A Tenant Moving Out

Posted by on January 15, 2007 under Landlord Tips | icon: commentBe the First to Comment

If a tenant is vacating his / her rental premises, the moving process can be made smooth and without stress, simply by following a few uncomplicated steps, as under:

  1. Notice: Before moving out, a tenant needs to notify his / her landlord of the intention to do so. It is important to check the lease or rental agreement to see how much notice is required. For a lease that is expiring, no notice has to be given, however it is always best to discuss your departure date with the landlord. In case, there is no lease, check the landlord / tenant laws of your state and city to find out how much notice should be given. Typically, 20 to 30-days is what is required, which means if you wait till the last minute, you might end up paying an extra month’s rent.Always, give the notice in writing, which should be either personally delivered or sent by certified mail.
  2. Cleaning Up: Scour and clean out your apartment thoroughly, in order to make it easier to get your security deposit back. The place should as clean as when you moved in, excluding ‘normal wear and tear’ which is expected. Carry out repairs for any damages that you might be responsible for, because if you don’t, the landlord will deduct the cost from your security deposit, including cleaning costs if you leave the place a mess.Check out the place against the checklist done when you moved in to verify everything is in the same condition. It would be best if your landlord walked through the rental property before you leave, but in case it is not possible, deposit the keys in an envelope along with a note that contains your forwarding address, and deliver the same to your landlord. Ensure you have a copy of your note and that there is a witness to the fact that you did, indeed deliver the keys.
  3. Security Deposits: Security deposits as per state laws are to be returned usually within two or three weeks of a tenant’s moving out. A landlord is required to either return the security deposit or put in writing his / her reason for not doing so. Landlords are permitted to deduct reasonable expenses for cleaning and repairing damages or for any unpaid utility bills. In case, a tenant feels his / her security deposit has been unreasonably withheld, the matter can be settled in a small claims court.
  4. Moving Out Before Lease Expires: Moving out before a lease expires is a matter that should be negotiated with your landlord, especially if it is absolutely necessary and cannot be avoided. You can ask your landlord, whether sub-letting is an option for the remainder of the lease. Or else, your landlord can ‘mitigate the damages’ by finding another tenant to replace you.

Adhering to the above four steps should ensure you get back a part of your security deposit, including acquiring a decent landlord reference.

Landlords, should make themselves cognisant with all rules and regulations before drafting a lease, and must take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. 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!

Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part V

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Ques. 16. In a hypothetical scenario, suppose your tenant holds a party and, it so happens a guest falls on some broken patio steps and suffers a sprain or fracture, or perhaps a roof tile falls from the roof of the rental premises, hits his / her head and causes concussion. On recovering, the guest sues the landlord. In this case, can the landlord be held liable?

Ans. Yes, since the property belongs to the landlord. However, the landlord’s insurance policy should be able to cover the loss in keeping with the policy limit.

Ques. 17. If, a landlord decides to form a corporation, in order to put his / her rental property in the corporate’s name, dependent on the tax situation, which of the following types of corporations should he / she opt for i.e. Chapter 7 corporation, or Sub-chapter 11 corporation, or Chapter C corporation, or Sub-chapter S corporation.

Ans. Of course, he / she should opt for the Sub-Chapter S corporation type.

Ques. 18. What is the best way for a landlord to decorate his / her rental property, in the popular look of the moment, simply in beiges and whites letting the tenant do the rest, or using lots of colours, or decorating it to his / her own taste?

Ans. It is best to keep the colour scheme neutral, using plain beiges and white, since taste is a subjective matter.

Ques. 19. What measures should a landlord take to determine his / her rental price?

Ans. To determine the value of a property, one needs to know what other comparable properties in the area are commanding. As well, factors, such as location, views, building amenities, whether comparable units are furnished / unfurnished, etc. etc. should be taken into consideration.

Ques. 20. Suppose, a landlord signs a Pets Allowed lease, and even takes a pet deposit, only to have the president of the condominium association, who on seeing his / her tenant’s pet inform him / her that pets are not allowed in the building. What is to be done, in this eventuality?

Ans. Rules of the condominium association must be obeyed by the tenant, who will either have to remove the pet, or declare the lease null and void.

Landlords, should make themselves cognisant with all rules and regulations before drafting a lease, and must take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. 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!

Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part IV

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We continue with offering some more tips and answering some more questions regarding landlord / tenant issues, to ensure everyone can make a success of a career in the rental business.

Q. 11. In a hypothetical scenario, the lease expires and your tenant does not elect to renew it, what should a landlord do? Should he / she advertise for a new tenant, inspect the property after a tenant moves out to determine, if any part of the security deposit is to be withheld, or start trooping in prospective tenants to view the rental unit, without taking into consideration a departing tenant’s wishes, or none of the above!

Ans. In this situation, what a landlord needs to do, when a tenant fails to renew the lease, is in keeping with lease terms, begin showing the rental unit to prospective tenants. And, when the tenant moves out, he / she inspect the property thoroughly to determine, if any security deposit needs to be withheld. As well, as long as the lease is still effective, tenant rights must be respected; irrespective of the fact the lease is not being renewed.

Q. 12. If, security is being withheld for property damage, what next steps should a landlord take? Should the tenant be notified of his / her intention within the lease’s stipulated timeframe, or it should be simply withheld, without the tenant being informed?

Ans. Most, if not all states require landlords to notify tenants in writing about their intention to withhold all or a part of their security deposit. Every state has its own set of rules regarding the time period landlords must adhere to for returning or informing ex-tenants of their intention to retain their deposit.

Q. 13. Again, in, a hypothetical scenario, the tenant damages your 3-year old carpet, beyond what can be put down to normal wear and tear. While, it costs you only $1,700 to replace the carpet, and you hold $3,000 in security, how much should be withheld? The whole amount, or what it costs to replace the carpet, or the depreciated amount, or what the carpet cost you when you bought it 3-years ago?

Ans. Legally, a court of law will ask the landlord to depreciate the carpet’s value and withhold money from the security, accordingly.

Q. 14. What can be considered as normal wear and tear i.e. walls riddled with holes for hanging pictures, a worn out high traffic area of the carpet, a broken window, or dirty walls that will need to be repainted?

Ans. Only, the broken window will be considered as damage to the property and not the result of normal wear and tear. When a property is rented out, no doubt it will be used and enjoyed by those renting it, which in turn creates wear and tear. Therefore, everything else except the broken window will be considered as part of normal use of the property. However, don’t forget any cleaning costs incurred, are tax deductible.

Q. 15. In another, hypothetical scenario, your tenant holds a party on your property and serves alcohol to his / her invited guests. Inebriated, one of them on his / her way home has an accident and is killed. As owner of the property, you end up getting sued by his / her estate. What will be the outcome, will the estate prevail, or will your insurance policy cover the damages, or the estate will not prevail as you did not serve the alcoholic drinks, or will the estate prevail, with you having to split the damages with the tenant?

Ans. Rest easy, you did not serve the drinks so the estate cannot hold you responsible. A tough question, as a landlord cannot be held responsible for every injury that occurs on his / her property. He / she is only responsible for those injuries that are a direct result of a property defect, which the landlord failed to correct, even though he / she knew of it.

States that have the Dram Shop (Barroom) Act allows them to hold the host liable for allowing a guest to drive drunk. While, only applicable to commercial establishments i.e. bars and restaurants; however, many states have extended the acts to private gatherings.

As for landlords, they should view taking of necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring whatever is promised in the rental lease is provided, as their insurance for a litigation free landlord / tenant relationship. 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!

Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part III

Posted by on January 10, 2007 under Landlord and Tenant FAQs | icon: commentBe the First to Comment

Today, some more answers to landlord / tenants questions are offered, so that landlords are well informed about established rules of the rental business, all in an attempt to make successful landlords out of rookies.

Q. 6. How best would you describe a rental lease i.e. would you call it a unilateral contract, a bilateral contract, an agreement between a landlord and his / her tenant, or a personal services contract?

Ans. Of course, the correct answer is that a rental lease is a bilateral contract between a landlord and his / her tenant.

Q.7. When a tenant fails to pay the rent, what is the best course of action for a landlord to take? For example, should he / she inform the police, send a written notice to the tenant asking him / her to pay rent within a certain period of time or face eviction, file a lawsuit, or when the tenant is not home, change the locks after throwing his / her personal belongings out?

Ans. Changing locks and throwing personal belongings out may be tempting, however, a notice by certified mail, about late payment of rent, demanding it should be paid within a stipulated period of time, should be sent, asking rent to be paid, as a rule, within either three calendar days or a week’s time. This is the only legally right way of handling such a situation, as before, eviction proceedings can be started, most states require proof of notice, as a condition for initiating the eviction process.

Q. 8. What additional documents may be required, apart from a lease agreement for renting out property e.g. an insurance policy for appliances, an inventory of all personal property, including furniture, linens, dishes, etc., a landlord’s renter’s insurance policy, or all of the above?

Ans. It is important for any and every landlord to carry as much insurance as possible, which means, appliance insurance, a renter’s policy, and an inventory of items left in an apartment or house, should always be in your rental property file.

Q. 9. In the eventuality, a tenant demands items not listed in the lease agreement, what should a landlord do? Should he / she ignore the tenant’s demands, give a written response that his / her demands are denied as they are not a part of the lease agreement, or immediately begin eviction proceedings?

Ans. You need to respond in writing stating any demands outside of the rental agreement will not be fulfilled, as it is not only an impersonal way of handling things, but you also create a record of the issue involved, especially when the demand is going to be denied. Always, send tenant related notices or responses to issues via certified mail, to ensure no issues arise over, whether the tenant received your response or not.

Q.10. Which of the following activity related to rental property is not tax deductible i.e. repainting costs, a kitchen microwave, advertising costs for renting the property, or a Bahamanian vacation after successfully renting out your property?

Ans. Only, item costs directly related to the business of renting or maintaining rental property are tax deductible, not a personal holiday trip to the Bahamas.

Tomorrow, more information on rental and landlord / tenant issues. Till then, landlords should take necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all that is promised in the rental lease is provided, as it is their insurance for a litigation free landlord / tenant relationship. 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!

Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part II

Posted by on January 9, 2007 under Landlord and Tenant FAQs | icon: commentBe the First to Comment

The answers to yesterday’s questions are pretty simple, and perhaps, experienced landlords already know the established rules of the rental business. However, for those new to the game, the following information holds the key to being a successful landlord.

Q. 1. What laws must a landlord consider when renting out his / her property i.e. federal, state, local laws, or rules laid down by condominium or homeowners’ association?

Ans. All, as it is essential for landlords to confer and follow every single federal, state, and local law, including any applicable rules set out by condominium or homeowner associations, when leasing out a property.

Q. 2. Where is a tenant’s security deposit amount to be held i.e. in a segregated bank account, personal savings or chequing account, or in accordance with state laws.

Ans. Every landlord needs to know his / her state’s specific rules regarding security deposit holdings, and therefore, they must be held in accordance with state laws.

Q. 3. Can a landlord legally refuse to lease his / her unit to prospective tenants on the basis of their religious beliefs, or because they are dirty and shabby in appearance, or refuse to submit to having a credit check carried out, or because of they belong to an ethnic or racial group, not in keeping with a landlord’s preferences.

Ans. Truth to tell, landlords should never discriminate on the basis of race, colour, religion, or national origin. As well, sexual preference, and age should also be added to that basic list. The only exception being, if according to state laws, your condominium association is organised as a senior citizen community, it is only then, a landlord can refuse prospective tenants who do not classify as senior citizens.

As well, a landlord has every right to turn down a prospective tenant, unwilling to submit to a credit check. However, if the landlord only demands credit checks from certain people belonging to protected classes, he / she may be held in violation of anti-discrimination laws. Therefore, uniformity in a landlord’s rental policies is a requisite requirement.

Q. 4. Whether a lease agreement should or should not contain a clause for restricting pets, number of overnight guests, and who pays for repairs to the property.

Ans. In order, for a rental agreement or lease to be water-tight, a landlord must ensure his / her rules and stipulations are part of the agreement or lease, couched in easy to understand terms, so as to avoid any trouble in the future.

Q. 5. In order, to be considered valid, must a lease contain the lease commencement date, termination date, parties to the agreement i.e. both landlord and tenant, rental amount, security deposit amount, etc.?

Ans. A bit tricky, the basic elements for a contract to be valid are offer, acceptance and consideration. For example, the landlord offers his / her property to the tenant, who accepts it, including the rental amount, which is the consideration. However, for a valid lease agreement, all these elements must be communicated in the written contract. Thus, the contract requires the names of the parties to the agreement, including the rental amount.

Since, security is just a term of the agreement and not the primary consideration, for the contract to be valid, a specific date of commencement and termination must be contained within it.

Contracts can be drawn to automatically renew themselves after a specific period of time, unless one or both the parties object to the renewal, however, a termination date is still required.

All of the above should prove to be of considerable help in ensuring a landlord does not overstep any legal boundaries, nor breaks any important rules that may result in unwarranted trouble. More tomorrow, as we turn every rookie into a successful landlord!

As well, landlords should view taking of necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring whatever is promised in the rental lease is provided, as their insurance for a litigation free landlord / tenant relationship. 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!

Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part I

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If, you as the owner of rental property are frustrated with the headaches that come with letting out property, then perhaps, you should put down on paper all landlord / tenant problems that frustrate you. After that is done, brainstorm to gain insight, as how best to manage your rental business, jotting down questions relating to landlord / tenant issues faced in your career as a landlord, whether, related to discrimination, credit checks, lease law, non-payment of rent, pets, renting furnished properties, acceptable security deposit deductions, taxes, lease termination, landlord liability laws, incorporation, etc. etc. Study up and gather information on all these topics, which will make you knowledgeable, as well as, provide you with the correct solutions and answers to rental issues. Not only will you know how best to avoid rental problems, next time, a tenant problem crops up, you will know what to do, while your success in the rental business will help you make money.

You can begin by searching for answers to the following questions:

  1. What laws must a landlord consider when renting out his / her property i.e. whether, Federal or State laws, local ordinances, homeowners’ association rules and regulations, or condominium documents, as applicable.
  2. Whether, security deposit taken from a tenant needs to be held in a segregated bank account located within the state where the rental property is located, or in a personal savings or chequing account, or in accordance with state laws.
  3. Ask yourself, whether, it is legal to refuse to lease your unit to a tenant on the basis of his / her religious beliefs, or if he / she is shabbily dressed, or refuses to submit to a credit check, or belongs to a different racial group.
  4. Again, whether a lease agreement should or should not contain a clause that restricts pets, the number of overnight guests, and as to who pays for repairs to the property.
  5. As well, find out if you know, what information a lease must contain to be considered a valid one e.g. lease commencement date, termination date, parties to the agreement i.e. both landlord and tenant, rental amount, including amount of security to be deposited, etc.

Landlord / Tenant Rental Guidelines

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If, you are thinking of getting a roommate to share some of the high rental burden, you can make sharing a lot easier by taking time out to learn all about a roommate’s legal rights and responsibilities. A fun, party loving roommate will not necessarily turn out to be a roommate, with whom it would be a pleasant experience to share accommodation. Before, agreeing to share your rental unit with anyone, do consider, whether your potential roommate’s personality, health habits and lifestyle, earnings and budget, friends – as in, birds of a feather flock together, kind of thing; including pets, if any, jive with you.

Once, potential roommates pass muster, do draft an agreement, putting everything in writing, right from how the rent, utilities and security deposit will be split, to house rules relating to pets and pet security deposits, to whether, shared accommodation is to be a smoking or non-smoking zone, and if not, a smoking zone should be demarcated. As well, identify partying hours and drug use or lack of it, thereof, late hours and noise, whether, overnight guests are allowed, and if so, how often. Last, but not least, lay down the sharing of household chores by chalking out a cleaning schedule.

As for a landlord, he / she should ensure all roommates have signed the rental agreement, as that will make each, individually responsible for paying the entire rent, each month. And, if a tenant has already signed a lease and moved in, and later decides to take on a roommate, it should all be done with the landlord’s approval.

No doubt, the landlord would like to screen his / her potential tenant, checking out his / her credit score, as well as, getting both security and pet deposit, from the new tenant add-on. Perhaps, the landlord may also like to raise the rent, as there is an additional person occupying the rental property. He / she may also wish to draw up a new lease, to ensure all co-tenants signing it are responsible for paying the rent and for looking after his / her property.

The new lease will ensure that all of them are equally liable for non-payment of rent, excessive noise or any damage to the property. Therefore, any roommate who is tardy in paying his / her rental share should be encouraged to move out as quickly as possible, while the search begins for a more suitable one.

Any damage caused by a roommate should be made a clean breast of, and playing the role of a perfect tenant by co-operating with your landlord in getting the damage repaired, may let you off the hook. Then too, you, by yourself cannot evict an irresponsible roommate, but assisting the landlord can make it easier to do so. And, in case, a roommate becomes violent during the eviction process, you can always file an anti-harassment or domestic violence order for self-protection.

As for landlords, they should view taking of necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring whatever is promised in the rental lease is provided, as their insurance for a litigation free landlord / tenant relationship. 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!

Lease / Rental Agreement – When A Roommate Moves Out – Part II

Posted by on January 5, 2007 under Landlord Tips | icon: commentBe the First to Comment

When a co-tenant breaches a lease or rental agreement, leaving before time, the remaining co-tenants need to ensure they are not held legally responsible for his / her action by their landlord. And, no doubt, a roommate who leaves right in the middle of a lease, or without giving proper notice, if you have a month-to-month tenancy, it makes you responsible for paying the entire rent. No doubt, this will result in a souring of the relationship, and the last thing you could wish for is your errant roommate to reappear, somewhere down the road, wanting to move back in.

To avoid such unpleasant surprises, see if your former co-tenant will sign an agreement that unequivocally states, a departing tenant:

  1. Is responsible for paying a stipulated amount for rent and utilities. In case, there is a written rental agreement, it means rent and utilities for 30-days from the date notice was given or your co-tenant left failing to do so, unless of course, a suitable replacement has been found already to cover the departing tenant’s share. However, if you have signed a lease instead, the amount owed depends on when a new co-tenant, acceptable to the landlord, moves in. If, no suitable replacement is found, then the departing tenant is responsible for paying rent for the balance of the lease.
  2. He / she is also responsible for and has to pay for any damage caused to the rental unit.
  3. He / she is responsible for and has to pay the rent and damage charges, no later than the stipulated date.
  4. As well, he /she agrees moving out cancels his / her status as a co-tenant.

However, if things cannot be worked out, and your ex-roommate shows a mean streak, refusing to pay and leaving town, then the best solution is to simply grit your teeth and pay his / her share. Trying to track him / her down to sue will prove terribly expensive, and likely be more trouble than it’s worth.

If, on the other hand, your ex-roommate has moved elsewhere in town, you can sue him / her in a small claims court for unpaid rent, including any damage to the rental unit, or his / her share of unpaid utilities, as well, any costs incurred in finding a replacement co-tenant, such as, rental advertisements. If, even after winning in court, your ex-roommate still refuses to cough up his / her dues, whatever is owed can be collected from his / her bank account or wages.

When A Roommate Moves Out – Part I

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If, you have a month-to-month tenancy and your co-tenant wishes to move out, then he / she is responsible for giving the landlord the requisite one-month notice in writing, including paying his / her share of the rent through the end of the notice period. In case, there is a rental lease or agreement, it is necessary for the tenant to either get the landlord’s permission to move out before the due date, if possible, or else he / she has the option of finding a suitable replacement acceptable to the landlord. It is important for a co-tenant to understand, leaving without the landlord’s acquiescence, or without finding a replacement can result in serious fallout.

However, it should be noted, the unauthorised departure of a co-tenant could mean all co-tenants will be evicted, even if they are able to pay the full rent, as it is the landlord’s legal prerogative. He / she may opt to evict those, whose signature is on the lease or rental agreement, since the breach of it by even one tenant is considered to be a violation of the length of stay clause, and for which all tenants are liable.

However, in all probability your landlord will allow you to stay on, as long as, the rent is paid on time and his / her rental property is occupied by non-destructive, well-behaved tenants. In other words, timely payment of rent after a lease breach by a co-tenant will go a long way to ensure your landlord thinks twice about wanting to evict the rest of you, unless:

  1. All tenants are a troublesome group, making this a great opportunity for getting rid of everyone in one quick shot, or
  2. Else, if you cannot cover the rent all by yourself, in which case, you need to assure your landlord you will find a lease-abiding new co-tenant to split the rent with. This might help salvage your tenancy, and meanwhile, you could ask your landlord for permission for late rent to be able to pay in rental instalments, till a new co-tenant has been found. As well, perhaps, it is quite reasonable to ask your landlord to use the departed tenant’s share of the security deposit for rent, until a suitable replacement is found.

The upshot is, always get your landlord’s approval before moving in a new roommate. When a co-tenant ups and leaves you to pay the entire rent, you may be tempted to simply move in another roommate, without getting the landlord’s permission or by bypassing his / her application process. Forget it, not a good idea at all, as your lease or rental agreement may contain a clause prohibiting unauthorised subletting. Bringing in a new tenant without a landlord’s approval violates the agreement, and could give your landlord a valid excuse to evict you. Instead, it’s best to maintain an honest relationship by getting your landlord’s approval for any replacement tenants.

When A Roommate Moves Out

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When a co-tenant skips out and leaves you holding the baby, it would be pretty reasonable for you to feel frustrated and look for alternative accommodation, instead of going through the hassle of trying to rustle up another suitable roommate.

In order, to make it easy to leave and prevent the landlord from penalizing you by retaining your security deposit in lieu of unpaid rent, or from ruining your credit by sending the credit bureau an adverse report on you, the following two steps may help:

  1. For those tenants with month-to-month agreements, it is a good idea to give the requisite amount of notice (usually 30 days) in writing, promptly and immediately. Best not to wait till next month’s rent becomes due and you are unable to pay it, which could result in your receiving a termination notice.
  2. However, if instead of a month-to-month agreement, you have a lease, inform your landlord in writing regarding your plans to move, making him / her aware of the fact it won’t be possible for you to make the rent without a co-tenant. Before moving, accommodate your landlord in the showing of your unit to any prospective renters he / she may bring for a viewing. By facilitating a quick re-rental, you not only extend kind courtesy to your landlord, but also ensure it proves advantageous to you as well, since the quicker a new tenant moves in, the sooner your complete rental liability under the lease ends. As well, you yourself can help your landlord by finding an acceptable replacement tenant for the unit.