Courts of limited jurisdiction, small claims courts help resolve simple disputes quickly and economically. If you are a landlord trying to get back rent payment from a tenant when arbitration / mediation, including other measures have failed, you could go to a small claims court to help resolve the issue. Here, no lawyers are required to represent the two parties, and the procedures in small claims court are much more informal than in other types of litigation. Judgments are usually rendered immediately after the hearing, and both plaintiffs and defendants have limited appeal rights.

Since, individuals or small business owners file small claims actions without the assistance of lawyers, most states provide information and assistance to involved parties in these actions. A comprehensive list of links to each state’s self-help resources and information centres can be found at the National Centre for State Court’s Web site, and a guide to Small Claims Court with information on each state’s rules and requirements can be found at ConsumerAffairs.com.

Small claims courts serve to resolve the following disputes:

1. Dollar Limits. Comparatively small dollar amount disputes are resolved in small claims courts, with dollar limits ranging from $1,500 in Kentucky and $2,000 in Massachusetts to $10,000 in Alaska and New Mexico and $15,000 in Delaware, Georgia, and Tennessee. You can find a chart listing the small claims court limits for each state at Nolo.com.
2. Statutes of Limitations. Statutes of limitations are laws that set a deadline or maximum period of time, within which a lawsuit or claim may be filed. Deadlines may vary depending on the circumstances of the case, as well as, the type of case or claim. The time period also varies from state-to-state. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred, though under certain circumstances, a statute of limitations can be extended beyond its deadline. Statutes of limitations apply to actions filed in small claims court, as well as other courts.
3. Types of Disputes. Usually, the types of disputes and claims brought to small claims court range from:
   • Failure to repay a loan;
   • Failure to provide personal service;
   • Failure to pay for personal services;
   • Failure to fix a car or other major appliance properly;
   • Landlord/Tenant disputes (i.e., failure to return security deposit, destruction of rental property);
   • Debt collection;
   • Return of personal property;
   • Claims for equitable relief; and
   • Breach of warranty (claim that an item purchased does not work the way it is supposed to work).

   But, divorce proceedings, bankruptcy proceedings, guardianship proceedings, suits against the federal government, federal agency, a federal employee and criminal proceeding cannot be filed in a small claims court.

   Landlords should make an attempt to settle disputes with tenants prior to filing a claim in the small claims court. Before suing in a small claims court, make one more demand on the tenant for back rent payment, or payment for damage to your rental unit, etc. Make the demand in writing, as you may be required to demonstrate to the judge, several attempts were made to settle the dispute before filing your claim in the small claims court.

4. Where to File. A small claims court action is generally filed in the state in which the party being sued resides or does business, or where a contract was signed.If the defendant (tenant) has moved to another state and has no contact or business in your state, you will likely have to sue in a state, where the defendant resides or does business. Though, it is best to remember filing a small claims court action in another state can prove to be an unwieldy, complicated, and expensive process. It may not make sense to pursue the dispute in this manner.
5. Notify the Defendant. After filing your claim in a small claims court, give the defendant a copy of your claim before the case is scheduled for hearing. It is the responsibility of the person filing the claim notify the defendant, including bearing the cost of the notification.Defendants can be notified either by:
   1. Certified mail by the court clerk;
   2. Personal service by process server; or
   3. Substitute service by process server at the defendant’s home or place of business.
6. Case Preparation. Prepare your case as thoroughly as possible. Get together the necessary paperwork and witnesses if any, asking them to appear in court on your behalf. Try and foresee what the defendant will say and what evidence he / she will bring to court. Prepare notes on what is to be asked of the defendant and what you will say to the judge.Make a visit to the small claims court where your claim will be heard, sitting through a couple of claim cases to familiarise yourself with the entire process and the judge’s temperament.
7. Court Day. Ensure you have all of your documents and all your witnesses are available for court. Arrive early, get organized and stay relaxed. Courtroom procedures are informal, and the judge will guide you on how to proceed.
8. Explain your case briefly and succinctly. Answer all the judge’s questions. Be prepared to explain the money amount claimed. Do not argue. In case you win, ask the judge to award you court costs and any other costs reasonably incurred in bringing the action to court.
9. Appealing Small Claims Court Decisions. Appealing a small claims court decision is limited for both plaintiffs and defendants. Many states only allow the party who sued to appeal. In others, a decision can only be appealed if there was a mistake of law, not a mistake in the facts of the case. Typically, a very short time frame is allowed to appeal a small claims court decision within, generally 10 to 30-days after the decision was rendered.
10. A party may be represented by a lawyer on appeal of a small claims court decision. Lawyers are allowed for appeals as small claims court decision appeals are heard in formal court. And, while lawyers are allowed for small claims court appeals, the court proceedings still remain informal. It is up to you, whether you wish to hire a lawyer for an appeal.

But, if you carefully select and screen your prospective tenants, you can avoid having to sue or go to a small claims court. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

As zoning laws differ extensively from city to city and may or may not be consistently enforced, they pose a major hurdle for many landlords.

For the uninitiated, zoning laws are there to limit certain property types to specific areas of the city. For example, one cannot have a power plant in a residential area, and commercial areas, generally should not contain residential homes. Zoning laws help tenants and property owners co-exist in a peaceable manner by helping to limit disturbance and nuisance calls.

When landlords or investors are on the lookout for rental properties, they must be extra careful not to fall afoul of a city’s zoning laws. Since, zoning laws are subject to change over time, rental property that is legal today, may not be so tomorrow. And, it is the owners of large apartment complexes that are more vulnerable than other landlords to the vagaries of zoning laws. Large multi-unit complexes are bound to have a large number of visitors on a frequent basis, which may cause neighbours to file complaints with the local zoning commission. Tenant behaviours can also lead to zoning complaints, if they happen to run commercial businesses from your rental property.

To ensure you stay on the right side of applicable zoning laws, take the following steps:

1. Tenant activities should be limited. If you have a residential rental property, make it clear to your tenants that they need to ask for permission before they begin to run a business from your building. As long as, their home-based business does not cause a frequent rush of visitors, it should not be a problem. In case, the tenant plans to operate a beauty parlour from the apartment, the resultant traffic could disturb other residents of the building.While, tenants have a right to live their lives, as long as they are renting your property, you as landlord, have the right to place a limit on their activities, most especially if the activity may result in negative consequences for you.
2. A landlord must know the zoning laws before buying rental property. Before making a property purchase, familiarize yourself with the local zoning laws. As well, you will need to stay abreast of changes in local zoning laws and how they may affect your rental property.If other landlords are facing difficulties with the zoning laws, it would be a good idea to form a group to change those laws that limit rental property profitability. All landlords together can be more effective with a zoning commission than a single individual.
3. Have in-depth knowledge of your city districts. If your city is neatly divided into specified districts for residential, commercial and industrial zones, you will not have any problem with zoning laws. But, as the urban sprawl spills over, these demarcation lines are becoming hazy. More and more apartment complexes are coming up within commercial or industrial districts. It may be easier to attract tenants in these areas, but you could run into zoning problems. Consider this point carefully when buying rental property. If you are uncertain of how zoning laws may affect your potential rental property, investigate carefully to avoid becoming embroiled in a zoning war.
4. Property potential is affected by the zone. If your rental property is situated right at the heart of a noisy, commercial or industrial district, you could have difficulties attracting new tenants. Industrial noise can disturb the peace and quiet, proving to be particularly troublesome if a factory operates 24-hours a day.Property value is also affected by the zone it currently is in. If, neighbouring building structures are in bad shape, or they are not subjected to regular spit and polish, this can adversely affect the value of your property, especially if you plan to resell the property at a later date.

Zoning laws are not difficult to understand, you simply have to take the time to investigate local zones, and check with your zoning commission if there is any unclarity regarding zoning laws in your area.

Just as buying rental property in compliance with the zoning laws is of the utmost importance, selecting the right tenant for it serves to reassure you that your property is in good hands. Right selection also ensures your tenants will remain with you for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will respect, maintain and limit property damage to only wear and tear. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

Taking legal shortcuts to evict a tenant from your rental property by changing locks or cutting off utilities can mean a number of penalties slapped on the landlord.

Talk to any experienced landlord and he / she will attest to the fact, they have had a few tenants indulging in such outrageous acts, as to provide strong temptation to take direct action. For example, a tenant always promising to pay the rent, but never coming up with real cash may fuel a landlord’s rage and the considering of clearing his / her rental property of a tenant’s personal belongings by throwing them out on the street and proceeding to change locks to prevent him / her from getting in. Or else, a landlord responsible for paying the utility charges may refuse to pay the bill, causing a utilities cut-off that leaves the tenant without water, gas or electricity.

In case, you are one of those landlords, sorely tempted to take the law into your own hands, hoping to force a tenant out of your property, pay heed to my advice. DO NOT DO IT! Threats, intimidation, cutting off utilities or attempting to physically remove a tenant is not only illegal it is dangerous, as well. If you attempt any of the above actions, you may find yourself slapped with one or all of the following i.e. a trespassing lawsuit, assault, battery, slander and libel, intentional infliction of emotional distress, including wrongful eviction. Even though, the eviction process involves considerable expense, delay and troublesome litigation, it is your only and best legal recourse.

It is erroneous for a landlord to think or believe a tenant’s heinous behaviour excuses the taking of matters into their own hands. A tenant not paying rent, damaging your property or leaving it a mess, verbally abusing you, or otherwise, acting outrageously will not provide you with a valid defence case. A lawsuit by the tenant for illegally evicting him / her may cost far more than evicting the tenant through normal legal court proceeding.

Self-help evictions are virtually forbidden by every state, including imposing penalties on landlords who break the law. Locked out tenants, tenants denied heat, electricity and water may sue a landlord for money losses i.e. money spent on temporary housing, cost of food that spoilt in the refrigerator or the cost of an electric heater due to the gas being shut-off. They could even sue for several months rent. While, some states allow a tenant to collect his / her compensation and continue to stay on, other states simply entitle him / her to monetary compensation.

Far better to go to court and have a judge issue an eviction order, reinforced and upheld by a neutral law enforcement officer, than to risk facing serious practical and legal entanglements. Prevent the desire for self-evictions by going through a proper selection procedure for would-be-tenants. To avoid any mishaps or unwanted tenants, visit www.e-renter.com for help with tenant screening and background checks, the best and only way to prevent expensive litigation, later on.

Having tenants who are habitually late in paying rent is a difficult situation for many landlords with mortgages to pay. Then too, it could be the start of a vicious cycle that can prove difficult to break, especially if the tenant is allowed to continue to make late rental payments. Therefore, the following five strategies may help landlords put an end to the problem of habitually late rent payers.

1. Impose Penalty Charges. If you make late rent payments hurt, tenants will be forced to comply with the rules. Ensure all your lease agreements clearly state rent due dates, when payments will be considered as late rent payments, as well as, the penalty that will be imposed for late payment. You can, either charge a flat fee or a daily fee until the rent is paid up. Certain states limit the amount for penalty charges, so check that out, before deciding on the amount you wish to charge for late rent payments.
2. Send Early Reminders To Late Payers. There are some tenants who never remember the rent due date. The best way to ensure they pay on time is by sending them a friendly reminder ten days before the due date. As well, it is a good time to inform them you have a late payment penalty charge rule, which can be avoided by paying on time.
3. Stand Your Ground Firmly. If you do not take firm steps to rectify late rent payment habits, you will not be able to change them later. If, a tenant is experiencing financial or personal difficulties, inform them only one late payment will be allowed, and future late rental payments will incur a penalty charge. You must also remember not to give preferential treatment to any tenant, because if other tenants learn you have allowed one of them to pay rent late, they may follow suit.
4. Report All Late Payments To A Credit Bureau. If you report late payments to the credit bureau, it will turn up the heat for late payers. Tenants will not appreciate black marks on their credit report and will do their best to avoid the problem in future. However, it may not work with all tenants, especially if they have developed a pattern of abusing their lease agreement. If this is the case, the last solution will probably be the best course of action.
5. Serve Notice To Pay Rent Or Vacate. Seeing an official notice to either pay up or vacate sends two messages to the tenant. Firstly, it lets them know their current behaviour will not be tolerated as you actually mean business. Secondly, it lets them know if they do not begin to make timely rental payments, they stand to lose their rental accommodation. As this is a serious matter, this strategy should be your last resort.

Before beginning proceedings to evict a tenant, late payments should all be documented to protect yourself from tenant claims slapped on you. If a tenant decides to fight an eviction notice, this documentation will serve to prove your case for deciding to evict him / her.

Avoid habitual late payments by clearly stating in the lease agreement what will be considered as late payment, and the actions that will be taken if any clause of the agreement is violated. Nip the problem in the bud.

To avoid problem tenants, landlords must select them carefully to ensure they are not only models of good behaviour, but that they will remain with them for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant
screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

If you are an owner of rental property, you should know how important it is for you to keep accurate and up-to-the-minute records of everything pertaining to it. You never know when you may need to refer back for ferreting out certain information for tax purposes, for avoiding discrimination claims, for preventing misunderstandings regarding property conditions, or any other some such concerns.

Record Keeping for Income Tax Deductions. As a rule, landlords should keep a log of all rental payments received from his / her tenants. Whenever, tenants pay their monthly rents, make certain you provide them with a receipt for their payment. This way, you will, not only simplify your income tax preparation, but you will also have on record any problem tenants or chronic late rent payers.

As well, you must save all receipts and documents relating to expenses incurred on your rental property, i.e. maintenance work, purchases for the property such as new fixtures, repair bills, and any cleaning costs.

Individual Tenant Records. Essentially, this area of record keeping must not be neglected, and you must maintain a separate file containing a signed copy of the tenant’s lease agreement, an initialled walk through checklist copy of their rental unit, including a record of rental payments made. This file can also be used to record and track any problems or tenant claims, including any warnings or notices issued to the tenant that should be filed here. Should you need to evict a tenant, this intensive record keeping will provide all the documentation you may require.

Current tenant phone numbers must be kept on file, as well, just in case an emergency or a problem situation arises relating to the rental unit. This is an important must, especially for absentee landlords. The file must also contain a copy of their written rental application, emergency contact information, and current reference list. If and when, a tenant leaves without paying the rent, this information will help you track them down.

Security deposit information, such as, information for any trust account established and interest paid should also be a part of the tenant’s individual file.

Damage Logs. Photograph your empty rental property before the next tenant moves in, making careful notes of any damage discovered over the course of a tenancy. Evidence such as, dated photographs or videotapes and damage logs can prove to be invaluable, if ever it needs to be proved, a tenant has damaged your property.

Property Specific Information: As well, a file containing your property deed, mortgage information, and insurance policy copies should be maintained and kept locked in a fireproof file cabinet to protect these important documents.

Computerised Solutions. And, if you are computer literate, then instead of laborious handwritten notes, you can completely automate your record keeping system, cutting down the time and effort spent on keeping rental records. However, ensure all this information is backed up, and there are printed copies of the records, as an extra safety measure.

There are many landlord specific software programs available that are designed to assist in the management of rental properties. Some of these programs can handle everything from checking references to monthly rental record keeping. So convenient are they, anyone would be tempted to give them a try.

However, while, you may use the software for tenant screening, it is a good idea to back up your findings, and avoid any mishaps or unwanted tenants by visiting www.e-renter.com for help with tenant screening and background checks, the best and only way to prevent expensive litigation or penalty charges later on.

Owning rental property is not without its fair share of having to contend with a variety of tenant claims, ranging from discrimination to the property being inhabitable. Although, there may be no complaints from other tenants and a majority of them may be satisfied with their rented accommodation, a single dis-satisfied tenant can wreak havoc with his / her complaint.

If a tenant comes to you with a claim, it is best to adopt a friendly, though firm and businesslike manner. If the claim is untrue, you will have every opportunity to prove it so, as well, there are other ways to settle tenant claims without having to go to court.

However, the best way landlords can protect themselves from bogus claims is to maintain good records. Strong documentation regarding how incidents if any were handled, a written record of yours or tenant actions could prove invaluable, if a landlord finds himself / herself involved in a lawsuit, especially against a problem tenant.

At the very minimum, every landlord should maintain the following records:

• Keep a file on each of your tenants with their written rental applications, lease agreements, and lease addendums, if any. A record of all these documents can prove critical in a landlord / tenant lawsuit.
• Put down in writing any problems you may have with tenants, including the steps taken to resolve them. Each time a tenant breaches the lease agreement terms, document the incident. Anything, from something as simple as a late rent payment or as involved as intentional damage to your property should be put down in writing. A landlord’s record of events and his / her responses will come in handy, if a tenant’s version of events differs from yours. For example, if a tenant claims you never fixed the leaky faucet / shower / bath-tub, he / she complained about, you should have a record of each call, including the repair bill to prove your case.

With all records in place, a landlord can easily settle the claim, after taking necessary steps to do so.

First of all, attempts should be made to resolve the dispute amicably. If the claim proves to be a simple misunderstanding, ill feelings and expensive litigation can be avoided by simply discussing the problem with the tenant. As a number of cases have proved, a problem tenant could just be trying to see how far they can push the envelope. Recorded proof of your having acted fairly and legally may cause them to back down.

In case of a housing discrimination claim, on record rental applications and your reasons for denying the application can prove useful. In most cases, complete record keeping can cause a denied applicant to stop their claim at this point.

If, trying to resolve the claim on your own fails, the second step should be to go in for professional mediation. This means presenting both sides of the case to an impartial third party (the mediator). After hearing both sides of the story, the mediator will offer potential solutions. Often, a third party is all it takes to defuse hostile situations.

If mediation fails as well, binding arbitration should be your next step. What this means is an arbiters decision will be binding, and both parties will be asked to desist in any attempts for further action. Similar to mediation, this process is often the final step in settling a claim.

If a landlord wishes to allow for binding arbitration, a clause regarding the same should be inserted in the rental agreement, stating it will be used to solve any tenant / landlord disputes. Written records of all actions taken to resolve tenant claims permit a landlord to go in for binding arbitration, improving his / her chances of coming out on top.

However, remember the state law may impact the enforceability of arbitration provisions. Cities with rent control ordinances, such as San Francisco, certain rules and regulations have to be followed. Failure to comply with these can result in serious consequences requiring you to hire a seasoned landlord / tenant lawyer to represent you in tenant claims cases.

To avoid problems with tenants, selecting them carefully will ensure they remain with you for many years to come. Further, getting relevant information on rental application forms assists you screen prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

As a tenant, before you break your lease, due to preference for another location, or find the rent rather steep, or else the neighbours are much too loud, do take the time to check out your contract. Lease terms may differ from state to state, but it is still important for you to follow the rules. Consider the following:

1. An attempt should be made to re-negotiate with your landlord. If, you find the lease terms difficult to fulfil, talk it over with your landlord and try to re-negotiate. After all, it is in the landlord’s best interests to be paid what has been agreed upon in the lease contract. However, it won’t hurt to request the landlord to terminate your tenancy, or to allow you to find a replacement tenant, in exchange for being released from any financial obligations. Demonstrate your good will by offering to advertise the vacancy in the local newspaper.
2. Get it in writing. If, your landlord agrees to release you from your contract, get it in writing. As well, ensure the landlord signs a new lease with his / her new tenant. Keep all relevant paperwork with you for a minimum of 3-years, or consult with your lawyer on this point.
3. Sub-let. In case, your landlord refuses to re-negotiate, after consulting, getting permission and informing him / her, what can be expected from this new arrangement, go ahead and sub-let the place. Just don’t forget your name is still on the contract, and therefore, you can be held liable for any of your tenant’s mis-adventures.
4. Be prepared to pay the remainder of the rental payment or in lieu a penalty for breaking the lease in the midst of its term. Just because, you do not require the premises anymore does not mean your landlord will waive his / her rental dues. Remember, the same as every other entrepreneur, landlords or vendors are also in business, the business of renting out their property for a living.
5. Do some intelligence gathering. After informing your landlord of your wish to terminate the lease, try and find out, if he / she has been scouting around for a replacement tenant.
6. Take stock of penalty charges. You may find it easy to ignore that piece of paper, but a signed contract is binding. Standard penalty charges could mean forgoing your security deposit, as well as, having to pay the remainder of the rent owed, till a replacement tenant is found. And, don’t forget, news travels fast. A bad reference from a landlord or a disparaging remark about your ethics, and it could minimise your opportunities for a new lease, elsewhere, especially if you want to relocate nearby.
7. Get some legal advice. A lawyer won’t take too long to review your lease. It would be wise investment to get some legal advice, saving you much more in the long run, including increasing your rental knowledge, something that will come very handy in the future.
8. Take notes. Breaking a lease may have you short of several thousands of dollars, but keeping good records of events, will ensure it doesn’t have to happen again. For example, if the main reason for vacating the property is due to space limitations, next time round, you will be particularly mindful of the square footage. If, you happened to miss a specific clause in the leasing contract and it had a heavy impact on your wallet, next time, you will remember to read the lease contract, signing it only after a careful review.

As for landlords, it is important to carefully select and screen prospective tenants as it helps avoid problems, later on. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.