Establishing a maintenance and repairs policy and setting up procedures that are clearly understood by your tenants and your maintenance person or company (even if that’s you!) can go a long way toward making this aspect of owning rental property much easier.

Rental Property Maintenance Procedures May Include:

• A regular inspection schedule, such as quarterly, set in advance, and preceded by 48-hour notice (or whatever your state requires);
• Keeping a tenant request tracking system or log to make sure that safety and other issues are handled within a reasonable time frame;
• Notifying tenants of repair and maintenance policies when they apply for a lease, at lease signing, and throughout the year;
• Providing tenants with several maintenance report forms to use throughout their lease term;
• Establishing a response time for each category of tenant complaints: safety, emergency, routine, etc.;
• Contact information for maintenance problems that are reported during the day, after hours, or on holidays.

Rental Property Maintenance Policies Typically Specify:

• Tenant responsibilities: changing light bulbs (for safety), and promptly reporting safety hazards like loose floorboards or railings, blown fuses, clogged plumbing and electrical problems.
• Landlord responsibilities: repairing hazards immediately, replacing air filters regularly, checking heating systems annually, responding to tenant complaints within a reasonable (stated) time frame and providing a safe, habitable residence for tenants.

Maintaining your rental property and responding promptly to tenant requests are vitally important to your business. In some cases, tenants may be entitled to withhold rent if maintenance issues are not addressed. And you never want to be responsible for a health problem or injury that occurs due to improper maintenance or repairs.

When leases are about to expire, landlords need to decide whether or not to renew

Landlords need to know in advance if a tenant plans to stay or move. It’s not a bad idea to send the tenant a notice, ask if they’re staying or leaving, and have them check a box: I’m interested in renewing; or I’m moving out. Sending a notice ahead of time is also a great way to remind tenants that any security deposit paid is just that—and that the last month’s rent will be due as usual, with the security deposit covered separately.

If the tenant is paying rent on time and abiding by the terms of his or her lease, it’s to the landlord’s advantage to keep the tenant in place, avoiding the expenses and time associated with finding a replacement. Some landlords who want to keep their tenants send a friendly letter notifying them that the lease is up for renewal, and offering a discount on the standard annual rent increase because they are “preferred tenants.” Others put the new rent at the standard rate and offer a $50 gift card, new light fixtures, or some other perk for renewing.

The strong rental market means landlords can be a bit choosier. So if a lease renewal date is coming up and a tenant no longer fits your requirements, you simply need to notify him or her that you will not be renewing the lease. Give at least 30 days’ notice, or more if you lease or local laws require it.

3 Reasons to Let a Bad Tenant Go:

1. Late rent: Even if a tenant pays the rent every month, if they pay late every month, it’s a hassle. Get someone in who will pay every month, on time.
2. Breaking terms of lease: Every item in the lease was agreed to by your tenant when they signed it. If you have a tenant who is smoking in a non-smoking unit, or piling garbage around the dumpster instead of in it, or taking up three parking spots instead of one, you may decide that you no longer wish to put up with the headaches a tenant like this can cause.
3. High maintenance: Certainly, legitimate complaints about repairs and maintenance are your responsibility as a landlord. But if you have a tenant who complains about a light bulb burning out, or the lack of air conditioning in a unit that never had it, or any number of other insignificant non-issues, you have the right to not renew the lease.

As a landlord, do you keep track of tenant lease renewal dates

If you’re on a one-year lease schedule, set reminders to contact tenants prior to the lease expiration to thank them for leasing your property and inform them it will soon be time to sign a new lease. If you will be raising the rent, now is the time to inform your tenant. You may wish to provide a perk such as an appliance upgrade or new carpet to entice them to renew at the higher rent.

At lease signing, have your tenant fill out an updated information form, so you can be sure to have current employment information, emergency contacts, current occupants and vehicle license numbers:

• You’ll want the employment information in case your tenant vacates the unit and owes you rent. If you’re forced to go to court to collect, you’ll want to know where you can garnish the tenant’s wages, if it comes to that.
• Personal and emergency contacts are important, not only in case of an actual emergency, but again, if the tenant breaks the lease and owes you rent, you’ll have a place to start looking for him or her.
• Vehicle license information is vital to keeping unauthorized or unknown vehicles off your property.
• Asking for current occupants are a great way to discover if there are unauthorized residents staying in your rental property. If there are “guests” over age 18, you’ll want to point out the lease clause that covers your guest policy (such as limiting guests to two consecutive weeks in any six month period) and require lease applications and tenant background checks from anyone living in your rental unit who is not on the lease. Of course, if the new tenant is permanent, you’ll need a to draw up a new lease that includes his or her name.

Remind tenants that they must provide written notice if they intend to move out at the end of the lease. Ask for an exact date they will be vacating. However, don’t promise the unit to a new tenant until you are absolutely sure that the old tenant is moving out.

If you’re a landlord who owns older rentals

The Residential Lead-Based paint Hazard Reduction Act, commonly known as Title X, was enacted in 1992. The Environmental Protection Agency regulates the act for all rental properties built before 1978.

Under Title X, landlords must disclose any known lead-based paint or hazards on the property to tenants before signing or renewing a lease or rental agreement. The tenants and landlord must sign an EPA-approved form to prove the landlord disclosed information about any known lead on the premises. The landlord must also provide tenants a brochure, “Protecting Your Family From Lead in Your Home,” supplied by the EPA or the state. The brochure is available online or you can request printed brochures from the National Lead Information Clearinghouse at 800-424-5323.

Property owners are not required to test for lead or remove it. And, certain properties are exempt from the lead disclosure requirement:

• Lofts, efficiencies and studio apartments
• Short-term vacation rentals of 200 days or less
• Single rooms rented in a residence
• A building certified as lead-free by an accredited lead inspector
• Housing designed for person with disabilities, unless children live there
• Retirement communities, unless children are expected to live there
• Housing built after January 1, 1978

Lead-based paint should not be removed unless proper precautions are taken. Even low levels in the bloodstream pose serious health risks to everyone, but especially children and pregnant women. Landlords should read the EPA brochure to become familiar with the dangers and regulations surrounding lead-based paint.

Most landlords

Roommates don’t always work out, which can cause headaches for landlords. If you’ve experienced your share of roommate drama, you can help educate your tenants to be better roommates—which in turn can make them better tenants for you.

Why not provide all of your tenants with a Roommate Agreement? Here’s what it can do for you:

• Facilitate better tenant relationships
• Minimize roommate arguments
• Increase awareness about legal responsibilities

While the agreement will not alter the terms of the lease each tenant is subject to, it serves to clarify some of the issues roommates often have with each other. Be sure that the agreement states that the roommates are jointly and severally liable for all terms of the lease/rental agreement. And of course, have a legal professional review it before you hand it over to your tenants.

What to Include in a Roommate Agreement

• Address of rental unit and lease beginning and ending dates.
• Name of each roommate, share of rent and security deposit each is responsible for, and which bedroom is his or hers.
• Security deposit rules: an agreement that whichever roommate is clearly responsible for damages will pay any applicable fees in full. All roommates agree to share equally in the cost of other fees and damages.
• Utilities: Determine in whose name the utilities (electricity, water, gas, cable, phone) will be and how the roommates will split and pay the bills.
• Subletting: State whether subletting is or is not allowed under the terms of the lease. If so, specify guidelines.
• Guests: Specify that each roommate is responsible for guest behavior, determine where each guest may stay, and the consequences when guests cause trouble or any damages. Place a limit on the number of days a guest may stay, according to the terms of the lease and the roommates’ comfort level. Specify whether guests may smoke and who is responsible for cleaning up after them.
• Quiet hours: state when roommates agree to observe quiet hours for sleep, study, etc.
• Pets: Guidelines for pet owners, according to the terms of the lease.
• Smoking: If the lease allows smoking, this section can spell out whether or not it is allowed by the roommates, and if so, where.
• General household rules: State who is responsible for trash and recycling, where to park vehicles and bicycles, guidelines for cleaning, sharing food, etc.

All roommates should sign and date the roommate agreement. While these guidelines may seem obvious, a formal agreement where all terms are spelled out and agreed to in the beginning can avoid many typical roommate problems. Good roommates make better tenants, and accepting the responsibilities that go along with living together can make the situation much more pleasant for everyone involved!

Harry the landlord notices

Later, Harry asks the tenant in Unit B if she has seen the man in Unit A. “You mean Scott?” she answers. “He’s been there for a couple of months.”

There is a fine line between a visitor and an unauthorized resident. Explaining the difference to your tenants can be tough—but it’s something a landlord must do to avoid the risk and potential problems that come when unscreened and unauthorized tenants live in your rental property.

Luckily, making sure you’re legally covered is easy. Just make sure your lease specifies what tenants can and cannot do when it comes to guests.

Harry’s lease does prohibit unauthorized residents. When he brings this to Unit A’s attentions, the tenant replies that her friend is not a resident—he’s just visiting.

Harry reviewed his rental agreement and realized it didn’t specify any time limit for guests or visitors. He revised it to read:

“Persons other than those specifically listed on the Rental Agreement shall be strictly prohibited from staying in the rental unit for more than 7 consecutive days, or a total of 20 days in any 12-month period. Tenant shall notify Owner in writing any time the Tenant expects any guest will be staying in excess of the time limits herein. Additional residents will be subject to full screening procedures, additional rent and security deposit. Unauthorized residents are a violation of this Rental Agreement and grounds for termination of the Rental Agreement.”

Harry was still within his rights to notify the tenant in Unit A that her unauthorized guest had overstayed his welcome and that he would need to move or she would be in violation of her lease. Luckily, she didn’t push the issue and the visitor was soon gone.

Don’t expose your tenants or your business to the risks of unscreened residents. Require your tenants to clear it with you before allowing anyone to move in. Require the new roommate to fill out a lease application and undergo tenant screening and a background check before they unpack their first box of belongings!

Just when a landlord thinks that business is quiet

Either way, the minute you receive that notice is when the tenant transition begins.

• Most leases require a 30- or 60-day notice when either party is intending to not renew. It’s a good idea to regularly review your lease expiration dates so you’re not surprised by a tenant’s notice. If you see one that will soon expire, go ahead and check in with your tenants to see if they’re planning on staying or leaving. The more time you have to prepare, the better.

• Of course, you’ll want to begin the search for a qualified new tenant immediately. Start by advertising in all your usual places, and put signs up in the neighborhood and on the property.

• Let the vacating tenant know you’ll be showing the rental unit to prospective new tenants. Try to be respectful of their time and privacy; but do insist on your rights to show the unit if they prove to be difficult about scheduling.

• You might want to make an appointment with your tenant to take a quick look through the unit to determine any work that needs to be done after they move out. Be sure to explain that this visit is NOT a move-out inspection, which will be performed after the unit is empty. This is just a helpful way to plan any painting, repairs and upgrades that will need to be completed before the next tenant moves in.

• Schedule the move-out inspection for moving day. Let your tenant know they’ll need time to move their belongings and clean the unit before you arrive. Remind them to pull out their move-in/move-out checklist to see what items you’ll be inspecting. Bring your copy of this document with you when you inspect.

• Once the rental unit is empty, you should be ready to immediately begin painting, repairs, replacing fixtures or floor tiles, and any pest treatment or carpet cleaning that is needed.

• Continue to show the property while repairs and painting are taking place. Remind prospective tenants that the unit will be completely ready for move-in day. Have photos available to show.

1. Double-check your lease, which may or may not address the sale of the property. Many large apartment building change hands without the tenants knowing, but for single family residences, small buildings and duplexes, it’s more difficult to show and sell a property without tenants knowing something is going on.
2. If a tenant asks what’s up, be honest. Reassure them that the new owner will welcome them as tenants. Do what you can to avoid losing any tenants before the sale is final.
3. It’s not generally required that you notify tenants that the building is going on the market. However, if you need entry to a unit to show a potential buyer, follow the standard notification period you use before entering a tenant’s unit.
4. Remember that happy tenants are a big selling point. Try to avoid numerous interruptions and make an attempt to accommodate the tenant’s schedule.
5. Most questions you receive will be regarding security deposits. Let tenants know if you and the buyer decide to:

a. refund all security deposits so new owner can collect them anew;
b. transfer existing security deposits to the new owner.

6. When the sale is completed, send a notification to each tenant with the effective date that you will no longer own the building or accept rent payments. Ideally, this would arrive at the same time as a letter from the new owner, directing tenants where and to whom to send rent payments.
7. State laws vary, but in general, once the sale is completed, the new owner is obligated to honor all existing leases. Whether they do or not—or whether tenants wish to continue with the lease or not—is no longer your problem.

Marilyn owns a duplex and lives in one unit. She rents the other unit to a tenant who confided in Marilyn that she is afraid that her ex-boyfriend was stalking her. The man was driving past the house several times a day, and the tenant had recently seen his car in the parking lots of the mall and grocery store where she had been shopping. She was worried, and wanted to let Marilyn know about his actions in case he became threatening.

Marilyn wants to protect her tenant and her property, but is rightfully concerned about getting too involved in the tenant’s situation. “I’m planning on calling the police if I ever see him near my property,” she said.

Police might recommend that Marilyn allow her tenant to take care of this problem directly, since the tenant is the legal resident of her unit. An attorney might say that Marilyn must take some sort of action to avoid being held responsible in the event a criminal action takes place against the tenant.

Encouraging a tenant who is being harassed to obtain a restraining order is certainly within a landlord’s area of responsibility. And as soon as Marilyn feels threatened by the ex-boyfriend, she too can seek a restraining order.

It is never a good idea to attempt any confrontation with a violent person. Stalking behavior is not acceptable behavior—it is a warning sign that should not be ignored. While it is understandable that Marilyn wants to protect her tenant and her property, it’s best to follow the law and let the police handle every confrontation with the ex-boyfriend.

Scott’s tenants were robbed soon after they moved into one of his apartment units. The thief took their TV, a computer, some cash and jewelry. The tenants claimed that Scott failed to protect them by providing proper door locks. Scott is curious about the limit of protection a landlord owes his tenants in this situation.

Robberies happen every day, in every level of neighborhood in America. A landlord cannot prevent a criminal who really wants to get in from entering a rental unit. However, solid locks on the entry doors and windows are necessary, and if your rental properties are lacking them, now is a good time to remedy that situation—before a robbery or something worse happens.

To avoid any question of liability, every rental agreement should include a clause requiring tenants to purchase renter’s insurance. Further, it should explain that the landlord’s insurance does not cover theft of the renter’s contents. If a tenant does not carry required insurance, the landlord could move to eviction.

Short-term leases

When the economy and job market are both doing well, the ideal situation for a landlord is a one-year lease with a strong tenant. But even though the rental markets across the country are starting to show improvement, many landlords are far from the ideal—and they still need to fill rental units.

When credit scores are less than perfect, and home sellers are knocking on your door, looking for short-term leases, it makes sense to adjust your lease terms from one-year to six-month or month-to-month.

Month-to-month leases mean that at the end of any month, the tenant can simply move—or the landlord can end the lease. Most leases require notice on each side, but if neither side ends the lease, it continues for another month.

7 Advantages of Short-term Leases:

1. Your rental units could be occupied instead of empty
2. Improved cash flow
3. Possibility of higher rent negotiation
4. Easier transition between tenants (less clean-up and maintenance)
5. Larger pool of possible tenants
6. You can get rid of a bad tenant more quickly
7. For month-to-month leases, the rent can be adjusted at any time

Remember, no matter what the length of the lease, proper tenant screening is the most important step you can take prior to signing it. Conduct a thorough tenant credit check and background check and you’ll feel better about offering a lease to short-term tenants.