You have to know the territory, and you have to know the numbers. So how do you learn the numbers?

 Q: I have a question regarding rejecting an otherwise qualified rental applicant based on their personality.

Recently, when showing the apartment, it quickly became apparent that this person was a difficult person and it would require extra time and money to satisfy her requests. I didn’t think it was good business to rent to this person but went ahead because I didn’t know if I was on solid legal grounds. This person was not a minority or in any other protected category.

Starting before move in and subsequently, my judgment has proven correct. Is it legal to reject someone based on personality and the expectation of trouble?

 Q: I own a house in Fremont and rent it out. Normally, the tenant will clean the carpet when they move out as that is how they received it when they moved in. But for the first time, I have a tenant who is refusing to clean the carpet and said that California law says they do not have to clean it. They also broke the lease by having a cat when the lease specifically states “no pets.”

Landlords attorney Ted Smith replies: California law states that the rental property should be left in good condition and repair, less ordinary wear and tear, when the tenant vacates.

YOU CAN BE SUCCESSFUL IN INCOME REAL ESTATE, if you follow proven rules. Here a number of these rules you can use:

NEVER PAY “Front Money” or advance fees for loans. A fee is fair AFTER you receive your loan money, NOT BEFORE!

DON’T BASE YOUR FINANICAL OPINION of an income property on whether or not you would live in it. The only valid measure is if the property earns a Positive Cash Flow for you and rises in value as time passes.

Do I understand the nature of tax advice?

What follows is not tax advice. It is simply an overview of some of the federal tax rules affecting real estate investment property. It covers some tax breaks that may be available. Do not rely on this material. For tax advice you need to consult with a tax professional, such as an accountant or tax attorney.

Do I understand profit and loss from a tax perspective?

The housing inventory refers to all the homes that are for sale at any given time within a loca! area. This inventory will swell or reduce at different times. It is an excellent indicator of both how strong the market is and the direction in which it’s going.

The inventory is expressed in a variety of ways, one of which is the total number of homes for sale. Another more useful way of expressing inventory is in how many months or days it will take to sell out the entire inventory of homes at the current rate of sales- (Of course, new homes are constantly coming onto the market so the inventory is never completely exhausted.)

It’s important to understand that those who own their houses usually have “pride of ownership.” Those who rent obviously do not.

This means that where owners might put in new front yards or repaint their homes, tenants are most likely simply to let it go and ask the investor/owner to do it.

There’s nothing wrong with this. You can’t really expect tenants to take care of a property they don’t own. After all, it’s the owner, not the tenant, who reaps the rewards when the home is sold (not to mention tax advantages).