2026 Home Leasing Guide

Skybox Realty

Home Leasing Guide 2026

© Skybox Realty Inc, 2026

Table of Contents

Table of Contents

The Leasing Process

4-7

Prepare Your Home

10 - 11

Processing Applications

12 - 13

Rights & Responsibilities

14 - 15

Property Management

16 - 17

Frequently Asked Questions

20 - 21

Tax Considerations

22 - 23

Security Deposits

24 - 25

San Francisco Requirements

26 - 27

Move-In Checklist

28 - 29

Paul Hwang

30 - 31

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Table of Contents

© Skybox Realty Inc, 2026

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Leasing Process

The Leasing Process This graphic illustrates a typical example of the leasing process from start to finish.

FIRS T S TEPS

Initial Consultation

Preview Home

• • • • • •

Understand objectives, priorities, & time frames Discuss leasing process overview Examine local rental market conditions Define agency relationship Define how we will work together Skybox typically charges 8% of the annualized lease for tenant procurement

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Preview the home to create maintenance checklist Is the home currently tenant occupied? If so, discuss showing schedule & preferences with the current tenant

•

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Leasing Process

• • •

PREPARE HOME

Maintenance

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• •

Photography

© Skybox Realty Inc, 2026

Make necessary repairs Fresh coat of paint, if needed Full move out cleaning after previous tenant or owner, if needed Skybox coordinates with all appropriate vendors to ensure a smooth, stress free process

We schedule & coordinate photography with a professional We don’t believe in DIY photography, even for rentals

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Leasing Process

• •

MARKE TIN G

Advertising

•

• •

Client Database

•

We have 25+ web partners to help market your home to the largest pool of tenants Combination of traditional & digital marketing channels Well designed content

We post your home on the Top Agent Network Send to potential tenants in our client database Share with other Skybox agents

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Leasing Process

•

LEAS ING & MOVE -IN

Showing

Qualifying

Leasing

© Skybox Realty Inc, 2026

• • •

Can show your home in minutes from our staffed, South Beach sales office Private, showings with all prospective tenants Show until we find a qualified tenant Coordinate showings with existing tenant, if applicable

• • • •

Review applications folowing new state laws Verify employment & income Check credit & references Provide general feedback and impressions of each prospective applicant

•

Draft lease paperwork and building specific rental rules and documents Send necessary paperwork to the HOA Coordinate keys & move-in Schedule move-in/move-out inspections Follow up to negotiate lease extensions, etc. as needed going forward if opted-in to property management

• • • •

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Home Leasing Guide

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com

Home Leasing Guide

© Skybox Realty Inc, 2026

9

Prepare Your Home

Prepare Your Home For Leasing To secure the highest quality tenants and maximum rental return, your property needs to be presented in its best possible condition. A quality property will attract a quality tenant.

HOM E MAINTENANC E Several home maintenance items should be considered before leasing your property. We can coordinate all appropriate vendors to have these repairs done efficiently and cost effectively.

1. Appliances & Fixtures: Are all appliances in working order? It is best to make any necessary repairs to appliances and fixtures before a tenant moves in to save time and money. Additionally, replacing filters in fridges and HVAC units is also recommended.

2. Paint: A fresh coat of paint makes a world of difference when marketing a property and is thus a recommended step.

3. Lighting: Make sure older lightbulbs are replaced so you don’t have to do it right after a tenant moves in.

4. Blinds: Tenants always ask for blinds, particularly in highrise units.

Consider installing them before a tenant moves in.

5. Alarms & Detectors: Make sure smoke alarms and carbon monoxide detectors are installed and in working condition.

6. Personal Property To Be Included: It is important to clearly identify all personal property that will be included in the rental, if any. These will be outlined in the lease as well.

7. Cleaning: A thorough move-out cleaning is needed before a tenant moves in. This includes cleaning inside all appliances and cabinets.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Prepare Your Home

© Skybox Realty Inc, 2026

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Processing Applications

Processing Applications AB 2493 went into effect in California on January 1, 2025. The bill imposes very specific requirements for landlords / agents to adhere to when handling incoming rental applications.

Landlords now have two options for how they can process applications for tenancy:

OP T ION A - ST RICT PROC ES S ING GUIDELINES Option A states that you must process applications in the order you receive them. This means that when you receive an application, you must process it first before assessing other applicants. You cannot skip or prioritize applicants, screening must be done on a first-come, first-served basis. The first applicant to meet the landlord’s screening criteria must be automatically approved for tenancy.

In addition, the landlord’s established screening criteria must be documented to ensure fairness. Applicants to the rental unit must be provided a written copy of the rental criteria alongside the application form.

Our criteria is: 1. On time to confirmed appointment / has seen the unit in person 2. 720 or higher credit score 3. Expenses not more than 40% of income 4. Positive confirmations for employment and previous landlord tenant verifications 5. No other application received before your application (If approved, once a lease draft is sent, applicants have 48hrs to review/sign before we must move one to the next set of applicants)

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Processing Applications

OP T ION B - RE FUNDABLE APPLICATIONS Option B for tenant screening would not require you to change your processes. Instead, it would require you to make all application fees refundable to applicants that are not selected.

At the time of this publication, Skybox Realty charges a $45 application fee to each adult occupant that applies for a rental unit. $17 of that fee goes directly to ordering credit/screening reports for the applicant.

This includes application screening fees charged to tenants who fail to meet your criteria or withdraw their applications by choice.

There are deadlines for refunding an application fee to make sure applicants get their money back within a reasonable period.

The two timelines are: 1. Unselected applicants must be refunded the entire screening fee within 7 days of your selected tenant being notified.

2. Within 30 days of when their application was submitted

© Skybox Realty Inc, 2026

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Rights & Responsibilities

Rights & Responsibilities A lease agreement spells out each party’s obligations during the tenancy. There are responsibilities each party must adhere to by law.

T HE LA NDLORD IS T YPICALLY RES PONS IBLE FOR • • • • • •

Following all local housing codes and other rules specific to a building’s HOA (CC&RS, Rules & Regs, etc) Making sure the property is clean, safe, and sanitary Conducting repairs in a timely manner Following lease responsibilities, such as maintenance of appliances or gardening if applicable Water & garbage utility costs - if a condo, this is usually already covered by your HOA payments Property management fees, if applicable

T HE T E NA NT IS T YPICALLY RES PONS IBLE FOR • • • • • • •

Following the terms of the lease agreement Following all building specific rules & regulations Paying rent on time Taking reasonable care and maintaining cleanliness of the rental property and reporting issues in a timely manner Not disrupting the neighbors or causing problems within the building Electricity, cable & internet utility costs Properly disposing of trash

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Rights & Responsibilities

© Skybox Realty Inc, 2026

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Property Management

Property Management Separate from tenant procurement, property management covers ongoing maintenance on your property after tenants have moved in. As buildings and homes begin to age, more problems begin to arise.

P ROP E RT Y MANAGEMENT Skybox offers property management as a non contractual courtesy for the first 30 days after a new tenant moves in if Skybox was hired for tenant procurement. For continued property management, the subsequent months cost either $179, $259, or $359 per month, depending on the rent rate. Request our pricing sheet for specifics. Below is a list of items that property management can help with.

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Plumbing Issues: This can include leaks, replacing garbage disposals, unclogging sinks, replacing toilet flappers, tightening or replacing fixtures, etc.

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Appliance Issues: This can include repairs, diagnostics, and coordinating of purchasing and installing replacements

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Window Treatments: Scheduling repairs, schedule steam cleaning, or coordinating design and install of new window treatments.

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Flooring: Professional steam cleaning or spot repairs on both hardwood and carpets. Replacing hardwood or carpet flooring if needed.

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HVAC: Scheduling servicing and replacement of hvac units, filters, etc as needed.

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Electrical: Bulb replacement, fixture install, light switch repair/ upgrade

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HOA: Ensuring tenants adhere to HOA Rules & required inspections.

Scheduling loading docks, completing ACC apps, etc as needed.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Property Management

© Skybox Realty Inc, 2026

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FAQs

Frequently Asked Questions The following are the most common questions we receive in regards to leasing property.

WHAT ARE YOUR FEES ?

Our typical rental commission fee is 8% of the annualized lease, about one month of rent. This fee is only payable after we find a suitable tenant. If you opt-in to our optional property management services, extensions or renewals for the same tenant are included. We cover all our marketing costs including high quality photography for all our rental listings.

HOW LONG WILL IT TAKE TO RENT MY PROPERT Y? In our experience, properties that are well presented, professionally marketed, priced according to market conditions, and represented by a professional agent, will stand out from the crowd and will therefore attract a quality tenant faster. Seasonality is also a consideration, so we recommend trying to avoid starting a lease during the holidays.

HOW DO YOU QUALIFY TENANT S ?

We look for tenants that make enough money to adequately cover the rent and that will maintain your property. To do this we have a comprehensive application, verify income & employment, check credit and references, and make sure they are in good standing with past landlords.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

FAQs

WHE RE DO YOU ADVERTIS E? We have over 25 web partners and your home will be posted and syndicated through their networks. We have found the best success with posting on our website, on the MLS, on craigslist, on Zillow & Trulia, on Zumper, on building specific boards, on the Top Agent Network, among others.

WHO PAYS WHAT? The tenant is responsible for paying cable, internet, and electricity utility fees in addition to any move-in/move-out fees associated with the HOA. The landlord is responsible for paying their monthly HOA dues which typically include water, garbage, & sewage fees as well as their normal mortgage and property tax payments.

WHAT IF I WA NT TO S ELL THE PROPERT Y? You are still entitled to sell your property with a tenant. The standard California lease states the landlord can sell the property and can show the property with minimum 24hrs written notice to the tenant.

We maintain open communication with the tenants to streamline this process and coordinate showings for minimum disruption. Should the property sell with the tenant, the lease will pass over to the new owner.

DO I NEED INS URANC E? A condo building requires a homeowner to carry insurance, since your association’s policy will not cover your belongings or provide you with personal liability coverage if someone is harmed inside of your residence.

HO-6 is a good option. In addition, we include in all our leases that the tenant is required to carry renter’s insurance for the duration of the lease.

© Skybox Realty Inc, 2026

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Tax Considerations

Tax Considerations There are tax benefits to rental / investment properties.

Rental property isn’t subject to self-employment tax like other home businesses unless you’ve formed a corporation. Here are some tips for maximizing your return on your taxes.

WHAT CAN YOU C LAIM? • • • • • • • • • •

Repairs & maintenance / painting of the home between tenants Cleaning of the home between tenants Advertising & marketing fees Property insurance Property tax Legal expenses Skybox commission fees + property management fees Utility expenses (water, garbage) Mortgage Interest Depreciation due to wear & tear

WHAT IS A 10 31 EXC HANGE? The term 1031 Exchange is defined under section 1031 of the IRS Code.

To put it simply, this strategy allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long as another “like-kind property” is purchased with the profit gained by the sale of the first property.

To qualify for a 1031 Exchange, a property must have been a rental property for at least two years. Contact your CPA for more information.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Tax Considerations

WHAT IS A DEPREC IATING AS S ET? A depreciating asset has a limited effective life and can reasonably be expected to decline in value over the time it is used. Contact your CPA to discuss specifics in the case of your property. Some examples are: • • • • • •

Floor coverings Heating & cooling Appliances Hot water systems Lights Many more!

© Skybox Realty Inc, 2026

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Home Leasing Guide

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com

Home Leasing Guide

© Skybox Realty Inc, 2026

23

Security Deposits

Security Deposits Security deposits are collected prior to tenant move-ins to cover potential damages to the unit or landlord in regards to the property. Consult your local jurisdiction for specific rules, but in California, the below laws apply:

WHAT IS A S EC URIT Y DEPOS IT? A security deposit is a refundable sum of money tenants pay landlords upfront to cover potential damages beyond normal wear-and-tear, unpaid rent, or lease violations, ensuring tenants take care of the property and fulfill lease terms, with the landlord holding it and returning it (minus deductions) after the tenant moves out, subject to state and local laws.

HOW M U CH CAN BE C HARGED? Generally one month’s rent. California passed laws in 2024 (AB12) that limit the amount landlords can charge for security deposits to one month regardless of whether the unit is furnished or if there is a pet.

Exemptions exist if you own two or less rental properties in California.

One month maximum for active-duty military, even for small landlords.

DOCU M E NTATION REQUIREMENT S California passed laws in 2025 (AB 2801) that now requires landlords to provide photographic evidence if withholding part of a tenant’s security deposit for repairs or cleaning. Landlords must take photos of the unit immediately before, or at the beginning of the tenancy. Landlords must take photos within a reasonable time after possession is returned, but before repairs are done, and after repairs are done.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Security Deposits

RE T U RN DE A DLINE & REQUIREMENT S Landlords must return the security deposit or a partial refund with an itemized statement of deductions within 21 calendar days after the tenant vacates and returns possession. Copies of receipts or invoices must be provided, or a good-faith estimate if work isn’t completed yet.

Failure to send itemization within 21 days, may forfeit landlord’s right to deduct, even if deductions would have been justified.

WHAT DE DU CTIONS ARE ALLOWED? Landlords can deduct for: • Repairing damage beyond ordinary wear & tear that was not preexisting (taking into account useful life) • Cleaning costs / carpet cleaning costs to restore to move-in condition • Unpaid rent, utility balances, or unpaid fees/fines • Replacement or restoration of personal property (ie, missing keys, etc)

P RE M OV E OUT INS PEC TION RIGHT S Tenants have the right to request a pre-move-out (initial) inspection to identify issues that might lead to deductions so they can correct them before vacating within the last two weeks of a lease. The landlord must respond and conduct this inspection within a reasonable timeframe.

Not all deductions may be visible given furniture and the fact that tenants have not actually moved out yet, but it gives a baseline.

LOCAL NUANC ES California state law does not require landlords to pay interest on security deposits, but some cities such as San Francisco & Berkeley, have local laws requiring interst.

See the next spread for San Francisco specifics.

© Skybox Realty Inc, 2026

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San Francisco Requirements

San Francisco Requirements Every county and city may have specific requirements for rentals or Rent Ordinances. Consult your local jurisdiction.

In San Francisco, the below laws apply:

INT E RE ST IS DUE ON S EC URIT Y DEPOS IT S In San Francisco, interest is due on security deposits and should be paid out each year. The rate of interest is set each year (reset date is March 1st) and the list of all previous rates can be found on the SF Rent Board or SF GOV website.

Interest is not due if the tenant was there for less than one year. If interest is not paid out each year, landlords should pay it out with the return of deposit when a tenant moves out.

California passed laws in 2024 (AB12) that limit the amount landlords can charge for security deposits to one month regardless of whether the unit is furnished or if there is a pet. Exemptions exist if you own two or less rental properties in California.

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

San Francisco Requirements

LA NDLORDS M U ST PAY A RENT BOARD FEE ANNUALLY If you are an owner of a residential dwelling unit or guest unit, you must pay a Rent Board Fee each year unless you have a current exemption on file with the Rent Board or a Homeowners’ Exemption on file with the Office of the Assessor-Recorder.

While this fee was previously collected on the property tax bill, owners must pay this fee to the Rent Board directly as of 2022 by March 1st of each year. Payment can be made through the Rent Board Portal. The fee is $59 per dwelling unit at the time this book was published.

By registering your unit and paying the Rent Board Fee, you will receive a license that will allow you to increase rent in San Francisco. Without the certificate, you technically are not able to increase rent.

You must update your reporting to the city if the status of the property changes.

© Skybox Realty Inc, 2026

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Move-In Checklist

Move-In Checklist Moving can be a stressful time, we recommend that you prepare for your move as soon as possible. Below is a checklist of recommended steps to ensure that your move-in goes as smoothly as possible.

Be fo re Yo u L e ave

☑ • • • •

A DDRES S C HANGE NOTIFICATION Post Office Forwarding Address Subscriptions Friends & Relatives Bank & Other FInancial Institutions

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INS URANC E, S ERVIC ES & REC ORDS

• •

Notify Insurance of new address for coverage Gas, electric, water, phone, cable, garbage, Internet, newspaper, etc.

Ask Doctors for referrals / transfer prescriptions, eyeglasses, etc.

Obtain Birth Records, Medical Records, etc.

• •

☑

MOVING C OMPANY

• •

Make arrangements with a moving company Clean rugs or clothing before moving / have them moving wrapped Check Insurance coverage, labor cost for packing / unpacking, method and time of expected payment Plan for special care needs of infants or pets

• •

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Move-In Checklist

On Mov i ng Day

☑

THINGS TO REMEMBER

• •

Carry jewelry & documents on your person Double check closets, drawers, and shelves for items left behind Plan for transporting pets Coordinate leaving old keys with new owner / tenant Carry cash for unexpected costs during the day

• • •

A f te r Th e Move

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AT YOUR NEW ADDRES S

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Check if service is switched on for telephone, Internet, cable, gas, electricity, water, garbage, etc.

Check pilot light on stove, hot water heater, and furnace Check if appliances are working Notify DMV of new address update for your driver’s license Visit city offices and re-register to vote Register car within five days after arrival in state to avoid penalty (only for those moving from another state or country) Apply for a driver’s license in your new state (if applicable) Register children in school Arrange for medical services: doctor, dentist, vet, etc.

• • • • •

• • •

© Skybox Realty Inc, 2026

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Paul Hwang

Paul Hwang Paul is the #1 Ranked Agent in the South Beach area for 15 years running. Other brokers and potential buyers call Paul daily with new inventory, giving him a unique advantage in a competitive market.

T ES TIMONIALS “I have sold many homes in my life and Paul Hwang is the best I’ve ever dealt with. His advice and responsiveness are unsurpassed. He went above and beyond in every way and his staff did the same creating great marketing brochures to help with my sale - even the sale of my furnishings. I would recommend Paul and his team without reservation.” Becky “Paul doesn’t just know the market for high end condos in SF, he is the market.” - Isaac “Paul is indisputably the most experienced broker (sell or buy-side) at The Infinity in San Francisco. And a very good, ballsy price-setter and negotiator. At the end of the day, a broker/salesperson is easy to rate do they get the deal done on good terms - and so it’s easy to give Paul top marks everywhere.”

- Steve “Paul is hands-down the best broker in SoMA / South Beach.”

- Peter

Paul Hwang | 415.216.8746 | dre 01371169 | paul@skyboxrealty.com | www.paulhwang.com

Paul Hwang

T HE INFINIT Y

LUMINA / THE HARRIS ON

26 Homes Leased in 2024 / 2025

15 Homes Leased in 2024 / 2025

M E TROP OLITA N / ONE RINCON

MIS C OTHER S F C ONDOS

24 Homes Leased in 2024 / 2025

50 Homes Leased in 2024 / 2025

Paul Hwang / Ranked #1 in South Beach 415.216.8746 | BRE 01371169 paul@skyboxrealty.com www.paulhwang.com | 流利國語

© Skybox Realty Inc, 2026

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