Online Tenant Payments v2.0 Coming Soon!

Within the next couple months, we plan to launch a new online payment portal that will allow our tenants to pay rent online  -- with no service charges! Tenants will simply enter their bank's ABA routing number and checking account number into the secure webpage, and voila-- the payments are set up.

There will be options to choose automatic payment or one time payments.

Update Regarding Tenants Rights During Foreclosure

Many questions have been raised regarding tenants rights at the foreclosure of a property. Below is a section of the bill signed in 2009 regarding preexisting tenancies and the effects of foreclosure:

S.896

Helping Families Save Their Homes Act of 2009 (Engrossed as Agreed to or Passed by
Senate)

TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT
SEC. 701. SHORT TITLE.

This title may be cited as the `Protecting Tenants at Foreclosure Act of 2009'.
SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General- In the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to--
(1) the provision, by such successor in interest of a notice to vacate to any bonafide tenant at least 90 days before the effective date of such notice; and (2) the rights of any bona fide tenant, as of the date of such notice of foreclosure--
(A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or
(B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90 day notice under subsection
(1), except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants.
(b) Bona Fide Lease or Tenancy- For purposes of this section, a lease or tenancy shall be
considered bona fide only if--
(1) the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; or
(3) the lease or tenancy requires the receipt of rent that is not substantially less
than fair market rent for the property.
(c) Definition- For purposes of this section, the term `federally-related mortgage loan' has
the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2602).

It's Not Easy Being Green..

Cornerstone is going green! We offer the ability to have your statements emailed to you each month. Owners will still receive a copy of their invoices, but they will be emailed as a PDF at the end of each calendar year. If you are an owner currently receiving paper statements and would like to change to paperless statements, just give us a call or drop us an email.

Tax Withholding Update

There are additional provisions for waiving the tax withholding by filling out FTB Form 588 - Tax Withholding Waiver Request. Please see the list of reasons below. If you think that you fit into any of these categories, you can fill out the form and send it to the Franchise Tax Board. They have typically processed these requests within two to three weeks.

Reason For Waiver Request
A Vendor/payee has California state tax returns on file for the two most recent taxable years in which the vendor/payee has a filing requirement. Vendor/payee is considered current on any outstanding tax obligations with the Franchise Tax Board.
B Vendor/payee is making timely estimated tax payments for the current taxable year. Vendor/payee is considered current on any outstanding tax obligations with the Franchise Tax Board.
C Vendor, S corporation shareholder, partner, or member is a corporation that is not qualified to do business and does not have a permanent place of business in California but is filing a tax return based on a combined report with a corporation that does have a permanent place of business in California. On an attached sheet explain fully and provide the name and California corporation number of the corporation filing the combined report. Attach a copy of Schedule R-7 from the combined report.
D Shareholder, partner, or member is a newly admitted S corporation shareholder, partner, or member. A newly admitted S corporation shareholder, partner, or member is any entity that becomes a shareholder, partner, or member in the above-listed S corporation, partnership, or LLC after the end of the S corporation’s, partnership’s, or LLC’s taxable year. Provide the date that this shareholder, partner, or member was admitted under the letter code entered in the Reason for Waiver request box above.
E Other – Attach specific reason and include substantiation that would justify a waiver of withholding.

http://www.ftb.ca.gov/forms/2009/09_588.pdf

Pay Rent Online!

Cornerstone is now accepting payments using our online pay portal. Tenants can click on the residents tab and click 'pay rent online'. Once registered you can make online rent payments using major debit or credit cards.*

*A transaction fee may apply.

Owner Portal

Clients of Cornerstone Property Management can view copies of their statement by entering their registered email address at:

https://cornerstone.appfolio.com/portal

The page will appear with a text box where you enter your email. When you click 'Send Access Email' you will be sent a one-time use link to your portal. If you have any issues getting access just send us an email.

California Tax Withholding

Beginning January 1st, 2010 the Franchise Tax Board will be requiring residential property managers to withhold 7% of nonresident owner’s rental income. You may qualify for an exemption if you meet the FTB residency requirements. A resident is defined in the instructions for Form 590. This form can be found online at:

http://www.ftb.ca.gov/forms/2009/09_590.pdf

For clients who are not California residents, you can fill out a Form 588 Nonresident Withholding Waiver Request. If you have been filing state taxes for the previous two taxable years, it is likely that the request will be approved. Here is a google search for the form 588: http://goo.gl/4fwV3

For more info, please read the property manager blog regarding tax withholding.