For landlords, the most important provisions in a lease or rental agreement may be those that limit the number of persons occupying the premises and that require tenants to specify their identities. This prevents a tenant’s guests from turning into tenants. But balancing this potential problem with allowing reasonable guest overnight stays requires a carefully considered lease provision.
Updated 2/22/17. Another 5 years have passed and the State Board of Equalization (BOE) still has not eliminated the loophole that allows property owners to avoid reassessment on a joint tenancy transfer at death to a person not eligible for exclusion as a spouse, registered domestic partner, cotenant, parent, or child of the transferor. As amended in 2013, the regulations continue to provide that tenants-in-common can transfer property to themselves as joint tenants and become original transferors under Rev & T C §65. This means there will be no change in ownership on the subsequent death of a joint tenant. For example, siblings receiving property as tenants in common on the death of a parent may postpone reassessment until the death of the survivor by retaking title as joint tenants. See 18 Cal Code Regs §462.040(b)(1), Example 4; Letter to Assessors No. 2013/044 (Sept. 2013).
For at least some locations, including the San Francisco Bay Area, Gen Y tenants are currently flooding the rental market and increasing competition among tenants. More prospective tenants is obviously great news for landlords, but they still have to select wisely from among applicants. Here are some suggestions to help landlords identify the perfect tenant, or at least the best of the bunch, without running afoul of the fair housing laws.