Thursday, October 30, 2014

Make Your Rental Properties Smoke-Free

Why would a landlord want to prohibit smoking?

In addition to the important health benefits of reducing exposure to secondhand smoke, prohibiting smoking can decrease the risk of accidental fires and may even reduce fire insurance premiums. Landlords also will avoid complaints from non-smoking tenants and may see a significant reduction in maintenance and turnover costs. Cleaning and refurbishing a smoker’s unit can require additional time and effort to repaint and to replace carpets and drapes. By prohibiting smoking in a unit, landlords can minimize or eliminate these expenses altogether.

Is it legal for a landlord to prohibit smoking?


Yes. Effective January 1, 2012, California Civil Code 1947.5 provides that a landlord has the right to prohibit the smoking anywhere on their property, including common areas and individual units. This right applies to new tenants who enter into lease.  For existing tenants, a new smoking restriction constitutes a change in terms of tenancy. The terms may be modified with reasonable notice and in compliance with all state and local laws for month-to-month tenants. For tenants on a lease, the landlord cannot change the terms during the lease period without the tenant’s consent.  In this case the landlord will need to wait until the end of the lease period to add the restriction.

U.S. Department of Housing and Urban Development (HUD)

HUD has recently launched a set of tools to encourage landlords to adopt smoke-free policies to protect tenants from the dangers of secondhand smoke and to reduce property maintenance costs. The kit includes:
  • ·      Going Smoke Free – Steps for Landlords
  • ·      A Landlords Guide to –No-Smoking Policies
  • ·      Sample Letter to Tenants
  • ·      Sample Lease Addendum
  • ·      Legal and Health Information
  • ·      Frequently Asked Questions
  • ·      and more 


Download yours today at: 

How much is your investment property worth?

As rents increase, so does the value of your residential income property.  Investors typically use an income capitalization approach to determine the value of rental property. Higher income equates to a higher property value.

Rents in the bay are at an all-time high. According to RealFacts, the average rent in our area for the first quarter of 2014 was $2,043, up 10% from 2013.

In response, over the past two years, apartment building construction has been booming, bringing an estimated 9,000 new units to the south bay alone, according to the SJ Mercury News. As inventory increases, rents may begin to level off somewhat in, which in turn will slow down the appreciation in income property values. If you have been considering liquidating your income property, 2015 may be a good time.