Recently, a legal ruling was made in California Appellate court that could have some positive impacts on firms offering property management in San Jose. I recently discovered an article where they discuss the controversial ruling and its implications – namely that tenants have the ride to ride out their lease terms even if the property owner defaults on their mortgage and the property changes ownership as a result.
The implications of this fact are relatively wide and not all immediately apparent at first blush. While we will have to likely wait several years to see if the inevitable legal challenges to the law hold or overturn it, for the time being property management in San Jose stands poised to gain some serious advantages. Let’s examine why:
Property Owners Willing to Negotiate
First and foremost, we’ll likely be seeing a lot more work. Property owners are going to be significantly more willing to negotiate with tenants under these circumstances, meaning that more properties will require property management in San Jose. In previous years owners would simply fire the management company, evict the tenants, and sell the property.
Some Income Trumps No Income
Corollary to the first point, banks and those who repossess the properties also will likely need to employ firms that offer property management in San Jose. If they will be forced to maintain nominal ownership of a property they acquired through default, they will likely hire property managers to administer things for them during this period. So whether the property owner is the original mortgage holder or the repossessing bank, either will likely need assistance from property management in San Jose in order to turn a profit until the leases associated with the property expire.
Screening and Tenant Expertise
Many property owners outsource tenant screening and other important administrative duties to firms offering property management in San Jose. This places those businesses in a place of expertise and power when a property owner is looking to sign some new leases they can count on to be fulfilled, rather than defaulted on as they are the ones who have experience with the screening process and can most easily identify good tenants from bad.
So while the ultimate legal questions related to the status of leases as a property proceeds through repossession will not likely be resolved any time soon, for the time being property management in San Jose can certainly reap the financial benefit of the new state of affairs.