Investor FAQ

We advise all our property owners to consult with their insurance agent to be certain they are carrying an adequate landlord/rental dwelling insurance policy. We require proof of proper insurance and that PURE Property Management be named as additionally insured (this is standard procedure with insurance companies and not at additional cost to the property owner).

The method of calculating a security deposit deduction for repair or replacement of an item in a rental home prorates the total cost of the repair or replacement such that the resident pays only an amount relative to the remaining useful life of the item that the resident has damaged. For example, suppose a resident has damaged an eight-year-old carpet that had a life expectancy of ten years, and that a replacement carpet of similar quality would cost $1,000. We could properly charge only $200 for the two years’ worth of life (use) that would have remained if the resident had not damaged the carpet. All fixtures, appliances, furnishings, etc. in a home have a defined useful life.

PURE will handle the security deposit disposition with residents that we screened and moved into a property. We utilize a thorough report that is completed upon moving in, which includes photographic evidence to reference the properties former condition. In addition, we are experts in resident-landlord laws which determine what can legally be deducted. Within our Property Management Agreement, you are granting us the authority to do this on your behalf. PURE reserves the right and authority to, at any point in time and at our discretion, turn over the security deposit to the owner who will then be personally responsible for the security deposit disposition. This may happen in rare cases in which:

1. The owner disputes what PURE states are illegal deductions as it pertains to California landlord-resident law and demands additional funds to be deducted from the security deposit.
2. Our management agreement is being terminated on the same day that the lease agreement with the residents is also being terminated.

Broker advises Owner to set aside his/her own maintenance reserves between 10-15% of owner distributions received for ongoing and unexpected maintenance purposes. Another good rule of thumb, according to the “one-percent rule”, is to set aside at least one-percent of your home’s value every year for home maintenance. Using this logic, if your home is worth $450,000, you should set $375 a month for expected home maintenance and anticipate about $4,500 in repair costs during the year.

Maintenance is a necessary service that we must provide to deliver on the rest of our property management business services. It is a simple fact: if you want to own rental properties, you must have the understanding and financial resources to keep the rental home properly maintained. Just like maintaining your car, nobody likes to spend the money to do it, but it is a necessity to keeping a car running and performing safely. With our Preferred Vendor Program, PURE provides a maintenance solution with a maintenance program that is hard to find from any one company. The objective is to provide value and a fair price, with a top level of service, but may not necessarily be the cheapest or absolute lowest cost.

• PURE is available 24/7/365 for resident emergencies.
• They are always staffed to take on any maintenance/repair task.
• Software systems and processes are in place to handle requests quickly and efficiently.
• PURE has the breadth of expertise, capacity, and vendor relationships to act quickly with minimal disruption for the property owner and resident.
• Each tradesman is vetted professionally to confirm their level of experience, active license, and proper level of liability insurance.
• Allows owners to be “hands-off” and leave the heavy lifting to PURE.

Wear and tear on a rental property is normal and should be expected over the course of a resident’s lease agreement. To keep your rental home properly maintained, PURE will facilitate regular maintenance of the property, as needed and necessary, on appliances and other home aspects such as HVAC, plumbing, electrical, windows/screens and doors, garden and landscaping. Maintenance items spotted by PURE or reported by the resident are entered in our system as “work orders”, then forwarded to our maintenance team, for completion of the associated repairs. Invoices and charges related to such maintenance items will appear on your monthly owner statement, subtracted from your owner reserves or rent collected in the given month.

PURE shall obtain prior approval for any expenditure over the maintenance limit (typically set at $500). Any minor items below the maintenance limit will be resolved using our own best judgement. The only exceptions would be when emergency action is needed to protect the property or the well-being of the resident.

Yes, any ongoing maintenance required to keep the property in habitable condition will of course be required. In addition, there are two items maintenance items that will be conducted at each property as a standard practice:

• HVAC System Check: As a standard annual item, heating and air conditioning equipment, no matter what kind you have, will be inspected, cleaned, and serviced at least once a year by a license professional. Such checks are necessary for both resident safety and to assure efficient operation of the system itself. Not getting systems checked, in addition to creating resident safety concerns, may lead to stress on the system itself and decrease in its lifespan. One of our preferred HVAC conducts the annual inspection to include the following:
  • Inspect the thermostat, wiring, and burners/heat strips
  • Clean the blower compartment
  • Change Air Filters (two times per year)
  • Check the heat exchanger/ignition
  • Check the cooling system and freon levels if A/C is installed at the property
• Rekey and Smoke/Carbon Detector Testing: Also, as a standard item, a rekey and smoke/carbon detector testing will be conducted at each property after a resident move-out and turnover.

This is an amount (typically $500) of the property owner’s funds that PURE holds in our broker trust account as contingency funds for any repairs, daily obligations, maintenance issues, and emergencies that may occur at the property over the course of the given month. The reserve is funded upon receipt of the first month’s rent and is replenished each month when rent is received to offset expense items during the previous month. If expenses should exceed the $500 reserve, or if PURE needs funds for repairs which are to be completed before the resident move-in date, an owner deposit will be required to pay for such expenses.

California law specifically allows us to use a security deposit for four purposes:

• For unpaid rent;
• For cleaning the rental unit when the resident moves out, but only to make the unit as clean as it was when the resident first moved in;
• For repair of damages, other than normal wear and tear, caused by the resident or the resident’s guests; and
• If the lease or rental agreement allows it, for the cost of restoring or replacing furniture, furnishings, or other items of personal property (including keys), other than because of normal wear and tear.
  We can withhold from the security deposit only those amounts that are reasonably necessary for these purposes. The security deposit cannot be used for repairing defects that existed at the property before a resident moved in, for conditions caused by normal wear and tear during the tenancy or previous tenancies, or for cleaning a rental unit that is as clean as it was when a resident moved in.

We advise our property owners to consult with their tax accountant regarding the reporting and handling of rent income on their annual tax return. PURE is legally obligated to report the gross rental income distributed to you on a 1099 form to the IRS and as such will need your social security number for reporting purposes.

Yes, if a property owner resides outside of the State of California, PURE is required to withhold 7% of the rent collected and submit it to the state tax authorities on a quarterly basis. Withholdings are submitted quarterly by PURE on the property owner’s behalf to the California Franchise Tax Board with a FTB Form 592, Quarterly Nonresident Withholding Statement. Before January 31st of the following calendar year, we provide the property owner with a statement showing the total amount of income subject to withholding and the total amount withheld, using a FTB Form 592-B, Nonresident Withholding Tax Statement.

Yes, the sale of your property is legal while your property is being rented by a resident, however, you must do so in a way that does not unlawfully affect your residents’ rights. PURE is an expert in real estate sales with resident in possession. We can list your property, and facilitating the sale from beginning to end, while simultaneously keeping positive relationships with your current residents. Because our property management agreement provides for an exclusive agency relationship, you may not hire another Agent to facilitate the sale of your property until your agreement with PURE is concluded or terminated with proper 30-day notice.

Yes, CA law requires property owners to disclose any of the following if they apply to their property:

• Lead-based paint
• Mold
• Asbestos
• Bed Bugs
• Water submeters
• Carbon monoxide detector not installed
• Smoke alarms not installed
• Water heater not braced
• Prop. 65 Warning notice not posted
• Unsafe pool/spa drain cover or lack of other pool safety measures
• Death on the property in the past 3 years

We deliver high-end San Diego property management based on 20+ years of experience, having designed our program to exceed your expectations, build trust and confidence, and maximize the value of your real estate assets. We further emphasize social responsibility through giving back to our community and we prioritize transparency, communication, and a high level of ethical integrity. Our objective is to be the trusted advisor to protect your rental property investment, achieve your real estate financial goals, and free you of the time involved in being a landlord. If these values are important to you, then PURE will be a good fit for your San Diego property management services!

Yes! We’re human after all (smile). If we’ve done something wrong or made a mistake, however, we are the first to admit it and will work hard to get it corrected!

PURE Property Management San Diego provides service to the greater San Diego County areas. We have multiple Property Management teams that are responsible for property portfolios that are geographically focused to provide fast and efficient service. We have three San Diego offices to support our teams.
San Diego Office- Main Office
16516 Bernardo Center Dr
#200
San Diego, CA 92128

South Bay Office
3450 Bonita Rd
Suite 110
Chula Vista, CA 91910

North County Office
445 Marine View Ave
Suite 300
Del Mar, CA 92014

Over two-thirds of all rental applicants will have a pet(s). When allowed in a rental home, we want our property owners to feel comfortable that the pet(s) has been screened, vetted, and approved by our property management team. All pet/animals will be subject to a separate pet screening which requires the prospective resident to provide a photo of the pet/animal, name of breed, weight, veterinarian and vaccine information, age of pet, as well as other information requested by our partnership with PetScreening.com. Various dog breeds such as Pit Bull Terrier may be cause for immediate rejection. No aquariums larger than 10 gallons will be allowed. No wild cats (non-domestic breeds), ferrets, reptiles or rodents of any kind are permitted. We do not charge a separate pet deposit. We do, however, charge monthly pet rent of $50 ($75 if there are two pets) which is retained by PURE as part of our Pet Guarantee. We are required to give special consideration to Service Animals that are registered and certified to assist a resident with special medical or emotional needs (proper and current documentation will be required for verification as part of the pet screening process). As a standard policy, PURE provides reasonable accommodations and follows HUD guidelines regarding assistance animals (FHEO-2013-01, Issued: April 25, 2013).

NO CASH OUT OF POCKET is required to start the process with any of our programs if you are starting with us with a vacant property… we get our fees only when we find acceptable renters, we have moved them into the property, and the rent is collected. There are NO upfront fees or start-up costs to you. The only exceptions to this are if we are asked by an owner to manage home improvement projects to make their home “rent ready”, when taking on a rental property with a resident in possession, or if the property is being transferred from another property manager.

Yes, we are happy to step in as your property manager with a resident in possession and/or another property manager involved, provided the resident is in good standing with rent collection, you have informed the other property manager of your decision to change, and there are no resident/landlord legal matters pending.

PURE will provide a rental market analysis to estimate and recommend the proper rent rate for your home based on similar homes in your area. We will not go live with your listing unit the rental rate is agreed by you. While we strive to rent your property at a rate to maximize your income, it is sometimes necessary to make rent rate adjustments to achieve the property level of market attention. To assure your property is rented quickly, if the property is not generating significant interest and has not yet rented, we will initiate rent reductions in the following sequence: 1) After 10 days, 3-5% reduction from initial listing rental rate; 2) after the next 10 days, another 3-5% reduction; 30+ days, another 4-5% reduction. Any further reductions would be done only after collaboration with the property owner.

PURE handles the collection of rent monthly from the resident by check, online bank payment through our resident portal, or credit card. The rent is deposited into the PURE Broker Trust Account, then dispersed to you after we take our fees and expenses. You’ll get a monthly statement on all financial activity related to your property and your owner disbursement by the 10th day of each month after the closing of our monthly accounting cycle. These reports are available to you online at any time through the Owners Portal on the PURE website, so you can keep up on what’s going on at any time.

This is an age of new online marketing tools and social media to promote properties. PURE leverages all methods through our exclusive 10-Point Marketing Program. First, we take professional quality photographs, produce a narrated virtual tour video, and write an appealing description of your property to create a top-notch rental listing. We get your property marketed quickly through our company website, online rental sites such as Zillow and Realtor.com, San Diego’s Multiple Listing Service, social media, outbound email campaigns, signage, broker and corporate networking and other actions to fill vacancies as quickly as possible.

We receive rental inquiries from prospective residents through many disparate sources (telephone, email, online rental sites, broker referrals, texts, walk-ins, etc.). We have an advanced system in place to capture all inquiries in our data base and respond quickly to each one:

• Leasing Department Call Center: Our leasing department is open and available to take calls every day (Monday – Friday 9am – 5pm), staffed by a team ready to discuss available rental properties with interested parties and perform initial resident screenings.
• Email Autoresponder: Our advanced marketing system captures every online inquiry, automatically adds it to our database with a tag for the specific property and sends an autoresponder email with essential information pertaining to your property with instructions on how to schedule a showing. The autoresponder email is critical to providing a rapid reply since many inquiries come in after normal business hours.
• Scheduling Showings Online: All our listings, response emails, and phone interaction provide instructions to schedule a showing online at a time convenient to the prospective renter. Available time slots for viewing the property are visible through a web interface to schedule a showing at a time convenient to them with a click of the mouse. This adds a high degree of efficiency since there is no back and forth calling to select and confirm a time for the showing.
• Leasing Manager Follow Up: Each morning, our Leasing Manager starts the day on the phone and in email following up with prospective residents who have previously inquired. This provides the full follow up loop to make sure we respond quickly and don’t miss any opportunities to get your property rented!

Yes, but only in cases when a property is vacant. If the owner or resident is still residing at the property, lockboxes will not be used. Under certain conditions and when a property meets specific criteria, we have “self-access lockboxes” which allow Realtors and prescreened/prequalified prospective residents who have provided valid identification to have access to a property for viewing by themselves. Self-access lockboxes are only used when a property is unfurnished and vacant (no resident or persons currently occupying the unit). Self-access showings are within a very limited time window through unique access code to an electronic lockbox. The unique code captures exactly which prospective residents have accessed and departed the property and at what time. This is very effective in helping us get your property rented quickly. During periods of self-show activity, PURE makes regular visits to the property to make sure it is locked, safe, and secure.

Our resident screening process is quite thorough and diligent. Each interested renter is required to complete a rental application, agree to a background and credit check, and meet the minimum qualification criteria to be considered as a resident. We obtain a credit, criminal, and eviction history background report on each applicant. We also contact previous landlords for rental references and verify current employment as well as bank statements. We work with our owners directly to review the prospective applicants and make the best choice to fit your needs and the amenities of the property.

Our pricing and scope of work are fully outlined at this link on the company website: https://www.ncpropertygroup.com/pricing

We advise all our property owners to forward their personal mail to their permanent or new address. This can be done quickly and easily at the following US Postal Service website: https://www.usps.com/manage/forward.htm

PURE and residents cannot be responsible for mail or package delivery expected by the owner that is delivered to the property. Owners of properties which have a locked mailbox in place for mail service will need to provide a mailbox key for the resident. Mail key for short term vacation renters may be optional at the discretion of the property owner.

There is NO long-term commitment on your part. We’re highly service oriented and confident you will be pleased with our performance. This is our Satisfaction Guarantee. If for whatever reason you are not satisfied you can discontinue our services at any time after the first month on 30-day notice. To assure that there is only one property manager at a time handling a property, however, our agreement is exclusive in nature while under contract. If the Property Management Agreement is terminated by Owner on 30-day notice after a Residential Lease Agreement has been signed with a resident, but within 4 months of the resident move-in date, compensation due and payable to Broker from Owner shall be no less than, cumulatively, the start-up and leasing fees which would have been due under the “Lease Only Program” ($250 start-up fee plus 50% of one month’s rent)”. Details on the Lease Only Program fees are defined and outlined on the Broker’s website at: ca.purepm.co/pricing. PURE reserves the right to assign owner agreements, and lease agreements to another person or entity, who would then assume all obligations and liabilities of said agreement.

Businesses of all types in California must occasionally adjust to ever changing state compliance and regulatory requirements, tax/labor laws, and market fluctuations. While we do our best to absorb costs and avoid program/price changes, adjustments may occasionally be necessary to provide our clients with the best level of service they have come to expect. If the need should arise to make such a change in our program, policies, or pricing, we will be transparent about the adjustment by providing you with 30-day written notice with a full explanation of the changes.

Yes, in addition to our license as a CA Real Estate Broker, we are also a licensed General Contractor. We have an extensive approved vendor list of subcontractors and vendors for almost any project to get your home ready to rent. Examples of common improvements and repairs that may be needed in advance of listing are painters, electricians, plumbers, gardeners, handymen, carpet/flooring, etc. In such cases, we are working to get these items completed before being paid anything for the ongoing property management as a percentage of rent. Our project management fees for prepping the home is a 20% margin on the advance improvements/repairs we manage to make your home “rent ready”. There is no problem, of course, if you choose to handle the improvement/repair items yourself or hire your own people to do the work.

No. PURE requires that all property owners provide assurance that mortgages, taxes, insurance and any HOA dues are current and are not in default. Also, we require the assurance that the property is not in foreclosure or pending foreclosure action.

PURE utilizes the “2nd month proration” method of accounting in regard to the rent due in the first month. This method requires payment of a full month’s rent at the beginning of the tenancy. This provides extra security for our property owners and allows us to pay all relevant leasing fees and maintenance at resident move-in. PURE then prorates rent for the 2nd month based on their actual move in date based on a 30-day month. For example, if a resident moves in on the 10th of the month, their first month rent due will be a full one month’s rent. The second month will then be prorated for the 20 days of rent. Each month thereafter, the rent is due on the first.

PURE holds all deposits provided by residents and owners in our Broker Trust Account for safe keeping as regulated by California law. By holding security and rent deposits ourselves, it makes the move-out process with the resident easier when it comes time to reconcile any necessary cleaning fees, repair, and the subsequent security deposit disposition. We offer two options to our residents for Security Deposits. The traditional security deposit is calculated at 1x the rent and can increase based on credit. We hold onto the full amount in an escrow account until the resident moves out. Any damages found at the time of move out will be taken out of this deposit. The second option is our security deposit replacement program. This option allows them to pay a monthly fee in lieu of the traditional deposit. They are still responsible for any damages at move out.