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Income generated from rental properties is still considered income, but is it taxed at the same rate as your paycheck? Rental income is generally considered a passive revenue stream and is subject to special considerations and rules by the Internal Revenue Service (IRS). While it is designated as “passive”, anyone who owns rental properties knows the commitment of time and effort it takes to keep everything running smoothly.

There are many things to consider when it comes to how your rental income is taxed, such as deductions, special allowances, repairs, and improvements. After you factor in any applicable deductions and special allowances, your passive rental income is taxed at a different, usually lower, rate than your active, or nonpassive, income. It is important to consult your tax professionals with questions about your specific circumstances, as we are not CPAs and are not giving tax advice.

Tax Deductions

If you received rental income during the year, there are certain tax deductions you can claim based on rental expenses. You may be able to deduct the cost of repairs, property tax, operating expenses, loan interest, management expenses, utilities, insurance, depreciation, and general maintenance. All those deductions can add up, but be sure you know what qualifies as a repair. The IRS is pretty particular about what it considers a repair versus an improvement.

Repairs can only be deducted in the tax year they were completed and in the event that they are ordinary, necessary, and reasonable in amount. Examples of acceptable repairs you can deduct include fixing floors, leaks, walls, and windows, as well as keeping appliances in working order. Basically, most costs associated with the upkeep of the rental property can be deducted and off-set the amount of taxes you’ll owe on the rental income.

In addition to repairs, any utility payments you cover for your tenants; fire, flood, and mortgage insurance; and loan interest on your mortgage are all sources of tax deductions on rental income. Everyone’s tax situation is unique, so be sure to research which tax deductions are applicable to you and your rental properties. If you skip this step, you could be paying more to the IRS than needed.

Property Improvements

While repairs can be deducted in the tax year they are completed, capital improvements to the property are expensed, and the costs are deductible. But, the difference is capital improvements are amortized over many years. There are different amortization timelines for different types of improvements. Your CPAs can assist you in selecting the correct amortization period. A property management company, like MV Properties, assists your CPAs by providing all the documentation that you need to properly fill out your taxes.

According to the IRS, an expense is considered an improvement if “it results in a betterment to your property, restores your property, or adapts your property to a new or different use.” (1) Some concrete examples of improvements are additions such as bedrooms, a porch, garage, or patio; replacing the roof; adding a security system; heating and air conditioning additions; replacing appliances; and replacing septic systems or water heaters.

Depreciation Deduction

Depreciations are income tax deductions that permit property owners to recover the cost of assets over time. The IRS makes an annual allowance for a property’s deterioration, including normal wear and tear. (2) Depreciation is something that you can get a deduction for in the current year even though you might not have spent money to buy rental property in that year. Depreciation is a huge tax benefit, and it is a non-cash expense that decreases your taxable income. It’s one of the big benefits to owning investment property.

1031 Exchanges

Something else to consider with your properties, is the opportunity to do a 1031 exchange. A 1031 exchange is a swap of one business or investment asset for another. Although most swaps are taxable as sales, if you come within 1031, you’ll either have no tax or limited tax due at the time of the exchange. (3) Special rules apply to depreciable properties in 1031 exchanges. I and my partners at MV Properties work with 1031 experts who assist our clients when there are complications on 1031 exchanges and carrying forward the depreciated basis. Tax law is complicated, and while we are not CPAs, we are happy to work with your tax professional to get all your rental income paperwork in order.

Passive Income Rules

Deductions are not the only way to lower the tax owed on rental income. Passive income is subject to special rules when it comes to taxes. In certain cases you can use passive activity loss to offset your active income, such as your salary.

But, a question we are often asked is, is your rental income still considered passive if you actively participated in managing and repairing the property? According to the IRS, “A rental activity is a passive activity even if you materially participated in that activity.” The only exception being if you are in the real estate business. Rental income is considered active income for real estate professionals. As long as you don’t fall into that category, you can claim the special allowance in regard to your rental income taxes.

How We Can Help

Self-managing your rental property is a huge undertaking and sometimes can seem like another full-time job. We can help alleviate some of the pressure of owning a rental by taking over the day-to-day management and repairs of your property. MV Properties can help you make your passive income truly passive. Call us today to set up a consultation and discover what you can gain by allowing us manage your rental property.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance, and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

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(1) https://www.irs.gov/publications/p527/ch01.html#en_US_2015_publink1000218984

(2) http://www.investopedia.com/articles/investing/092415/how-does-depreciation-reduce-my-tax-bill.asp

(3) http://www.forbes.com/2010/01/26/capital-gains-tax-1031-vacation-home-personal-finance-robert-wood.html

Without a doubt, finding the right tenant is the single most important decision you will make in your journey as a rental property owner. A great tenant can mean the difference between your property being maintained and rent being paid on time to overdue rent, lawsuits, or even permanent damage to your unit.  

Many owners select tenants using their gut feeling and then fail to screen them completely, which can open the owner up to risks that are easily avoidable. The key to finding a great tenant in San Diego is to get to know them as well as you can and having a structured verification process.

Thoroughly Vet Applicants

Many property owners believe that “getting a feel” for tenants in person is the best way to select the perfect renter. It’s important to remember that the most likeable person you meet may not be the most qualified.

Lacking a formal process for picking the most qualified tenant can also put you at risk of violating fair housing regulations by creating a perception of racial, gender, or religious bias.  Lawsuits regarding fair housing can be extremely costly and time-consuming. While having a friendly tenant is never a bad thing, it is important to always research each potential tenant’s background and financial history thoroughly before making any decisions.

Do Your Homework

When researching a tenant’s history, you will want to make sure you don’t skip any steps. Cutting corners when it comes to researching your tenant can be a very costly mistake. You’re not only checking to make sure that your tenant has a history of paying bills on time, but you’re also checking references to make sure that past landlords have had positive experiences with your tenant.  

Below are some easy steps to follow to thoroughly vet all applicants:

1. Call each reference. Many owners will only call one or two people from the list, but you could be leaving valuable information undiscovered, particularly when it comes to calling former landlords.
2. Run a credit report and go through it in detail. Having less than perfect credit is not an automatic disqualification, but reviewing credit reports is an important step is to see how the tenant addresses any issues that arise.  Do they proactively address and explain their situation? Or do they attempt to hide any potential issues? These are important indications of your tenant’s ability to shoulder responsibility.
3. Always do a background check. Credit reports and landlord references don’t paint a complete picture and I’ve even heard of owners who only found out that their tenants have criminal histories when applicants for other units search the sex offender registry for the area. Although a potential tenant may be required to notify you if they are a sex offender, other relevant crimes such as burglary or assault don’t carry the same reporting requirements. It’s your responsibility to run a background check to ensuring that your new tenant will not cause unwelcome disturbances in the community.

Get Professional Help

Screening tenants can be time intensive, stressful, and tedious work. Remember that it is important that you follow the same process with every applicant and have clearly defined rental criteria that your tenant must meet. If you need help screening tenants and keeping your process consistent, MV Properties is here to help with our proven tenant screening process. If you want to enjoy the benefits of being a rental property owner without the stress, contact us today at 888-686-1525.  Ask a question be emailing [email protected] and visit our website to learn more about our process.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

Today we are talking to property owners about how to properly screen for the best tenants. It seems like a pretty straightforward process, but you’d be surprised at how basic screening principles can be ignored.

A lot of property owners who manage their own properties go by instinct. They might have an open house to show the property and a number of potential tenants will see it, and the property owner picks the people that seemed most likeable. I can’t stress this enough: going by your gut is the wrong way to find a tenant. You’re setting yourself up for getting a tenant who has credit deficiencies or a history of evictions and you won’t even know it. If you’re not following a systematic, consistent approach with how you deal with all potential renters, you’re also setting yourself up for fair housing issues. The fallout from these types of claims can be extremely expensive and time consuming.

In order to screen all potential tenants properly:

• Take the time to call every single reference, particularly the previous landlords.
• Run a credit report and go through it in detail.
• Some people have blemishes on their credit histories; those aren’t necessarily disqualifying events. What you need to look for in these situations is how the potential tenant chooses to address it. Do they proactively explain their situation? Or do they try to avoid it and make excuses? These are telling signs about what kind of tenants they’ll be.
• Follow the same process with everyone, and have clearly defined rental criteria. I can’t stress this enough.

Leasing to great tenants is the best thing you can do for the success of your rental property. But the screening process is time consuming and can be difficult, especially if you don’t know the best practices to follow, or the proper questions to ask.

If you’re ready to hire a professional property management company, contact us at MV Properties and we’ll give you the best service in the business.

It takes a lot of work to be a great landlord. You are on call when things break, tenants get locked out, and when general repairs need to be done. Doing these five actions annually will increase the value of your property, keep your tenants happy, and cut down on maintenance costs in the long-term.

1. General Inspection and Maintenance

This may sound like common sense, but checking smoke and carbon monoxide alarms annually is extremely important. But, as we all know, time can easily get away from us and these checks tend to fall low on the priority list. Making the effort to inspect these potentially life-saving systems every year will protect the life of your property, and show your tenants you care about their safety.

Another way to extend the life of your property is patching up any visible cracks or leaks. While small cracks may seem harmless, you never know how quickly they will progress, and water leaks can cause irreparable damage on a property. Save yourself future hassle and patch cracks or leaks as they appear.

Additionally, cleaning the gutters should be part of your annual maintenance to-do list. It may seem like a little thing, especially in San Diego where weather is almost non-existent, but it can make all the difference when a storm rolls through.

2. Assess Market Rent Prices

Do you know if you are charging market rent prices for your neighborhood and property value? San Diego County rent prices went up 8.6% on average over the last 12 months. Taking the time to review rent prices every year can ensure you are competitive in the marketplace and earning what your property is worth. This simple step is mostly research and doesn’t always need to be acted on every year.

Though, we’ve seen that when owners don’t raise rent for 4-5 years or longer, rents can easily be 30%–40% below market, and owners who are self-managing are losing thousands of dollars a year. Consistently and fairly raising rents, communicating openly with tenants, and honoring long time tenants are all policies that any property owner should adopt, whether you self-manage or hire a management company.

3. Landscaping and Yardwork

Another thing to do annually to maintain your property value is some general landscaping and yardwork. Landscaping will improve the overall aesthetic of your rental property and make it more attractive to future tenants. Current tenants are also much more likely to tolerate a rent increase if the plants in their common areas, such as a courtyard or shared patio, are well-maintained instead of overgrown and full of weeds. Tending to the plants surrounding your rental property will also cut down on bug and spider infestations, which can spread to your units and wreak havoc.

4. Verify Keys and Emergency Contact Information

Something else to consider, you never know when your tenants are going to change their locks. Tenants can have their apartments rekeyed for many reasons. Maybe they lost their keys, had a break-in, or simply replaced a broken lock. In any case, it is important to make sure you have a copy of all your tenants keys in case of an emergency or if you need to access their units for maintenance.

Speaking of emergencies, when you are gathering copies of their keys, be sure to ask for any updated emergency contact information. You never want to need it, but you want to make sure you have contact information in case something happens to your tenants.

5. Thank Your Tenants

Last but not least, don’t forget to do something kind for your tenants at least once a year to show them you care. It doesn’t have to be anything big, but a heartfelt note or small gift around the holidays can make all the difference in your relationship with them.

Some of these steps can be done for you if you work with a management company. MV Properties can ensure that your rental properties are properly maintained, landscaped, and priced at a competitive market rate. Call us today to set-up a meeting and let us tell you how we can simplify your life as a landlord.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance, and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

Mold is a complex organism. It is the delicious key ingredient in blue cheese and mushrooms, and can cure diseases in the form of penicillin. But, it can cause health problems and headaches in some of its many forms, particularly if you are a landlord.

What is Mold

Mold is a form of fungus that grows both indoors and outdoors and thrives in warm, damp, and humid environments, like the salty ocean air here in Southern California. Mold can develop on virtually any surface, and is often caused by dampness that is not properly evaporating, such as areas with pipe leaks or condensation.

There are over a thousand different varieties of indoor mold, ranging in color from black to green to white. The good news is that most types of indoor mold are safe in moderate amounts; however, inhaling a high concentration of spores can cause health risks to both humans and animals. Common symptoms from mold exposure include coughing, chronic congestion, headaches, watery eyes, and wheezing. Reactions can also be severe enough to cause cognitive issues and even neurological symptoms.

Dangers to Landlords

Aside from the health risk to tenants, mold can also be a big problem for landlords. Since mold grows where there is moist organic material, it is commonly found around leaking pipes or roofing, improperly draining AC units, improperly sealed shower or bathtubs, toilets, and more. Many of these common locations for mold growth are behind walls or places that are easy to overlook, therefore the original leak and the mold growth from it can continue unchecked for years, causing expensive, lasting damage to your investment property as well as to the health of your tenant.

Aside from the health and property damage issues, as of January 1, 2016 mold issues can also threaten the stability of your rental income. According to the new laws in the state of California, mold issues now qualify as a condition that can legally make a rental unit uninhabitable, leading to a multitude of remedy options for tenants that can include deducting rent payments or breaking their lease due to habitability issues. This can be exceptionally difficult for the landlord, as mold problems are not always easily detected or quickly fixed to avoid this situation.

Avoiding Risk

Many landlords are unaware of the new legislation and how to comply. It’s important to work with an experienced property manager to make sure you are following all state and federal regulations and that you are apprised of changes as they happen. At MV Properties, our team stays up to date on the legal and business changes in the San Diego housing market so we can help our property owners stay compliant.

The best protection against mold and the potential tenancy issues it can cause is a well-maintained property and a properly educated tenant. A professional property management company can help you avoid such risks by promptly fixing any moisture issues that may occur at your rental property and being sure that tenants are aware of the dangers of high humidity in areas such as bathrooms and kitchens.

Let Us Help

If you are concerned about the new laws and how they may affect your rental, call MV Properties at 888-686-1525. From providing up-to-date and in-depth regulatory knowledge to ensuring a smooth and stress-free transition between tenants, we can help maximize your rental investment. Ask a question anytime by emailing [email protected] and visit our website to learn more.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance, and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development, and investment company focused on residential and mixed-use properties.

Perhaps one of the best things about San Diego, other than its incredible warm weather and beautiful beaches, is the fact that it’s a multi-faceted city, whose neighborhoods have many different characteristics.  Bouncing back from the Great Recession, San Diego has seen a flurry of construction and the transformation of neighborhoods recently, which has helped create the new hottest rental neighborhoods. In part two of our series “The Hottest Neighborhoods in San Diego,” we’ll discuss two areas near downtown that make great rental investments. Here’s where we’re feeling the heat right now:

East Village

Downtown San Diego has seen a huge rebirth in the last 15 years with the building of Petco Park, the growth of the Gaslamp District and Little Italy, and the expansion of local events like Comic Con.

Developers are now active again in Downtown, with the East Village as one of the hottest new neighborhoods.

Several large apartment buildings have recently opened, and trendy bars, restaurants, and 20-somethings are flocking to the neighborhood. The creation of Quartyard (http://www.quartyardsd.com/), an outdoor beer and event space made largely from recycled shipping containers, has helped shine the spotlight on this neighborhood.

The 10 square blocks where the Charger’s stadium was slated to be developed will instead redevelop in an entirely different manner, with office, residential, and retail uses, along with small parks and urban open spaces.  An entire urban neighborhood fits in the same footprint as the stadium, so this will be a fascinating development story to watch over the coming years. Even without the stadium, the East Village is hot today.

Golden Hill

Golden Hill’s for-sale housing market is the hottest in San Diego right now, with the largest year-over-year gains in price appreciation.  And the rental market is seeing similar growth.

New apartment projects include Foundation For Form’s “You Are Here,” a 23- unit apartment building that also has an eclectic mix of ground-floor retail tenants.   http://www.foundationforform.com/you-are-here/

Jonathan Segal, an acclaimed local architect/developer, has developed several rental properties in Golden Hill, which are always in high demand and command top-of-the-market rents.

Soheil Nakhshab and his family’s design/development company, NDD, built Sofia Lofts, a for-rent community that  has been featured in Dwell Magazine, profiled by the Urban Land Institute as a case-study in renewable urban infill, and has won several design awards.  http://www.sofialofts.com/

SL20 is another brand new rental community that has set the local market for rents.  The 20 townhomes were originally built to be sold as individual homes, and converted to rentals after completion.  The three-story, 2-bedroom homes have rented for over $3,000/month.

All of these new developments, plus Golden Hill’s great location close to downtown and Balboa Park, have helped spike demand in the neighborhood.  Many older buildings are now being refurbished, and new developments are on the way.  We predict Golden Hill will continue to see increases in home prices and rents for many years to come.

Keeping Up with the Trends

Is one of your rental properties in these hot areas? As a property owner, it’s always important to understand changes and fluctuations in the rental market and how that can affect your bottom line. The bad news is that it’s a lot of work to keep up with all the happenings in San Diego County. But, the good news is that there is someone who can do it for you. The professionals at MV Properties are experts in all of San Diego’s rental neighborhoods and can help you manage your property today.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company. The company’s goal is to cultivate long-lasting relationships with property owners and tenants, and to provide best-in-class service. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

Do you remember playing Monopoly as a kid? As you made your way around the board, buying up properties and building your real estate empire, you’d occasionally have to pull a chance card – which could be great. Sometimes the chance card would tell you to advance to go and collect $200, but not all of the cards were so fun. There was also a “make general repairs on all your property” card, and it could cost you a lot of money.

In Monopoly, you only had to worry about maintaining your properties when you landed on chance, but in the real world, maintenance and repair are an important part of your role as a property owner and landlord.

Knowing the Law

According to California law, during the time that your property is being rented, you must do maintenance work and make repairs which are necessary to keep it habitable. These include:

• Effective waterproofing and weather protection
• Plumbing, gas, and heating facilities in good working order
• Functioning electrical system, including lighting
• Clean and sanitary buildings and grounds which are free from debris and vermin
• Floors, stairways, and railings in good repair

You must also consider safety as part of your regular maintenance. Emergency exits must be kept up to code. Hallways and exits a required to be litter free. Doors and windows need the appropriate locks. And don’t forget about the smoke detectors.

For their part, tenants are expected to take reasonable care of the rental property, maintaining a clean and safe environment and using the property as intended. They must also notify their landlord of any issues or damage.

The responsibility for certain, less serious repairs, can be determined by the landlord and the tenant in the rental agreement. So, when it comes down to things like – “Does the landlord clean the gutters?” or “Is the renter responsible for changing the air-conditioner filters?” – you and your tenant need to be clear on who is doing what. Just remember, in the end, the property belongs to you, and you want to make sure that all maintenance is up to your standard.

Protect Your Property and Keep Your Tenants Happy

The work of routine maintenance can be a hassle – these are the chores that you hate to see on your to-do list, but they are an important part of protecting the value of your investment, so you’ll want to ensure they’re done right.

Staying on top of routine maintenance also shows tenants that you care about their quality of life and the place they call home. It will encourage them to take better care of the property as well. Regular maintenance offers you another touch point with your tenants, keeping the lines of communication open, and allowing you to keep a lookout for any possible issues with the property. Once a tenant is ready to move, you can also have some peace of mind knowing that you can quickly get your property ready to go back on the market, and a well-maintained property is more likely to attract and keep quality renters.

Make Your Plan

Don’t leave the care of your property to chance. Be sure to give routine maintenance the focus and energy it deserves, as it can make or break you as a property owner and landlord. At MV Properties we provide routine property inspections on a regular basis, and take measures to ensure your property is always in tiptop shape. We can take away the hassle of property maintenance and free up your time for better things, (like playing Monopoly with your family). Contact MV Properties today at 888-686-1525 or [email protected] and visit our website to learn more.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance, and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

Perhaps one of the best things about San Diego, other than its incredible warm weather and beautiful beaches, is the fact that it’s a multi-faceted city, whose neighborhoods have many different characteristics.  Bouncing back from the Great Recession, San Diego has seen a flurry of construction and the transformation of neighborhoods recently, which has helped create the new hottest rental neighborhoods. In part one of our series “The Hottest Neighborhoods in San Diego,” we’ll discuss two areas you may not have visited recently. Here’s where we’re feeling the heat right now:

South County – Western Chula Vista

Western Chula Vista’s 3rd Avenue corridor is still under the radar….shhhh.  But the area is being eyed by developers, entrepreneurs, and new residents as one of the region’s future hot-spots.

The City of Chula Vista has done an incredible job improving the walkability and attractiveness of Third Avenue.  New landscaped medians help calm traffic, new, wider sidewalks are ideal for outdoor café’s, and attractive brick pavers have created a whole new walkable vibe to the area.  

Think Hwy 101 through downtown Encinitas, but before the current crop of new restaurants and retail options made Encinitas what it is today.  The same “bones” of walkability and attractive neighborhood-scale development are already in place along 3rd Avenue in Chula Vista, particularly from E Street through H Street.  

The area is close to downtown San Diego, and current rents and home prices make the area one of the best-kept secrets in San Diego County.

North County – Downtown Vista

If you consider yourself a craft beer enthusiast, and haven’t visited Downtown Vista recently, you should re-evaluate whether you are truly dedicated to the craft.

The historic downtown is located at the intersection of Vista Village Drive and South Santa Fe Avenue, just a minute north of the 78 freeway.

Belching Beaver’s new brewery/pub/restaurant is packing people into its huge indoor and outdoor facility.  Other new establishments include Flying Pig Pub, URBN Pizza, Mother Earth Brew Company, Lush Lounge and Coffee, Fifty Barrel Winery, and others.  Longtime Vista residents know that Pepper Tree Frosty is the go-to spot for burgers and ice cream, and that standby’s such as Curbside Café, Vista Village Pub, and Village Café are every bit as good as the latest newcomers.

The residential market in Vista is also benefiting from the redevelopment of downtown.  Many new apartments are being built and planned for the area.  All of this leads to an interesting urban development question: does the growth of breweries spark additional economic benefits for neighborhoods?  At MV Properties, we think it does.

Keeping Up with the Trends

Is one of your rental properties in these hot areas? As a property owner, it’s always important to understand changes and fluctuations in the rental market and how that can affect your bottom line. The bad news is that it’s a lot of work to keep up with all the happenings in San Diego County. But, the good news is that there is someone who can do it for you. The professionals at MV Properties are experts in all of San Diego’s rental neighborhoods and can help you manage your property today.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company. The company’s goal is to cultivate long-lasting relationships with property owners and tenants, and to provide best-in-class service. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.

How walkable is your neighborhood? Increasingly, walkability is a major factor in where you choose to live. If you’re one of the many San Diegans who have to fight for parking on a daily basis, you’ve put some serious thought into this question.

What Classifies as Walkable?

The experts over at walkscore.com measure the walkability of any address using a patented points system. Points are awarded based on the distance to amenities in each category. Amenities within a 5-minute walk (1/4 miles) are given maximum points. More distant amenities are given distance-adjusted points, with no points given after a 30-minute walk.

Following this logic, the immediate vicinity, or less than a quarter mile radius, remains the most important from a neighborhood walkability standpoint. Factors such as pedestrian safety, variety of local stores and services, and general level of nearby points of interest are all key, as well.

What’s Important to Be Near

When scoping out a new potential home, it’s important to keep an eye out for how far away certain essential amenities are; public transportation is especially important. Access to bus, train or trolley stops can also help expand your walkability radius, if, for instance, your favorite Chinese takeout place is only a stop away.

The essential retail stores also hit the top of the list, with grocery stores, farmers markets, or hip boutiques being huge positives when you want to run out for a quick bite or forgot an essential dinner party item. Speaking of dinner, a good variety of restaurants that are within a quick evening stroll is important, as well, with the local coffee shop and best brunch spots being a must for anyone, young or old.

It also doesn’t hurt to have a good hangout in your neighborhood, like a decent pub, brewery, or sports bar to catch the game, when you’re feeling social. The Guild on 30th, for example, is walking distance to Krakatoa, known for its tasty breakfast and lunch and dog-friendly patio, Captain Kirk’s where you can grab an acai bowls, and the historic Turf Supper Club if you’d like to enjoy a cocktail and fine dining. Other important walkable destinations include pharmacies, running trails, parks, dry cleaners, and schools (if you have kids), among others.

Walkability at The Guild on 30th

Looking at this walkability heat map on WalkScore.com, Golden Hill is a veritable hotspot of things to do, with a score in the high 70s, or “Very Walkable,” a great emphasis on pedestrian safety and plenty of walkable options – easy access to transit, schools, and parks. If you’re interested in seeing what else is within walking distance to The Guild, you can check out our ideas on how to spend a weekend in Golden Hill. Being in the heart of San Diego and a stone’s throw from both Balboa Park and South Park really opens up the available options of for nearby activities.

The Guild on 30th will offer a new home option with great walkability in brand new homes that also while also featuring beautiful interior finishes, rooftop decks, and amazing views. Check out the amenities at The Guild and get more information on available units by clicking here.

How to Check Walkability

It may seem obvious, but the best way to get a feel for the walkability of a place is to get out there and walk it yourself. Once you get out and about, it may be surprising what you find that doesn’t show up on Google Street View. A huge joy of walkable neighborhoods is to get out, wander around, and find the treasures that only a local knows about – a super cute boutique with the best birthday gifts, or the bar around the corner with an amazing Tuesday happy hour –  things you can’t appreciate from a simple look at a map. If you want to go full qualitative with your search, however, you can check on scores from real estate websites such as Zillow, Realtor.com, and WalkScore.com.

Learn More

The Guild on 30th offers the opportunity to purchase well-designed homes with green living features in a desirable area, and all within an median affordable price range. If you’re interested in learning more about The Guild on 30th or what makes Golden Hill so special, contact one of our residential advisors today by emailing [email protected], calling 619.269.9800 or visiting http://www.guildon30th.com.

The old adages of following your heart and going with your gut may be great advice when it comes to picking a career path or making decisions in your love life, but if you lean towards these clichés for selecting a tenant, you could be setting yourself up for serious legal troubles when it comes to abiding by the Fair Housing Act.

What is Fair Housing?

The Fair Housing Act of 1968 is also known as Title VIII of the Civil Rights Act of 1968. Congress passed the act in an effort to impose a comprehensive solution to the problem of unlawful discrimination in housing. Its primary prohibition makes it illegal to refuse to rent to or negotiate with any person due to that person’s race, color, religion, sex, familial status, handicap, or national origin.

The Fair Housing Amendments Act of 1988 added extensive provisions that apply to discrimination against persons with disabilities and families with children 18 years of age and under. California law increases protected status to include sexual orientation and medical conditions.

Why Do I Need to Worry About it?

Fair Housing violations can be relatively easy to stumble into for the uninformed landlord and can carry hefty federal penalties and fines. Property owners who base their choice of a tenant on an “ I know it when I see it” mentality can unconsciously open themselves up to the accusation of bias, and with it, governmental scrutiny.

How Do I Rent With Fair Housing In Mind?

Luckily, the best practices that would preclude a Fair Housing violation are also the best practices to follow for the savvy businessman (or woman). Since FHA violations can include advertisements, it’s best to start out on the right foot and avoid any descriptions in advertisements that can be seen as catering to a particular section of the population that falls under the Act. For example, instead of saying that a unit is “great for families,” it would be advisable to switch the wording to say that it is located near playgrounds, schools, and parks. Even common phrases such as “his and hers closets” can potentially be discriminatory under the FHA and should be avoided.

After advertising, the next step of choosing a tenant often includes several tours and meetings with potential renters. At this stage, it’s important to be quantitatively objective in picking the best possible applicant from your renter pool, not only for Fair Housing but also for the health of your investment. While many Landlords feel the urge to choose tenants who may have things in common with themselves or fit a certain category they feel is better for their unit such as older, single renters or couples without children, these biases, both conscious and unconscious can run afoul of the law.

It is imperative to collect rental history, financial information, references, and background checks on any potential applicant to not only have peace of mind as a property owner but also to make sure that you have hard evidence of non-partisan screening to combat any potential allegations of bias. Having written criteria showing what you look for in a potential tenant can be valuable to this cause as well. Lastly, if you own several similar units it is important to keep organized records for each property.

Best Practices

It’s always advisable to write advertisements with the widest possible audience in mind and to screen tenants by looking for the most quantitatively qualified individual. Of course, it’s always easy to avoid these problems and potential lawsuits by having your unit professionally managed by a local company who is proficient and experienced in all local and federal laws. If you’re looking to take the easy route to finding and managing great tenants, contact MV Properties today at 888-686-1525 or [email protected] and visit our website to learn more.

About Keegan

Keegan McNamara is the founder of MV Properties, a leading San Diego property management company offering the highest level of service in property management, maintenance, and leasing. His goal is to cultivate long-lasting relationships with his clients (property owners) and their tenants to provide an enjoyable leasing experience. Keegan holds a Masters in Business Administration from the Rady School of Management at UC San Diego and is a Principal at McNamara Ventures, a real estate development and investment company focused on residential and mixed-use properties.