FAQ

Questions from Tenants


Q:  Why do I have to provide all the information on the application?

A:  You are going to occupy a property that has a value in excess of $100,000.  We need to verify YOU are who you say YOU are that YOU will be a good member to the community/neighborhood, that YOU have established credit, verifiable earnings, and a good rental history.

Q:  When I move out, when can I expect my Security Deposit?

A:  The State of California allows twenty-one (21) days for the owner/manager to send you an itemized list of deductions from your deposit and a check for the remainder of the funds.

Q:  Why do you require Cashier’s Checks or Money Orders for move-in funds?

A:  We know the funds are “good”.  After you move in, we are happy to accept a personal check.  However, if we ever have a returned check for any reason, you must pay the next twelve (12) months in Cashier’s Checks, or Money Order.

Q:  I had a plumbing stoppage caused by food build-up.  Why did you charge me for the bill?

A:  The build-up is not normal wear and tear.  You caused the problem and you are responsible for the bill.

Q:  I really like dark blue.  Can I make changes to the property?

A:  You must get written approval for any changes you make to the property.  You will be held financially responsible to prime, paint, and restore the property.

Q:  Why do you video tape the property before I move in and again after I move out?

A:  The videotape helps all of us remember what the property looked like when you moved in.  It normally eliminates any disagreement between the resident and the office.  The videotape is admissible in court at the discretion of the Judge if we are not able to come to an agreeable disposition of your Security Deposit.

Q:  What is the most I can be charged for Security?

A:  According to the State of California, the maximum charge for Security Deposit is two (2) months rent for an unfurnished unit and three (3) months rent for a furnished unit.

QUESTIONS FROM PROPERTY OWNERS

Q:  When my tenant moves out what charges can I make on the Security Deposit?

A:  You may charge anything that is NOT “normal” wear and tear. Our lease documents contain a “life span” for major components like paint, carpet, vinyl flooring, window covers, screens, that help determine reasonable charges.

Q:  If I have a long-term vacancy (more than thirty (30) days) am I still charged management fee?

A:  NO, thirty (30) days is reasonable to get your property rent ready and tenanted.  If it takes more than that, you are not charged management.

Q:  What deductions can I take from owning an investment property?

A:  Your CPA is the best source however, maintenance, property management fee, interest paid on loans, property taxes, land lease payments, homeowner assessments and depreciation.

Q:  What happens if the tenant doesn’t pay or becomes a problem?

A:  We serve a “3 Day Pay or Quit” on the fifth of each month to residents who have not paid their rent.  If they do not pay within the legal time frame, we forward them to an attorney.  The attorney files the appropriate Unlawful Detainer.  Someone from AM/PM Property Management, Inc. appears in court for you.  However, because we carefully screen our tenants, we have very few problems with our residents.

Q:  I live outside of California.  What is the “with holding” of 7% all about?

A: To ensure the State of California receives all income possible, each property manager must with hold 7% of your proceeds (money you receive after bills are paid) UNLESS you receive a “Waiver” from the State.  If you need assistance with this, please contact the office.

Q:  At the end of the year, will I get a 1099?

A:  YES

Q:  Do I have to provide a 1099 to my vendors?

A:  If you use our management, we complete the 1099 forms for all vendors.

Q:  What is the “process” when I have a vacancy?

A: This is done in eight (8) steps.  1) We complete the move-out process for the last resident.  2) We advertise the property on over FORTY (40) websites.  3) We coordinate the maintenance to get the property rent-ready.  4) We process the applications.  5) We prepare the Lease Agreement and Addendum that total sixteen (16) pages.  6) The new resident signs the lease.  7) We receive the funds.  We notify you so you can celebrate!

Q:  Will you get me bids for major repairs?

A:  Absolutely!  We include you in the decisions like which proposal you wish to use, how extensive you want the repairs to be and which prospective tenant is the best fit.

Q:  How do we communicate if I am out of the country?

A:  Love the WEB!  And if you have an issue and would like to discuss we are willing to call you at 2:00 in the morning if it will get the job done!

Q:  How can I get you to take over my headaches?

A:  Contact us!

QUESTIONS FROM HOMEOWNER ASSOCIATIONS

Q:  My home is my greatest investment.  How do you help me to protect my investment?

A:  We educate your Board of Directors so they know their responsibilities.  They must be informed so they can make prudent business decisions.  Those decisions   will protect the “Mutual Benefit, Not-For-Profit, Homeowners Association that you live in.

Q:  Some of the residents in my Association are not paying their assessments.  What can be done?

A:  Payment of the Assessments is a Property Responsibility AND a Personal Responsibility.  Homeowners who are not paying timely put the community “at risk”.  The Association may file a Lien against the property and start a Non-Judicial Foreclosure.  They may revoke the delinquent homeowner’s right to use the Common Area Facilities (pool, spa, playground, clubhouse, open parking spaces).  They may elect to litigate in court and obtain a Judgment against the delinquent paying homeowner.  Judgments are “good” for ten (10) years and can be renewed indefinitely.

Q:  My homeowners association meetings are long, boring, and I can’t speak when I want to.  Why?

A:  Your meetings are for the Board to make business decisions.  YOU are entitled to speak at the annual meeting and most Associations have an “open forum” that allows homeowners to share their thoughts.  You can email any concerns to the business office and we will include your email in the Board Package.

Q:  Why don’t you have the accounting on the web?

A:  We decided we do not want to “risk” any of your personal information to a hacker.  By keeping all the records inside the office, you don’t have to worry that your information will be accessed by anyone unauthorized .

Q:  My Association could save so much money using a local gardener and a local handyman.  Why do they use Licensed, Bonded, and Insured vendors?

A:  Your Association has a huge responsibility and a tremendous liability.  If someone gets hurt while working on your Association, the members could be held liable for damages.  Using vendors who have proven to the State of California that they have knowledge required for their trade (landscape, pool, electrical), provides added protection to the Association.

Q:  An Agenda is posted for our meeting.  Why can’t we discuss something that is not on the Agenda?

A:  The State of California instituted this Law to protect Associations.  It prevents  Boards from approving secret expenses that the membership had no knowledge of.

Q:  Why is a Reserve Analysis so important?

A:  The Reserve Analysis lets the membership know how much money should be in the Reserve Funds.  It alerts everyone to any shortage AND defines how much per unit the shortfall could be.