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Month: December 2020

All About the Economic Impact Payments

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The Treasury Department, together with the International Revenue Services (IRS), is working hand in hand to cushion vulnerable citizens from the economic impacts of Covid-19. They introduce the economic impact payment, which is automatically distributed to the eligible families and individuals. Here is everything you need to know about the payment and what the IRS expects of you.

Are You Eligible for an Aid Check?

The stimulus check will give out an aid payment of up to $1,200 per adult. Every child that qualifies will receive up to $500. This means that a family of four could get a payment of up to $3,400. The conditions are subject to the stipulations that your income must fall below a specific threshold for you to benefit from the full stimulus payment.

The first condition states that individual tax filers with a gross income of up to $75,000 qualify for the full stimulus packages. The same applies to married couples with a joint income of $150,000 and full file joint tax returns.

Filers with annual gross income above this threshold see their stimulus reduced by $5 for every $100 above the $75,000 and &150,000, respectively.

Individuals filing annual tax returns above $99,000 are not eligible. The same applies to couples filing returns for incomes above $198,000.

If you are an eligible taxpayer who already filed your tax returns for the years 2019 and 2018, you will automatically get the economic impact payment of as much as $1,200. Married couples with the same eligibility get $2,400 and up to $500 for every child that qualifies.  

How You Will Get the Money

Most eligible persons will not have to do anything or provide their credentials to get the money. This is because the IRS already has every individual’s direct deposit information. The IRS will use the tax information on their database to remit the economic impact payment to all eligible automatically.

IRS will use 2019 tax information for those who have filed their returns for the particular year. You do not need to worry if you have not because they will still use your 2018 tax return information to calculate payment. You will have the money in the same bank account you indicated when filing your returns.

What Should I Do If the IRS Does Nnot Have My Direct Deposit Information?

The treasury plans to come up with a web-based portal. This platform will enable taxpayers to provide their respective bank account and other relevant information for the economic stimulus payments. The primary aim for this is to help people get payments immediately and do away with the delays in check in the emails.

What Happens If You Did Not File Tax Returns for Both 2018 and 2019?

You can still get the economic impact payment if you have a tax filing obligation but failed to file your returns for 2019 and 2018. However, it would help if you did it first. The IRS is encouraging everyone to file their returns for these years as soon as possible.

Where Can You Get the Latest Information About Economic Impact Payment?

The IRS has an updated coronavirus page where they post all the latest information and instructions whenever they become available. We recommend that you visit this site if you are not sure of what to do. You can do the same if you expect the payment, but you are yet to submit some crucial information.

Get More Info From the Leaders in the San Diego Property Management Industry 

At Lofty Property Management, we love helping customers across San Diego with their tax concerns and property management needs. Feel free to get in touch with us for all your questions, and our dedicated team will give you the answers you seek. Contact us today! 

Insurance Policies That Every Landlord Should Have

Posted on by admin_lofty

Being a landlord makes you liable for most of the things that happen in your investment. This includes damages to the premises and, to some extent, your tenets’ private property. Some of these damages and accidents may require large sums in replacement costs and court battles. 

The best news is that you can pass most of these liabilities to an insurance company. You only need to sign the policy and pay the due premiums promptly. They will have your back whenever such misfortunes arise. Below are some of the insurance policies that you need to discuss with your providers. 

Property Protection 

Also known as the dwelling coverage, the property protections provide insurance protection for damages arising from fire, storm, strong winds, hail, ice, and much more. However, it does not cover losses that result from floods, so you have to apply for a flood protection policy. 

The cover only protects you from specific types of damages. So, if you live in areas prone to earthquakes, hurricanes, or tornadoes, we advise that you contact your provider for acts of nature protection. 

Flood Protection

Flood protection insurance policies fall under the federal government’s National Flood Insurance Program (NFIP). Such covers are a requirement alongside the Landlord’s insurance covers.

The policy may include coverage of replacement costs, building, and consent. 

Landlord’s Liability Protection

Landlords’ liability protection policies cover legal fees and medicals expenses in case of injuries within the property.  For example, a tenant or guest could sue for damages if they get injured by a broken tile or a tripping electric wire while they live on your premises. Some tenants could also sue for damaged property caused by faults and accidents in the property. 

Paying for these damages could be costly. So, it would be best to cover yourself with a liability protection policy to avoid brushing shoulders with our tenant and their lawyers. 

Loss of Rent Protection Policies

You could file for claims with this cover if your property becomes inhabitable due to fire and other accidents. When such disasters occur, your tenants will move out for some time to allow for repair. You do not receive rent during this time, but you need to pay for the mortgage and other expenses. So this is why you need a loss of rent policy cover. 

Before applying for this insurance policy, it is always best to check on the company’s maximum rent payout loss. It will allow you to determine whether they will cover your mortgage costs or not. 

Some policies also pay for tenant’s alternative accommodation during the repairs. However, they have imposed limits on the maximum claim.

Personal Property Coverage

This insurance policy will take care of the property you leave on the premises for day to day maintenance purposes. Some of the items you can cover include appliances like the lawnmowers. It is important to note that this policy only covers the Landlord’s property. Therefore, any tenants that wish to protect their items must apply for separate insurance covers. 

As a landlord, you can always insist that your tenants apply for renter’s insurance. You can include this in the lease agreement to prevent any future disputes with the tenants.  

Learn More About Insurance Policies From the Best in the Property Management Business 

If you are a landlord in San Diego, don’t hesitate to contact Lofty Property Management and enjoy expertise-based services and advice that will help you make it in the industry. We’re at your beck and call for all your property management needs. Reach out to us today. 

How to Become a Profitable Landlord

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Renting out properties is a worthy investment, but only if you do it right. The business goes beyond leasing and collecting rents at the end of the stipulated periods. The practices you hold from your very first move will determine whether you make profits or break even. Here are some of the tips from the leading property management pros in San Diego on how you can become a successful landlord. 

Know Your Tenants 

Before you let anyone rent a room or a property under your name, it is best to screen them properly.  It is suitable for security reasons and could save you a great deal in costly forceful eviction procedures. It also lets you know the potential tenant’s financial status and rental history. With that, you can determine if they are suitable to have space in your investment or not. 

It is understandable to get tempted with new tenants, mostly when the property has not been occupied for long. The screening process might be tedious and demanding, but it remains a necessary procedure if you want to be a successful landlord. 

Make Use of the Tax Breaks and Other Advantages 

The tax rates are directly proportional to the landlord’s profit rates. High taxes reduce the profits but waivers or decrease in the tax rates increases the profits on renting a property. Also, paying your tax dues correctly and filing your tax returns in time will save you time and deliver you from unnecessary penalties. 

To be a successful landlord, you must have the various tax laws at your figure tips. The best way to do this is to get professional advice about what to deduct and what to retain. It would be best to hire an accountant to manage your financial reporting and save you from committing costly mistakes.

Vigilance and Organization is Key 

If you want to be a successful landlord, you must pay attention to detail. It would help if you stayed vigilant and did even the little things right, like driving to your rental property at least once every week to have a quick check.  Doing this helps you follow up on the stipulations of the lease agreement. 

Another trait that you must hold on to is organization. It begins with keeping accurate data on transactions involving the property. You will need to invest in filing cabinets for hard copy documents. For soft copies, we advise that you get a computer with enough space. 

Understand Your Numbers 

Knowing your numbers means understanding your financial stream. If you want to be a successful landlord, you must gather enough information. You must also analyze the relevant data and use formulas to plug the numbers.

Being successful in this field does not allow room for optimism when dealing with numbers. You must follow the correct procedure. Also, avoid making unrealistic assumptions with your calculations. 

When doing your calculations, you must factor in the following costs and expenses, 

  • Property taxes
  • City and local authority taxes
  • Insurance covers
  • HOA dues
  • Repair and maintenance costs
  • Vacancy rates (approximately 8 to 10 percent of the property rent)

Make It in the Industry With the Help From the Leading Property Management Pros in San Diego

Lofty Property Management is at your beck and call if you are interested in learning more about being a successful landlord and make your investment worthwhile. Our property management services are designed to help you streamline operations, from tenant screening to dealing with evictions. Get in touch with us at any time! 

What Are the Pros and Cons of Airbnb Hosting?

Posted on by admin_lofty

Hosting short-term rentals and Airbnb in particular seems like a lucrative opportunity to make money without having to make an outrageous investment into the venture. Whether as an attractive side hustle or the main source of income, it can be. And there are even ways to organize things and streamline the Airbnb process so they require minimum engagement on your part, as long as you are compliant with the San Diego Municipal Code requirements and other current or future regulations concerning short-term rentals in the area. 

But there are pros and cons to consider, depending on your situation, way of life and expectations. What are they? La Jolla property management companies share knowledgeable, experience-backed insight.

What are the pros of Airbnb hosting?

Running a modern Airbnb near La Jolla Cove can be much more attractive from the traditional landlord approach as it is more dynamic and flexible, which is what hosts love best about Airbnb and what usually makes them turn to Airbnb in the first place. 

Here at the top three arguments in favor of joining Airbnb:

1. Better flexibility

Running an Airbnb is convenient if you do not want to be a slave to your property and have a long-term commitment and obligation to a single tenant. Flexibility is the number one advantage of short-term vs. long-term rentals. 

You can simply block off dates when you want your home to be off-limits to potential guests, such as if you need to have a home improvement project done, need to leave town and have no one to be in charge while you’re away or want to ensure the place is available for your out-of-town friends and family.

2. You will stay in charge and in control

Being an Airbnb host means you are still in charge of your home’s upkeep and maintenance and things are unlikely to get out of hand. On the other hand, long-term landlords are always at risk that the tenants may cause lasting damage to their property and that repairing the damage, if at all possible, will cost a fortune and take ages.

You are also in control of how and when you are getting paid and you will never have to stress over late rental fees and evictions.

3. A possibly steadier source of income

Depending on the demand and  Airbnb coverage in your area, Airbnb can be considerably more profitable than traditional rentals. One of the reasons for this is that more and more people turn to Airbnbs as opposed to overpriced hotels.

What are the cons of Airbnb hosting?

When it comes to Airbnb hosting, what is the dark side of the moon?

1. Possible uncertainty

There is no guarantee that your Airbnb will bring you a steady and dependable source of income, especially not throughout the year, which can be stressful, especially if you are a beginner Airbnb host with high expectations. If you prefer to play it safe, traditional rentals may be your game. As a landlord with a responsible long-term tenant, you will have rental income that you know you can count on month in, month out. This will allow you to plan and predict your cash flow and budget.

2. Less social and personal freedom

If you want to earn and keep the Airbnb preferred host status, you need to be responsive and respond to all inquiries within 24 hours at most, which means less personal and social freedom and fewer opportunities to travel and entertain. Expect to be contacted by prospective guests, guests scheduled to arrive and your current guests who may have questions, issues or requests they need you to address. Keeping up with multiple lines of communication on a daily basis can be demanding and overwhelming. 

Organizing and executing the cleaning routine is a challenge in its own right, whether you are doing it by yourself or have a cleaner doing it for you. As a result, the concept of alone time, privacy and your social life will become changed forever, unless you have a dependable co-host or property manager to take over and handle these things on your behalf.

In certain aspects, being an Airbnb requires a more hands-on approach than the role of a traditional landlord does.

3. Instant payback not likely

With the exception of the major appliances, you can rent your place with or without furniture. AIrbnbs, on the other hand, come with a set of criteria you need to meet. Your home needs to be fully furnished, and not just in terms of furniture. You will need to stock up on towels, sheets and toiletries for the bathroom and kitchen dishes, utensils and supplies.

Because of the fierce competition in the world of Airbnb, you need to make sure the finished product looks attractive. That does not necessarily mean you will have to spend a fortune upfront, but it does mean it will take time, energy, patience and attention to detail to get Airbnb-standard results.

Can you pay someone to manage your Airbnb?

While your investment property can help you generate stable monthly income, it takes time and effort to get there. A decade ago, renting out a place would have been much more simple and straightforward, but now that you have an Airbnb, there are certain rules you need to follow and it takes time to learn. 

Becoming an Airbnb hosts comes with perks and responsibilities, so so whether this is right for you really depends on the current situation you are in. 

So how do you make money off of your Airbnb without draining your other valuable resources, time and energy? The answer is Airbnb property management which can make Airbnb a fantastic fit with your lifestyle.

We set the standard for La Jolla property management companies

Whether you decide to enter the world-famous and globally present Airbnb community or stick to the basics as a landlord, you could certainly use a helping hand, especially if rentals are your additional source of income and you are strapped for time. At Lofty Property Management, we offer a comprehensive set of property management services. Reach out to us today and find out how we can help!

What Are the Legal Considerations for Short-Term Rentals?

Posted on by admin_lofty

Navigating the world of property management in La Jolla, San Diego, CA can be a challenging feat, especially in terms of new amendments to associated regulations which are already difficult to keep up with. The debate over sharp new restrictions on short-term vacation rentals in La Jolla and other areas across San Diego is still ongoing. 

Those negatively affected by the potential new regulations have lodged legal protests on multiple occasions, while supporters continue to advocate for a step in this direction. 

What actions are being considered in order to legalize home sharing and Airbnb and Airbnb-style rentals according to the decision reaffirmed in the recent second reading of the July 2018 ordinance? So who will eventually call the shots and what do these potential changes mean for those in the short-term rental business?

What do the new regulations stipulate?

According to supporters of the new regulations, short-term rentals are wreaking havoc on San Diego neighborhoods. Furthermore, renting a house in a single-family zone for a period of less than 30 days is not permitted by the current San Diego Municipal Code. 

By majority vote, the Council has reached the following decisions:

  • Short-term stays will be limited to a person’s primary residence only. The only exception are additional units on the same property for which a second vacation rental license can be obtained.
  • Hosts will be able to rent out the primary residence in their absence.
  • The maximum rental period is up to 6 months a year.
  • Hosts must apply for special permits and pay annual fees in a timely manner.
  • The annual fee shall be $949. 
  • A three-night minimum stay duration will apply in the more saturated areas of San Diego such as downtown and coastal areas.

What are the key issues with the new regulations?

Slashing the number of Airbnb and Airbnb-style rentals which would reduce their numbers by roughly 60% according to some estimates on account of the primary-residence-only requirement would devastate the business economy in the coastal and downtown areas of San Diego.

The matter is further complicated by the following issues: 

  • The City Council and the California Coastal Commission have to chime in before any such regulations can be enacted. The City Council has voted in favor of the regulations, but the California Coastal Commission generally favors vacation rentals so the regulations are unlikely to fly.
  • A written description of the regulations could be interpreted as a violation of the Brown Act as it erroneously exempts Mission Beach community from the new set or rules.
  • Adopting these regulations would mean that new code enforcement officers would need to be hired, which in turn would lead to a rise in license fee costs. 
  • A compromise plan was initially proposed by San Diego Mayor Kevin Faulconer, but it was rejected by the Council. The plan envisioned that up to 2 short-term rental permits be available to the residents of San Diego and a single permit be available to non-residents. The only exception to this rule would be that San Diegans who have two units within the same property, namely, the primary residence and an additional unit, could apply and be issued a licence for the second vacation rental.
  • There is a risk that imposing the new regulations could lead to a rise in property listings on the black market.

What is compliance in real estate?

Real estate compliance encompasses the sets of regulations that govern properties, including short-term rentals. A property manager can help you keep up with applicable regulations and stay compliant. A responsible and responsive property manager will be at your service to address your concerns and enable you to respond to changing regulations in a prompt and timely manner.

Premium standard of property management in La Jolla

We understand that being on the lookout for the latest changes to applicable laws and regulations can be daunting, tedious, time-consuming and even frustrating. The pressure continues to rise and the future is uncertain. But that is where we come in to share some of the burden and make things easier for you. 

At Lofty Property Management, we offer our clients running Airbnbs or similar short-term rentals the opportunity to stay in full control of their property while streamlining the whole process. You get a steady stream of revenue without having to worry about all the pesky paperwork, non-background checked tenants, vendors and contractors and nasty evictions. Let us take over the management of your property and give you back your peace of mind. Call now!

What Is the Moratorium on Evictions in San Diego

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What Is the Moratorium on Evictions in San Diego

Covid-19 caused many financial difficulties leading to business closures and rapid job losses across the United States. To help tenants affected by these losses, both local and national governments moved to cushion vulnerable citizens.  Among the strategies put in place is a moratorium on evictions law, seeking to protect tenants from forceful evictions. Below is an illustration of how it works.

Financial difficulties covered on the moratorium on evictions law

While the whole system looks to cushion tenants with financial difficulties, it considers some factors. They may arise due to the pandemic or government effect to curtail the virus-like public health orders. 

The following highlights the criteria to qualify for the moratorium on evictions:

  • A significant drop in household income for residential tenants
  • Significant decrease in commercial income due to business closing or drop in sale for commercial tenants
  • Loss of job or much reduction in working hours
  • Significant medical expenses

Conditions that san diego tenants Have to meet

The temporary ban on eviction means that landlords cannot take action to evict occupants for rent arrears. However, there are conditions that the tenant must meet to be safe. They include:

  • The tenant must notify their respective landlords of their inability to pay rent on time. The notification must be in writing either by, mail, email or text communication.
  • They must provide the written notice before on or before the rent deadline day.
  • They must provide verification or evidence that they cannot meet their rent obligation due to the Coronavirus’s economic effects within one week of giving the above notice.

They can either provide a letter from the employer confirming a substantial pay cut or loss of job, Pay slip records documenting a reduction in income, or a bank statement showing the drop in revenue caused by the Covid-19 pandemic.

If the tenant does not provide the above documents, the landlord is free to seek enforcement action. They can either settle the dispute with the state or federal jurisdictions.  If the tenant vacates the premises when the moratorium on eviction is in effect, they are obligated to pay all the rent owed. However, the two can handle this differently if they had a prior agreement.

The City of San Diego ordinance protects vulnerable residents for six months from the date it becomes effective. The reprieve can, however, be cut short with Governor Newsom’s withdrawal through executive order.

The CDC also imposed a moratorium on evictions orders seeking to protect vulnerable tenants across the nation. Unless this rule is extended, altered, or terminated, it prevents landlords from evicting their tenants due to non-rent payment up to December 31, 2020. 

However, the landlord may evict the respective tenant due to factors unrelated to rent payments. Such factors must be in accordance with the law or stipulated on their lease and rental agreement.

The moratorium orders cover every type of rental housing, including mobile homes and related lands. It, however, excludes hotel rooms, motels, and guest houses.

Find out all about the moratorium on evictions with help from Lofty Property Management

Lofty Property Management is here to help you learn all about the minutiae of the moratorium on evictions and help you manage your property in the best possible way. We provide a comprehensive property management service that includes everything from tenant screening to handling the eviction process. We are here to help you out. Contact us today!