All Forum Posts by: Jay Orlauski

Vacancies are a natural part of owning rental property, but that doesn’t make them any less stressful, especially when you weren’t expecting one. Whether the tenant is relocating, buying a home, or simply moving on, their notice often sets off a chain of time-sensitive tasks that need to be handled quickly and correctly. A common question I hear from rental property owners is:

"My tenant just gave notice - what do I do now?"

If you’re self-managing, the answer might involve a mild panic and a Google search. But after coordinating hundreds of move-outs over the last two decades, I can tell you, this doesn’t have to be stressful if you have a reliable process in place. I'm in California , so everything here is geared towards landlords in the "Golden State" but these are guidelines that would be useful anywhere. 

Here's how we handle it, and how you should too.

Step 1: Acknowledge and Document the Notice

First, make sure the notice is in writing and legally valid. In California, a tenant on a month-to-month agreement is generally required to give at least 30 days’ written notice. If you’re working with a lease, the move-out should align with the expiration date unless both parties agree otherwise.

Once received, send an acknowledgment confirming the move-out date, the inspection process, and what’s expected in terms of cleaning and keys. An email is great way to keep a digital paper trail. If you text anything to the tenant you should follow-up with an email as California does not consider a text message to be valid notice of anything. 

Step 2: Schedule the Pre-Move-Out Inspection

California Civil Code §1950.5 requires you to offer the tenant a pre-move-out inspection no more than two weeks before they leave. This gives them a chance to fix any issues that might affect their deposit. It’s a step many owners skip—but it’s one of the best ways to avoid disputes later. We document everything: photos, written reports, repair estimates, and walk the tenant through what’s considered normal wear versus actual damage. If you want to cover your bases, and minimize your chances of ending up in small claims court, be sure to not to skip this step. 

Step 3: Start Marketing the Property Early

If you wait until the unit is vacant, you’re already losing money. We usually start marketing the moment notice is given, using photos from previous listings or scheduling showings with the outgoing tenant’s permission. This minimizes downtime between tenants, which protects your bottom line. And yes, it's critical to time this around any needed turnover work. A clean, move-in ready unit will always lease faster (and to better-qualified applicants).

Step 4: Final Walkthrough, Deposit Reconciliation, and Invoicing

After the tenant vacates, conduct a final walkthrough and compare it to the move-in condition report. Under California law, you have 21 days to provide an itemized statement and refund the remaining deposit. If any deductions are made, include receipts and a clear breakdown.

This is where many owners get themselves into hot water. Improper deductions, missing receipts, or fuzzy documentation can lead to disputes or even small claims court.  Make sure to manage this process carefully and transparently, providing the tenant with a full reconciliation report. This includes a detailed breakdown of any deductions, copies of vendor receipts, and documentation that aligns with California’s strict deposit handling laws—helping to minimize disputes and ensure a clean, professional closeout to the tenancy. 

Step 5: Turnover and Re-Rent

This is the part most people underestimate: coordinating vendors, painting, cleaning, lock changes, appliance checks, smoke detector compliance, utility transfers - it’s a lot. Doing it quickly and efficiently is key to avoiding prolonged vacancy. Once the unit is vacant and picture ready, you will already be ahead in and can start showings, tenant screening, and lease signing as soon as possible. 

Don't Let a Notice Create Chaos - Let It Create Opportunity

When a tenant gives notice, it’s not just a transition—it’s a strategic moment. It's your chance to reassess rent, upgrade the unit, or even consider selling or repositioning the property.  You might even use this as an opportunity to decide if you still want to deal with toilets , tenants and trash - or if instead you would prefer to spend your weekends with your family instead of under your tenant's sink. This could be a good time to look into professional property management. 

The key is being proactive and organized. If this process sounds like a lot to juggle, you're not wrong. But with the right planning, clear documentation, and a solid timeline, it can be handled smoothly. Staying organized, knowing what’s required by California law, and anticipating key deadlines are the best ways to protect your investment and minimize stress during tenant turnover.

Hi Drew - thanks for the feedback. You're absolutely right- and rental renewal is one that can easily slip through the cracks too. 90 Days ahead of time is a good starting point - gives time for the tenants to discuss their next move. It's also a great opportunity to see if they are in a position to purchase their own home. 

After more than two decades in property management, I’ve seen just about every reaction to a rent increase—ranging from calm acceptance to outright panic. And I get it. Raising rent can feel like walking a tightrope: you want to protect your bottom line, but you also don’t want to push away a great tenant or run afoul of California’s ever-evolving rental laws.

So, when is the right time to raise rent? And just as importantly—when is it better to hold off?

Let’s break it down.

Timing Isn’t Everything—But It’s a Lot!

The ideal moment to raise rent is at lease renewal. That’s when your legal footing is strongest and the tenant is already thinking about their next step. In my state (California), properties governed by the Tenant Protection Act are limited to increases of 5% plus the local Consumer Price Index (CPI), not to exceed 10% in a 12-month period. Even if your property falls outside of rent control regulations, aligning with state guidelines can still be a strategic move—especially when it comes to tenant retention and avoiding unnecessary scrutiny

Beyond legal limits, think about timing in terms of market cycles. Is your vacancy rate low? Are similar units nearby renting for more? Has your cost of ownership—insurance, taxes, utilities—risen over the past year? These factors give you real, objective justification for an increase.

Good Reasons to Raise Rent

A rent increase should always be grounded in purpose, not just habit. Some of the strongest reasons to raise rent include:

Increased operating expenses

Significant property improvements (new flooring, appliances, etc.)

Market shifts showing higher rates for similar units

A strategic portfolio review showing below-market positioning

It’s not just about adding dollars—it’s about maintaining your investment’s performance in a changing economic landscape.

But Sometimes, Holding Off Is the Smarter Play

In the past, I’ve been know to advise some clients not to raise rent—even when they technically could. Why?

Because a great tenant is worth their weight in gold.

If your resident pays on time, maintains the unit, and causes no drama, a small rent increase could sour a perfectly good relationship. And in softer markets, where demand is flat or competition is high, raising rent could lead to vacancy—and vacancy is always more expensive than a missed increase.

It’s also wise to hold off if the property has unresolved maintenance issues. Nothing undermines a rent hike faster than a leaky faucet or a broken heater. If you’re planning to raise rent, the unit needs to justify it.

The Bottom Line: Rent Increases Should Be Intentional, Legal, and Fair

Raising rent isn’t about squeezing tenants—it’s about aligning your rental income with the realities of the market, your expenses, and your long-term goals. A well-timed, well-explained increase can keep your property healthy without putting your tenant relationships at risk.

One of the ways we stay on top of it is to offer detailed rent reviews and market evaluations for all our clients, so they can be sure where their rents stand—if you're concerned about how to navigate an increase—you may want to talk to a local property manager who has their fingers on the pulse of the market. Because rent is just one piece of the puzzle.

Hey Albert - congrats for educating yourself and getting out there to do the legwork involved with finding a good deal. It sounds like you have your fundamentals down - I feel like part of your problem is that you are looking at "ON-MARKET" homes which (in California) will almost never cash flow. There are some good things mentioned here about other aspects to look at such as appreciation or tax benefits, but I totally understand wanting to cash-flow out the gate. That has always been one of my primary 'must-haves' for an investment. 

You might want to consider starting a marketing campaign or partner with someone doing a marketing campaign so you can identify properties that really are below market. A marketing campaign can help you find sellers who are in trouble and need to get rid of their house right away. It could be due to foreclosure, a death in the family, or they need to move out of state/town right away. There are several reasons that someone would liquidate a home quickly, and a targeted marketing campaign like sending out mail pieces could put you in front of those sellers. Homes on the open market are typically not in a situation where owners need to dump the property as soon as possible and so they can ask market price for the property. These are not the kind of homes that are going to cashflow for you. 

I also agree with one of the other posters that a cashflowing 3.5% down property would have investors flocking to it with their own 20% down. It's going to be a tough gig to cashflow with only 3.5% down. You may want to see if you can start putting away more money so you can have a larger down-payment. 

What you are looking to do is not impossible but it is not easy either. You may have to deal with negative cash flow while your living there ( basically pay rent)  - add improvements that add value to the property so that when you do move out, you can increase the rent. Even if you never move out to rent it - it could be a situation where you live there for a while - improve it , then sell it. 

You will still have to pay someone to live somewhere anyway so you may as well build equity at the same time and as a backup plan, sell the property if you are not going to be able to rent it out. You'll have a roof over your head, some equity, and options for the future. Best of luck to you. 

Welcome to the forum @Jordan Bemboom - always happy to network and talk shop. Feel free to DM me if you ever want to discuss investing in the Central Valley.

If you are interested, I can help you look at the deal closer to see if there is really something there. If so, I can help plug you into some resources to help get started or at least walk through a couple of possible scenarios that might apply so you can be ready to jump on the next one you come across. 

Have you looked into Obligo? We started using Obligo as an alternative to security deposits and have had a good experience with it so far. I'm not sure if they have a minimum number of units. We have over 100 units but we do not have 500 units.  They get a small monthly payment from the tenant and at the end of the lease they will cover any damages that you submit, up to the amount of the security deposit and then collect any damages from the tenant directly. 

A lot of the questions I get from landlords vary depending on their experience. Inexperienced ( inexperienced in using PMs)  landlords mostly ask questions about what does a PM do?  what services are offered? How much does the services cost? Can I use my own handyman? Do I have to accept Sect 8 tenants? and many more similar questions.  

More experienced landlords tend to ask questions like how long have you been managing properties? How many people are on your team?  How do you screen potential tenants? What are your policies regarding late rents? Do you have experience with evictions? etc.

Generally speaking - I think the most important information to know is how well they screen applicants, how maintenance is handled and how often do inspections/services take place? This is because you want to make sure that they are looking out for your interests and only placing qualified tenants. Ideally, they would have set parameters of what is acceptable and what is not, such as a minimum credit score or a 'no evictions' policy. Once a qualified tenant is placed, maintenance is the bulk of what happens when managing properties so you want to make sure that they have policies in place for taking maintenance calls, handling invoices or payments, and following up with the work. Inspections are important too - you need to get eyes on the property periodically to make sure that your investment is still holding up and is not getting trashed. Inspections can help identify a $50 problem before it becomes a $500 problem. Some companies inspect as part of their scope of work - others charge extra to do an inspection. Either way - find out their policies regarding inspections.

Ask to review their PMA so you know what to expect from them and their expectations of you.There is some other great advice on this thread about checking their reviews, making sure that someone is available to get in touch with, and finding out what they DO NOT do. 

 Best of luck to you - let us know how your search goes. 

 I was thinking the same thing - seems like the moisture is coming from the cooking itself and not exactly the fuel source. May want to consider an additional window as well as ventilation.