The Importance of Good Landlord-Tenant Communication

Posted by Teresa on March 28, 2013 under Landlord Tips | icon: commentBe the First to Comment

tenant screening“I thought you said I could have a roommate.”
“I told you I was going to be getting a dog after I moved in.”
“No, I didn’t realize I wasn’t allowed to park my RV in the parking lot.”
“We didn’t know we weren’t supposed to skinny-dip in the pool.”

Have you ever heard a tenant explain that they broke the rules of the lease because they didn’t know or realize what those rules were? Or because they thought they heard you say it was okay?

Many an experienced landlord can tell stories about the misunderstandings that go on nearly every day with tenants. That’s why it’s so important to establish good communication from the start of your relationship with every tenant.

Here are some tips for improving landlord-tenant communication:

  • Never assume. Don’t assume you know what a tenant is thinking or planning.
  • Put it in writing. Especially when it comes to changing the terms of a lease, such as allowing a roommate or a pet, put it in writing and have all parties to the lease sign and date it. Even if it’s simply to use an extra parking spot, don’t rely on verbal agreements. They’re difficult to remember, not to mention prove in court.
  • Over communicate. If you’re going to err on either side, over—don’t under—communicate.
  • Use multiple platforms. Some tenants will prefer to talk with you on the phone, others via text. Still others will only respond to email. All legal correspondence should be delivered through the U.S. Mail.
  • Ask questions. Whether you’re reviewing the terms of the lease, or making an appointment for a maintenance call, make sure the tenant understands what you’re saying by asking clarifying questions. And if you’re unsure about what the tenant is saying, ask again.
  • Listen. Be an active listener. Make eye contact. Watch body language. Repeat back what you’ve heard and ask if that’s what the tenant really meant.
  • Don’t interrupt. Show interest, provide feedback and be patient when your tenants are speaking.

Good communication takes some effort, but remember that your tenants are your customers, and establishing positive communication will go a long way to keep the relationship positive.

Start your tenant relationship off right by knowing who you’re leasing to. Protect your rental property and assets with tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.

Companion Animal or Illegal Pet?

Posted by Teresa on March 26, 2013 under Legal | icon: commentBe the First to Comment

tenant screeningThe Fair Housing Act (FHA) governs rental properties, requiring landlords to follow all laws established under the Act. Owners of rental properties may not discriminate on the basis of religion, sex, race, family status, national origin, or disability.

Under the disability section of the FHA, it states that landlords must make reasonable exceptions to their policies to ensure that people with disabilities receive equal housing opportunities.

This means that if you have a no-pets policy, you may be required to make an exception for service or companion animals that people with disabilities depend on to manage their lives.

But not all disabilities are obvious. The Americans With Disabilities Act (ADA) defines an individual with a disability as “a person who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such impairment.”

It’s a broad definition, but that doesn’t necessarily mean that every animal kept by a person with disabilities must be allowed. Not all dogs are service dogs—some are simply pets. Certain court cases have ruled in favor of landlords, such as when a dog owned by person with a hearing impairment was found to be completely untrained, and not an assistance animal at all.

Other examples include a case where a property management company changed its pet policy to ban all animals. One tenant had lived there for years, and owned a dog. When it came time to renew his lease, he was asked about whether he would be giving the dog away or leaving his apartment to comply with the new policy. He stated that since he’d been in an accident a year before, he needed his dog as a companion animal. He supplied evidence from his physician, and was allowed to keep his dog.

If you have an issue with a tenant over whether or not the service or companion animal they’re keeping truly fits the definition, consult your attorney. Keep in mind that some disabilities, like heart trouble, depression and diabetes cannot be seen. Assuming your tenant does not have a disability can be considered discriminatory in itself. Be sensitive, proceed with caution, and give your tenant the respect he or she deserves.

Handling Tenant Complaints

Posted by Teresa on March 14, 2013 under Landlord Tips | icon: commentBe the First to Comment

tenant screening, tenant credit checkWe recently noticed a news story about a tenant complaining her landlord asked her to post a “Do Not Flush Tampons” sign in her bathroom. Apparently, the landlord blamed the tenant for plumbing problems in the four-unit building that was built in 1945.

The story unleashed quite a response, mostly consisting of stories describing plumbing problems caused by all kinds of things that shouldn’t be flushed. Whether the landlord was justified in asking the tenant to post the sign was no longer the focus.

Interacting with tenants invariably means dealing with complaints—whether they’re about you, the neighbors, the heat or any of the other approximately 10,000 subjects tenants complain about.

Here are some tips for handling tenant complaints:

  • First, it’s important to establish good communication with tenants from day one. While you don’t want to encourage them to find fault with everything, do let tenants know that you want to know when they have a problem. Having the opportunity to make repairs keeps your property in top condition, and allows you to check on how the tenant is treating his or her unit.
  • Devise a tracking system. Ask tenants to make requests in writing, and follow up in writing. Create an official form and have tenants complete it, or accept requests by email. You never know when you’ll need written records to back up your actions, so make this a standard procedure.
  • Record details of how you handled the complaint. Include dates, times, notes about repairs made and when you followed up with the tenant. These details are important in case the tenant withholds rent for non-performance.
  • If a tenant complains about fellow tenant’s behavior, parking habits, noise or other issues, don’t ask them to handle it on their own. Approach the offending tenant, point out the lease provision that prohibits whatever behavior that is offending the other tenant, and ask them to stop. It’s best to not identify the accuser. If the behavior continues, move on to written notices.

Most tenants will have issues at some time or another. Experienced landlords know that this is part of the job. But how you handle complaints can make a big difference in your tenant relationships, your stress level and your success.

When Tenants Want to Sublease

Posted by Teresa on March 10, 2013 under Lease and Rental Agreements, Tenant Screening & Background Checks | icon: commentBe the First to Comment

tenant screeningLandlords typically include language in the lease that prohibits subleasing without permission. But what exactly is subleasing, when and why would a tenant want to do it, and how should landlords proceed?

Subleasing is different from transferring a lease to another party. In the latter situation, another tenant takes over a current lease and the original tenant is absolved of any responsibility for its terms.

In subletting, the subtenant is granted the rights contained in a sublease, but the original tenant is still responsible for the terms of the original lease. In essence, the subtenant is renting from the original tenant, who is still bound by the contract with the landlord. For example, a subtenant is allowed to live in the unit but must pay rent. If they do not, the original tenant is still liable for the missed rent.

Tenants might be interested in subleasing if they are going away for an extended length of time, but wish to return to their apartment. It wouldn’t make sense to go to the trouble of subleasing for a trip of a few weeks. But if your tenant were planning on traveling through Europe or South America for three months, subleasing is a way to cover the rent without having to break the lease and start over when they return.

Tenants who are interested in subleasing may ask permission, even if the lease states you do not allow it. Remember, it’s always up to the landlord whether or not to allow the sublease. If you decide to allow a tenant to sublease your property, follow these tips for a more successful outcome:

  • Write up a Consent to Sublease agreement between yourself or your company and the two parties.
  • Include elements such as effective date, the tenant and subtenant’s names, the property address, and the monthly rent.
  • Be sure to state that the tenant is still responsible for his or her duties under the original lease.
  • If you decide to allow subleases, be sure to create a policy. Don’t let one tenant sublease, and forbid another from subleasing. This could lead to charges of discrimination.
  • Be sure your tenant also has a sublease agreement with the subtenant. This is a different document from your Consent to Sublease agreement, and covers the legalities between those two parties. If expectations are not made clear, you could find yourself stuck in the middle of their disagreements.
  • Keep in mind that if the subtenant damages the unit, leaves before the lease expires or breaks any other condition of the lease, you may hold the original tenant responsible. He or she can will have to get satisfaction from the subtenant.
  • Just as you screen all your prospective tenants before signing a lease, you should make it clear that any subtenants will also be required to undergo tenant screening.

Subleasing can be a hassle, but if you have good tenants whom you want to keep, allowing them to sublet while they’re away can make sense. Remember, it’s completely up to you!

Start your tenant relationship off right by knowing who you’re leasing to. Protect your rental property and assets with tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.

Can Landlords Ban Firearms From Their Properties?

Posted by Teresa on March 7, 2013 under Landlord and Tenant FAQs, Legal | icon: commentBe the First to Comment

tenant screening, tenant credit checkA landlord recently asked a question regarding firearms:


“Since the Newtown, Conn. shooting, I’ve been thinking that I’d rather not have any guns in my properties. I’m concerned that a tenant or a child could be shot by accident or as a result of a domestic disturbance. And what if a shot went through the wall to another tenant’s apartment? Can I ban firearms?”

It’s true that guns and gun laws are a hot news topic. Many landlords are wondering if they have the right to ban firearms from their properties. The answer in most places is “yes.” It’s always best to check your state and local laws to be sure. Minnesota, for example, does not allow landlords to restrict the lawful carry or possession of firearms by tenants or their guests.

While the second amendment to the U.S. Constitution is widely quoted by firearms owners and enthusiasts, it only covers the government’s response to guns held by private citizens. Just as landlords can ban pets, waterbeds and campers, they can ban guns from their properties.

If they prefer to keep a gun-free property, landlords can choose not to rent to gun owners, who, unlike persons with disabilities or other groups, are not a protected class.

Now, we’re not saying that banning guns will make a landlord more popular. It might make prospective tenants angry. Some gun owners might ignore the rule and bring guns onto the property anyway. If you do find a firearm on the property, the tenant would be in breach of the lease.

But if you feel better instituting a no-guns rule, check with an attorney versed in landlord-tenant law, or check your state’s gun laws before instituting it. For tenants with current leases, you’ll have to wait until renewal to add the new provision. Some may choose to move out. And of course, once you have a signed lease, you would not be allowed to conduct a search of a tenant’s unit to look for firearms.

What Tax Deductions Can Rental Property Owners Take?

Posted by Teresa on March 1, 2013 under Landlord Tips, Legal | icon: commentBe the First to Comment

tenant screeningFirst of all, let it be known that we do tenant screening—not tax returns. Therefore, please do not construe this post as tax advice. Get that from a professional. The following is general information that landlords might find useful.

The housing bubble turned lots of homeowners into landlords, when they couldn’t sell their properties and instead had to rent them out to tenants. These new landlords may not realize what veteran rental property owners know: that one of the advantages of being in the business is the opportunity to offset income by deducting certain expenses from their tax returns.

When you own rental property, you can generally deduct the following:

  • Mortgage interest
  • Depreciation
  • Taxes
  • Insurance
  • Maintenance and upkeep
  • Utilities paid by you
  • Upgrades to rental units
  • Advertising expenses
  • Professional fees (tax advisor, lawyer, bookkeeper)
  • Website expenses
  • Local travel (including meeting with tenants, checking on units, traveling to hardware stores for parts, etc.)
  • Long distance travel related to rental properties
  • Cleaning expenses
  • Painting, carpet replacement and other repairs done between tenants
  • Home office expenses

Rental property offers other benefits, as well. Remember, one day the mortgage will be paid off and the income can help with your retirement, too!

Find a good tax advisor and make sure you get all the deductions you’re entitled to. Make your rental property work hard for you, and don’t pay more in taxes than is required.