Investor FAQ
Have property management questions but not ready to talk to anyone yet? Check out our growing database of common questions for Riverside, Moreno Valley, Corona, and Inland Empire Landlords.
Common Questions, Expert Answers
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Property Owner Services
Dream Big provides full-service property management, A to Z, in Riverside, CA, Moreno Valley, CA, Corona, CA, and the Inland Empire of Southern California.
We handle marketing, tenant screening, leasing and tenant placement, rent collection, maintenance and repairs, inspections, financial reporting, and operational efficiency of your rental home.
We are Rental Home Advocates and we are focused on increasing your profit, decreasing your stress, and building your wealth-generating portfolio using the 5 Profit Centers of Rental Property.
Our management agreements typically are dated for a year, but we do NOT handcuff anyone and force them to work with us.
Owners can cancel our management services for any reason at any time with a 30-day notice.
No cancellation fees are ever assessed.
No, we do not manage furnished rentals. However, if you need assistance getting your property rent-ready, we can help arrange storage accommodations for your furniture and belongings.
We are fluent in phone calls, text, email, written word, direct message, and we are comfortable in each.
Dream Big provides owners with monthly financial statements, year-end tax-ready reports, and an online portal with real-time updates.
Our owners have their own logons to their own portal accounts, where they can see the latest activity on their property, communicate directly with our team, download reports, retrieve invoices and receipts, or download current and past reports.
We are strong communicators and we strive to return your inquiries within 4 business hours.
We offer 3 Pricing Plans to suit any budget.
Traditional property management pricing models are unfair to rental home Investors like you. So we use a Hybrid Pricing Model, which combines elements of the flat-dollar service fee with a percentage of rent collected.
This strategy treats clients more equitably and fairly, and it boosts your bottom line.
Our 3 Pricing Plans are geared for owners who want Full Service management, All-Inclusive Smart Investor coverage, or Basic Compliance-Only services.
See our detailed plans at http://dreambigpricing.com/
Yes, for some of our pricing plans. You can see those details on our pricing page (http://dreambigpricing.com/)
Talk, they say, is cheap. Which is why we put our promises in writing, and we back them up with our service guarantees.
From our 100% Satisfaction Guarantee to our Performance Guarantee to our No-Eviction Guarantee, we do what we say we’re going to do. And we back it up with our wallets.
See details on each at http://dreambigpricing.com/
We do not charge any fees in advance, except in situations in which we are overseeing repairs or maintenance to prepare your home for the rental market.
But the initial fees for our services are paid from the first month’s rent we collect on your behalf.
We deposit owner funds directly to their bank accounts, typically between the 7th and the 10th of the month, depending upon how weekends and holidays might fall in the month. (That assumes the residents’ rent payment has cleared our account.)
For electronic disbursement, your funds can land in your account in just 1 business day!
Yes, we provide every property owner a monthly Owner Statement showing all financial activity, usually on the 16th of each month.
We also provide an annual statement compiling the entire year’s financial activity, as well as a 1099-Misc form, to help you prepare your income tax filing.
Typical homeowners insurance policies are not applicable on rental properties. Rental homes require "Landlord Insurance" policies, also known as "DP-3" policies. They cover the structure but not the personal contents.
Dream Big Property Management requires our investor clients to also have at least $1 million in liability coverage on the home to cover in case of injury and/or lawsuits. Umbrella policies are good alternatives for higher coverages.
Smart investors also consider rent-loss insurance as well as Landlord Protection policies that cover such worst-case scenarios as malicious damage and eviction fees. For more information on Landlord Protection plans, see https://dreambigpm.com/landlord-protection/
All insurance policies also name the property management company as "additionally insured," which is standard and typically does not affect the policy premium.
Dream Big requires all renters to have renters insurance policies with coverage for their personal belongings and a minimum of $100,000 in liability coverage.
Marketing & Leasing Services
We process applications in the order in which they are completed, and we measure adult applicants individually by the minimum criteria, which includes having sufficient income to afford a unit’s rent, a history of paying bills on time, no evictions, and positive rental history.
We check rental references, verify employment or income, and we run credit and background checks.
We diligently adhere to Fair Housing guidelines at all times.
We are marketing experts and we make every effort to make your property stand out from the competition.
We hire professional photographers to shoot high-quality still images and to create a 3D tour and floorplan of your home.
Our staffers are trained wordsmiths who sell the lifestyle of your home.
We market all homes in the local multiple listing service, where licensed agents with prospective applicants look. And we also publish on all major public rental websites, including Zillow, Trulia, Apartments.com, Homes.com, Realtor.com and many more you’ve probably never heard of.
There are a lot of factors that can impact marketing time for your home: price, presentation, location, time of year, etc.
The time it takes to find, evaluate, and approve a new resident has more than doubled nationwide in the past year. But even so, if a home is attractive, looks great, shows well, and is priced right, we should be able to fill a vacancy within 30 days.
If we can’t, we’ll give you the first month’s management for free. (Some restrictions apply.)
Yes, we work with all verifiable income sources, which is required by California law.
Applicants who have housing assistance are welcome and we treat all applicants equally.
All applicants must have positive rental history, good references, and sufficient income to afford their portion of the rent.
Dealing With Renters
The following is intended for informational purposes only. Consult an attorney for legal guidance on your situation.
Short Answer: No.
You must give the resident of a rental at least 24 hours advance written notice before entering the property, according to California law.
Notice must be served to the property and given to an adult or posted conspicuously.
Emergency situations could be exempt to the notice requirement if there is immediate threat of harm or damage at the property. Consult with an attorney before taking any actions.
Rent is due on the 1st and we typically have a three-day grace period in which the resident can pay without a late fee. But if the rent isn’t paid by midnight on the 4th, a late fee will be assessed to the resident, payable with rent.
Dream Big Property Management splits that late fee with the property owner because … you’re waiting, and we’re chasing the payment.
Our system automatically begins notifying a resident when rent is due, when a late fee is imminent, and after it is late, and then periodically until payment is current.
Communication is crucial, and we try to keep the lines open; that starts with treating our residents with respect, listening when they have problems, and jumping in to help solve those problems when we can.
Dream Big oversees the entire eviction process, including coordinating the eviction attorney and legal filings, court representation, and sheriff lockout.
If an eviction is required for a resident placed by Dream Big, we pay the first $1,200 of the eviction filing fees.
California enacted the Tenant Protection Act (AB 1482) in 2020, limiting annual rent increases to 5 percent PLUS the local Consumer Price Index (CPI), or 10% total, whichever is lower. For the period of August 2025 to July 2026, the CPI factor is 2.5 percent for Riverside and San Bernardino counties, capping rent increases at 7.5%.
Exceptions apply for exempt properties (single-family homes, newer builds, owner-occupied duplexes, etc.). If exempt and properly disclosed, there is no rent cap. Penalties for non-compliance are severe.
During declared States of Emergency in California, anti-gouging laws cap all rent increases at 10% of the last advertised or rented rate.
Consult with your legal adviser to determine if your home is covered by the Tenant Protection Act.
Fixed-Term Lease:
The lease end date must be honored, unless the renter breaches the agreement.
Month-to-month agreements:
- 30-day notice if the resident has lived in the property less than 12 months
- 60-day notice if the occupancy has been longer than 12 months
- 90-day notice for government-assisted tenants.
Tenant Protection Act:
Properties covered by the TPA have restricted termination rules and require “at-fault” or narrow “no-fault” justifications. “No-fault” evictions require relocation assistance equal to one month’s rent.
Consult with your legal adviser to determine if your home is covered by the Tenant Protection Act.
Maintenance & Repairs
We have 24/7 coverage for emergency repairs.
When a resident contacts us with a maintenance request, we first triage the problem to attempt to find a solution. If the problem cannot be resolved, we dispatch a service person relevant to the type of repair.
For repairs that can be completed for less than $500, we pre-approve repairs with the vendor, to expedite the job.
For repairs that cost more than $500, we contact the property owner for approval before the work is done.
Emergency repairs are the exception: Stopping damage will be approved immediately even if it costs more than $500.
Dream Big Property Management does not employ any repair and maintenance vendors.
All of the vendors in our approved roster are third-party providers.
Yes, we hold in trust for you $500 as an emergency fund for mid-month repairs or expenses.
That money is yours, and we simply hold it in your account to cover unexpected expenses.
Your reserve funds are visible on your monthly financial reports.
We do not charge extra for maintenance costs, except in the following circumstances:
- If a property is on the Compliance-Only pricing plan, maintenance repair calls have a fixed admin service charge to the owner.
- If we are tasked with overseeing a significant renovation of the property that exceeds $5,000 in work, we levy an admin service charge to the owner to oversee the work.
We perform annual interior assessments at least once a year, creating a comprehensive written report with dozens and dozens of photographs.
For new residents, we also perform a 30-day “5-Point Compliance Check” to confirm that smoke detectors, carbon monoxide detectors, HVAC, and water heater are all working and that there are no under-sink leaks.
Additionally, we perform detailed pre-move-in inspections before new tenancies, pre-move-out inspections before residents vacate, and post-move-out inspections after a home has been vacated.
It depends on the lease and whether the issue is wear-and-tear or resident-caused damage.
Owners typically pay for normal wear and tear (AC age failure, leaking valves, aging appliances).
Residents typically pay for misuse or damage (broken windows, clogged drains from improper items, pet damage).
Consult with your legal adviser for guidance on your specific situations.
Security Deposits
The following is intended for informational purposes only. Consult an attorney for legal guidance on your situation.
As of July 1, 2024, California's Assembly Bill 12 (AB 12) limits security deposits to one month's rent for most landlords. This applies to furnished and unfurnished rental properties throughout California, including here in Riverside, Moreno Valley, Corona and the entire Inland Empire.
The Small Landlord Exception:
Some property investors can charge up to two months' rent as a security deposit if they meet ALL three of the following criteria:
- You're a natural person or LLC where all members are natural persons (not a corporation or REIT)
- You own no more than 2 residential rental properties
- You have no more than 4 total rental units across all properties
Critical Details:
The one-month cap includes EVERYTHING that is not current rent or a service charge. Pet deposits, key deposits, "last month's rent" are all considered part of the security deposit and the legal limits apply.
Military service members are ALWAYS capped at one month's rent, regardless of whether you qualify for the small landlord exception. This applies to active duty, reserve, and National Guard members.
What if my lease was signed before July 1, 2024? The old rules still apply to existing leases unless you renew or modify the agreement. (Before AB 12, landlords could charge two months rent for unfurnished units and three months for furnished units.)
Penalties for violations are serious. If you charge more than allowed, tenants can sue to recover the excess amount, and courts may award statutory penalties, damages, and attorney's fees.
Consult with your legal adviser for guidance on your specific situation. This is not intended to be legal advice.
First things first ... The security deposit belongs to the resident, not the landlord. You're holding their money in trust as security in case they leave with unpaid rent or damages. This fundamental principle shapes everything about how California regulates security deposit deductions.
When a tenant vacates your Inland Empire rental property, California law requires you to refund their full security deposit within 21 calendar days, unless you can document one of four legally permitted deductions.
The Four Legal Deductions:
1. Unpaid Rent
2. Damage Beyond Normal Wear and Tear
Costs to repair actual damage caused by the resident, their guests, or their pets, but ONLY damage that exceeds normal wear and tear. Examples might include large holes in walls, broken windows, damages from misuse, etc.
3. Cleaning Necessary to Restore Unit to Move-In Condition
Actual costs to clean items left unclean by the resident but would be required to put the property back in move-in condition.
4. Repairing Breaches of Lease Maintenance Obligations
If resident failed to maintain items that were required in the lease.
What You CANNOT Deduct:
1. Normal Wear and Tear
Carpet wear from normal foot traffic, faded or scuffed paint after years of occupancy, small nail holes from hanging pictures, worn cabinet finishes, or aging appliances are all considered normal wear and tear. These are the property owner's responsibility.
2. Automatic or Assumptive Cleaning Charges
You cannot charge a blanket "move-out cleaning fee" as standard practice. Cleaning charges must be itemized and based on actual necessity.
3. Full Replacement Cost for Items with a Depreciating Life
Paint and flooring have established useful lives. Even if there is damage beyond normal wear and tear (like significant pet stains or unauthorized paint), you can only charge the prorated amount based on the remaining useful life of that item. Check with your attorney for local useful life standards.
4. Property Upgrades or Improvements
If you're replacing old carpet with luxury vinyl plank or upgrading appliances, property improvements are the owner's expense.
5. Pre-Existing Damage
You can only deduct for damage that occurred during the current tenancy.
6. AB 2801: Photographic Evidence
As of April 1, 2025, California law mandates photographic documentation from pre-move-in, post-moveout, and post-repair in order to make any security deposit deductions.
The following is intended for informational purposes only. Consult an attorney for legal guidance on your situation.
For tenancies beginning on or after July 1, 2025, California law requires time-stamped photos if you want to deduct anything from a security deposit for damage caused by the resident.
Photos must be taken at three intervals:
- Before a resident moves in.
- After the resident moves out.
- After any applicable repairs.
The photos must show the condition before move-in, the damage to be repaired discovered after moveout, and then the resolution after repairs are complete.
A security deposit belongs to the tenant and is held in trust to cover unpaid charges or repair damages left by the renters.
According to California law, you have 21 calendar days from the date the tenant moves out to either return their full security deposit or provide a detailed accounting of any deductions.
If you deduct anything from the deposit, a detailed, itemized statement is required, along with photos of the problems and receipts for the corrections.
If the renters paid their rent electronically, the security deposit refund must be delivered in the same manner.
Consult with your legal adviser for guidance on what you can legally deduct from a tenant security deposit.
Consult with your legal adviser for guidance on your specific situation. This is not intended to be legal advice.
In California, you have 21 days to return a security deposit after moveout. If you miss that deadline, for any reason, you cannot deduct anything for repairs, past-due fees, past-due rent, or any legitimate deduction.
And if you improperly withhold a deposit or deliberately ignore the law, you could face a penalty of 2X the security deposit amount, plus attorney and court costs.
The following is intended for informational purposes only. Consult an attorney for legal guidance on your situation.
Yes, in California, you CAN charge a pet deposit.
But deposits of any kind are all lumped together in total and capped by Assembly Bill 12, which limits "security deposits" to 1 to 2 months' rent maximum.
Siloing off deposit funds for narrow-use cases could limit use of those funds for allowable expenses simply because they are not related to the specified type of deposit. Which is why many property managers collect general security deposits only.
Legal & Compliance
The following is intended for informational purposes only. Consult an attorney for legal guidance on your situation.
California law defines normal wear and tear as the lessening in value of an asset because of normal use.
Damage, on the other hand, is misuse or neglect by the resident that reduces the value or usefulness of the property. That's beyond normal living.
Here are some examples:
Normal wear and tear covers minor scuffs on walls and baseboards from foot traffic, small nail holes from hanging pictures, faded paint, worn carpet from normal foot traffic, furniture indentations in carpet, loose toilet seats, drippy faucets, and flaking or cracking paint.
Resident damage includes large holes in walls; unauthorized painting of walls; burns, tears, or stains in carpets; pet damage, including marred doors or walls; urine odor or pet waste; broken windows; smoke damage from candles or cigarettes; crayon or marker on walls; mold or mildew from failing to report leaks; grease splatter on cabinets or granite from cooking without proper cleaning.
For a more detailed list of wear and tear vs. resident damages, see dreambigpm.com/residents/wear-and-tear.
Consult with your legal adviser for guidance on your specific situation. This is not intended to be legal advice.
Under federal and California fair housing laws, emotional support animals cannot be denied if a resident with a medical need makes a "reasonable accommodation" request.
ESAs and service animals are not considered pets, and therefore, pet policies do not apply.
At Dream Big Property Management, we work with PetScreening.com, a service devoted to ensuring all reasonable requests are honored and that we keep your property in legal compliance.
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