintenance issues to the property management or leasing office as soon as they arise. Most properties have a system in place for submitting maintenance requests, whether through an online portal or by phone. Timely reporting can help ensure that issues are addressed quickly and effectively.
Maintenance
Routine maintenance, such as HVAC servicing, plumbing checks, and safety inspections (e.g., smoke detectors), should generally be done annually. Seasonal tasks like gutter cleaning and landscaping may need more frequent attention.
California law requires landlords to address emergency repairs that affect the habitability of the property, such as broken heating, plumbing issues, or electrical problems, within a reasonable time frame (typically 24-72 hours).
Landlords are responsible for maintaining a pest-free environment. If pests become a problem due to the property's condition, the landlord must arrange for pest control services. Tenants may be responsible if the issue arises from their behavior.
Tenants should promptly report any maintenance problems to the landlord or property management company, ideally in writing. This ensures a documented record and helps the landlord address issues before they worsen.
The responsibility for landscaping maintenance should be outlined in the lease agreement. In some cases, landlords provide landscaping services to maintain curb appeal, while in others, tenants may be required to handle basic yard care.
If maintenance or repairs are needed due to normal wear and tear, the landlord covers the cost. However, if damages are beyond normal wear, the cost may be deducted from the tenant's security deposit, provided proper documentation and receipts are supplied.
Accounting
Rental property owners can typically deduct mortgage interest, property taxes, insurance, maintenance and repairs, property management fees, and depreciation. Understanding these deductions can help minimize tax liability.
Santa Cruz property tax is based on the assessed value of the property, which may increase annually by up to 2% under California’s Proposition 13. Additional assessments or special taxes might apply for local initiatives.
Landlords must keep security deposits separate from personal funds and are required by state law to return unused portions within 21 days after the tenant moves out, along with an itemized list of deductions, if any.
Yes, vacation rental owners need to account for transient occupancy taxes (TOT) and may also be subject to special licensing fees and local regulations. Keeping accurate records of rental income and expenses is essential for compliance.
Capital gains tax applies when a property is sold at a profit. California taxes capital gains as regular income, which can result in a higher rate compared to federal long-term capital gains rates. Owners may qualify for exemptions if the property was a primary residence.
Landlords should maintain detailed records of all income and expenses, including receipts for repairs, property improvements, and utilities. Using accounting software tailored for real estate can help track finances and prepare for tax filings.
General Questions
Our agreements are month-to-month to provide you with flexibility and peace of mind. You can cancel the agreement at any time with a 30-day notice.
Yes, you can. Around 3-4 months before the lease ends, we will reach out to discuss lease renewal. We typically recommend a 5-7% increase annually, depending on current market conditions.
It is generally advisable to wait until the property is vacant to sell. However, if a sale is necessary while the property is occupied, we will coordinate with the tenant to ensure a smooth process.
Visits are only allowed when the property is vacant. While it is occupied, we ask that owners refrain from visiting, as it can disrupt the tenant relationship and hinder our management efforts. To assure you that the property is well-maintained, we conduct an annual inspection and provide photos for your review.
We Simplify the Experience of Owning Rental Property
Renting out your property shouldn't be a hassle; it should enhance your time, wealth, and energy. Our dedicated team of top professionals has already made this a reality for numerous property owners in Santa Cruz. We can do the same for you

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