Posted by Teresa on June 8, 2010 under Eviction, Tenant Screening & Background Checks | 
Elaine is a responsible, no-nonsense landlord. Her leases are clear and thorough, and her tenants generally live by her rules. Every now and then, however, Elaine signs a lease with a tenant who unexpectedly starts causing trouble—despite her checking the tenant’s rental history, criminal background, and credit.
This time it’s a young woman who is simply too loud. She plays her TV at top volume, listens to bass-busting music late at night, and has way too many parties with her also-loud friends.
Elaine has reminded the young tenant about her rules on disturbing the peace. She’s asked her to discontinue the behavior. And now, other tenants are complaining. Elaine is ready to issue a Three-Day Notice to Quit. Is that her best option?
According to our sources, no. This non-conditional notice is generally used when whatever is happening to breach the lease cannot be corrected. Examples include illegal behavior like selling drugs, irreparable damage to the property, or subleasing the property without permission. The notice tells the tenant that if they are not out in three days, eviction proceedings will begin.
In this case, Elaine’s tenant could still correct her problem—just by quitting the loud parties and turning down her stereo equipment. Therefore, a Three-Day Notice to Perform Covenant or Quit is the better recourse. It must specifically state the behavior that breaches the lease so the tenant can correct it.
Then if the problem continues over the three-day period, Elaine can start eviction proceedings. But what if the tenant quiets down for three days, and turns up the volume again? Hopefully, the threat of eviction is enough to inspire behavior modification in this tenant. If not, another Three-Day Notice to Perform Covenant can be issued. After a few of these, it might be time for the Three Day Notice to Quit!
Legal disclaimer:
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation. Always consult your legal advisor for your particular situation.
Posted by Teresa on February 18, 2010 under Eviction, Landlord Paperwork and Forms, Landlord Tips |
Depending on the state in which your property sits, you can probably collect back rent and damages from former tenants through wage garnishment.
Garnishment of wages is done through the courts, after a judgment is made against the debtor. The debtor’s employer is ordered to withhold a portion of his or her wages, and turn them over to the court, to be disbursed to the creditor.
The question most landlords ask is if the amount of money in question is worth the time, trouble and expense of the court proceedings required. The best way to determine this is to obtain an accounting of the fees involved: usually there are court costs, process server fees, filing fees, and attorney’s fees—unless no attorney is involved.
As with eviction proceedings, many landlords hire a landlord/tenant law specialist to file garnishment papers the first time, and then decide whether or not they can handle the process themselves. And that’s a personal decision, just like deciding what dollar amount makes the court action “worth it.” Every landlord is different in this respect. Once you determine the out-of-pocket costs, you can then make your decision.
Obtaining a judgment is one thing, but if the tenant has no means to pay it, you may never see the funds owed to you—and working hard to collect them could be a huge waste of your time. And it should go without saying that your former tenant needs to be employed in order for his or her wages to be garnished.
There are other factors to consider in making a decision to garnish a tenant’s wages:
- Do you have the tenant’s new address? If not, filing will be very difficult.
- Have they moved out of state? Again, filing becomes more complicated.
- Do they have other garnishments, such as for child support payments? Other garnishments must be satisfied first.
- Is the tenant’s income below the poverty line? If so, they are exempt.
If you decide to file for a Writ of Garnishment, you’ll need to gather all the tenant paperwork, including the lease application, the lease or rental agreement, proof of rent payment, proof of any notices to Pay or Quit, eviction papers, and notes from conversations and electronic communications.
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation.
Posted by Teresa on February 16, 2010 under Eviction, Landlord and Tenant FAQs |
Christopher is no newbie landlord. He has purchased and rehabbed several properties in his city, and is running his investment property business full time. His tenants are a mix of couples, families, and singles from every income tier and diverse backgrounds. He’s had his share of problem tenants, but the only real problems he’s had to face are late rent payments.
Until a few months ago. Christopher surprised a tenant—although completely unintentionally—and discovered signs of drug use in his property. Here’s what happened: while doing some routine maintenance at Apartment #1 of a duplex, he realized he needed to shut off the water main. Unfortunately, the main fed both living units. So Christopher knocked on the door of Apartment #2 to see if anyone was home, and to let them know the water would be off for a few minutes.
When his tenant opened the door, she appeared surprised at seeing Christopher; she quickly stepped out and closed the door behind her. While Christopher maintained his tenant’s privacy by not looking into the apartment, he couldn’t help but notice the odor wafting out the door and into his nostrils! It was definitely marijuana.
Christopher informed the tenant of the impending water shut off and left, feeling conflicted about how to handle the situation. But he soon made a decision.
If you were the landlord what would you do?
A. Nothing. Marijuana should be legal.
B. Nothing. If the tenant is not hurting anyone, it’s none of my business.
C. Have a talk with the tenant. Let her know that illegal drugs are not tolerated on my property and give her written warning that the next time it happens, I will start eviction proceedings.
D. Start eviction proceedings immediately. Illegal drug use harms all my tenants and the community and could make me liable for any related property damage or personal injury.
Christopher chose door D. Backed by a solid rental agreement that clearly states illegal drugs are not allowed on his property, Christopher did what he always did when it came to handling tenant issues: he enforced the terms of the lease, as agreed to by the tenant.
Christopher did not want to evict this tenant. He had no prior issues with her, and she paid her rent on time. But he strongly believes in treating all tenants equally and enforcing his lease and tenant rules fairly. He felt he had no choice other than to evict this lease-breaking tenant.
The outcome of this story? While evicting tenantsis never pleasant, Christopher discovered he did it just in time to prevent the occupants of Apartment #1 from moving away. Turns out they had noticed marijuana odors from the apartment next door for months and no longer wanted their kids subjected to it. When they discovered their neighbor had been evicted, they thanked Christopher for keeping of the duplex drug-free and enforcing the lease.
Posted by Teresa on January 15, 2010 under Eviction, Tenant Screening & Background Checks |
On this site, we’ve covered the importance of clear rental agreements and leases a dozen times or more. And we’ve stated that the relationship between landlord and tenant is strictly a business one. Never does that distinction become more important than when it’s time to evict a tenant.
Even landlords who choose tenants very wisely, who run all the right credit checks and background screening checks, and who have good, professional relationships with their tenants will face the inevitable eviction soon or later. And, if that landlord is a compassionate person, he or she might not feel good about doing it.
This economy has made it tough for everyone. Tenants are losing jobs and landlords are having a hard time filling rental vacancies—there’s no doubt the business has changed drastically over the past year. But even in this economy, landlords must look at eviction as a business decision—hard as that can be.
Is it okay to evict a tenant in this terrible job and rental market? The answer is “yes.” If you’re in doubt, pull out the rental or lease agreement. Read it over. Check off the terms and conditions that your tenant has failed to honor. Remind yourself that when your tenant signed that lease agreement, he or she agreed to abide by each of those terms and conditions. And they agreed that if they broke the agreement, you had the right to take action, including eviction.
You took a chance that the tenant would uphold their end of the bargain, just as you performed all the duties you agreed to. In approving this tenant, you conducted your due diligence, mitigated your risk through tenant screening, and verified employment and credit worthiness. Though it was based in smart business practices, you still took a chance.
When it turns out that the tenant and you both made a mistake in entering into the agreement, then choosing to evict is okay. When it turns out that, despite the best efforts on both sides, the terms of the rental agreement cannot be upheld by the tenant, then choosing to evict is okay. Making the best business decision you can when a tenant breaks the rental agreement is okay.
This is just one reason a strong rental or lease agreement is the foundation of every landlord/tenant relationship.
On this site, we’ve covered the importance of clear rental agreements and leases a dozen times or more. And we’ve stated that the relationship between landlord and tenant is strictly a business one. Never does that distinction become more important than when it’s time to evict a tenant.
Even landlords who choose tenants very wisely, who run all the right credit checks and background screening checks, and who have good, professional relationships with their tenants will face the inevitable eviction soon or later. And, if that landlord is a compassionate person, he or she might not feel good about doing it.
This economy has made it tough for everyone. Tenants are losing jobs and landlords are having a hard time filling rental vacancies—there’s no doubt the business has changed drastically over the past year. But even in this economy, landlords must look at eviction as a business decision—hard as that can be.
Is it okay to evict a tenant in this terrible job and rental market? The answer is “yes.” If you’re in doubt, pull out the rental or lease agreement. Read it over. Check off the terms and conditions that your tenant has failed to honor. Remind yourself that when your tenant signed that lease agreement, he or she agreed to abide by each of those terms and conditions. And they agreed that if they broke the agreement, you had the right to take action, including eviction.
You took a chance that the tenant would uphold their end of the bargain, just as you performed all the duties you agreed to. In approving this tenant, you conducted your due diligence, mitigated your risk through tenant screening, and verified employment and tenant credit history. Though it was based in smart business practices, you still took a chance.
When it turns out that the tenant and you both made a mistake in entering into the agreement, then choosing to evict is okay. When it turns out that, despite the best efforts on both sides, the terms of the rental agreement cannot be upheld by the tenant, then choosing to evict is okay. Making the best business decision you can when a tenant breaks the rental agreement is okay.
This is just one reason a strong rental or lease agreement is the foundation of every landlord/tenant relationship.
Posted by Teresa on July 17, 2009 under Eviction, Landlord Tips, Tenant Screening & Background Checks |
Whether you’re an experienced landlord, or a “newbie,” you probably have your share of missteps made in your rental property business. And while some landlords make the same mistakes over and over again, you don’t have to be that guy or gal.
We’ve rounded up a list of common landlord mistakes so you can avoid them!
1. Not treating it like a business. Because it is! You are in the property rental business to make money, not to house the world at your expense. Establish and follow procedures, open separate bank accounts, keep meticulous records, get professional help when necessary, and project a professional demeanor to your tenants. As one landlord put it, “If you look and sound like you’re not serious, you won’t be taken seriously.”
2. Being too lenient on rent collection. Your tenants signed an agreement to pay you on a certain date. Don’t allow late or partial rent, or they will know you’re not serious about the due date. See mistake #1.
3. Failure to prescreen tenants. Don’t be in a hurry to fill a vacancy, or you could end up with an unreliable tenant—which is a much bigger problem than an empty unit. Have your employment checks, background checks and credit checks in hand before you sign a lease with any tenant.
4. Lack of understanding about operating expenses. There is more to owning rental property than collecting rent and paying the basics: principle, interest, taxes, and insurance. If you don’t have sufficient resources to cover regular expenses (maintenance, advertising, repairs) PLUS accessible funds to cover the occasional (but inevitable) major repairs, you are setting yourself up for failure.
5. Trying to do everything yourself. If you have only one or two properties to manage, you might be able to handle rent collection and upkeep. Still, you might need a handyman for maintenance. But if you have more than three rental properties, consider hiring a property management company for tenant screening and placement, upkeep, rent collection, maintenance, etc. Ask yourself what your time is worth. You may find the expense of a management company is well worth your freedom from stress.
6. Not having an exit strategy. Before you buy an income property, do your homework—including how easy or difficult it will be to sell when you need or want to. You never know when you’ll want out of a rental property, but the likelihood is that you will sell eventually.
7. Not evicting non-paying tenants immediately. Even if you properly screen tenants, anything can happen. If your tenants break the rental agreement by not paying on time, you can—and should—take the proper legal steps for eviction. See mistakes #1 and #2.
8. Being a hands-off landlord. Although you may have a property management company, no one will care about your rental properties like you do. At the very least, inspect your properties on a regular basis and stay in touch with your tenants. You’ll probably prevent a lot of damage and trouble just by following this simple step.
Posted by Teresa on March 18, 2009 under Eviction, Landlord Tenant Lawsuits |
Courtesy of www.flickr.com/umjandoan
Eviction: the word itself sounds unpleasant, and it is—on both sides. Does any landlord begin the eviction process against a tenant unless it is absolutely necessary? It’s not likely that anyone actually enjoys the legalities, paperwork, court orders and stress that accompany this process.
The best way to prevent having to evict tenants is to do the work required up front to attract and retain the best tenants. A few examples are:
1. Keep your property in the best possible condition;
2. Keep communication open with your tenants;
3. Screen tenants prior to signing the rental agreement;
4. Put everything in writing.
Even when all seems to be going well, you could still experience a situation that cannot be tolerated; and eviction is the eventual result. Knowing what to do in this case can make it easier.
Eviction laws vary by state and even by locality; it is vital to follow them precisely. You may decide to consult an attorney or eviction service to assist you; if so, the web is a great resource to find these specialists.
There are basic rules to evict problem tenants, no matter where you live. First, a legal reason, such as violating the lease agreement, is required. Second, you must give the tenant notice. Each state has exacting procedures that define “proper notice.” Keep in mind that in some localities, you may not follow through on the eviction if you accept rent payments after giving notice. Third, you will have a legal proceeding before a judge. If the judge’s rule calls for eviction, there will be a notice of eviction from the court.
Now, the court may side with the tenant; if you decide to appeal the decision, be prepared for another lengthy and costly procedure. You will likely need legal representation for the appeals process. And, the tenants can appeal, as well—so a first-round victory doesn’t mean you’re completely off the hook.
Preparation is key: a solid rental agreement, along with evidence (such as photographs and communication logs) will be your best tools when facing the eviction process. It’s easier to stay organized from the beginning than to try to catch up when you’re facing a court date!
Next Post: Becoming a Landlord
Posted by Teresa on March 13, 2009 under Eviction, Landlord Tenant Lawsuits |
The law protects tenants from evictions, rent increases, and other penalties a landlord might impose out of retaliation. Most often, this occurs after a tenant files a complaint or other action against the landlord. If you decide to evict a tenant, raise the rent, or terminate a lease, you must be prepared to prove it is not in retaliation for the tenant’s actions.
What is considered retaliatory action? If your tenant files a complaint through proper channels about your lack of maintenance or a code violation, you may not raise their rent, break their lease, or evict them. You may not threaten eviction or reduce services, either.
If you do decide to evict a tenant for legitimate reasons, such as severe property damage, non-payment or continual late payment of rent, or illegal activity, you must prove that your reason is legal. The law assumes a tenant who has filed a complaint and subsequently is evicted is being treated illegally. You cannot punish a tenant for exercising their rights under the law.
The reality is that once a tenant files a legal complaint, it becomes more difficult to later evict them, even with just cause. The best practice is to prevent such complaints with regular inspection schedules, proper maintenance, and good communication. In addition, prescreening tenants and checking references will be good clues as to their rental habits and history—before you enter a legal agreement to lease your property.
Posted by Teresa on January 6, 2009 under Eviction |
When rental property becomes uninhabitable and the tenant no longer has full use and possession of a rental property, that tenant can claim Constructive Eviction to relieve the obligation to pay rent to the landlord. A tenant must take several steps to claim Constructive Eviction:
- The tenant must serve the landlord with a written notice of the construction eviction
- Tenant must also provide the landlord with a reasonable period of time to correct the situation.
- If the defects are not corrected within that reasonable period of time, the tenant then may be able to leave the property without being responsible for payment of rent otherwise due under the lease.
- In most cases, the tenant must physically move out of the property, and then sue for damages, etc.
Posted by Teresa on November 8, 2008 under Eviction, Landlord Tips |
While few of us want more paperwork in our lives, using a good move-in/move-out checklist for every tenant in every property can save lots of trouble in the long term.
If you’ve ever been a tenant, you’ve most likely participated in the checklist process. Most tenants are happy to take part, since it protects them as well as you from misunderstanding when they move out.
Additionally, if tenants know that there is a clear record of the property condition when they move in, they are often more careful to take care of the property during their stay.
The checklist should:
- be well-organized into rooms
- include list of all furniture (if included) and appliances
- be completed with both the landlord and tenant present
- be signed by both landlord and tenant
A copy of the checklist should be kept by both landlord and tenant.
Posted by Teresa on November 5, 2008 under Eviction |
There are several defenses a tenant can raise to stop from being evicted from your property. Knowing this information can help you take the right steps when you need to evict, or help you to know if you are likely to be able to evict the tenant!
The laws vary according to the state, but these are the common defenses in eviction in most areas:
- Probably the most common defense is that the landlord failed to give proper notice, either in the form of the documents, the method they were delivered, or the times given to the tenant. This defense doesn’t mean you can’t evict, but you’ll need to start the process over from the beginning.
- Accepting partial rent from a tenant may be a defense against eviction, at least for that rental period. If you want to accept partial rent, check your state’s laws.
- Failure to keep the rental property well maintained is another common defense against eviction. Again, check your state’s laws to determine how this is handled in your location.
- Other defenses against eviction are claims that you, as landlord, are retaliating against a tenant for acting as an activist regarding code violations or property conditions, for the property being uninhabitable, or for Fair Housing Act violations.
Be sure you know your state’s laws!
Elaine is a responsible, no-nonsense landlord. Her leases are clear and thorough, and her tenants generally live by her rules. Every now and then, however, Elaine signs a lease with a tenant who unexpectedly starts causing trouble—despite her checking the tenant’s rental history, criminal background, and credit.