© Ksenia Kolesnikova | Dreamstime.com
Questions and Answers By Todd A. Brisco, Esq., Todd A. Brisco & Associates, A Professional Corporation
Q. We will be taking the turnover of most of our vacant apartments in house. I wanted to ask for your guidance on what we can and can’t charge for if we are to complete the work in house? Is there a specific formula that you have to use and submit for proof under SB-90 with the employees hourly? A. Civil Code Section 1950.5 allows for repairs completed by your in-house staff. If the turn will be done in house, the landlord must keep accurate records for the time performed. The landlord charges the entire wage paid to the staff person performing the work (including health care, taxes, etc.). The landlord must record and maintain the time necessary to complete the work. Remember
this is a business and not a hobby. Keep records. Landlords can be sued for discrepancies in their security deposit accounting. As for example, a California landlord had a Southern California portfolio outsourced their work and charged the residents based upon invoices. The Northern California portfolio handled the work inhouse. The Northern California portfolio failed to keep adequate documents and didn’t charge the tenant based upon the actual work performed. Essentially poor record keeping. Moreover, the landlord didn’t maintain the time it took to complete the tasks and who performed the work along with their hourly wage. The case resulted in a $5 million judgment for the tenants.
Civil Code 1950.5(g)(2) states: “(A) If the landlord or landlord’s employee did the work, the itemized statement shall reasonably describe the work performed. The itemized statement shall include the time spent and the reasonable hourly rate charged. (B) If the landlord or landlord’s employee did not do the work, the landlord shall provide the tenant a copy of the bill, invoice, or receipt supplied by the person or entity performing the work. The itemized statement shall provide the tenant with the name, address, and telephone number of the person or entity, if the bill, invoice, or receipt does not include that information. May 2020 socalrha.org | 31
