Landlord Insurance vs Homeowners Insurance: Which One is Right for You?

Think homeowner’s insurance has your back if you rent out a property? Hmm, not so much.

You’re stepping into a whole new ball game with a whole new set of risks.

Let’s explore where homeowners insurance ends and where landlord insurance starts.

What is Landlord Insurance?

Landlord insurance is designed specifically for, yup, you guessed it, property owners who rent out tenant-occupied properties. No huge surprise there. This type of insurance covers risks like property damage, liability claims, and loss of rental income.

The thing is, it’s not just a one-size-fits-all type deal. Uh-uh. Landlord insurance comes in different flavors to suit your needs and risk tolerance:

• DP-1 (Dwelling Fire Form 1) is your no-frills option, covering the very basics like fire, lightning, and smoke damage. It’s the economy class of landlord insurance—gets the job done, but don’t expect any fancy extras.
• DP-2 (Dwelling Fire Form 2) is a step up, offering more extensive coverage for things like water damage, falling objects, and even freezing pipes. It’s the business class of landlord insurance—a bit more comfy and with a few more perks.
• DP-3 (Dwelling Fire Form 3) covers pretty much everything from protecting other structures on the property, like sheds, rental income loss, and liability coverage against legal claims. It’s the first-class of landlord insurance, where you can stretch out, relax, and enjoy the experience knowing your investment is completely protected.

Learn more: what is a self-tour?

What is Homeowner’s Insurance?

Homeowner’s insurance is designed to protect owner-occupied properties against worst-case scenarios. It’s a safety net against those unexpected “oops” moments that life throws your way, like a rogue storm that dumps a tree through your ceiling.

FYI: Unless added as optional extras, standard policies often won’t cover certain events (known as exclusions), such as floods or earthquakes. If you’d like to see what your policy covers, your Product Disclosure Statement (PDS) is your best friend. It’ll provide all the juicy details on what’s covered and what’s not.

Key Differences Between Homeowner’s Insurance and Landlord Insurance

We’ve covered the basics. Now, let’s take a look at the key differences between homeowner and landlord insurance so that you, the policyholder, won’t get left in the lurch.

Length of Agreement

You don’t lease your home to yourself, right? We’d hope not. Instead, you pay homeowner’s insurance once a year and get that sweet peace of mind knowing your home is protected.

Landlord insurance is more flexible. It often matches the length of a lease agreement. So, whether you’ve got a short-term tenant or a long-term lease, you can find coverage that protects your investment for the entirety of a renter’s tenancy.

Occupancy Type

Homeowner’s insurance is for those who actually live in the property they’re insuring. It’s designed for your primary residence—where you can truly be yourself, blast your favorite tunes, and recharge.

Landlord insurance, on the other hand, is all business. It’s specifically for those properties where tenants are residing, whether it’s a cozy studio apartment or a sprawling family home.

Liability Coverage

Homeowner’s insurance and landlord insurance are pretty similar when it comes to personal liability coverage. Both either have liability insurance baked into the policy or offer it as an extra. It’s designed to protect you from those unexpected moments when someone gets injured on your property.

Specifically, liability coverage helps cover those out-of-pocket legal fees and medical expenses, giving you peace of mind and financial protection.

Contents Coverage

Some, not all, homeowner’s insurance covers your personal belongings—furniture, electronics, clothes, that weird gnome statue you inherited from your aunt… you name it. (FYI: Some policies only offer personal property coverage as an extra).

Landlord insurance is a bit different. It’s less about protecting a tenant’s personal property and more about safeguarding the property itself. While it typically doesn’t cover your tenant’s belongings, it can (depending on the policy) offer protection for those essential items you provide, like appliances.

Structural Coverage

Fire, windstorms, vandalism—you name it, homeowner and landlord insurance covers damage to the physical structure of your home from unexpected disasters. The protection isn’t always limited to the primary structure, though. Some policies will even cover other structures located on the property, like a detached garage or the charming gazebo in the backyard.

Loss of Rent vs Loss of Use Coverage

Homeowner’s insurance offers “loss of use” coverage, which helps cover additional living expenses if you need to relocate while your home is being repaired temporarily.

Landlord insurance includes “loss of rent” coverage, which reimburses you for lost rental income if the property becomes uninhabitable due to a covered peril.

Medical Payments

Both homeowner and landlord insurance typically include medical payment coverage. This protects you against medical expenses if someone gets injured on your property, whether that be a guest at your own home or a tenant (or their visitor) at your rental property.

Learn more: how to avoid rental scams.

Cost of Landlord Insurance vs Homeowners

How do landlord insurance and homeowners insurance stack up in the cost department?

Well, landlord insurance is typically a bit pricier than homeowners insurance coverage. Why? Simple, really: when renting out a property, you invite strangers to live in your prized possession. There’s naturally a higher risk involved, and that translates to higher premiums.

A bummer, no doubt. But there is some wiggle room that’ll help you find a policy that fits your budget.

Here are a few things that can influence insurance premiums:

• Location plays a big role in insurance costs. If your property is in a high-risk area (think hurricane zones or areas prone to wildfires), you can expect to pay more.
• The property type also plays a role. So, in most cases, a cozy single-family home will likely cost less to insure than a massive multi-unit building.
• The higher your coverage limits and the lower your deductible, the more you’ll pay in premiums. It’s a balancing act between protection and affordability.
• Want to add some bells and whistles to your policy, like earthquake coverage or extra liability protection? Additional coverage and added extras will bump up your premiums.

How can you score the best deal on your insurance? Shop around, compare insurance quotes, and don’t be afraid to ask your insurance company about discounts or ways to lower your costs. A little bit of research can go a long way in saving you some serious cash.

Do You Need Landlord Insurance or Home Insurance?

Here’s the simple truth:

• Living in your property? Homeowner’s insurance is your best friend. It’s designed to protect your primary residence and your belongings from those unexpected life events.
• Renting out your property? Landlord insurance is your go-to. It’s specifically designed to protect you from the unique risks that come with being a landlord.

Things aren’t always so clear-cut, though. Here are a few scenarios to help you decide:

• “I’m renting out my place for a few months while I travel overseas.” Landlord insurance is a must-have, even for short-term rentals. It’ll protect your property while you’re away and ensure you’re covered if any tenant-related issues arise.
• “I’m living in my home, but I rent out a room to a friend.” This situation can be a bit tricky. You might need both homeowner and landlord insurance to provide adequate coverage.
• “I’m thinking about turning my basement into a separate apartment and renting it out.” Landlord insurance will protect that rental unit and ensure you’re covered for any tenant-related issues.

Still unsure? Reach out to a trusted insurance agent or insurance provider. They’ll help you assess your needs and find the perfect policy to protect your investment property.

Protect Your Rental Property and Investment With Ziprent

At Ziprent, we understand the importance of protecting your investment.

That’s why we’ve designed our property management services to simplify the landlord experience, taking care of everything from finding tenants to handling maintenance so you can maximize your returns and enjoy the benefits of stress-free ownership.

Let’s partner up! We’ll handle the details while you enjoy the rewards.

👉 Landlords, visit our property management services page to get started.

👉 Tenants, find your new home through our available listings.

FAQs

Do I Need Both Landlord and Homeowner Insurance?

It depends! If you’re living in your home and renting out a portion of it, like a basement apartment or a room, you might need both types of coverage. The right landlord insurance policy protects the rented portion, while homeowner’s insurance covers your personal space.

What Does Landlord Insurance Cover?

Landlord insurance covers things like damage to the property (from fire, storms, vandalism, etc.), liability if someone gets injured, and even lost rental income if the property becomes uninhabitable.

What Does Homeowner’s Insurance Cover?

The best homeowner’s insurance policies cover damage to your primary residence, your personal belongings, liability if someone gets injured on your property, and additional living expenses if you need to temporarily relocate due to a covered event.

Can Homeowners Insurance Be Used for Rental Properties?

Nope! Homeowner’s insurance is specifically designed for owner-occupied homes, not rental properties. If you’re renting out your property, you’ll need landlord insurance to protect yourself from the unique risks that come with being a landlord.

For rentals, knowing where “normal” ends and “damage” begins isn’t always easy to define.

A good rule of thumb: Normal wear and tear is the gradual deterioration of a rental property that happens naturally over the term of a tenancy—those minor imperfections that come with everyday use.

But that’s just scratching the surface. Let’s get you caught up.

What is Ordinary Wear and Tear?

Ordinary wear and tear isn’t about neglect or abuse. It describes the natural aging process that happens to every rental property. The inevitable result of everyday use—tenants moving in and out and just, well, living.

And it’s not just about the walls and ceilings. Think about those kitchen appliances, the bathroom fixtures, and even the flooring bearing the brunt of foot traffic. Every single element in a rental property experiences some form of deterioration. It’s unavoidable.

Examples of Normal Wear and Tear

Here’s what the Department of Housing and Urban Development (HUD) considers normal wear and tear:

• Walls: Fading, peeling, or cracked paint; slightly torn or faded wallpaper; small chips in the plaster; nail holes from hanging pictures; loose door handles; pinholes; minor cracks from the house settling; even doors sticking from humidity—to all of these, the HUD gives the green light.
• Windows: Cracked window panes (from settling, not tenant roughhousing) are considered normal wear and tear.
• Floors: Floors needing a fresh coat of varnish, worn carpets, scuffed wood floors, and loose grouting are par for the course.
• Bathrooms: Don’t sweat a slightly rusty shower rod, worn or scratched enamel in that vintage tub, sink, toilet, or loose bathroom tiles. Even partially clogged sinks from aging pipes are considered normal.
• Other: Dirty or faded lampshades or window shades are also considered normal wear and tear.

What is Considered Property Damage?

Damage goes beyond everyday scuffs and bumps. It’s caused by tenant negligence, carelessness, or misuse. If it’s broken, damaged, or missing because of something the tenant did (or neglected to do), it’s likely considered damage.

If damage occurs, landlords have the right to charge tenants for repairs or replacements. This can put a serious dent in a tenant’s security deposit, and if things get really messy, it could even lead to legal action.

Damage can be accidental or intentional.

Accidental damage? Think your pristine white carpet transformed into a Jackson Pollock masterpiece by a rogue glass of red wine. Intentional damage? They’re deliberate acts of destruction, like punching holes in walls, graffiti “art,” or unauthorized renovations.

A rental agreement worth its salt outlines tenant responsibilities regarding property care, clearly distinguishing between intentional and accidental damage. That way, if something were to go wrong, landlords have something official to lean on legally.

Examples of Damage

Let’s turn back to the HUD. Here’s what they consider property damage:

• Walls: Gaping holes (we’re talking beyond those tiny nail holes), crayon masterpieces, seriously damaged wallpaper, or “DIY projects” that weren’t pre-approved by you.
• Floors: Deep scratches or gouges in hardwood floors, burns from that forgotten curling iron, or missing tiles that seem to have vanished into thin air.
• Windows and Doors: Broken windows (unless it was due to a faulty foundation), doors ripped off their hinges, or locks that have seen better days.
• Bathrooms: Missing or cracked tiles, chipped bathtubs and sinks, or a toilet that’s seen some serious abuse (we won’t go into details here, but let’s just say plungers can only do so much).
• And the list goes on! Missing fixtures, holes in the ceiling, large scrapes or scratches to countertops, torn or missing lampshades—if it goes beyond normal wear and tear, it’s likely damage.

Learn more: pet fee for rentals.

Landlord and Tenant Rights and Responsibilities

Both landlords and tenants have certain rights and responsibilities when it comes to maintaining a rental property. Generally speaking, this is how that looks for landlords:

• Providing a habitable dwelling means ensuring the property is safe, clean, and meets basic living standards (think working plumbing, heating, and watertight).
• Landlords are responsible for making necessary repairs and fixing major issues, like a leaky roof or a broken furnace.
• No surprise visits or unauthorized entry. Landlords must respect tenants’ privacy and give reasonable notice before entering the property.

And for tenants? Again, speaking generally here, their responsibilities include:

• Keeping the property reasonably clean and disposing of trash properly.
• If that faucet starts leaking or the oven goes on strike, tenants need to report maintenance issues promptly to prevent further damage.
• Tenants are responsible for taking reasonable care of the property and avoiding damage beyond normal use.

This isn’t a universal thing, though. Landlord-tenant laws can vary from state to state and even from city to city.

Here’s an example of how these laws can differ: In California, for excessive damages that aren’t considered wear and tear, landlords have 21 days to provide a detailed list of deductions with receipts.

In Georgia, if you need to hold back some cash for damages, you’ve got 30 days to send the tenant an itemized list of deductions with supporting documentation, like receipts for repairs.

It’s only a small variation, but it can make all the difference if you’re sat before a judge.

Learn more: California repair and maintenance laws for tenants and landlords.

How to Document and Track Normal Wear and Tear

Imagine this: a tenant disputes a security deposit deduction, claiming they didn’t cause the damage. Without proper documentation, you’re stuck in a you-did-it, no-you-did-it situation. But with clear records and photos, you can easily prove your case and avoid a costly legal battle.

Here’s the game plan:

• Before your tenant moves in, walk through the property together and snap photos and videos. Use a checklist to note any existing damage or wear and tear.
• Conduct walk-through inspections and periodic checks, often quarterly or biannually, to identify maintenance needs and address potential issues early, keeping a running log of any repairs or issues that pop up.
• When your tenant moves out, it’s inspection time again. Compare the current condition to your move-in photos and notes. Any changes? Document them.

Learn more: understanding residential leases.

How to Protect Your Rental Property

It’s much easier (and cheaper!) to prevent damage than to fix it later.

Here’s how to be proactive and protect your investment:

Tenant Screening

Good tenant screening is the best way to avoid disaster tenants. Here’s the lowdown:

• Run background checks to see if there are any red flags in their past (like evictions or a history of trashing places).
• A credit check gives you a peek into their financial situation. Can they actually afford the rent?
• A quick chat with their previous landlord can give you valuable intel. Were they good tenants? Did they take care of the place?
• Confirming employment helps ensure they have a steady income to cover the rent.

No screening process is perfect, but a little effort upfront can save you a ton of hassle later on.

Security Deposit

Security deposit laws are there to protect you in case a tenant damages the property beyond normal wear and tear during the period of their lease agreement. But here’s the thing: how much you can charge for a security deposit isn’t just a random number you pull out of a hat. Local or state laws regulate it.

Local laws vary state-by-state and city-by-city. Generally, though, security deposit limits are usually tied to the monthly rent.

Many places cap it at one month’s rent, so for a $1,500 per month apartment, the maximum deposit would be $1,500. However, some states or cities allow you to collect two months’ rent, meaning you could ask for a $3,000 deposit in those areas.

So, what happens if the damage goes beyond a security deposit? Don’t worry, you’ve got options.

Documentation is key. Make sure you have solid proof of the property’s condition before the tenant moves in. If the repair costs, cleaning fees, or unpaid rent exceed the deposit, you can try talking to the tenant and see if they’ll cover the extra costs. If that doesn’t work, landlord insurance will help you recover some damages—check your policy.

The last resort? Unfortunately, you’ll be heading towards collection efforts & eventually small claims court. 

Learn more: common lease agreement clauses for landlords and tenants.

Routine Maintenance

The answer to minor wear and tear turning into financial nightmares? Routine maintenance.

Here’s the deal:

• Schedule routine inspections of your property, maybe every few months or so. This gives you a chance to catch small issues before they snowball into big problems.
• Pay close attention to the key systems in your rental:
  • Plumbing: Check for leaks, drips, and any signs of water damage.
  • HVAC: Make sure the heating and cooling systems are working properly. A quick filter change or a seasonal tune-up can work wonders.
  • Appliances: Test those appliances (oven, fridge, dishwasher, etc.) to ensure they’re in good working order.

Stay on top of maintenance. It’ll save you money and potential disputes or legal battles.

Property Management

Between finding tenants, dealing with maintenance requests, and chasing rent payments, being a landlord is practically a full-time job. But here’s the good news: you don’t have to do it all yourself.

Enter property management services (like those offered by us, Ziprent):

• We’ll take care of all the tenant screening, from background checks to credit reports, so you can be confident you’re getting responsible renters.
• We coordinate regular maintenance and handle those unexpected repair issues.
• We act as a neutral third party between you and your tenant, which can be especially helpful in tricky situations like figuring out what falls under “normal wear and tear” versus damage.
• We’ll make sure your rental unit is well-maintained and that your tenants are happy.

Better Rental Experience With Ziprent

Wear and tear is a part of doing business, but dealing with property damage and tenant disputes? That’s a whole other level of stress.

Want to protect your investment and enjoy the benefits of being a landlord without the constant headaches?

Our expert property management team is your solution. We handle everything from finding reliable tenants to managing rental maintenance.

👉 Head to our property management services page, and let’s get this show on the road.

The eviction process has drastically changed since the pandemic started, but assuming the state legislature doesn’t extend the eviction moratorium, the normal eviction laws will return when it expires at the end of September. Here is how to evict a tenant under the normal California laws. 

Make sure you have a valid legal reason

There are specific reasons a person can be evicted. It can’t be just because a landlord doesn’t like a tenant or some personal reason. Here are the reasons a tenant can be evicted.

• Tenant fails to pay rent
• Tenant violates one or more of the terms of the rental agreement
• The tenant damages the property and the damage lowers the property value
• Tenant becomes a nuisance to the neighbors
• Uses the property improperly. For example, they might set up a commercial space or sell/make drugs on the property. 

You can also evict a tenant on a month-to-month lease as long as you give them property notice. 

A landlord can’t use force to remove a tenant. They can’t lock the tenant out or cut off the water and electricity. The tenants can’t be threatened with unlawful methods or threaten deportation of immigrant tenants. Landlords must go through the proper legal channels. 

If unlawful attempts to evict are used, landlords can be held liable up to $2,000 per incident. It is also illegal to file an unlawful detainer action in retaliation because a tenant files a complaint about living conditions with an inspector or agency. 

Serve tenant with proper notice

If you’re evicting a tenant because of a failure to pay rent, you’re required to give a three day notice to allow them to resolve the situation. No penalties and utilities can be required to be paid at the end of the 3 day period. The only amount that can be required to resolve the situation is the rent that is due. The notice must include: 

• Name, address, and phone number of the person or financial institution to whom the rent must be paid and include hours and days that the person or financial institution is available to receive the rent
• Date you served the demand to the tenant
• Name(s) and address(es) of the tenant(s)
• Total amount of rent due
• A certificate of service that specifies how you provided the notice to the tenant
• The signature of the landlord

Tenants will often claim to have not received property notice, so it is important to make sure they are served properly. Tenants may also use the process to notify a landlord’s wrongdoing. If there is any illegal activity, the case could swing in favor of the tenant. 

In order to properly serve the tenant with a notification, you must hand it to them directly or leave it by their feet if they refuse to accept it. You can’t just post a notification on their door. If this isn’t possible, the notice can be given to a person who is over 18 in their property or at their place of work and the notification can also be mailed to the tenant. If none of these options are possible, then a notification can nail a copy to their door and mail it as well. Some counties may require approval to “nail and mail.” the notice. 

If you’re evicting a tenant on a month-to-month lease, you’re required to give them a 30 day notice to move out. If they have lived there for over a year, you’re required to give them 60 days. If it is government subsidized housing, 90 days is required. 

If tenants are committing illegal acts on the property, no 30 day notice is required. The landlord can ask them to vacate the property within three days. 

Wait for notice to expire

The time to wait is all dependent on the type of notification. If the tenant is on a month-to-month lease, you’re required to wait 30 days before filing a lawsuit. A failure to pay rent is required to wait until after the three day window granted to pay rent. 

File legal documents with local court

The proper legal documents must be filed with the county court where the rental property is located. These are the three forms that are required :

1. Unlawful Detainer Complaint
2. Civil Case Cover Sheet
3. Prejudgment Right Of Possession Form

The documents must be filled out with factually accurate information and the clerk will give a summons as well as a stamped copy of the unlawful detainer complaint. You can get a copy of the prejudgment right of possession form or print one yourself. This form is used for a person living on the property who doesn’t have their name on the lease. 

The process takes about 2 months from the date the paperwork is filed. 

Serve tenant with legal documents

These documents cannot be served by just hanging the document on their door. The summons need to be served in person. Do not continue to serve the documents as it will start the process all over again and just take longer. 

Wait for the tenant to respond to the lawsuit

Tenants have five days to file a response with the court challenging the lawsuit. If the tenant fails to file a response within five business days, you can ask for a default judgment by filing another document. The clerk will give you a date and you will have to show a judge you took all the proper steps and the tenant defaulted. 

Go through the court process

The court date is usually set between 10 and 20 days, depending on your local court. During this time landlords cannot collect rent, but tenants are responsible for rent payments. Tenants may file a number of legal objections which landlords in turn will need to respond to in writing. If the judge sides with the tenant, there is a “leave to amend” which is a second chance to prove there is a valid case.  If this is rejected, the case may be dismissed and the process will have to start all over again. 

If the tenant answers the complaint, a trial date will be set and both sides will have an opportunity to present evidence and make their case. 

If the court ruled in favor of the landlord, a writ of possession will be issued which gives the county sheriff the authority to physically remove and lock out the tenant if they don’t leave on their own within five days. The court may also require the tenant to pay any unpaid rent, attorney’s fees, or up to a 600 dollar penalty. A landlord cannot legally evict a tenant without the writ of possession. 

Depending on the location of the property, landlords may have to give the tenants an opportunity to pick up the property. Otherwise it can be sold or disposed of.  You may also be required to move their property to a storage unit for a set period of time.

The eviction will be on the tenants record for up to 10 years and show up on background checks when applying for a new home. 

Some situations can make evictions more complicated

• If a tenant works for the landlord while living on the property
• If the tenant lives in a residential hotel
• If the tenant rents a foreclosed unit
• If the tenant lives in a mobile home or RV park

The Protecting Tenants At Foreclosure Act gives tenants of foreclosed homes special protections that need to be considered. If the person is the original individual on the lease, it gives some restrictions from new owners to evict. If a bank takes ownership of the property it must give a month-to-month lease to the tenant and give them a 90 day notice to move out if the buyer is ready to move into the property as their primary residence. If the new owner is using it as an investment property or a vacation property, it cannot evict the tenant without any violations of the lease agreement

Be sure to seek professional legal counsel throughout this process.

To sell a home with a tenant, there are laws to consider to make the sales process go smoothly. Like at any other time during the lease, the tenants’ right to privacy is paramount. Once you decide to put a house on the market, make a plan for how and when to communicate with your tenant about the sales process. 

Selling a home with a tenant on a long term lease

The tenant has a right to live in the home for the remainder of the lease even after a property is sold. If they signed a one year lease and there are 10 months remaining on the lease, the new owner will take over the responsibility of the lease. After the lease expires, the new owner can then determine whether or not the tenant can still live there. If they do decide to no longer lease the unit to the tenant, the new owner is required to give the tenant a property 30 day notice. 

Selling a home with a tenant on a month to month lease

With a tenant on a month to month lease, the landlord is required to give the tenant a 6o day notice that the tenancy will end. If the tenant has lived in the property for less than a year, then a 30 day notice is required. Once the landlord has signed a contract to sell the home, they are required to give the tenant a 30 day notice if the buyer intends to occupy the home for at least 12 months after the tenancy ends. A notice must be given no later than 120 days after escrow is opened. 

How to show a property with a tenant

Like any other time a property needs to be entered, there is a requirement to give the tenant ample notice. In order to show the property, a tenant must be giving a notice 24 hours in advance. The property must also be shown during standard business hours. This is usually between 8 and 5 Monday through Friday. If needed, an arrangement can be worked out with the tenants to show the property on the weekends. The 24 hour notices do not need to be in writing as long as the tenant has received a written notice about the intent to sell 120 days prior to the oral notice. 

What happens if the tenant doesn’t leave in time?

The buyer may require that the tenants vacate the property in order to make the sale final. Make sure to give tenants a 30 and 60 notice about when they are required to leave in order to give them ample time to find a place and make plans to move. If there is any trouble when it comes to getting a tenant to vacate a property, you can offer to pay for temporary storage, a moving truck, or help with a security deposit on their new place. If none of this works, consult a lawyer about the legal process for evicting a tenant.

Regular maintenance for a rental unit can be a lot of work. It will also inevitably cost money for little repairs here and there. It is better to stay on top of any maintenance on a regular basis than to wait until problems can become much larger. Fixing a small leak immediately will be much cheaper than dealing with a burst pipe and flooded room. A great way to make sure tenants report any minor issue is to have an online portal that allows them to submit maintenance requests. 

So what kind of regular maintenance is recommended and how often?

Test smoke and carbon monoxide detector

Make sure you check with your local laws on how often they need to be inspected and updated as well as how many are required and that they are in the required locations. 

Keep door and window locks secure

Locking mechanisms can falter over time. Make sure the locks are functional not just because it can keep people out, but also a tenant may need to open a door or window in an emergency to get out. 

Maintain heating and cooling systems

This can be one of the more expensive systems to maintain. If you don’t maintain them properly though, they can cost a lot of money to fix down the road. Make sure you replace the filters regularly that way the systems work more efficiently and don’t break down from being overworked. 

Check for water leaks and water damage

As stated above, signs of water damage and leaks can mean much bigger problems down the road if they aren’t addressed immediately 

Clean the gutters

This can be part of the regular maintenance of the landscaping. While up there, you can also have the roof inspected. 

Prune trees and clear debris

The last thing you want is an old rotted tree branch to collapse onto the roof or for a storm to blow a heavy branch onto the main structure. 

Pest control

Don’t wait to address any issues around pest control. The last thing you want is a full blown infestation that requires you to tent and fumigate your property and put the tenants in hotel rooms for multiple days. 

Patch cracks in ceiling and walls

This can be done after a tenant moves out, but if a tenant has been living in the unit for a while, you can schedule a time to patch any cracks so they don’t get any worse. 

Flush the water heater

It is recommended that you flush the water heater twice a year. They can collect sediment at the bottom and the water can become dirty. 

Inspect the caulk and grout

Refresh any caulk or grout that is looking a little worn down. This can help prevent any long term damage and also make the place look nice. 

Check for activity that might violate lease

This could be anything from an unapproved pet, or a water bed, or even something criminal. Keep an eye out for any signs of these things during inspections. 

How often should you have a maintenance inspection?

You should inspect each unit thoroughly at least once a year. If tenants don’t renew their lease after a year and move out, it can be done while preparing the unit for new tenants. If you have long term tenants, you should still inspect the unit once a year. Be sure to schedule the inspection with your tenants and give them the legally required notice prior to going into the unit for the inspection.

The housing shortage in California doesn’t just have an impact on homeowners and potential homeowners. It has an impact on the number of potential rental units throughout the state. In order to address the shortage of rental units, the California state legislature passed AB 3182 and Governor Newsom signed it into law. 

What does AB 3182 do?

Approximately 25 percent of the homes in California belong to an HOA. Prior to the passage of AB 3182, any HOA could limit the number of units allowed for rental within the community. The goal of the legislation was to allow for a larger percentage of those units throughout the state to be put on the market for renters and landlords.

The law limits the ability of an HOA to restrict homeowners to lease their units. Now that the law is in effect, an HOA has to allow at least 25 percent of the units to be leased. This doesn’t mean 25 percent have to be rented out. It does require that it allow at least 25 percent giving more owners the option to become landlords. 

An HOA can also no longer ban the lease of an accessory dwelling unit or a junior accessory dwelling unit. If a landlord leases out a room, an ADU or a junior ADU but lives in the main property, it doesn’t count against the 25 percent of the units required to be allowed to be rent-able. Without any grandfather clause, this means that no HOA can block the new law by having different rules signed into contract prior to the passage of the law. 

AB 3182 exemption

There is an exemption for vacation rental/airbnb short term rentals. An HOA can restrict a landlord from leasing their unit out for fewer than 30 days. Another big change is that short term leases over 30 days are required to be allowed under the new law. This means that if there was a previous limit in the HOA for 90 day minimum for rentals, it is no longer allowed. This opens up the possibility for landlords to use their units for seasonal rentals while they are not being used or even short term corporate rentals. 

What if your HOA doesn’t comply with the law?

An HOA that doesn’t comply with the new law can be liable up to a 1,000 dollar fine per person in the HOA as well as be liable for potential damages which in this case could be lost revenue. If you have been considering renting out a unit in an HOA, now would be a good time to speak with the HOA and find out if your unit could be eligible to rent. If they aren’t allowing your unit to go up for rent but fewer than 25 percent are up for rent, the new law is in your favor. Speak with a lawyer and your HOA if there are any issues when it comes to putting your unit up for rent.

For owners renting units in HOA communities, professional property management services can help ensure compliance with AB 3182 while handling leasing and tenant management efficiently.

Leases can be complicated. There is a lot of language in a lease that, for most of the tenant world, could use some explaining. That’s where we come in. We want our tenants to be informed, educated and in the know. We don’t want you to have any unexpected surprises in your lease. To help, we’ve decided to put together this post to walk you through a residential lease.

1. Section 1: Landlord’s Smoke Detector, Carbon Monoxide Detector, and Water Heater Certification
2. Section 2: Residential Lease-Rental Agreement and Deposit Receipt

Section 1: Landlord’s Smoke Detector, Carbon Monoxide Detector, and Water Heater Certification

This section covers required safety devices and requirements by law.

I. Smoke Detectors

Per California Law, smoke detectors must be installed in the unit. This is to protect you, the tenant, in the event of a fire.

II: Carbon Monoxide Detectors

Another California Health & Safety Code requirement. Carbon monoxide detectors need to be installed in any property with an attached garage and/or any fossil-fuel burning devices. Gas can be deadly and these little safety devices have saved lives.

III: Water Heater

Because, yes, we have earthquakes here, the water heater must be strapped to avoid displacement due to earthquakes! This is a requirement for any home (rental or owned) in the state of California.

The above requirements will all be installed and operable before tenancy, and will meet the State Fire Marshal’s requirements as well as any local ordinances.

Section 2: Residential Lease-Rental Agreement and Deposit Receipt

This part of the lease goes over the agency relationship (relationship between landlord, tenant and listing agent), the terms of the lease, the deposit and other important legal implications to be aware of.

Agency Relationship Confirmation

An agency relationship is a fiduciary relationship where one person grants responsibilities and trust to an agent to carry out the transaction.

The listing agent is the individual or company who is listing the property on behalf of the owner. If you rent with us, Ziprent is the listing agent and in most cases, will also be the leasing agent for the tenant. Because we make tenant placement so simple and streamline, we often act as both the listing and the leasing agent.

The next part covers the deposit, when it was received and how much. Under that, there will be an itemized list of move-in costs, which could include the deposit, first month’s rent and last month’s rent. The amounts in this list will vary depending on the property, the deposit amount and whether they require last month’s rent to move in.

1.Term

The term defines the type and length of the lease and/or rental. A lease is a long-term lease with pre-defined start and end dates with a total amount in rent due over the course of the lease. A rental is a month-to-month, short-term scenario where the agreement can be terminated by giving the appropriate written notice.

Most tenants feel more comfortable singing a lease than a rental if they are planning on staying for an extended period of time. A lease protects you throughout the entire term, so you won’t have to worry about any termination before the end date.

2. Rent

This is a very important part of the lease. It states how much you owe each month, when it’s due, and any late fees/charges.

Not paying rent on time can result in some expensive consequences, so always make sure you know exactly how to pay rent and when it’s due. Our best practice? Pay rent early. This ensures the rent check is always there when it needs to be, thus avoiding any unnecessary problems.

If you are a tenant of a Ziprent property, we have an Autopay service within our platform. Just link your bank account and your rent will get deducted on time, everytime.

3. Multiple Occupancy

This article simply states that the people who sign the agreement, agree to it’s terms and their respective responsibilities.

4. Utilities

It’s important to understand what utilities you as the tenant are responsible for. Are you paying for energy, water, sewer and trash or are you just responsible for energy and your Internet? Remember to switch any utilities you are paying for into your name prior to move in!

5. Use

This article defines how many people are allowed to live at the house and covers some basic rules about guests, parking spots and additional vehicles. Remember, if the tenant do not abide by these rules, you could forfeit your deposit or risk greater consequences!

6. Animals

Basically, only bring approved animals on premises. If it is a dog-friendly lease, there will be a section stating what animal is allowed to live on the property. If not, do not try and sneak an animal into the home. Again, you might risk forfeiting your deposit.

7. Rules and Regulations

This article is specifically for multi-tenant properties such as condominiums communities. You must agree to the rules of the community NOT just the rules of this lease. If you are moving in to a common-interest community, make sure you read their rules as well to make sure you can abide by them throughout the terms of your lease.

8. Ordinances and Statutes

Simply put, you need to follow the rules and respect the law.

9. Assignment and Subletting

You are not allowed to rent the property to anyone else without the go ahead from the owner.

10. Maintenance, Repairs, or Alterations

Basically, the landlord states that everything in the unit is in properly maintained and working order. The tenant is responsible to inform the landlord of any damage or any necessary maintenance and/or repairs and must return the property in the condition it was received. It also states that the tenant cannot make any changes to the property without consent from the landlord.

11. Inventory

An itemized list of all personal property will be given to the tenant and it’s the tenant’s responsibility to keep that personal property in the condition it was received (with normal wear and tear, of course.)

12. Damages to the Premises

If the property is damaged and uninhabitable, both parties (landlord and tenant) can terminate the agreement via written notice within 15 days of the damage. IF the property is damaged due to the tenant’s negligence, then the owner has the right to terminate. Rent will be prorated for the month (from the time the damage occurred). If the agreement is not terminated and the owner can repair the property, rent will also be prorated until the property is fixed and in a liveable condition once again. Please note, if the damage is due to the tenant’s negligence, the security deposit could be forfeited.

13. Entry and Inspection

The owner/landlord has the right to enter the premises in the case of an emergency and/or to make necessary repairs. The landlord does have to give 24 hour notice and the visits must be during business hours.

14. Indemnification

This is an important article. The owner is not responsible for injury or damage to the tenant, their friends/guests or to any property during the term of the lease UNLESS it is due to the owner’s negligence. Basically, you can’t blame the owner if you hurt yourself while renting the place.

15. Physical Possession

IF the owner can’t give you the keys and let you move in on the date originally discussed, the agreement is not terminated. The tenant just doesn’t have to pay rent until the home is ready to be lived in.

16. Default

If you default on the agreement, for example failing to pay rent, the owner must provide written notice and in no less than three days after providing such notice, can terminate the agreement. The owner has the right to carry out the lease and expect all rent from you and can take legal action to do so, or choose to find a new renter. Best practice? Don’t default. It could cost you A LOT.

17. Security

After you have vacated the premises, you will receive the balance of your security deposit back within 21 days. A lot of times, the tenant receives a large portion of the deposit back, however, if there are unpaid rents or tenant damages, the security deposit will be used accordingly and you will just get back the balance after the repairs and/or unpaid rent.

18. Waiver

Basically, this agreement must be followed.

19. Notices

Any notice must be in writing and either delivered personally or mailed. As a general rule of thumb, we recommend always have any conversations in writing as this holds up more effectively than any oral notice or conversation.

20. Holding Over

This article discusses what happens at the end of the lease term. Typically, after the year, the tenancy becomes month-to-month, but the terms of the agreement still stand.

21. Time

Time is of the essence means that either party must comply with the terms of the agreement within the dates on the contract.

22. Attorney’s Fees

If you have to hire an attorney for any reason or dispute between you and the landlord, the prevailing (winning party) will be responsible for ‘reasonable’ attorney fees.

23. Subrogation

Basically, you and the owner/landlord waive the right to pay each other insurance moneys unless otherwise stated.

24. Fair Housing

By law, there can be zero discrimination when it comes to renting a property.

25. Smoking Restrictions

This article determines if you can smoke in and/or around the property.

26. Additional Terms and Conditions

This is where the owner can fill in any additional terms of the agreement.

27. Rent Control

If this box is checked, the property is subject to rent control.

28. Entire Agreement

This article states that this is an agreement between the two parties and that any modifications must be made in writing and signed by both. It also notes any additional documents that are part of this agreement and must be signed before the execution of said agreement.

No matter the situation, it’s always important to understand the lease agreement and it’s terms. In the case that issues arise, the agreement acts as the basis for all resolutions.

We hope that this guide helps you in better understanding the lease agreement and what it means for you as you move into your new home!

If you have any questions, please feel free to contact us! We are happy to walk through any part of the agreement to make sure all parties are comfortable!

Life happens, but what happens if a tenant wants to break an already in place lease before moving in? This is an unfortunate situation, but one that can be handled legally and professionally.

Circumstances change in life. Perhaps your new tenant has to move out of state for a job, or maybe they had an emergency that is preventing them from being able to move forward with the lease. Regardless of the reason, a lease is a law-binding contract and therefore must be dealt as such.

A tenant cannot just walk away from a lease, so it’s important for both parties to find a reasonable solution. Keep in mind, there are certain legal situations that allow a tenant to break a lease, but we won’t go into detail here about those specific situations. For the most part, under normal unforeseen circumstances, like a family emergency, new job, cold feet, etc. the tenant has no legal bounds to walk away from a lease without being responsible for the entire lease.

Luckily, this is where hiring Ziprent comes into play. We understand these situations, the law, and know exactly how to tackle it head on to make sure there are no significant financial losses for our owners and the property doesn’t just continue to sit there vacant.

Best Practice: Document Everything

This is a general rule of thumb for any business or professional dealings, but is incredibly critical. Have a file with all emails, lease documents, notices, termination letters, etc. If you have a phone call with the tenant, follow up in an email summarizing the conversation. It is important that you have record of any and all conversations surrounding the lease.

Once a lease is signed, both parties (tenant and landlord) have entered into a legally binding contract, where all parties must abide to the provisions set forth in that document. That means the tenant is still responsible for the entirety of the lease, even if they never occupied it before changing their mind.

Any solution must: * Be legal * Limit financial impact * Be professional * Be in writing

To get the process started, the tenant must speak with the landlord about their situation. Most of the time, if the tenant is flexible and amicable, the landlord will be willing to find a solution that works for both parties. The tenant should first write a letter with a 30-day notice stating they will be leaving the property. The tenant, per the lease, should then be told in writing again by the landlord, that they are still responsible for the rent through the term the of the lease. At this point, both parties should work to find a replacement tenant as part of the ‘Good Faith’ clause held by most states and in most real estate contracts. As soon as an acceptable tenant is found, and a new lease is signed, the previous tenant is no longer eligible for the remainder of the rent and can relieve themselves of any further financial burden.

During the period that the landlord and tenant are finding an acceptable new tenant, the tenant breaking the lease must continue to pay rent each month.

If the tenant has stopped paying rent, that is where the security deposit comes into play. Unfortunately, many security deposits only cover one month and/or a portion of the month, so you need to be prepared to take legal action IF you are not receiving what’s owed in the contract.

If the tenant does pay the rent and/or the either party is unable to find a suitable new tenant by move-in date, the landlord may reserve the right to hold the security deposit in full. However, how each situation is handled varies from circumstance to circumstance. A good property manager will always try to work with the tenant, while establishing a course of action to protect the landlord, but also help minimize the financial impact on both sides.

Please Note: Unlike a real estate sales transaction, there is no Right to Rescind within 3 days. This exists with other real estate contracts, but does not apply to residential leases.

When a tenant tries to break a lease, it can seem like a major bump in the road, but it doesn’t have to be. By keeping all parties aware of the process, the provisions in the lease and the possible solutions, Ziprent can easily move past these hiccups and find great new tenants for their properties.