Patty Manzi’s Tri-Valley Real Estate Blog

I’ve been hearing a lot lately about banks trying to evict tenants from a home after the bank has foreclosed on the property.  Offering them ‘cash for keys’ and REO agents using bullying tactics to force them out.  What we all need to remember is that Tenants do have rights and cannot be forced from the home. 

In May 2009, the federal government enacted the “Protecting Tenants at Foreclosure Act” giving tenants new protections, such as the right to stay in their homes for at least 90 days after receiving an eviction notice. While state and local laws also contain strong protections, unlawful evictions and harassment of tenants continue.

Tenants should know their rights under the law. These rights include:

- Tenants cannot be required to move out of their homes for at least 90 days following an eviction notice.
- Tenants can insist on staying until the end of their leases. The only exception occurs when the new owner of a single-family home wants to move in.
- Tenants can require banks and their agents to put all communication in writing.
- Tenants are not obligated to accept “cash for keys” money to move out sooner than the law prescribes.
- Harassment, such as improper entry into a person’s home, shutting off water and lights, or changing the locks without a court order is illegal.
- The above rights extend to tenants living in government-subsidized Section 8 housing, who may also have additional protections under state and local laws.
- If a city has a just cause for eviction law, a landlord must have a specific reason to evict a tenant, and foreclosure may not be recognized as a legitimate basis for eviction. Tenants should check local ordinances.

Sixteen cities in California have just cause for eviction ordinances: Berkeley, Beverly Hills, East Palo Alto, Glendale, Hayward, Los Angeles, Maywood, Oakland, Palm Springs, Richmond, Ridgecrest, San Diego, San Francisco, Santa Monica, Thousand Oaks, and West Hollywood.

For more information about fair housing laws in California, contact the Department of Fair Housing. 

With the increased number of people losing their homes to foreclosure & short sale there is an increase in the number of people needing to rent.  A few things to be prepared for if you find yourself renting a home after many years of owning;   Landlords will require a rental application and most charge a screening fee to check your credit, criminal,  and rental (eviction) history.  You may also need to provide documents to verify employment and income.  Many landlords and property management companies have a minimum credit score that is acceptable to be considered a candidate for renting.  The more information you can provide to prove your credit worthiness, the better. 

Expect to come up with not only your first months rent, but up to 2 times the rent amount as a security deposit.  Additional security funds can be required if you have pets.   Signing a 12-month lease is customary, but some landlords are willing to provide shorter term leases with an increase in the rent amount. 

If you are in doubts or questions about practices by landlords or property management companies, you can contact Fair Housing for advice and information.  You can also enlist the help of your local real estate agent or property management company to help you find rental properties and represent you in the leasing process.

I was watching a TV show this evening, you know those shows where the TV real estate agent helps someone sell their home.  This young couple inherited a small home and subsequently took out an equity loan to remodel the whole house.  After a few years and children on the way they purchase a newer bigger home to accommodate their growing family.  They now had two mortgages and were faced with a major decision; rent out the house for more money than their mortgage payment, or sell the home for the same amount of money they owe on the mortgage. 

Seems like a no brainer to me, rent the house out and make a few bucks.  I was very surprised when they chose to sell the house, and I was even more surprised when the real estate agent agreed with them (well, not really that surprised at the latter, afterall it is a TV show about selling homes!).  Their major reason for not renting out the house was their perception that it was a “hassle to be a landlord”. 

The home was listed just above what they owed on their mortgage and after several weeks on the market the home wasn’t getting many showings.  In comes the TV Agent suggesting the reason the home isn’t selling is the decor so he brings in someone to stage the home – which the buyer pays for.  A few weeks later with still no offers the agent suggest a price reduction.   They get an offer but its a low offer and after a few counters back and forth, the buyer walks away over $5,000.  So the house sits a few more weeks, another price reduction….you get the idea.  After 3 months they’ve paid for a stager, reduced the price to below their mortgage balance, made 3 mortgage payments, paid for utilities and yard maintenance and are very, very. frustrated.  The next offer that comes in they accept immediately just to dump the home and move on with their life.  They end up  $35,000 out of pocket to walk away from this whole mess!

Their initial reason for not renting the home was they perceived it to be a ‘hassle’.  I’m not sure what they really meant by that.  Did they mean its a hassle finding a tenant, keeping a tenant, keeping it rented, collecting rent, performing maintenance and repairs, or what?  If they had had a ‘real’ agent maybe they would have been advised that they can advertise for free on many websites to find tenants, they can pre-screen their tenants by doing credit, criminal and eviction history checks, get employment verifications and proof of income, call previous landlords, and have their tenants sign a written, legally binding lease agreement.  By doing this a landlord can ensure they are protecting themselves and helping to ensure they are getting a good tenant who will pay their rent on time and follow through with their lease agreement.   Another option is to enlist the services of a property management company.  They typically charge a percentage of the monthly rent, or a flat fee to conduct all the services necessary to manage the property leaving the owner free from the day to day responsibilities.

The really sad thing is that it will take this poor couple years to make up that $35,000 deficit from the sale.  If they had rented out the home from the beginning, they would have had a positive cash flow instead of a negative and over time would be building equity.  Equity they could use in the future to send their kids to college, or use for their retirement, or both! 

If you are facing the same situation or thinking of purchasing rental properties, make sure you are being advised properly by an experienced real estate professional who has your best interests in mind.

Pleasanton Real Estate Update

As of today, November 20, 2009 there are 152 Active listings on the Multiple Listing Service (MLS) in Pleasanton.

There are 153 Pending sales (72 of which are Pending Subject to Lender Approval as they are a Short Sale/Potential Short Sale). 

From the period of November 1 – 20, 2009, there were 37 Sold transactions (escrow closed) ) with an average time of 38 Days on Market (DOM) and an average sales price of $802,524 (lowest sold = $225,000 / highest sold = $3,200,000)

The lowest priced home in Pleasanton is at 8003 Arroyo; it is a 2 Bedroom/1 Bathroom, approx. 903 sq.ft. Condo offered at $285,000 (DOM 39). 

The highest priced home in Pleasanton is at 3040 W. Ruby Hill Drive; it is a 7 Bedroom/9+ Bath, 6-car garage home, approx. 14,586 sq.ft., Single-Family residence offered at $9,800,000 (DOM 204).

If you are looking for Pleasanton Rental properties there are 31 rental properties on the MLS in Pleasanton. They range from a 400 sf, 1 bedroom, 1 bath near downtown for $845 month, to a 8,931 sq.ft, 7 bedroom, 9 ½  bath home in Castlewood for $9,000 month.

As a California licensed real estate Broker & Property Manager I am constantly researching the market and analyzing home prices so I can serve you with the latest and most accurate information. As always, I offer my services to you as your Home Research specialist.  For more information, contact me, or visit my website at:  www.PattyManzi.com.

Pleasanton Real Estate Update

As of today, October 9, 2009 there are 173 Active listings on the Multiple Listing Service (MLS) in Pleasanton.

There are 158 Pending sales (67 of which are Pending Subject to Lender Approval as they are a Short Sale/Potential Short Sale). 

From the period of October 1 – October 9, 2009, there were 16 Sold transactions (escrow closed) ) with an average time of 51 Days on Market (DOM) and an average sales price of $693,531 (lowest sold = $185,900 / highest sold = $1,995,000)

The lowest priced home in Pleasanton is at 8034 Arroyo; it is a 2 Bedroom/1 Bathroom, approx. 798 sq.ft. Townhouse offered at $175,000 (DOM 1). 

The highest priced home in Pleasanton is at 4140 Foothill Road; it is a 5 Bedroom/6+ Bath, 16-car garage home, approx. 8,590 sq.ft., Single-Family residence offered at $12,500,000 (DOM 170).

One the rental side of the market there are 36 rental properties on the MLS in Pleasanton. They range from a 400 sf, 1 bedroom, 1 bath for $845 month to a 8,931 sq.ft, 7 bedroom, 9 ½  bath home for $9000 month. 

As a California licensed real estate Broker & Property Manager I am constantly researching the market and analyzing home prices so I can serve you with the latest and most accurate information. As always, I offer my services to you as your Home Research specialist.  For more information, contact me, or visit my website at:  www.PattyManzi.com.