A Dictionary of Landlord / Tenant Terms – Part IV

Posted by on December 22, 2006 under Landlord Tips | icon: commentBe the First to Comment

Instead, of relying on lawyers, who charge an arm and a leg to decode some legal clauses to be found in typical residential leases or rental agreements, it is important landlords and tenants alike, familiarize themselves with the definitions of a number of common words and phrases that arise in the context of a landlord-tenant relationship.

  1. The term ‘tenant improvements’, included in a lease or rental agreement indicates, whether a tenant is permitted to make improvements to his / her rental unit, and the extent to which such improvements will be permitted by a landlord.
  2. The term termination obliges a tenant to return his / her rental unit in the same condition it was given on rent, at the conclusion or termination of the rental lease or agreement.
  3. ‘Termination Date of Lease’ or ‘Lease Termination Date’ specifies the date the lease ends or terminates.
  4. ‘Lease Term’ or ‘Term of the Lease’ identifies the duration of the lease in months and years. It also states the date the tenant comes in legal possession of the rental property.
  5. ‘Use of Premises’ specifies any landlord restrictions on a tenant’s use of the premises.
  6. Warranty of Habitability means the landlord or owner of residential property is obligated to provide his / her tenant with rental accommodation that is reasonably fit for human occupation, including basic living conditions and timely repairs, if required. However, what is ‘reasonable’ in one area, is not necessarily so in another. Take for example, the failure of a California landlord to properly insulate pipes on his / her rental property, his / her failure to do so may not violate the warranty of habitability, but in the same instance, a Minnesotan landlord will be held liable, if failure to insulate his / her results in them freezing constantly during the cold weather.

A Dictionary of Landlord / Tenant Terms – Part III

Posted by on December 21, 2006 under Landlord Tips | icon: commentBe the First to Comment

Instead, of relying on a lawyer who charges an arm and a leg to decode some of the legal clauses that are found in typical residential leases or rental agreements, it is important landlords and tenants alike, familiarize themselves with the definitions for a number of common words and phrases that arise in the context of the landlord-tenant relationship.

  1. Rent control is to be found mostly in urban areas. Rent control laws place a limit on the rental amount a landlord is allowed to charge tenants, of course subject to certain restrictions. As well, most rent control laws permit annual increases in rental charges of about 2.5%.
  2. Right of entry limits a landlord’s right to enter premises that are in occupation by his / her tenant. A landlord can only enter rental property leased to a tenant, in emergency situations, or to show the unit to prospective tenants, or else to carry out repairs or renovations. A 24 or 48-hours notice has to be issued in advance to the tenant, before a landlord can legally enter an occupied apartment or unit.
  3. Security deposit is money that is refundable and is to be paid to the landlord, at or before a tenant’s move-in date. It is a monetary amount that is held in deposit by the landlord, to guarantee a tenant adheres to lease obligations, i.e. not to damage the rental property beyond normal wear and tear, and timely payment of rent. Just as most states have set limits for the amount of rent a landlord can charge, similarly a limit has also been set on the amount that can be demanded as security deposit. Always, it is wise to state the security deposit amount in the lease or rental agreement, as well state what it will be used for, where it will be held, and what percentage of interest it will earn.
  4. Sub-letting or Assignment allows a tenant the right to sub-lease or assign the property, if unable to fill out the lease term, or in case he / she wishes to rent out part of the rental accommodation to another individual, in order to meet the rent. This lease clause should specify the conditions under which a tenant can avail of this right. It should be clear though, even under a sublet, an original tenant still holds responsibility for honouring lease provisions. However, in the case of assignment, the original tenant is no longer in the picture and has no further liability under conditions of the lease.
  5. Tenant is a person, who has been given the right to use and occupy property that is owned by another person, who is known as landlord, and usually under a lease or rental agreement. The tenant’s exclusive enjoyment of the rental property is granted in exchange for an agreed upon sum of money for fixed period of time, usually set out in the lease.

A Dictionary of Landlord / Tenant Terms – Part II

Posted by on December 20, 2006 under Landlord Tips | icon: commentBe the First to Comment

Instead, of relying on a lawyer who charges an arm and a leg to decode some of the legal clauses that are found in typical residential leases or rental agreements, it is important landlords and tenants alike, familiarize themselves with the definitions for a number of common words and phrases that arise in the context of the landlord-tenant relationship.

  1. Lease is a written agreement between a landlord and tenant, and which grants the tenant exclusive use and occupation of his / her landlord’s residential property for a fixed period of time, in exchange for an agreed sum of money. It can also be called by its other name i.e. ‘rental agreement’.
  2. It is important for a lease or rental agreement to give a full description of the rental property, and the description should include street address, city, state, and zip code. As well, it is a good idea to give built-up area measurements in square feet, including the means by which the square footage is measured.
  3. Quiet Enjoyment means the implied right of a tenant to enjoy and use the property rented by him / her, without any obstruction, intrusion or interference from residents of the building, the landlord, or other individuals.
  4. Renewal is one of the options a tenant has when his / her lease or rental agreement is terminating. It gives the tenant a choice of re-negotiating or renewing a rental lease or agreement, within a certain time frame.
  5. Rent is the specified amount of money a tenant pays each month, in order to enjoy exclusive rights to a rental property. If, a residential lease or rental agreement has been signed, it should always state the amount of rent that is to be paid, the last date by which a tenant must make payment to avoid an eviction notice, including the mode of payment i.e. cheque, cash, or any other means.

Insurance Tips For Renters

Posted by on December 19, 2006 under Landlord Tips | icon: commentBe the First to Comment

It makes sense for tenants to take out renters insurance that will provide them with coverage for any loss or damage suffered to their personal property, including liability coverage for any injury suffered by anyone, while on the rental premises. Studies show, approximately, one third of tenants living in rental properties carry insurance, while the others who do not, place themselves at considerable potential financial risk.

A common fallacy amongst renters is that since their landlord carries insurance, there is no need to take out their own coverage. Unfortunately, this is not true. While, your landlord may have insurance, his / her policy typically, applies only to the physical structure of the building and common areas, if any. However, it does not cover a tenant’s property, or injuries that occur within rental units due to tenant negligence. While, the landlord’s insurance may cover a broken pipe or a backed up sewer, or a building that burns down. It covers any damage to the landlord’s building or property, but the coverage does not ordinarily extend to any tenant property that is damaged or destroyed. As well, your landlord’s insurance policy does not cover any injuries caused by another tenant’s pet.

Even if, a tenant has a roommate who carries renter’s insurance, his / her policy will not cover the property of the other. While, sometimes a parent’s homeowner’s insurance policy may cover the property of their student son / daughter living in a college dormitory, students should check the language of their parents’ policy, before assuming their property is covered, as well. Even where, coverage is available through a parent’s insurance policy, it will rarely extends to off-campus housing.

Therefore, if one is a renter, it is best to assess one’s property and ask oneself what it would take to replace it, in the event it is lost, destroyed, or stolen. That gives a fair idea of the amount of renters insurance one should take out. Simply, get in touch with an insurance agency that deals with such coverage, and based on the estimated value of your property, it will come as a pleasant surprise to find how affordable it can be.

A Dictionary of Landlord / Tenant Terms – Part I

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Instead, of relying on a lawyer who charges an arm and a leg to decode some of the legal clauses, one typically finds residential leases or rental agreements, it is important landlords / tenants alike should familiarize themselves with definitions for a number of common words and phrases that often arise in the context of the landlord-tenant relationship.

  1. Abandonment – it is a word used for a tenant’s conduct that demonstrates his / her intention to give up residential rights to the rental premises, without notifying or getting the landlord’s authorization or agreement. For example, if a tenant removes all of his / her personal property from his / her rental unit, and is not seen in or around the rental premises for two weeks, the landlord can safely conclude, the tenant has abandoned his / her rental property.
  2. Constructive Eviction is a process employed by unscrupulous landlords, which involves failing to act on tenant complaints / problems, or through interference with a tenant’s possession of rental property to such an extent, it is made unfit for reasonable occupation.
  3. Eviction is a court-based process allowing landlords to remove an unwanted tenant from his / her rental property, with good cause and after following a number of procedural requirements. In some states, the eviction process is also given the title of ‘unlawful detainer’.
  4. Fixture in a residential rental context is personal property owned by a tenant, but made a permanent part of the property he / she is renting, so that removal is impossible or impractical. For example, if a tenant installs custom double-paned windows, these would amount to being a fixture. Ordinarily, a fixture remains on the rental property even after the lease or rental agreement is up and has been terminated, although landlord and tenant may come to some agreement as to compensation.
  5. Landlord is someone, who owns real property and who through a lease or rental agreement, agrees to rent all or a portion of the property to another person (a ‘tenant’) for his / her use, usually for a set timeframe, and in exchange for a fixed sum of money per month.

New Tenant Tips: Getting Along With The Landlord

Posted by on December 15, 2006 under Landlord Tips | icon: commentBe the First to Comment

Tenants should remember before signing the lease for a new rental apartment or unit that they can avoid problems later on, by ensuring their new landlord is a good ‘un, and one who doesn’t make life hard for his / her tenants. Good behaviour and careful planning will make for a much better landlord-tenant relationship, as well as, help avoid security deposit conflicts when one moves out.

No matter how well-maintained and nice one’s apartment may be, it can be unpleasant if you have to deal with a terrible landlord. An apartment that is a bit weathered, but has a good, responsive landlord can make it a pleasant place to call home. As well, knowing one’s rights, along with a few preventative steps can protect a tenant and provide some assurance regarding his / her new tenancy.

However, the first thing a tenant should do before signing the lease is to thoroughly inspect the apartment or unit that has caught your eye and you would like to rent. Don’t go by what the landlord says is a comparable unit, or an apartment with an identical floor plan. Keep in mind, savvy landlords, as a rule show prospective tenants only well-maintained units as models, and there is no guarantee the unit you rent will be in a comparable condition. Inspecting rental units is for the purpose of identifying and having fixed any major problems before one signs the lease and moves in. It is important from the point of view that a landlord cannot (either by accident or by intent) attempt to charge you for pre-existing defects, when eventually, you move out.

If, one identifies any problems with the apartment or rental unit, bring them to the attention of the landlord. In case the problems cannot be fixed before you move in, ask for written confirmation, as to when the repairs will be made. As well, ask the landlord to give in writing the problems that existed before you moved in. If, you cannot get a written confirmation of the existing problems, you can yourself make a list and have the landlord or his / her agent sign and date it, and attach it to the rental lease for your record. Just remember, don’t go by promises, get everything in writing.

Some state jurisdictions make it mandatory for landlords to give tenants a form on which defects in the apartment are to be recorded, and returned to the landlord. The landlord too, completes a similar form on a tenant’s moving out. The purpose of this exercise is to ensure tenants are charged only for damages they are responsible for, and for those caused by others.

Tomorrow, we’ll discuss a little about what other tenants thing and talk a bit about local laws.

Potential Reasons For Eviction

Posted by on December 13, 2006 under Eviction | icon: commentBe the First to Comment

Often, landlords have to wrestle with problems created by tenants that range from not paying rent, to posing problems for other tenants, to misusing and damaging their rental unit, to indulging in conduct that makes it unwise to continue the landlord-tenant relationship. Further, certain other issues, such as, creating health and safety issues or a tenant filing for bankruptcy generates more headaches for a landlord.

Health and Safety Issues If, a tenant has damaged his / her rental unit or created a potential health hazard, a landlord is right in wanting to evict the tenant responsible for both. However, instead of going in for litigation, it is a good idea to either ask the tenant to repair the damage or correct the hazard. However, most landlords do proceed with conventional evictions against tenants who create this type of situation, even though the problem may have been resolved.

When a Tenant Files For Bankruptcy What a landlord should be aware of is that when he / she starts eviction proceedings against a tenant, and the latter proceeds to file for bankruptcy, an ‘automatic stay’ will be granted, which will prevent continuation of eviction proceedings till such time the bankruptcy is resolved, or the bankruptcy court lifts the stay, thereby permitting the eviction proceedings to continue. In this case, bankruptcy can prevent a pending eviction, and result in full or partial discharge of a rent arrearage. Note, however, a bankrupt tenant is responsible for paying any new rent obligations that arise from continued tenancy after filing for bankruptcy. What the tenant should keep in mind is that failure to keep current with post-petition rent payments may result in eviction.

On that cautionary note, another fair bit of advice, avoid expensive landlord / tenant litigation, by taking necessary precautions, such as, screening tenants and conducting background checks on prospective tenants. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Tenant Counter Claims

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Often, landlords find themselves trapped in unpleasant situations, where eviction is one possible solution to get rid of problem tenants. However, they may be surprised to find some tenants responding with a counter-claim against a landlord’s action for eviction. A counter-claim may contend the eviction should be stopped, since it is nothing but a ‘retaliatory eviction’, resulting from a complaint made by the tenant to a government agency about his / her landlord violating housing rules and regulations. However, for these complaints to be valid, they must be made before a landlord commences an eviction process, and may not provide much of a defense against eviction for non-payment of rent. But, a counter-claim could seek damages for a landlord’s violation of consumer protection laws, or even an abatement in rent due to problems with the apartment.

While, some states do not have adequate protection laws for tenants, in other jurisdictions tenants have the following rights:
* Proper heating;
* Hot and cold running water;
* Proper garbage removal i.e. from the designated receptacle, e.g., the apartment building’s dumpster;
* The right to common areas, such as, lobbies, stairways, halls that are well maintained and clean and safe;
* Tenants also have the right to housing that is in compliance with state and local building codes and housing regulations.

An action for a ‘rent abatement’ is a request that the court allow the tenant credit against the rent, for that period of time, when any of these rights were not fulfilled, or when the landlord refused to comply with the lease. A tenant could, either request a small percentage be deducted for a minor violation, or request the entire rental amount be abated, if the apartment was effectively rendered uninhabitable by the landlord’s violation.

Landlords can also be subjected to consumer protection actions. In some jurisdictions, a landlord may become a subject to a claim for any cleaning expenses he / she may deduct from a damage deposit. In others, in case a landlord did not properly escrow a tenant’s damage deposit, or if the tenant was not notified of alleged damages within a fixed period of time after the tenant vacated the premises, the landlord may have to return the entire damage deposit. Please note that if the tenant does not give a forwarding address to the landlord within a few days of moving, any notice requirement will likely be deemed waived.

On that cautionary note, another fair bit of advice, avoid expensive landlord / tenant litigation, by taking necessary precautions, such as, screening tenants and conducting background checks on prospective tenants. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Tenant Tips Before Renting

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Before, renting an apartment or unit, if possible, it makes sense to have a chat with other tenants about how they get along with their landlord and whether their experiences have been on the positive side.

Likewise, if the apartment you are going to move into is still occupied, why not have a quick word with the outgoing tenant. Obviously, the best idea would be to chat in private, instead of in the presence of the landlord or his / her employees, who just might listen in. Chatting with other tenants will provide insight into, whether you have a landlord who responds to tenant problems, is conscientious about proper maintenance of the premises, and whether there are issues, such as, noisy tenants, the sound of planes landing and taking off from a nearby airport, or the choo-choo of trains on a rail track close-by, or crime, including frequent car break-ins in the parking lot. These are issues one does not observe when giving an once-over, when out to rent an apartment or unit.

After selecting an apartment or rental unit that a tenant wishes to move into, while legal protections have been extended to tenants, they can vary significantly from state to state, therefore, it would be wise for a tenant to check out, if there is a local tenant organization or union, which can provide information on local laws and policies. If, the selected apartment or unit falls within a jurisdiction with limited protection for residential tenants, it would be best to ensure adequate protection in the rental lease, itself. Include a clause about landlord responsibilities, such as, seeing to it that your unit and common areas are properly maintained. Better safe than sorry!

Periodic Tenancies

Posted by on December 8, 2006 under Landlord Tips | icon: commentBe the First to Comment

Often, landlords are faced with periodic tenancies, which can arise with or without any rental lease, and there is no obligation on the part of either landlords or tenants to continue a tenancy past any given rental period.

A one-year lease requires a tenant to pay rent on a monthly basis, however, it also means he / she is under obligation to pay rent till the expiry of the entire lease period. Similarly, if a landlord wants to evict a tenant during the duration of a lease, he / she has to give reasonable cause for terminating the lease. Periodic tenancies allow both landlord and tenant to terminate the tenancy with proper notice, usually a full rental period. On the expiry of a lease, if the tenant does not move, typically the tenancy automatically gets transformed into a periodic tenancy, based on the period between rental payments i.e. if rent is due once a month; it allows either landlord or tenant to terminate the tenancy by giving a month’s notice.

Instead, of going in for a rental lease, there are certain advantages and disadvantages to having a periodic tenancy instead of a lease. While, a lease protects tenants against capricious eviction, as well as, limiting rent increases during the term of a lease, periodic tenancy allows a tenant considerable flexibility in determining when to end his / her tenancy.

In case, a tenant stays past the expiry of a lease term without his / her landlord’s permission, he / she is called a ‘holdover tenant’. Depending upon the jurisdiction, a holdover tenancy is usually treated as a periodic tenancy, particularly, if the landlord has accepted a rental payment from the tenant after his / her lease has expired. However, it is within the legal rights of a landlord to decline to accept payment for any post-lease residence, and file a suit for evicting a holdover tenant.

For tenant / landlord complaints against each other, both landlords and tenants should make a written record when / to whom the complaint was made, and when the issue was resolved, and whether the resolution was satisfactory. If, a landlord / tenant has problems that might cause a tenant / landlord to ask for early release from a lease, or seek a lowering of rent, he / she should provide written notice about the problem, including what action he / she intends to take if it is not remedied. In case, a good relationship exists between landlord / tenant, it is sufficient to report minor problems over the phone or in person. If, the problems are not fixed, and a lot of reported problems are not being adequately resolved, the tenant / landlord should instead choose to report them in writing. It is best practice to report all problems in writing, though it is wise to weigh that against the potential for damaging a positive landlord / tenant relationship by seeming heavy-handedness.