California Non-Resident Withholding Tax for Landlords
January 18, 2010
Posted by R.S. Rodriguez
In February 2009, policy-makers with California’s Franchise Tax Board (FTB) issued new guidelines to be implemented at the start of January 1, 2010 requiring Property Management firms to withhold a certain percentage of rent collected by them on behalf of their clients. This policy only concerns residential property owners with properties in California, but whose owners live outside of California. Refer to the FTB for exemptions and waivers.
The new policy states property management companies now have the burden of informing their out-of-state clients as to this new initiative and are responsible for a quarterly accounting , withholding and submissions of such funds to the FTB. Granted, California current fiscal woes and budgetary problems are a mess. Currently, there is an approximate 20 billion dollar budget deficit in California and policy-makers are scrambling to close the gap. Unfortunately, this new policy seems to place an unusually high burden on property management companies to collect and submit these funds. By placing the tax collection responsibilities on property management companies, the FTB may unwittingly be jeopardizing the relationship between property management companies and their clients, respectively. Read more
Property Management in Camarillo Using Technology
January 11, 2010
Chris Thorman from http://www.softwareadvice.com/property-management/ surveyed property management companies on their uses of technology in their real estate businesses, respectively. The staff at Esquire Property Management Company in Camarillo, Ca consistently employs technology and technological innovations to better serve its clients, tenants and business operations. Furthermore, by incorporating technology in its daily business operations, Esquire Property Management Company is doing its part in being environmentally conscious by incorporating technology and thus reducing our use of paper and fuel.
In Thorman’s article How Are Property Managers Using Technology, he surveys property management companies regarding their use of email statements, e-maintenance requests, e-payments, use of property management software, integrated accounting, lead tracking electronically, and posting on craigslist. Read more
