(831) 655-7840 info@MontereyRentals.com

California’s New Law (AB 2747)

What Landlords Need to Know About Offering Credit-Building to Tenants

Starting April 1, 2025, California landlords will be required to offer tenants the opportunity to report their rent payments to a credit bureau, thanks to the passing of Assembly Bill 2747.

This new legislation is part of a broader statewide push to promote financial inclusion and credit access, especially for renters who have historically had few opportunities to build credit through their largest recurring expense — rent.

America’s Rental Housing Crisis: Insights from the Joint Center for Housing Studies of Harvard University
What Is AB 2747?

AB 2747 is a law that requires most landlords to give tenants the option to have their monthly rent payments reported to a major credit bureau (such as Equifax, Experian, or TransUnion).

The goal? Help renters build credit histories and improve credit scores by demonstrating a consistent rent payment record.

Who Does This Apply To?

This law applies to landlords and property management companies who manage five or more residential units in California.

There are a few exceptions (like certain affordable housing providers already reporting rent or using specific public funding), but for most rental housing providers, this will be a new standard practice.
Most property management companies and landlords are opting to extend the benefit to a broader group of tenants to support financial wellness and improve tenant satisfaction.

What Are Landlords Required to Do?

Under AB 2747, landlords must:

  • Notify tenants in writing (in the lease or separately) that they have the option to enroll in a rent reporting service.
  • Provide a rent reporting service or refer tenants to one.
  • Ensure tenants are informed whether there is a fee for the service, and if so, how much.
  • Allow tenants to opt in or out of the reporting service at any time.

Why This Matters for Tenants

For renters who pay on time, rent reporting can:

  • Help boost credit scores
  • Open up access to better loan rates, rental housing, and job opportunities
  • Provide a transparent payment history to share with future landlords

What This Means for Our Clients and Residents

At Monterey Bay Property Management, we’re prepared to comply with AB 2747 well ahead of the July 1, 2025 deadline. We’re evaluating reliable rent reporting platforms and will be rolling out communication to residents in the coming months.

As always, we are committed to:

  • Keeping our property owners informed and compliant with California rental laws
  • Supporting our residents with tools that promote financial well-being
  • Making this transition seamless and stress-free

Have questions about how AB 2747 affects your property or tenants? Reach out to Jan Leasure and the MBPM team at Jan@MontereyRentals.com — we’re here to help you stay ahead of the curve.

America’s Rental Housing Crisis

America’s Rental Housing Crisis: Insights from the Joint Center for Housing Studies of Harvard University

Today, I had the opportunity to participate in a Zoom presentation led by the Joint Center for Housing Studies of Harvard University, titled “Deteriorating Affordability: An Update on America’s Rental Housing 2024.” The discussion highlighted the growing challenges in rental affordability across the nation—an issue that is no longer confined to high-cost states like California but has now become a nationwide crisis.

America’s Rental Housing Crisis: Insights from the Joint Center for Housing Studies of Harvard University

Key Takeaways from the Presentation

🔹 Rental Affordability at an All-Time Low

The United States has reached a new peak in rent unaffordability. While California renters and landlords have long faced some of the highest housing costs in the nation, the affordability crisis has now spread across all 50 states. Today, nearly 22 million households—approximately half of all renters—are cost-burdened, meaning they spend 30% to 50% of their income on rent.

🔹 Who is Most Affected?

The youngest renters (under 25) and the oldest renters (over 65) experience the highest cost burdens. More than half of Black and Hispanic renters are rent-burdened. Even among fully employed households, rental costs continue to outpace earnings

🔹 A Nationwide Struggle—From Urban Centers to Rural Communities

Rent affordability is no longer just a challenge in major metropolitan areas. Over one-third of renters in every state are now cost-burdened, with particularly severe impacts in:

  • The West, where high housing costs persist.
  • The South, where lower housing costs are offset by equally low wages.
  • Rural areas, where 40% of renters are now struggling to afford rent.

🔹 Rising Costs and Declining Availability

The increasing cost of rent is not just a result of inflation but also of declining rental stock. Several factors have contributed to this trend:

  • The demolition of older, more affordable units to make way for new developments.
  • Landlords exiting the market due to heightened regulatory pressures.
  • Rising construction costs, including both labor and materials, leading developers to prioritize luxury housing with higher profit margins over affordable units.

The median percentage of income spent on rent has now reached 31%, and alongside rising costs for food, energy, and healthcare, many renters are struggling to cover essential living expenses. A staggering 17% of renters reported falling behind on rent at some point in 2024, highlighting the precarious financial situation many households face.

Where is the Rental Market Headed?

📉 Rents Are Stabilizing—But Demand Still Outpaces Supply
After the sharp increases following the pandemic, asking rents have plateaued in many areas. However, demand for rental housing continues to exceed supply. Despite over 600,000 multifamily units being constructed last year, the need for housing remains critical—partially fueled by the increasing difficulty of purchasing a home in today’s market.

⚖️ Legislative and Policy Efforts Are Increasing
State and local governments are stepping up efforts to address the crisis, recognizing that rental affordability is no longer just a market trend but a policy imperative. However, economic uncertainty looms large, with experts hesitant to make definitive predictions about the future of the housing market.

A Call to Action: The Need for Smart Solutions

In 2024, California legislators declared housing a human right—a powerful statement, but one that lacked concrete plans for how to ensure access to affordable housing for all. To truly address this crisis, policymakers must prioritize increasing housing supply rather than relying on restrictive measures such as rent control, which often exacerbates shortages.

The path forward requires streamlining development processes, reducing regulatory barriers, and investing in sustainable, affordable housing solutions. Instead of discouraging new construction, we must create policies that incentivize environmentally responsible development while expanding rental options for all income levels.

The affordability crisis is a challenge we cannot afford to ignore. It’s time for bold action to ensure that safe, stable housing remains within reach for all Americans.

Jan Leasure, Managing Broker
www.MontereyRentals.com 
831-402-1765

Vacation Rental Trends

Beachouse

One of the key vacation rental trends that vacation rental owners should be aware of in 2025 is the increased demand for unique stays. Unique stays often command higher nightly rates and attract more bookings.

Travelers are seeking one-of-a-kind experiences, such as remote cabins, tiny homes, treehouses, and luxury glamping.  These types of homes are unique just by their very nature.  But what if you have a vacation rental home that can best be described as “average?”  There are things you can do to turn an average house into a unique vacation rental. This can significantly increase bookings and nightly rates.

Here are some ways to make a property stand out:

  • Give your rental a distinct personality by creating a theme or concept
  • Coastal Retreat (nautical decor, surfboards, beach gear)
  • Mid-Century Modern (vintage furniture, retro appliances)
  • Boho Escape (earthy tones, hanging plants, rattan furniture)
  • Hollywood Glam (bold colors, velvet furniture, gold accents)
  • Name the property accordingly (e.g., “The Boho Hideaway”, “The Seaside Retreat”) for branding.
  • Have a custom logo or signage (e.g., a wooden entrance sign)

For lots more revenue-generating ideas, reach out to Jan@MontereyRentals.com!

 

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

Top 5 Things to Know About Renting Property on the Monterey Peninsula

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits.

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits. However, navigating the rental market here requires an understanding of local trends, regulations, and best practices. Whether you’re a homeowner looking to rent out your property or a tenant searching for the perfect place to call home, here are the top five things you should know:

1. Demand Is High, but So Is Competition

The Monterey Peninsula is a highly desirable place to live, thanks to its stunning scenery, temperate climate, and proximity to world-class attractions. As a result, demand for rentals remains strong year-round. However, competition can be intense, especially for well-maintained properties in prime locations like Pacific Grove, Carmel, and Pebble Beach. Renters should be prepared to act quickly when they find a suitable home, while landlords should focus on presenting their properties in the best possible condition to attract quality tenants.

2. Local Rental Regulations Vary by City

Each city within the Monterey Peninsula—Monterey, Pacific Grove, Carmel-by-the-Sea, and others—has its own set of rental laws and regulations. Some areas have strict short-term rental restrictions, while others require permits or specific lease terms. For example, Pacific Grove has a limited number of short-term rental licenses, and Carmel-by-the-Sea prohibits most short-term vacation rentals altogether. If you’re a property owner, understanding these local laws is crucial to avoiding fines and ensuring compliance.

3. Seasonal Rental Trends Impact Pricing and Availability

The rental market on the Monterey Peninsula experiences seasonal fluctuations, particularly in coastal areas where tourism is a major factor. During peak travel months (spring and summer), short-term rental rates can be higher, while long-term leases tend to be more stable year-round. Homeowners looking to maximize rental income should consider these trends when deciding whether to offer short-term or long-term leases. Tenants, on the other hand, may find better deals in the off-season when demand is lower.

4. Property Maintenance and Amenities Matter

Due to the coastal climate, rental properties in the Monterey Peninsula require regular maintenance. Salt air, moisture, and seasonal weather changes can contribute to wear and tear, making upkeep essential for landlords. Properties with modern upgrades, energy-efficient features, and well-maintained outdoor spaces tend to attract higher-quality tenants. Renters often prioritize amenities such as in-unit laundry, updated appliances, and private outdoor areas—features that can set a rental apart from the competition.

5. A Property Management Team Can Make a Big Difference

Whether you’re a homeowner renting out your property or a tenant looking for a reliable landlord, working with a professional property management company can simplify the process. A knowledgeable management team handles everything from tenant screening and lease agreements to maintenance and compliance with local laws. At Monterey Bay Property Management, we specialize in helping property owners maximize their rental investment while ensuring tenants have a seamless rental experience.

Final Thoughts

The Monterey Peninsula offers a unique and dynamic rental market, full of opportunities for both landlords and tenants. By understanding local regulations, market trends, and best practices for property maintenance, you can make informed decisions that benefit your rental experience. If you’re looking to rent out your property or find a rental home in the area, Monterey Bay Property Management is here to help.

Need expert advice on renting in Monterey? Contact us today at www.MontereyRentals.com to learn more!

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

The Challenges of Monterey’s Rental Registry Program

The Challenges of Monterey’s Rental Registry Program: A Property Manager’s Perspective

As a housing provider in Monterey, I have witnessed the increasing regulatory burden placed on landlords and property managers. While the city’s Rental Registry Program was designed with good intentions, its execution raises serious concerns for those of us who work daily to provide quality rental housing. Rather than fostering a more efficient market, the program introduces unnecessary bureaucracy, added costs, and potential privacy risks for property owners.

Understanding the Rental Registry Program

The Rental Registry Program requires landlords to register their rental properties with the City, providing details such as ownership information, occupancy status, and compliance with safety regulations. The stated goals of the program include:

  • Ensuring Habitability Standards: While maintaining a registry may help track housing conditions, landlords are already subject to state and local codes that mandate safety and maintenance requirements.
  • Promoting Fair Housing Practices: Transparency in tenant screening and lease agreements is essential, but there is little evidence to suggest that a registry prevents discrimination beyond existing federal and state fair housing laws.
  • Data-Driven Policy Making: While collecting rental data may seem beneficial, it can also lead to increased government interference in private property matters and potential rent control measures.
  • Enhancing Emergency Preparedness: While having updated records could assist in crisis response, requiring landlords to provide extensive personal property details raises privacy concerns.

The Burden on Housing Providers

For property managers and landlords, the Rental Registry Program adds another layer of administrative work without offering tangible benefits. Compliance requires time, effort, and, in some cases, additional costs that ultimately get passed down to tenants in the form of higher rents. Moreover, penalties for non-compliance can place unnecessary strain on property owners who are already struggling with rising operational costs.

For tenants, the program may create unintended consequences. As landlords adjust to the added costs and regulations, some may opt to remove properties from the rental market altogether, exacerbating the already limited housing supply. Fewer available rentals mean increased competition and higher rents, ultimately making it harder for tenants to find affordable housing.

Addressing Common Concerns

Supporters of the Rental Registry Program argue that it improves accountability and ensures fair housing practices. However, existing laws already govern these areas, and the registry seems redundant at best and overreaching at worst. Rather than helping responsible landlords, the program creates an additional compliance hurdle while doing little to address the real issues driving housing shortages and affordability concerns in Monterey.

The Future of Rental Regulations in Monterey

As Monterey continues to refine its rental regulations, it is crucial to consider the unintended consequences of increased government oversight. The Rental Registry Program, while well-intended, risks discouraging investment in rental properties and creating a more hostile environment for landlords and property managers. Instead of adding more red tape, the city should focus on incentives for maintaining quality rentals, streamlining permitting processes, and encouraging the development of new housing.

As a property manager, I urge property owners to stay informed and voice their concerns to local policymakers. Rental housing should be encouraged, not stifled by excessive regulation. If Monterey truly wants to create a fair and sustainable housing market, it must work with, not against, those who provide rental housing in the community.

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

How We Protect Your Rental Property Before and During the Tenancy

Owning rental property is an excellent investment, but it comes with potential risks. One challenging tenant can mean months of unpaid rent, mounting legal expenses, and possible property damage. In Monterey County, the eviction process can often take three months or longer. And if tenants use tactics like requesting a jury trial, the delays can stretch even further. The financial toll of one difficult tenancy can climb to $20,000 or more.

Because we recognize and counter common tenant strategies, we protect owners against significant financial losses. Here’s a rundown of effective ways Monterey Bay Property Management addresses tenant issues at both the application stage and during tenancy.

A strong screening process is essential for weeding out potentially problematic tenants. Here are some frequent tactics prospective tenants may use and how we catch them.

Fake IDs and Supporting Documents

  • Common Issue: Applicants may provide fake IDs or doctored paperwork to cover up a troubled rental history or poor credit.
  • Our Solution: We ask for supporting documents like recent bank statements or utility bills to confirm identity and address consistency. Verifying information across multiple sources makes it harder for applicants to maintain false identities.

False Employment Information

  • Common Issue: Applicants sometimes exaggerate their employment status or provide false references, listing friends or family members as employers. They may also provide fake pay stubs.
  • Our Solution: We use independent sources to verify employment. Instead of calling the number provided by the applicant, we look up the company’s contact information and call directly to confirm the applicant’s position and tenure.  Years of practice has taught us to recognize phony or doctored pay stubs.

Incomplete Rental Payment History

  • Common Issue: Gaps in rental payment history may suggest issues with previous landlords or frequent moving due to rental problems.
  • Our Solution: We request recent proof of rent payments, such as receipts or bank transaction records. If applicants struggle to provide this, it could indicate inconsistent payment behavior in the past. We do not accept an assertion that rent was paid with cash.

Partial or Avoided Application Answers

  • Common Issue: Applicants may leave out details to hide past evictions, bankruptcies, or frequent lawsuits.
  • Our Solution: A thorough, detailed application form is essential. We ensure the form covers prior rental issues, lawsuits, and other relevant history, and we make sure each section is completed fully before considering the applicant.

Once a tenant is approved and has moved in, issues can still arise. It’s essential to remain vigilant and address these challenges professionally.

Avoiding “Tenant Stories”

  • Common Issue: Tenants might explain late payments with personal stories, hoping to gain sympathy and delay action.
  • Our Solution: We keep communication clear and professional. If rent isn’t paid on time, we stick to the lease terms and take prompt action. While we listen to tenant concerns, we enforce payment deadlines to maintain control of the rental relationship.

Keeping a Detailed Record of Interactions and Requests

  • Common Issue: Tenants may claim unmet maintenance needs to justify withheld rent or disputes over repairs.
  • Our Solution: We require that all maintenance or repair requests be submitted in writing. We keep a well-organized log of all communication and actions taken, which can help clarify any disputes if they arise.

Monitoring Rent Payments and Payers

  • Common Issue: Occasionally, tenants may have third parties pay their rent, leading to unclear relationships or tenancy rights.
  • Our Solution: To avoid confusion, we accept payments only from the tenant or provide a disclaimer when third parties pay. This prevents potential claims to tenancy rights and keeps the agreement straightforward.

Successful property management requires a proactive and vigilant approach. Each stage, from screening to ongoing management, is an opportunity for Monterey Bay Property Management to mitigate risks and safeguard your investment. By staying alert to common tenant tactics and maintaining detailed records, we reduce the risk of financial losses and establish a professional landlord-tenant relationship. These strategies not only minimize potential problems but also help you maximize the benefits of rental property ownership.