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!

Top Ten Legal Mistakes Landlords Make – Part I

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

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!

Should You Use A Lease Or A Rental Agreement – Part III

Posted by on March 3, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

Lease or rental agreements are key elements of a landlord / tenant relationship, as they help to maintain and establish the code of conduct, each has to uphold for a civilised relationship. However, there is a difference between lease and rental agreements, explained as under:

Rental agreements are drawn up for short-term tenancies, usually a month. They are month-to-month agreements that are automatically renewed each month, unless of course, the landlord or tenant terminates the agreement, usually by giving adequate notice adhering to an appropriate time-frame for termination of a rental agreement, which is typically 30-days. As well, these agreements allow landlords to raise rents, change tenancy terms, or terminate the agreement on relatively short notice i.e. usually 30 days, unless local rent control ordinances specify, otherwise.

On the other hand, a lease is a binding landlord / tenant relationship set for a fixed period of time, usually a year. During this time, no rental increases are permitted, nor is a landlord entitled to change the terms of the lease, unless and until it runs out. As well, if the lease itself has a clause that provides for modifications or the tenant agrees to the changes in writing, then and then only can a landlord amend any lease terms. In addition, if there is a falling out between the landlord and tenant, the former cannot ask the latter to move out, unless the tenant has not paid the rent, despite repeated notices, or has violated an important lease term, or state or local law. Only when the lease comes to an end, can he / she either terminate or renew the lease or rental agreement.

As to which one is better? That depends on what a landlord’s priorities are, as there are many with a decided preference for month-to-month agreements, particularly in tight rental markets where tenants are aplenty and rents are always tracking an upward curve. Flip the coin and you will find month-to-month tenancies guarantee a high rate of tenant turnover, which means more work to keep rental properties full.

Whereas, leases are preferred in high vacancy areas, or where certain seasons of the year mean it is difficult to find any tenants e.g. college towns that wear a deserted look in summer that is vacation time in educational institutions.

That apart, 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!

Should You Use A Lease Or A Rental Agreement – Part II

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

A legally water-tight lease or a rental agreement in place helps to avoid landlord / tenant disputes and disagreements. If, there is no clear agreement in writing, you can be sure it is a sure-fire recipe for disaster. Every small disagreement, whether over repairs, or charging of a late rent penalty fee by the landlord, or deductions made before handing over his / her security deposit to a departing tenant, all have the potential to escalate into a nasty legal battle. For instance, though a lease’s fine print stipulates a NO PETS policy, the landlord may not have noticed the cat / dog his / her tenant moved in. Well, what happens, when he / she finds out? You may be right, it could either be handled with a notice to remove the pet, or it may end up with an eviction notice, or in court.

This is just one of the few reasons it is necessary to have a lease or rental agreement, signed, sealed and delivered by both landlord and tenant. Not only will disputes and disagreements be avoided when there is a lease or rental agreement in place, the latter also ensure that key issues are dealt with in an appropriate manner. And, the end result is a stable and satisfactory landlord / tenant relationship, which benefits everyone concerned.

Should You Use A Lease Or A Rental Agreement – Part I

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

Landlords, as well as, tenants should be clear about whether; they should go in for a lease or a rental agreement. They should know, a simple handshake to seal a deal between landlords and tenants is only asking for trouble in case of a dispute or disagreement later on.

Letting out property without a proper rental agreement or lease is asking for trouble. Today, landlord / tenant relationships are complicated, as a result of various laws and regulations that govern all aspects of renting out residential property. These laws have bestowed added responsibilities on landlords, while ensuring tenants get more rights, and they have instituted small claims court that make it easy to take disputes before a judge. This is why all details of a rental agreement should be recorded in a written lease, or else a month-to-month rental agreement. No doubt, you want to know why you need a lease or a rental agreement.

While, there are some landlords who are rather lazy about using written agreements, and a simple talk with a tenant has them taking his / her rental cheque, and giving the tenant their green signal to move in to the rental unit. Though, oral promises are legally binding, it is difficult, if not next to impossible to prove before a judge. Therefore, both landlords and tenants are advised not to take a chance, but rather go in for a completely legal, rental agreement or lease.

Preparing For Court Proceedings

Posted by on February 12, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

Say, you have a tenant who is suing you in a small claims court for returning too little of his / her security deposit, despite the fact that he / she has been given an itemised list of the much-needed repairs you carried out, after he / she moved out. To add insult to injury, your ex-tenant is asking not only for payment of the security deposit, but also for the grief caused, the time spent on going to court, and gas mileage, as well. The question is if he / she can get all that, considering you have pictures of the damage, receipts for some of the work, including estimates for material costs.

Well, to be exact, it does not matter what you say in a small claims court, as the evidence you provide, will clinch the case. If, you are well prepared with all the necessary paperwork to show why deductions were made before returning the security deposit, all you need to do is convince the judge, the rental unit was undamaged when your tenant moved in. As well, that you had to spend a considerable amount of money for much-needed repairs, even following to a T, all state procedures by itemising deductions and refunding the security deposit balance. Receipts, photos, and witnesses, if any, will have to be produced in court. In case, the witnesses are not able to appear in person, a signed declaration will suffice. You must not only impress the judge with your reasonableness, but also be calm, factual, and as succinct as possible, when delivering your spiel.

In the unlikely event that the tenant wins, you can rest assured the judge will not award the compensation for transportation costs.

That apart, 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!

Essential Duties Of A Landlord

Posted by on January 19, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

Just as a tenant has to follow the dictates of his / her landlord, so must every landlord in the property rental business adhere to a certain code of conduct, including state laws and regulations.

A landlord is responsible for:

  1. Ensuring his / her rental property is maintained as per state and local housing codes
  2. The rental property has heating, electricity, including running hot and cold water.
  3. Unless, otherwise agreed to in the lease, a landlord must also provide responsible means for garbage disposal.
  4. All doors of the rental unit must come provided with locks and keys, while all windows should be equipped with window latches.
  5. The property should be free of insect infestations through adequate pest control measures.
  6. A landlord is also required to make all necessary repairs to keep the rental property in the same condition, as when the tenant moved in.
  7. As well, a landlord must maintain all appliances in his / her apartment in working condition, unless they belong to the tenant, or the lease says otherwise.
  8. State law requires all rental property to be equipped with smoke detectors that are in good working condition.

A Tenant’s Right To Privacy

A landlord must respect a tenant’s right to privacy. He / she must always arrange beforehand, if access is required for inspection of the unit for the purpose of carrying out repairs. In case, a tenant is moving out, again the landlord must have a tenant’s prior permission for showing the rental unit to prospective tenants. A landlord cannot enter a tenant’s premises without proper notification, of at least a minimum of 24-hours in most states, before he / she can enter a tenant’s apartment. However, if it is an emergency, such as, a flooded bathroom or a kitchen fire, no notice is required. But, a landlord must remember entering a tenant’s apartment without notice can amount to criminal trespass in some states.

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!