Pilot Property Management

Serving Coastal North San Diego County (Vista & San Marcos), too

PPMHandbook

Do management companies pull credit scores for prospective tenants?

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Sadly, I can tell you some do not. We not only run a credit report but we get the FICO scores as well. From time to time a tenant will find themselves in financial difficulty. Who hasn’t been there once in a while? What we are looking for is the fact that they are out of, or climbing out of their difficulty. In recent times quite a number of very good tenants have previously lost their homes in foreclosure. If the remainder of their credit report suggests no other major issues they are a potentially good risk. Surprisingly many owners acting for themselves never even run a credit report. Furthermore, they do not check employment or previous landlords. Occasionally, the current landlord might give a favorable report just to be rid of a troublesome tenant, but usually the prior landlord will be truthful. Sometimes it is wise to verify the source of a reference. A crafty tenant might even supply a name or two of friends who will attest to the worthiness of their friend. The old adage inspect don’t expect applies here. We suggest you not take a credit report run by someone else. It is not that hard to cut and paste or clean up with a few judicious strokes photocopy and deliver.

Get written job verifications and when possible written landlord verifications too.

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What do management companies look for in a credit report?

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In order to run a credit report on an individual, first you must have a signed application stating that the applicant agrees that the Landlord, Manager, or Agent can obtain a credit report.  The application should contain at least their social security number, a birth date, and a current address. Even in this time of economic depression and era of bad debts, credit checks still play an important role in screening tenants.  The score is just one of many facets of a credit check that management uses to determine whether or not a tenant can afford to rent a property they manage, but there is more to it then just a score. The scores of credit reports will vary between 400 and 850.  A score of 700 or above shows that an individual has been trusted with credit and has made good on repayment of borrowed money.  A score between 600 and 700 generally can be evaluated to determine the cause of the lower score, but the individual may still be a good tenant.  A score below 600 generally is a warning that they have not been diligent with their money, but this may be due to a bad mortgage or major medical or education bills so further investigation is definitely needed if you think you might want to rent your house to them.  Anyone with a score below 500 has had serious problems over a long span of time and the credit check should be accompanied by an eviction check. If you feel further investigation is necessary, a lot of information about an individuals history can be found on a credit report.  Variations of information are also provided in most reports.  In the “Variations” portion of a credit report, you will see any variation in personal information, address comparisons, and employment comparisons.  Your application should ask for current and the previous address and these should match.  There is also an area where employment history is stated and this should also be a question on an application and at least the last employer should be listed on the credit report, maybe not the current one if it is a new job. A credit history shows when the credit account was opened, what the current balance is, what the past due amount is ($0) and whether or not the individual has been late on payments.  This will show as the number of times the payment was received either 30 60 or 90 days late.  The present status of the account has many different possibilities;

 

AS AGREED                    Great             Payment is being received on time

PD WAS 30                        OK                  Payment has been 30 days late

PD WAS 60                        OK                  Payment has been 60 days late

PD WAS 90                     Not that OK   Payment has been 90 days late

PD WAS 120+                 Bad                Payment was delayed more than 120 days

PAID CHGOFF                  Bad                 Went to collections

PAID COLL                        Bad/OK          Paid collections

COLLECTION                    Bad                 In collection with no payment

BANKRUPCY                   Worst              In Bankruptcy – no payment received

 

A credit score is not always the be all and end all of tenant screening but may help in verifying whether a tenant is being honest.  You can find their last current address, where they have worked, and whether they have a good history in being timely with payments.  If you have a good feeling about a tenant then it may be worth giving them a shot.  Also, if the tenant was up front and open about their credit situation, they may be worth further investigation. They may also be willing to put up additional security deposit for the opportunity to rent your home or provide a guarantor or co-signer.   One landlord tip: check the owner of the properties they previously rented is the same as those listed on the application (they could just be “friends”)

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Are property management companies licensed in California?

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Yes and no. Anybody or company that sells or rents property on behalf of another must be licensed. Anyone dealing with the public in the renting or leasing of property in the state must have a valid license issued by the state. Bookkeepers and handymen and strictly office staff do not need a license. Anyone talking about terms and conditions and pricing needs a license. Surprisingly, companies engaged in the management of homeowner associations do not currently need a license, nor do any of their employees. Certification is being talked about and maybe in 2012 some form of professionalism will be required but right now no license of any kind is required. In the homeowner association field there are two agencies that provide training one California based only and the other is nationwide. The California based organization is called the California Association of Community Managers while the national organization is called the Community Association Institute. Both hold classes followed by exams. CACM as the state entity is called, offers one professional designation the CCAM, while the national entity offers 3 levels of certification.

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How to paint the exterior

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Paint, no matter how good it is nor how well it was applied will deteriorate over time. The sun, the wind, water in the form or rain or another source will harm paint and it will peel or fade or both. Paint can however be made to last not so much by periodic maintenance although power washing can brighten it up a shade, but by selecting both superior paint applying it in the correct thickness and by superior preparation. In fact preparation is the key. Paint needs to take a firm hold of the material to which it is being applied be it wood, metal, stone or composite materials. All too often a cursory job of preparation will allow the painter to quickly finish and all that shows is a bright shiny new coat of paint. But without proper preparation that shiny new skin will begin to show its wrinkles and warts quickly.

The surface must first be power washed to get rid of the coat of grime grease oil and soot that adheres to it and accumulates over the years as smudges or stains. Water behind the surface or a damp surface at the time of painting will very quickly cause peeling. Never paint in a damp, humid or exceptionally hot atmosphere. Water will penetrate cement and stone quickly so an accumulation of water behind an inaccessible wall will be hard to paint effectively. Wood that has not cured properly will also be difficult to paint.

 

Patching any cracks in the stucco and bonding or replacing rotten wood first is essential. The next step is to prime to surface using a specific primer for that surface taking into account the existing underlying paint and the material to be painted. Getting rid of rust before priming is also essential as rust comes form the inside out. Treating the metal surface with a rust primer is key to good adhesion. Some painters will water down their paint to thin it form the manufacturers’ specifications and allow it to in theory go further. Involving the paint manufacturer in the process by allowing them to draw up the specifications and to inspect the finished product along the way, will usually result in a better job and a guarantee of the manufacturers warranties being in place when failure occurs. They will also know the best type of paint to use and whether elastomeric paint should be used, the number of coatings etc etc. Effervescence, blistering peeling cracking and flaking can all be avoided with the correct selection of both

Can we ban political signs?

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Section 1353.6 of the civil code prohibits governing documents of associations from banning non-commercial signs banners flags or posters in or on an owners separate interest. They may be posted in a window a door a balcony or wall of a separate interest as long as they are made of paper cardboard, cloth plastic or fabric but may not be made of lights or balloons or certain building materials and they may not be painted on an architectural surface. An association may prohibit non-commercial signs that are more than 9 square feet in size or more than 15 square feet if a banner or flag. So political signs or banners, subject to size limitations, must be allowed. Many associations use the size limitations for commercial real estate sale or lease signs also.

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Do we have to allow fake grass?

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The short answer and this may surprise you is a yes. Presently the civil code 1353.8 provides that an association shall not prohibit nor included conditions that have the effect of prohibiting the use of low water-using plants as a group. So the quick corollary is this. While fake grass may not be a plant as such, it won’t be long before this clause is amended to prohibit the banning of fake grass. Nothing however in the section says that associations may not have specifications or list of what is allowed and what is not. So once again being proactive, I hate that word; I suggest the association generate its rules on grass. They might as they did with say garage doors select a brand or style, a grade also perhaps so that as with paint there is a harmonious feel to the community. There are some pretty good products out there. I even know an attorney who got down on his knees to satisfy himself he was actually on fake grass and not the real thing. Sorry, no names.

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