The decision to sell or rent a home involves considering various factors, and both options have their own set of pros and cons. Here's an overview of the advantages and disadvantages of selling versus renting a home:
Selling Your Home:
Pros:

1. Immediate Cash: Selling your home provides a lump sum of cash that can be used for other investments, purchases, or financial goals.
2. Simplified Finances: Without the ongoing responsibilities of a rental property, your financial situation may be simpler, with fewer ongoing expenses related to property management.

Cons:

1. Potential Capital Gains Tax: Depending on the profit from the sale, you may be subject to capital gains tax.
2. Loss of Potential Rental Income: If the local rental market is strong, you might miss out on potential rental income by selling.

Renting Your Home:
Pros:

1. Steady Rental Income: Renting provides a steady stream of income through monthly rent payments, offering financial stability.
2. Potential Property Appreciation: While renting, your property may appreciate in value, allowing you to benefit from potential capital gains upon selling in the future.
3. Tax Deductions: Rental property owners may qualify for tax deductions on expenses related to property management, maintenance, and mortgage interest.

Cons:

1. Responsibilities of Landlord: Being a landlord involves responsibilities such as property maintenance, addressing tenant issues, and adhering to landlord-tenant laws.
2. Market Risk: Rental income may be affected by fluctuations in the local rental market, and periods of vacancy can impact your cash flow.
3. Property Management Costs: Hiring a property manager or dealing with management tasks yourself may incur additional costs.

LANDLORD 1099 REQUIREMENTS
​Landlords are required to send out 1099s when paying out $600 or more to certain individuals and businesses. If you fail to meet the 1099 requirements you may face severe fines and penalties.
This is one reason to hire a professional property manager who handles this for you!

Landlords should require all non-employees such as contractors, businesses, vendors, professionals, etc to return to them a completed W9 to keep on file.
You can find a current W9 form available here: IRS | About Form W-9, Request for Taxpayer Identification Number and Certification
Landlords must meet the filing and mailing deadlines to avoid penalties. Deadlines change yearly but often are due to be filed by or before the end of January following the year payments were made.
You do not need to file a specific 1099 if
a) That business is a corporation,
b) An LLC is taxed as a C or S corporation, or
c) The total payment for the year is less than $600.
If at any time you are uncertain about your obligations and requirements, seek out a tax professional for assistance.

WHAT IS A 1099?
Independent contractors, vendors, and some small businesses need to receive 1099s showing the income received for the services they offer so they can complete their personal and business tax returns.
There are around 20 different types of 1099s but for landlords the ones you’ll need to use most often are:
1099 MISC form
You’ll need to send a 1099-MISC to document attorney fees and rent (such as office or commercial space) paid in total of $600 or more in the year. There are specific boxes on the 1099 MISC form for the type of payment (for example box 1 is to document total rent paid).
General 1099 Misc information can be found here: IRS | About Form 1099-MISC, Miscellaneous Income
Specific information regarding attorney fees, rents, vendors, etc can be found here: IRS | Instructions for Forms 1099-MISC and 1099-NEC
1099 NEC form
NEC stands for Non-Employee Compensation, which means you’ll be sending out a completed 1099-NEC form to persons or businesses that you paid at least $600 to in that year for services performed by non-employees such as vendors.
More information can be found here: IRS | About Form 1099-NEC, Nonemployee Compensation
WHO NEEDS TO RECEIVE A 1099First, understand what is meant by Payee on the 1099 form. As a landlord, the Payee is someone you’ve paid for services such as:

• Plumbing
• Painting
• Housecleaning
• Landscaping
• Locksmith
• Inspections
• Pest control
• Appliance repair
• Snow removal
• Electrical work
• Renovations
• Remodeling
• Attorney fees
• Bookkeeping

Secondly, check your records and look at who you’ve paid $600 or more (in total payments) during the calendar year.
Did you know that some businesses are exempt from receiving 1099s based on their business status and other criteria?  How do you know if a business, vendor, professional, or independent contractor is or isn’t exempt from receiving a 1099? Great question! The answer can be found by requesting each to provide you with a completed W9.

WHAT IS A W9
The W9 fillable form is something they (the vendor, independent contractor, professional, etc) complete. It allows them to check a box to indicate if they are, or are not, exempt for receiving a 1099.

• If exempt, you can retain the W9 in your records in the event of an audit as proof you were not required to send them a 1099.
• If they are not exempt, the W9 form provides you all the details you’ll need to complete and send the appropriate 1099.

It is important to ask every vendor, independent contractor, business, and professional to submit a W9 to you prior to you completing your 1099s. The W9 gives them the opportunity to provide you with important information for accuracy such as their official business name (or name under which they file taxes) and current address.
When you require W9s you can be confident you have accurate information, have something on file for audits, and streamline your 1099 process.
HOW DO YOU FILL OUT A 1099 TAX FORMSpecifically, you can use any of the three links to the IRS above to find information on how to fill out a 1099 tax form. But what gets tricky, as my relative found out, is the stand-alone 1099 form software needed to complete the forms — find out too late that the software isn’t intuitive and unfortunately non-refundable once opened.
If you find yourself in that situation, the best piece of advice is to have the IRS links above open, have those W9s handy, and a list of the people you’ve paid at least $600 to for that year (and the total amount paid to each). Then, go slowly and confirm those details.
Not only can those stand-alone 1099 software products be complicated, they can also be very expensive when you add up the cost of the specialized forms, envelopes, and the software itself. Because of the complexity, some choose to hire an accountant or bookkeeper to process your 1099s but again, that can become very costly.
But as I shared with my relative, there is good news! There is a simpler way to meet your 1099 requirements as a landlord. Whether you rent out rooms in your home, have one or a few rental properties, or a large portfolio, you can take advantage of the 1099 integration within most landlord software programs.
A good landlord software not only has very inexpensive integrated 1099 form services (mailing, IRS electronic submissions, 1099 State filing, etc) but you’ll also have records handy for your other tax needs such as rental income received, Schedule E expense list, depreciation reports, etc. Not only that, many programs allow you to provide an accountant or bookkeeper access to those reports or you can create and email them directly from the software to your tax preparer.
Even if you do your own tax preparation, having those reports handy will make that process much smoother — not to mention, you’ll have tenant screening, leasing, and communication tools at your fingertips to simplify tenant turnover. It’s not too late to invest in landlord software to help you for this upcoming tax season and for the many to come.

Information based on Rentec Direct Blog

ABOUT THE AUTHOR
Heather Peake
Heather, a writer in the rental and property management industry, applied her skills as an onsite property manager and landlord for many years before lending her talents to Rentec Direct. She now focuses on sharing her research and insider insights with landlords and property managers in the trenches. To learn more about Heather and find valuable tips visit www.rentecdirect.com

Renting out a single-family home in an affluent neighborhood such as Brentwood, Santa Monica, Westwood, Malibu, Beverly Hills, Pacific Palisades, and by the beach, comes with both advantages and specific considerations due to the upscale nature of the area. Here are some essential steps and considerations for renting out a property in an affluent neighborhood:

1. Property Presentation: Ensure your property is in top condition and well-presented. Consider staging the home to highlight its best features, invest in high-quality photography for listings, and maintain impeccable curb appeal to attract potential affluent renters.
2. Understand the Market: Research the local rental market in the affluent neighborhood to determine a competitive rental price for your property. Understand the amenities, services, and lifestyle offerings that attract tenants to the area.
3. Tailor Marketing Strategies: Craft a targeted marketing strategy that emphasizes the unique features, luxury amenities, and exclusive aspects of your property and the neighborhood. Use high-end platforms, real estate agents specializing in luxury rentals, and upscale marketing channels to reach affluent renters.
4. Highlight Upscale Features: Emphasize the luxurious aspects of your property, such as high-end appliances, custom finishes, smart home technology, private outdoor spaces, high-quality materials, and any unique selling points that appeal to affluent tenants.
5. Provide Exceptional Service: Offer superior customer service and amenities that cater to the affluent renter's lifestyle. Consider services such as regular maintenance, landscaping, housekeeping, and concierge services to enhance the tenant's experience.
6. Screen Tenants Thoroughly: Implement a comprehensive tenant screening process to ensure that you attract reliable and financially qualified tenants. Background checks, credit history reviews, and employment verification are crucial to selecting trustworthy tenants.
7. Maintain the Property to High Standards: Regularly maintain and upkeep the property to the highest standards. Promptly address any maintenance requests and invest in regular inspections to ensure the property remains in top condition.
8. Craft a Detailed Lease Agreement: Create a comprehensive lease agreement that clearly outlines the expectations, responsibilities, and obligations of both the landlord and tenant. Specify rules regarding property use, maintenance, and any additional services or amenities provided.
9. Professional Property Management: Consider hiring a professional property management company specializing in high-end rentals. They can oversee day-to-day operations, tenant relations, and maintenance, ensuring the property is well-managed at all times.
10. Insurance and Liability Coverage: Obtain appropriate insurance coverage tailored for high-value properties and rentals. Adequate insurance can protect against potential liabilities and property damages.

Renting out a single-family home in an affluent neighborhood offers the opportunity for lucrative returns but demands a higher level of attention to detail, service quality, and property management. Adhering to these considerations and providing an exceptional experience can attract and retain affluent tenants while maintaining the property's value and reputation within the upscale community.

Legal Alert from KTS Law
Under SB 329 and SB 222, all landlords in California will be required to accept Section 8 and VASH vouchers and other forms of rental assistance and to consider them as part of an applicant’s income. Both will go into effect on January 1, 2020.
SB 329redefines source of income as “lawful, verifiable income paid directly to a tenant or to a representative of a tenant, or paid to a housing owner or landlord on behalf of a tenant, including federal, state or local public assistance, and federal, state, or local housing subsidies, including, but not limited to, federal housing assistance vouchers issues under Section 8 of the United States Housing Act of 1937.”
SB 222 adds to the definition of source of income HUD Veterans Affairs Supportive Housing (VASH) vouchers and clarifies that a landlord is not considered a representative of a tenant unless the source of income is a VASH voucher. SB 222 also adds military and veteran status as new protected classes under the FEHA.
Many local jurisdictions, such as Alameda, Berkeley, Corte Madera, East Palo Alto, Fremont, Foster City, Hayward, Los Angeles (City and unincorporated areas), Marin County (unincorporated areas), Santa Clara County (unincorporated areas), City of San Diego, City of San Francisco, City of San Jose, Santa Monica, and Woodland have existing ordinances that include Section 8 and other rental assistance in their definition of source of income.
The passage of  SB 329 and SB 222 means that California residential landlords throughout the state will no longer be able to say they don’t participate in the Section 8, VASH or other rental assistance programs. It is anticipated that tenant’s rights groups will be conducting testing to see whether landlords are aware of and are complying with the law. Although the changes do not go into effect until January 1, 2020, landlords who don’t currently participate in rental assistance programs are advised to respond to inquiries about whether they accept Section 8, VASH or other rental assistance that although they do not currently participate, they will be participating effective January 1, 2020.
The FEHA states that it is unlawful to make, print or publish or cause to made, printed or published, any notice, statement or advertisement with respect to the sale or rental of a housing accommodation that indicates any preference, limitation, or discrimination based on any enumerated protected class, including source of income. Accordingly, it is important that all advertising (including ads posted on third party websites such as Craigslist) be revised to remove any references such as “No Section 8” or “We do not participate in Section 8” before January 1, 2020.
The FEHA retains language that in instances where there is a government subsidy, it is unlawful to use a financial or income standard in assessing eligibility for the rental housing is that is not based on the portion of the rent to be paid by the tenant.
The net effect of this language, when combined with then new definitions of source of income, is that the voucher amount must be considered as part of the tenant’s income and any income standard applied by the landlord must be based on the portion of the rent which would be paid by the tenant, rather than the total contract rent. 
Nothing in either SB 329 or SB 222 prevents a landlord from requiring a tenant with a Section 8 or VASH voucher or other rental assistance to meet the landlord’s other criteria, such as credit and rental history.
Landlords with questions about the Section 8 program should contact the local Housing Authority in the area where their property is located.
From https://www.kts-law.com/section-8-and-source-of-income-protections-sb-329-and-sb-222/
This article is for general information purposes only. Our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Laws may have changed since this article was published. 

In California, the laws regarding the requirement for on-site property managers can vary based on the number of units in a building or property. Generally, for buildings with 16 or more residential units, having an on-site manager is often mandatory by law.
California's Department of Real Estate (DRE) mandates certain regulations and standards for property management, particularly for larger residential complexes. These regulations often include the requirement for an on-site manager to be present during specific hours and perform various duties related to tenant management, maintenance, leasing, and ensuring compliance with state and local laws.
While it's true that property managers in California might commonly specialize in managing larger properties, such as apartment complexes or multifamily residences, it doesn't necessarily mean that property managers exclusively focus on these types of properties. Many property management companies or individual property managers handle a variety of property types, including single-family homes, condominiums, townhouses, and smaller residential units.
However, the specialization and focus of property managers can vary based on their expertise, resources, and business models. Managing single-family homes might be less common for larger property management firms that primarily concentrate on multifamily complexes due to differences in scale and operational requirements.
Property owners of single-family homes in California in affluent areas such as Brentwood, Santa Monica, West Los Angeles, Pacific Palisades, Malibu, Marina del Rey, Venice, Westwood, and Sherman Oaks might opt to work with smaller, boutique property management companies or individual property managers who specifically cater to individual residential properties. These managers often provide more personalized services and may have expertise in handling the unique needs of single-family rentals, including maintenance, tenant placement, and compliance with landlord-tenant laws applicable to single-family residences.
While it might be less common to find property managers exclusively dedicated to single-family homes, there are certainly property management professionals in California who can effectively manage and oversee these types of residential properties, ensuring compliance with relevant regulations and providing quality services to property owners.

Legal Alert from KTS Law
On June 29, 2023, the California State Legislature filed SB 564  with the Secretary of State, which increases statutorily determined fees for serving, executing, and processing certain court documents by Sheriffs’ and Marshals’ offices. California law requires the Legislature to provide for an elected county Sheriff, provide for the duties of the Sheriff, and prescribe fees for serving, executing, and processing required court notices, writs, orders, and other services provided by Sheriffs and Marshals.
Sheriffs’ offices are required to serve civil process, including summons, warrants, evictions, wage garnishments, small claims documents, levies on property, writs, and other court orders. As part of this process, they are permitted to collect statutorily set fees to cover the cost of providing these services. The passage of SB 564 has increased those fees for services provided by Sheriffs and Marshals, which is the first fee increase since 2015. Each fee increase is specified in the below chart. Due to these increases in the hard costs of your cases, you will see that the fees advanced and charged to your cases will be increased on your billing statements. These new increased fees will be effective and assessed beginning January 1, 2024.
In support of the passage of SB 564, the Legislature has noted that the overall cost of business has, along with the cost of living and inflation, skyrocketed in recent months. The Sheriffs’ and Marshals’ offices have stated that they have had a steady increase in personnel and resource costs since 2014 (when the last fee increase was approved), creating revenue deficits within their civil units. They state that this has compounded the need to increase the fees for the services they provide. Additionally, the bill’s proponents argued that recently enacted legislation, namely AB 2791  (Bloom), Chapter 417, Statutes 2022, which requires officers to accept electronic submission of requests for service of process beginning in 2024, will further increase their costs of business.
SB 564 increases the statutorily capped fees Sheriffs’ and Marshals’ Offices can collect to fulfill their legal process services, due to inflation and the increase of costs to provide these services. This bill retains the existing fee waiver process to ensure low-income individuals are not disproportionately impacted by the fee increase.
The full text of SB 564 can be viewed here.
From KTS
This article is for general information purposes only. Our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Laws may have changed since this article was published. 

You have a beautiful house in Santa Monica, you're moving, not ready to sell, and it would be great if you could find a wonderful person to rent it... but you're afraid of a nightmare renter, damaging the property, squatting and refusing to pay while you cover all the expenses... You need the best leasing agent and property manager in Santa Monica to help you mitigate the risks!

Renting out your home in Santa Monica, like in any city, comes with various considerations and legal responsibilities for property owners. Santa Monica has specific laws and regulations that landlords must adhere to when renting out their property. Here are some key caveats and considerations:

1. Rent Control: Santa Monica has robust rent control ordinances that apply to many rental units in the city. Landlords need to comply with these regulations, which often include limits on rent increases, just-cause eviction requirements, and other tenant protections.
2. Business License Requirement: Landlords in Santa Monica are required to have a business license to legally rent out their property. This license must be obtained and renewed as necessary.
3. Rental Unit Registration: Rental property owners must register their units with the Rent Control Board in Santa Monica. This registration process involves providing information about the property, including the rent amount, to ensure compliance with local regulations.
4. Tenant Rights: Tenants in Santa Monica are granted specific rights and protections under local laws. Landlords must be aware of these rights and obligations, including proper notice for entry, maintenance responsibilities, and tenant privacy.
5. Security Deposit Limits: There are limits on the amount landlords can charge as a security deposit in Santa Monica. This deposit must be returned within a specified timeframe after a tenant vacates the property, minus any valid deductions for damages.
6. Eviction Laws: Santa Monica has strict rules regarding eviction, including specific reasons for eviction and procedures that landlords must follow. Landlords must provide just cause for eviction and adhere to eviction protocols outlined in local laws.
7. Fair Housing Laws: Landlords must comply with federal, state, and local fair housing laws that prohibit discrimination against tenants based on protected characteristics such as race, gender, religion, familial status, disability, etc.
8. Maintenance and Habitability: Landlords are responsible for maintaining their rental units in a habitable condition as per state and local laws. This includes providing essential services, making necessary repairs, and ensuring the property meets safety standards.
9. Lease Agreements: It's crucial to have a comprehensive and legally sound lease agreement that outlines the terms of the tenancy, including rent, lease duration, rules, and responsibilities of both landlords and tenants.
10. Local Zoning and Permits: Landlords must ensure their property complies with local zoning regulations and obtain any necessary permits for renting out their home as a short-term rental or for other specific purposes.

These caveats highlight the importance of understanding and complying with the legal requirements and responsibilities associated with renting out a property in Santa Monica. Seeking legal advice or consulting with a knowledgeable property management professional can help landlords navigate these regulations effectively.