What should you do as a property owner if the fence between your neighbor’s property is damaged? In 2014, the California Civil Code set guidelines for shared fences. If you decide to build a new fence without telling your neighbor, you cannot automatically expect them to pay for it. According to Code 654.1422, you must provide a written notification of the repair plans to the other involved party at least 30 days before any reconstruction takes place. This should include:
- An explanation of what needs to be done;
- A substantial justification of why it needs to happen;
- A detailed analysis of the neighbor’s expected responsibility, including measurements and costs as needed;
- The total anticipated cost of the replacement, with written documentation;
- The dollar amount that each party will pay; and
- The anticipated start date of the project (which should be at least 30 days from the date that the letter is delivered).
If the fence is down, a temporary solution may be necessary for those 30 days to maintain the safety of your property. However, when installing a permanent solution for the damaged fence, the Civil Code must be obeyed in order for the neighbor to help with payment.
Every year, PwC publishes a report of the latest developments in real estate around the world. Here is a summary of their latest findings about the market in the Bay Area in 2019:
- Focus groups in San Francisco, San Jose, and Oakland expressed concern about the lack of affordable housing, which could potentially limit future economic growth.
- In San Francisco, there is concern about whether enough housing is available in general.
- Some believe that San Francisco’s Proposition M, which limited development after 1986, enabled both a commercial and a housing crunch. Now, the city may decide to lower some of those restrictions.
- San Francisco is building new properties to meet the rapidly changing technology needs of tenants.
- The burdens of regulation, high construction costs, and rising NIMBY (Not In My Back Yard) sentiment are significant issues in San Francisco and Oakland real estate.
- The implementation of new construction processes and the rise of urbanized suburban developments may be solutions for San Francisco, San Jose, and Oakland.
- San Francisco and San Jose report that suburban locations are becoming more attractive to Bay Area tenants.
The full report is available here:
The Bay Area is home to over 700,000 students enrolled in college or graduate school, many of whom will need off-campus housing each year. Here are some of the pros and cons of renting to students:
- High Demand: There is a constant need for student housing every school year.
- Higher Rents: Due to the high demand for housing, students may be willing to pay more rent.
- Third Party Payment: Parents often pay their student’s rent.
- Word of Mouth Fills Vacancies: Students may seek out convenient rental spaces on their own.
- Satisfied With Less: Students are looking for temporary spaces to live while they attend school, and may be content with more modest rentals.
- Inexperience Renting Property: Students may be less careful with property and late on rental payments.
- Frequent Turnover: New student renters may need to be found each school year.
- Competition: Other rental properties may be competing for student tenants, so lower rents may be necessary as incentive.
- Breaching The Lease: Students may ignore the details of their lease agreement.
- Summer Vacancies: When students leave for the summer, it may be difficult to fill open properties.
To read more about this issue, check out https://www.thebalancesmb.com/pros-and-cons-of-renting-to-students-4156810
The most challenging and problematic aspect of the rent control discussion in several communities in the San Francisco Bay Area is its corollary known as “Just Cause Eviction.” A more appropriate name for this process is actually “Good Reason for Notice to Vacate.”
Deciding whether to finance your next investment property? Forbes says that often times, cash buyers get first pick at the properties. Learn why cash is king: