If your tenants decided to form an association, how would you react? Would you be surprised? Should you be worried? Or would you be angry?

Tenants who wish to form an association may have common concerns, among them are:

• Repairs and maintenance
• Emergency repairs and loss of essentials such as heat, water, electricity or gas
• Inadequate heating
• Loss of utilities due to landlord non-payment
• Privacy violations
• Abusive behavior
• Rent increases and security deposit concerns

While the vast majority of landlords treat their tenants fairly and with respect, and take care of their properties (after all, they are investments), there are those who don’t, and who may respond more quickly when tenants exert a little pressure.

So, what can a good landlord do when tenants form an association?

• Don’t panic.
• Establish a line of communication with the leaders of the association.
• Show an interest in their concerns.
• Listen.
• Fix what’s wrong. If you can’t make necessary repairs right away, explain why and set a date when they will happen.
• Attend association meetings, if they allow you. (They don’t have to.)
• Allow the association to use common areas for their meetings, as long as you allow other groups to use them.
• Don’t discriminate against members of the association, and don’t offer incentives to new tenant to not join the association.
• Check your local and state laws regarding tenant associations. You may be subject to specific regulations.

While tenant associations may not be landlords’ favorite groups, they don’t have to instill fear. Talk to your tenants, take care of their legitimate concerns, and you can improve your relationship for the long run.

When your tenants sublease without your knowledge, they have prevented you from conducting your usual due diligence on the people who are living on your property. You don’t know if they have a good rental or credit history. You have no way of knowing if they will take care of your property or be good neighbors. You don’t even know if they have jobs.

How do landlords find out about sublessors? Sometimes, the rent checks keep coming in from your tenant, because the sublease tenant is paying him or her. In other cases, the tenant will have the sublessor send their own checks directly to you. If you accept online payments, your tenant can simply give the sublessor the login and password, and they can pay out of their own account. Depending on the e-pay service, you may or may not have access to the name on the account.

When faced with an unauthorized sublease situation, the landlord holds all the cards. If your lease clearly states “no subleasing,” then you have recourse and can likely start eviction proceedings against the original tenant. And in most sublease agreements, the sublessor only has rights to occupy as long as the original tenant does.

Check with your attorney for all the details, but in most cases, landlords are never under any obligation to accept a sublessor if the lease prohibits it.

The rental market has been very good over the past year or so

If you haven’t raised your rents during this landlord’s market, you may be thinking about doing so, before the pendulum swings back to the tenant’s favor. Here are some simple steps that can put more money in your pocket and keep good tenants from moving:

• Study your market rents. There are a number of online tools you can use to check comparable rents in your area. You need to know whether your rents are in line with, above or below market. Obviously, if your rents are above market, you should rethink the plan to raise them any further.
• Review your expenses. Have the costs of maintenance, insurance and other business-related expenses gone up? Take this into consideration when setting your new rents.
• Determine which tenants you really want to keep, and which you think you could replace with better quality tenants. You may choose to lower the amount of the rent increase for great tenants that you’d like to stick around.
• Examine your lease records to determine which will be up for renewal in the next 12 months. What does your lease or state law say about rent increases? Do you need to give a tenant 30, 60 or 90 days’ notice if raising the rent at lease renewal? 30 days is usually not enough for a tenant to make a decision to move and let you know they will not be renewing. The longer notice you give, the better your relationship with your tenants will be.
• Formulate a plan. Decide how much of an increase is fair, based on market rents and the tenant’s history with you. If you really want to keep a good tenant, think about a smaller increase. You can also be ready to offer a longer lease at the new rate—18 months, for example—so the tenant can be assured that the rent will remain stable for a longer period of time. Have your market data ready to show tenants, so they know they’re still getting a good deal.
• Prepare a well-written notice. Be sure to thank your tenants for their business and for being good tenants. Let them know the amount of the rent increase and the process for lease renewal. Soften the blow by letting them know that your expenses have increased, that you’ve studied the local market and are keeping rents within the average range. Typically, if the tenant does nothing, the lease renews at the new rate. If tenants give notice, let them go and replace them with new tenants who will pay the new rent.

Of course, keeping a good tenant is always better than the expense and trouble associated with finding a new, qualified tenant. Keep this in mind when determining the amount of your rent increase. Follow these steps and you can be on your way to painless rent raising!

One thing all landlords need is proper liability insurance coverage on their rental properties:

• If you’re renting a room or section of your own home, you will probably be okay with your existing homeowner’s insurance coverage.
• If you don’t live in the same house with your tenants, you’ll likely need a separate policy.

Why Do You Need Landlord Liability Insurance?

Imagine losing your savings over a lawsuit brought by a tenant because of an injury suffered on your property. Or if a neighbor’s child is bitten by your tenant’s dog on the sidewalk in front of your property. Even a visitor to your tenant’s unit could possible sue if he or she is injured on your property through no fault of yours.

Will your retirement fund be wiped out? What about your kids’ college funds? Could you lose your home, as well as your rental property? All of these assets could be at risk when you begin renting out a property you own without proper liability insurance.

Check with your insurance provider about your options. They may include:

• Basic coverage, for fire and vandalism.
• The next level of coverage will typically include acts of nature, such as windstorms.
• The top tier, an “open peril” policy, covers all perils, except those specifically named.

Some insurance companies offer special landlord insurance packages, which typically cover damages to your building and outbuildings, as well as your personal property stored on site. Some offer loss-of-rental-income and legal defense and court cost coverage.

If you’re a new landlord who hasn’t yet looked into insurance, your next call should be to your insurance agent!

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.

1. Avoid the temptation to go through your tenants’ private spaces. Sounds like a no-brainer, since tenants have the right to privacy, even though they live in your property. But when a tenant recently reported coming home and finding the contents of her closet on the floor, along with a note saying that overstuffing will break the door, it apparently needs to be addressed.
2. Don’t show up at your tenant’s door without the appropriate notice, as specified by the law and in the lease. Even if you’re already in the neighborhood, and you just want to stop in and change the furnace filter, and it will only take a moment, avoid this bad habit. Unless you see an imminent threat to your tenant’s safety, you need to give them proper notice.
3. Avoid being like the San Francisco landlord who is being sued for $10 million by his tenants for failing to deal with bugs and mold. We’ll never be able to completely eradicate the rats, bedbugs, cockroaches, and other creepy crawlies that most people do not enjoy having around. But it’s a landlord’s duty to provide a safe and habitable living unit. And mold is a serious health hazard, especially for those with asthma or compromised immune systems. So if your tenants report a problem with bugs or mold, take care of it.
4. Don’t discriminate against your tenants or prospective tenants. Raise your awareness of what constitutes discrimination—because it’s illegal. For example, one Ohio landlord recently got in trouble for her “White Only” pool sign. She said it’s an antique, and must have thought it was harmless, but one tenant didn’t find it to be harmless. The landlord has been fined by the state Civil Rights Commission, and is appealing the charges

Landlords aren’t perfect—and neither are tenants. But it’s important to keep a professional business relationship with your tenants—keep that in mind as you go into the New Year!

• Trim dead tree branches and limbs: Snow, wind and ice can bring down branches, damaging property or causing injuries. They can also take power lines with them, which is even more dangerous.
• Clean gutters: If gutters are filled with leaves and debris, snow and ice can build up, causing damages to the roof an eaves, and eventually harming walls and ceilings.
• Check chimney flues: In units with working fireplaces, it’s important to have an annual inspection by a qualified professional. Creosote buildup can cause fires.
• Check each unit’s smoke and carbon monoxide (CO) detectors: If any unit has missing detectors, add them. If they run on batteries, replace the batteries each year. Now is a good time. Or, convert them to hard-wired units for even more security.
• Provide tenants with a Storm Preparation Tip Sheet: Prepare a list of instructions and tips to leave with each tenant, so they can consult it if a winter storm arrives. Give them tips on how to survive a few days without power, such as making sure they have flashlights, batteries, and adequate food and water on hand.
• Prevent frozen pipes: Instruct tenants to let faucets drip when temperatures are expected to dip way below freezing. Wrap pipes that are exposed to external walls with insulation or even layers of newspaper covered with plastic. Show tenants where water main shut-offs are located in case of emergency.
• Provide tenants with emergency numbers: Let them know how to reach you if a winter emergency occurs on your rental property. Let them know that downed power lines are especially dangerous, and to call the power company immediately (provide the number on a Storm Preparation Sheet).

And holiday lights and other decorative lights caused nearly 150 fires per year in that same period with an average of eight deaths, 14 injuries and $8.5 million in property damage.

Some of the top causes of the Christmas tree fires include:

• Electrical problems (33%)
• Heat source too close to the tree (20%)
• Decorative lights (13%)
• Candles (11%)

Help keep your tenants safe. Prepare a safety letter with fire prevention tips and make sure that each tenant gets one. Be sensitive to tenants’ various religious practices, and use non-denominational language.

Include the following tips in your notice:

• Follow the manufacturer’s directions for using holiday lights.
• Lights with loose cords, loose bulb connections and frayed, worn or broken cords should not be used.
• Lights should not be on when you are not at home. Unplug lights before leaving home or going to sleep.
• Never use candles on or near a tree.
• Place the tree at least three feet away from any heat source, including fireplaces, space heaters and heat vents
• If using a live tree, cut several inches off the base of the trunk before placing it in the tree stand and water it daily. Recycle the tree when it begins dropping needles. Don’t leave a dried-out tree in a storage area or against the building.
• Make sure you have a working smoke detector. Contact the rental office if you need to have yours checked.

Check with your local fire department for additional tips. It only takes a few minutes to prepare this notice and to help your tenants stay safe during the holiday season. Avoid the tragedy of a house or apartment fire.

The software instantly analyzes competitor rents, the current rental market, seasonal trends, property history and other variables to calculate the highest feasible rent at a given time. The landlords can then offer the tenant or prospective tenant that rent. It may be a lower rate for a less-desirable unit, so the tenant can save money. It may mean an increase in rent for a renewing tenant, based on the going rate for their unit.

Some suggestions made by the software are surprising. One landlord began offering one-month leases when an analysis showed a demand for it. Leasing a $1,000 unit for a single month at $3,000 turned out to be good idea—that they would not have previously considered.

Other rental property owners say the software helps them become more conscious of their competitors and why they were losing leases. The number of variables considered is much more extensive than a human would think to include.

While it’s a given that the biggest landlords would utilize revenue management software, it appears to be gaining popularity with smaller rental property owners as well. Users say the software pays for itself within months, with 3 – 7% revenue increases from the start.

Until recently, state and federal funds paid for dismantling and removing labs, but that money has come to an end. The local police chief estimated cleanup costs of $1,000 to $5,000 for each meth lab. From removing traces of chemical residue, to dismantling and moving meth-related paraphernalia, landlords are on the hook for everything.

While recognizing that the majority of landlords don’t knowingly lease to drug manufacturers or dealers, the city council that passed the new law stated that it’s simply a cost of doing business.

Some landlords have attended training sessions about meth labs, including lessons on how to identify a lab and what to do if they find one. Meth labs are quick to set up, and the process of manufacturing meth uses easily acquired chemicals.

The real problem for landlords with meth lab cleanup costs is that insurance generally will not reimburse the expense. Not dealing with the problem is not an option. The chemicals used to make meth are extremely dangerous, and even traces of residue pose numerous health hazards, including liver, kidney and neurological damage, and increased risk of cancer.

What Is Involved in Cleaning Up a Meth Lab?

• The entire rental unit must be cleaned
• All traces of chemicals must be removed.
• Walls and ceilings painted
• Carpeting removed,
• All air filters replaced
• Ventilation systems cleaned
• Sinks and plumbing should be replaced

As the landlords of Cuyahoga Falls are discovering, meth labs are not a big-city problem. They are everywhere. The best way to avoid renting to drug manufacturers is to conduct thorough background checks and tenant screening on every applicant. If there is a history of drug convictions or other criminal records, you have the right to turn down the applicant.

On the surface, this might not make sense, since as the landlord, you may never even see their complaint – unless you are “friends” with your tenants on Facebook.

So why do tenants complain on social media networks if landlords have little chance of hearing them? Some do it for attention; others have hopes of getting some results.

In some cities, groups of disgruntled tenants are banding together to create mini bad-publicity campaigns against their rental property owners. In other cases, a single tenant may send out a tweet or post to see if anyone else has a similar complaint.

Their motives are the same: they seek strength in numbers in hopes of getting attention or coming to a resolution. Before social media, there was no quick way for people to find each other and create a mini-movement. Now, it only takes a minute of their time and 140 characters to find dozens of others with similar problems.

How can a landlord handle a negative Facebook or Twitter campaign? The first rule of social networking is to respond, so if you do come across a tenant complaint on Facebook or Twitter, be proactive. Create an action plan, starting with a calm and neutral response. Acknowledge that you hear the complaint. You don’t necessarily need to admit to fault or take responsibility, but do let the tenant know they are being heard.

Next, ask the complainer to “take it offline,” with a private conversation or email exchange. Follow up by publicly thanking your tenant for their business and share how you resolved the issue. Remember, your tenants are your customers and deserve your respect and quick action.

A social media backlash by your tenants may be uncomfortable, but handling it badly will only make it worse. So be nice, and remember that everything you write can and will be held against you! Most important, try hard to be the better person. You’ll resolve the situation much faster by taking the high road – and you may even create more “fans.”