What Happens In The Event Of A Tenant Breaching A Rental Lease

Posted by on March 29, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

The rule of thumb is that a tenant is bound for the duration of a rental lease, unless the landlord bends the law or violates lease terms, such as, failing to carry out necessary repairs, or else refusing to comply with an important clause in the lease. There are a few states, which have laws that allow tenants to breach a lease for health problems or if their job requires permanent relocation. Federal, including many similar state laws permit tenants entering active military service and related government positions to terminate a lease before its due date.

However, in case a tenant breaks a lease without reasonable cause, he / she is responsible for paying the remainder of the rent due under the lease term. Even so, most states require a landlord to make all efforts to find a new tenant, no matter the reason behind the tenant’s move, rather than forcing him / her to pay the remaining rent due under the lease.


That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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 their tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Top Ten Legal Mistakes Landlords Make – Part V

Posted by on March 28, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

And, now the last of the top ten mistakes landlords should avoid making:

  1. Withholding Security Deposits For Broken LeasesMost landlords are wont to retain the entire security deposit account, in the event of a tenant’s breach of lease, justifying their action by laying the blame solely on a tenant’s misbehaviour, reasoning that ultimately they need it to cover the rent. However, it is illegal to do so in most states, as a landlord is expected to take reasonably prompt steps to re-rent, and credit any new rent toward the tenant’s obligation for the rest of the lease. Keeping a two month rent deposit and re-renting within a month not only illegal, but could land you in a litigation soup.
  2. Failure to Return Security Deposits As Per the LawIt seems security deposits are not only used improperly, they are as well, often not returned in accordance with the state law, either. Many states have imposed deadlines by which landlords are required to itemise deposit use, and return the balance. However, tenants are often made to wait many weeks, even months for this accounting, which is why in some states, deliberate or ‘bad faith’ deposit retention can result in the landlord being penalized by being ordered to pay the tenant, two or three times the deposit amount.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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.comfor tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Top Ten Legal Mistakes Landlords Make – Part IV

Posted by on March 27, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

A good landlord will ensure he avoids making the following mistakes i.e.

  1. Using Security Deposits for Other Than Their True PurposeMost arguments heard in small claims courts are over security deposit retentions. Every landlord is aware that the basic rule for security deposits is that they are to be used only to cover damage beyond wear and tear, necessary cleaning, and in lieu of unpaid rent. However, landlords have been known to use the deposit to cover appliance upgrades, cosmetic improvements and other refurbishing, apart from repairs. If, you commit this mistake, be prepared to lose your case in the small claims court.
  2. Improper Maintenance And Non-RepairsEvery state has made it mandatory for landlords to offer and maintain housing in accordance with the basic health and safety standards i.e. state and local building codes, health ordinances and landlord-tenant laws. Failure to carry out important repairs, or deal with environmental hazards, or put security measures in place to avoid your property from becoming an easy target for criminals, can legally entitle a tenant to break his / her lease, even withhold rent or make the repairs themselves, deducting the repair expenses from the rent.

    Failure to make rental properties reasonably secure in the face of repeated on-site crime, can result in landlords being ordered to compensate the tenant-victim, if yet another theft or criminal incident take place. Follow the law and you won’t have to learn the expensive way.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Top Ten Legal Mistakes Landlords Make – Part III

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To stay out of legal soup, landlords should avoid the following mistakes:

  1. Excessive Late Fee Charges
    Undoubtedly, late fee charges can motivate tenants in to paying rent on time, and while, they can prove to be great motivators, some landlords may cross the line and go way overboard by setting fees with little or no resemblance to actual damages suffered by late rental payments. The law is cognizant of the fact and courts have begun to increasingly invalidate excessive late fees that cannot be justified with hard evidence. To be sure, a landlord is far better off for setting modest fees that reflect actual damages, while dealing with chronic late-payers by issuing them pay-or-quit notices.
  2. Tenant Rights to Privacy ViolationsAs a rule, most states have laid down detailed rules regarding when, for what reasons, and how many hours (usually 48-hours) notice has to be issued before a landlord may enter a tenant’s home. However, there are many landlords who arrive unannounced, even as they proceed to check things over, or perform an on-the-spot repair, or show the place to prospective tenants. What a landlord must remember is that repeated violations of a tenant’s privacy, excuses him / her from any further obligations under the lease, and could result in the court-ordering cash damages against the landlord.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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 their tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Top Ten Legal Mistakes Landlords Make – Part II

Posted by on March 22, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

In order, to avoid landing themselves in to legal hot water, it is essential for landlords to be up on federal, state and local laws governing rental businesses. Sheer ignorance does not amount to bliss, but to a whole lot of unwarranted and expensive litigation. Therefore, if you have property to rent out, best avoid making the following top ten mistakes most landlords make:

  1. Discriminatory Family Policies
    Since, the past 20-years rental laws forbid landlords from discriminatory practices, such as, refusing to rent to families. Though, it is illegal, many owners of rental property prefer not to let their units to couples, who bring in young children or teenagers as part of the package deal. Property owners exclude families, as they feel children occupancy will lead to greater wear and tear of property, as well as, noise disturbance instead of a “mature, quiet” environment. And while, the number of residents in a unit (in most situations, two occupants per bedroom) can be limited, the same standard cannot be applied to families. Discriminating against the latter can mean only one thing, another trip to a lawyer’s office for dealing with a fair housing complaint.
  2. Undeliverable PromisesDon’t rave about property benefits to prospective tenants, though it may be necessary to do so in a highly competitive market. Bear in mind, any enthusiastic promises will become binding, in the event rental applicants rely on them when deciding to rent. For example, if you have promised an applicant parking space, satellite service, or a new paint job, then you will have to fulfil your promises. Not doing so may result in a tenant, either terminating the lease or suing you for the difference in value, between what was promised and what has been delivered. Who wins is not the point; the issue at stake is that it is going to cost you both time and money to respond to the complaint.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Landlords, Just For You: Top Ten Tax Deduction Tips – Part IV

Posted by on March 21, 2007 under Landlord Tips | icon: commentBe the First to Comment

The last to one chapter of the tax deduction tips saga for landlords, includes the following:

  1. I am sure a lot of landlords are simply not cognizant with the fact that they can deduct almost any insurance premiums paid for rental activities. A landlord’s insurance policy may cover fire, theft, and flood insurance for rental property, including landlord liability insurance, which still makes them tax deductible. As well, they can deduct the health and workers’ compensation insurance they pay for employees, if any.
  2. What is not commonly known either is that landlords can deduct fees paid to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. Operating expenses paid as fees for work related to rental activities are also tax deductible.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Top Ten Legal Mistakes Landlords Make – Part I

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It is crucial for landlords to be aware of state laws governing rental businesses before renting out their property. Not only, do successful landlords have loads of practical know-how, as also business moxie, along with being familiar with the market. Thirty-years ago, the rental business was unrelated to law, however, today federal and state laws closely regulate nearly every aspect of it. Ignorance about the rules can land a landlord in serious legal hot water; therefore, it is best to avoid making the following top ten mistakes made by most landlords:

  1. Using Generic or Outdated Lease Forms
    As every landlord knows, it is of the utmost importance to draw up a written lease or rental agreement, before allowing tenants to move in. However, if a wrong form is used, it can land a landlord into big trouble. That is why; landlords are advised to steer clear of so-called ‘standard’ forms sold everywhere, as it is more than probable they are not compliant with state laws. Using a stationery store lease that short-cuts tenants’ rights may well see you losing your tenant eviction lawsuit, due to an unenforceable lease clause. On the other hand, some standard forms actually impose greater obligations and restrictions on landlords than the state laws! For example, there are standard lease forms that require landlords to return security deposits within ten days. That is incorrect and no state requires it.Therefore, avoid making this mistake, either brush up your knowledge of state and federal laws or hire a lawyer to draw up a water-tight lease for you.
  2. Asking the Wrong Questions During Applicant Screening
    Whilst, tenant screening is the most important aspect of a rental business, there are limits to the kind of questions that may be asked of prospective applicants. Asking a disabled person about his / her disability, or if a couple is married, may be questions asked in all innocence, but they could be misconstrued as illegal forms of discrimination. In case, you turn down the applicant on other grounds and the rejection has nothing to do with the offending question, a disappointed tenant has sufficient ammunition to lodge a fair housing complaint. Play it safe and steer clear of sensitive topics and issues.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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 their tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Landlords, Just For You: Top Ten Tax Deduction Tips – Part III

Posted by on March 16, 2007 under Landlord Tips | icon: commentBe the First to Comment

On with the tax deduction tips for landlords’ saga that relates certain measures that can be taken to save on tax payments.

  1. In case, a landlord hires anyone, perhaps as an employee or an independent contractor to perform services for any rental activity, any payment made to them in form of salary of for services rendered can be deducted as a rental business expense. Simply put, deductions can be made, whether the worker is an employee e.g. a resident manager or an independent contractor e.g. a repair person.
  2. If, rental property is damaged or destroyed, as a result of any sudden event like fire or flood, the owner is entitled to claim a tax deduction for all or part of his / her loss. Called casualty losses, however, one may not be able to deduct the entire cost of damaged or property destroyed by a casualty. Your deduction amount will depend on the extent of damage sustained and, whether the loss was covered by insurance.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Landlords, Just For You – Top Ten Tax Deduction Tips – Part II

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So, to continue with Part II of tax saving tips for owners of small residential rental property, tax deductions can be taken, as under:

  1. A landlord can deduct rental property repair costs, so long as, they are necessary, and the dollar spend is reasonable in amount. Repair costs are fully deductible the year they are incurred in, and some good examples of deductible repairs include, repainting, fixing gutters or floors, fixing leaks, plastering, replacing broken windows, and so on.
  2. And perhaps, you weren’t aware of the fact, but landlords are entitled to a tax deduction, for gas mileage expenses, whenever they drive anywhere for work relating to their rental business. Take for example, a trip to handle a tenant complaint, or to the hardware store for purchasing a repair part, is tax deductible on both counts, as the trip was made in relation to rental business travel.

Any travel related to a landlord’s rental activity offers two options for deducting vehicle-related expenses. On one hand, one can either deduct actual costs i.e. gasoline, upkeep, repairs, etc., or else use the standard mileage rate – 48.5 cents per mile for 2007; 44.5 cents per mile for 2006. However, bear in mind that in order to qualify for the standard mileage rate, the standard mileage method must have been used in the first year the car was used for rental business activity. Moreover, standard mileage rate cannot be used, if one has claimed accelerated depreciation deductions in prior years, or taken a Section 179 deduction for the vehicle.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Subtle, However, Illegal Landlord Discrimination

Posted by on March 13, 2007 under Landlord Tips | icon: commentBe the First to Comment

Both landlords and tenants should know or be aware of the fact that the Fair Housing Acts imposed by state and local governments are meant to protect tenants, while prohibiting landlords from discriminating on the basis of race, religion, or any other protected / minority category. It is illegal to deny accommodation to a rental applicant on the following grounds:

  1. By falsely claiming a rental unit is unavailable, simply because he / she does not wish to rent to certain applicants.
  2. Indulging in rental advertisements that subtly indicate a preference based on group characteristic, such as, colour of the skin.
  3. Imposing additional restrictive standards, like a higher income, to discourage and deny accommodation to certain tenants.
  4. Refusing reasonable accommodation of disabled tenant needs, such as, permission to keep a guide dog, hearing dog, or other service animal.
  5. Setting different terms for some tenants, e.g. adopting an inconsistent late rental payment policy, or Terminating a tenancy for discriminatory reasons.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!