Posted by Teresa on February 10, 2012 under Lease and Rental Agreements | 
Everyone wants to live in peace, but that’s not always possible when living in multi-family housing. Babies cry, stereos are played too loudly and some neighbors have no concept of “quiet.”
Where do landlords draw the line? Are they responsible for acting as noise police? Are landlords even allowed to address noise in a lease? And who decides what noise level is acceptable?
The short answer is that landlords may include excessive noise clauses in their leases. Some leases may specify that stereos are not to be played at high volume. Others may ban musical instruments such as electric guitars or drums, and vocal or instrumental practice or instruction. It makes sense that tenants would complain about a piano or trumpet teacher living next door, but what about the kid down the hall who needs to practice her clarinet? As a landlord, you may ban that type of noise, as well.
If you’re hearing complaints on this subject from your tenants, you may need to add a noise clause to your lease. It could be as simple as not allowing any noise that disturbs other residents, or that can be heard outside the unit.
Unfortunately, many tenants don’t seem to be mindful of others, and those who are careful about not being too loud have to sometimes put up with noisy neighbors.
And while you can’t stop a baby from crying, you can prevent noise pollution in the form of a fourth-graders’ clarinet practicing (which could be nerve-wracking), a garage band rehearsal, or a DJ practicing her skills at all hours of the night. As in any lease clause, follow through is most important.
Be careful not to allow any exceptions to the rule, or you could be seen as treating one tenant differently than another, which could lead to accusations of discrimination.
Protect your rental property and assets through tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.
Posted by Teresa on October 7, 2011 under Landlord Paperwork and Forms, Lease and Rental Agreements |
When leases are about to expire, landlords need to decide whether or not to renew and re-sign with a tenant, or notify them there will be no lease renewal. It’s important to know the terms of your lease agreement, obviously, but most require a 60- or 30-day notice from either party if a lease will not be renewed. Remember, it’s up to the landlord whether or not to offer a new lease and keep a tenant. Of course, tenants who wish to move have the option to end the relationship at the end of the lease, but if the landlord decides a tenant is out, there’s not much a tenant can do.
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:
- 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.
- 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.
- 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.
Protect your rental property and assets through tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.
Posted by Teresa on September 21, 2011 under Landlord Paperwork and Forms, Lease and Rental Agreements |
As a landlord, do you keep track of tenant lease renewal dates? It’s important to do so, for a few reasons.
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.
Posted by Teresa on September 17, 2011 under Lease and Rental Agreements |
Dealing with tenants who want to break a lease early doesn’t have to be unpleasant. Experienced landlords often offer tenants a buy-out agreement as a way to compensate them for the trouble of a breaking the lease.
You can set the conditions of the buyout according to your needs. For example, you can release your tenant from the lease and any remaining rent obligations, in exchange for a fee. While the fee does not affect the tenant’s obligations for any property damage (any security deposit paid by the tenant is a separate matter), it can compensate you for your time and trouble in finding a replacement tenant, plus your advertising expenses and possible loss of rental income while undergoing the process.
Be sure that the terms and conditions of the buy-out agreement are clearly spelled out in a document that will be signed by you and all tenants listed on the original lease agreement. Include the dollar amount of the fee, which might equal one, two or three months’ rent, along with the date the property will be vacated, and other details concerning property inspection, key return, security deposit, and forwarding address information. It’s a good idea to have all of your lease and agreement documents reviewed by a landlord/tenant attorney.
The amount of the fee should cover the loss of rent for the time you expect it will take to re-lease the property, advertising expenses and any other costs related to the tenant terminating the lease.
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.
Posted by Teresa on August 5, 2011 under Lease and Rental Agreements |
When a tenant moves out, but leaves personal property behind, what is the best way for a landlord to handle it? As with most tenant issues, the best way to take care of a problem is to prevent it in the first place. And barring that, it’s best to have it covered in your lease so there are no questions about how to proceed, and the tenant has already agreed to the process.
Tenants often leave furniture, clothes, books or appliances behind when they move. Some no longer want the items, and figure the landlord will just clean up after them. Others want the landlord to store their property until they are able to retrieve it. Either way, it can be troublesome for the landlord.
When a Tenant Abandons Property
First, check your local laws on abandoned property. You may be obligated to hold a previous tenant’s property for a period of time, which could be five days or 30 days, before you may dispose of it. Some jurisdictions require landlords to send notices via registered mail as well. Failing to follow your local laws could land you in legal trouble, so if you’re in doubt, obtain legal counsel.
Preventing the Left-Behind Property
The best scenario is when landlord and tenant do a walk-through of the rental property on move-out day. A move-out inspection is conducted and the tenant initials each item, recognizing any damage or possible deductions from the security deposit. However, that’s not always possible. If you or your property manager are not present when the tenant leaves (and many do so under the cover of darkness—especially if they’re leaving behind a mess), you could be in for a big surprise when you come to inspect the property.
Every rental agreement should contain a clause that clearly addresses how the property owner will handle any property left behind after the lease is up. Abandoned property should be defined, and the time between the end of the lease and the disposal of the property clearly stated. Remember, you’re not running a storage facility, and you could be entitled to rent for each day a tenant’s personal belongings are in your rental property.
You could simply state that all property left behind after termination of the lease will be considered abandoned and will be disposed of, according to statute. Of course you should consult a landlord/tenant attorney for exact language and guidance.
Posted by Teresa on July 8, 2011 under Eviction, Lease and Rental Agreements, Rents and Deposits |
Whether you accept actual checks or electronic rent payments from your tenants, you may face a time when the tenant lacks funds to cover their payment—and your account is hit with a fee. Bounced checks cause loss of time and productivity, and landlords should not allow tenants to treat a returned rent check as anything less than the serious situation it is.
How do you handle bounced checks from your tenants?
Many landlords we know demand immediate full payment from the tenant for the rent, any applicable late fees, and a separate handling fee. The handling fee should cover both your bank’s returned check charge and your administrative time. If the full rent payment comes in after late fees have been assessed, be sure to add them to the total due.
Check your local and state laws regarding the amount of late and returned check fees you can charge. You may be able to charge a tenant penalties and interest; or you may be limited to a flat fee.
In addition, check local and state ordinances or with a landlord/tenant attorney regarding whether late and returned check fees must be spelled out in lease agreements. In some states and localities, fees must be clearly stated in the lease or the landlord may not charge them. In others, whether or not the lease includes the fees has no bearing.
Of course, including all applicable terms and fees in the lease is always a good idea. If your lease clearly spells out the consequences for bounced checks, including late fees, repayment requirements and time limits before eviction proceedings begin, your tenants should have no questions or surprises if and when they do write a rent check without having sufficient funds to cover it.
Protect your rental property and assets through tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.
Posted by Teresa on July 6, 2011 under Landlord Paperwork and Forms, Landlord Tips, Lease and Rental Agreements |
Most landlords we know require each person over 18 who lives in a rental unit to be on the lease. Most require each roommate to fill out a lease application, and undergo tenant background and credit checks. And that’s the extent of involvement for most landlords we know.
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!
Posted by Teresa on July 1, 2011 under Eviction, Lease and Rental Agreements |
While a lease agreement and landlord/tenant relationship is a strictly business arrangement, landlords sometimes have to deal with a tenant’s personal problems. Loss of a job, a need to break a lease and move to another city, and other life situations cross the line into a personal nature.
When tenants have protective orders against spouses, partners, or acquaintances, the landlord may not even know. However, when the other party violates the order and enters the rental property, problems can ensue all around.
One tenant in California was faced with eviction when her husband, from whom she was separated, threatened and stalked her at her apartment. Police were called and the tenant obtained a restraining order, but the property manager informed her she needed to move to avoid upsetting her fellow tenants.
In California, and most other states, a protective order protects tenants from repercussions such as eviction. Domestic violence that has been documented, as in this case, is not a reason for terminating a lease. But what if the tenant had allowed the stalking troublemaker onto the property? That’s another story. If the tenant is voluntarily subjecting other tenants and the property to possible harm by allowing a dangerous person onto the premises, eviction may be warranted.
Under Federal guidelines for Section 8 owners, landlords may not refuse to rent to an applicant solely because he or she is a victim of domestic violence, dating violence or stalking. Nor can the tenant be evicted, even if criminal acts (such as property damage) related to the domestic or dating violence or stalking, are caused by the tenant or a guest. There is an exception for cases in which there is an actual or imminent threat to other tenants or employees of the property if the tenant is not evicted.
Many states follow the federal guidelines, but if you need guidance on a situation, it’s best to check with a local law official or landlord/tenant attorney for advice.
It’s not easy to be privy to the personal problems of tenants, but at times a landlord can’t avoid it. It’s important to know what is and is not allowed when dealing with legalities such as restraining orders.
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.
Posted by Teresa on June 28, 2011 under Landlord Tips, Lease and Rental Agreements |
It’s summer, and that means plenty of moving action in student housing. Turning over apartments and multi-room rental houses, summer moves home and new students moving in make it a busy time of year. With room and board fees increasing 6.5% each year, on top of skyrocketing tuition, many parents are looking for student rentals as on-campus housing alternatives.
If you own a rental property in a college town, you may be thinking about whether or not to lease it to college students. Here are some pros and cons for you to consider when making your decision:
PROS of Renting to College Students
- Parents typically pay the rent, on time, every month. (Maybe they don’t want their kid moving back home!)
- Students are often willing to pay top dollar, since living close to campus is highly desirable.
- Grad students and med students are often quiet, clean and too busy to make much of a mess.
- Students don’t typically break leases—they’re too busy during the school year to move.
CONS of Renting to College Students
- They are messy. They can be VERY messy.
- Zoning laws often preclude renting to more than a couple of unrelated individuals—be sure to check the laws in your area.
- Student rentals may require more repairs, repainting and other maintenance during and after the lease.
- Students like to party. Not all of them, certainly—but they can get a little crazy trying their new freedom on for size.
Tips from Landlords With Experience Renting to Students
- Be sure your lease is ironclad and more detailed than you may think it needs to be. Consider higher maintenance and repair costs when establishing the rent and security deposit.
- Establish noise limits and inform students that neighbor complaints will be dealt with severely.
- Always have parents co-sign the lease: at least one parent for each student-tenant.
- Don’t allow anyone who is not on the lease to stay in the rental unit. Temporary visitors tend to turn into unscreened tenants.
Student rentals can be lucrative, but do require a firm management style and frequent communication. Many landlords love renting to students and have no problems, especially when they are properly screened before the lease is signed.
Posted by Teresa on June 14, 2011 under Lease and Rental Agreements |
If you do not require your tenants to hold renter’s insurance policies, you may want to reconsider your policy. Renter’s insurance is a nice layer of protection for landlords. It covers losses or injuries suffered due to tenant’s negligence—for example, if they start a fire or flood the building by leaving a faucet on overnight.
Renter’s insurance also covers injuries suffered by a visitor to your rental property due to a tenant’s negligence, too. So the visitor who trips over the tenant’s dog and breaks a wrist can collect from your tenant’s insurance company, rather than yours.
Renter’s insurance can also protect the tenant’s belongings in case of fire or theft. While your property insurance covers the building after a fire, tenants could be at a complete loss without insurance. Renter’s insurance helps them find temporary lodging and replace their clothing, furniture and other household goods.
Since renter’s insurance is relatively inexpensive—only $15-$20 per month, on average—a renter’s insurance requirement automatically screens out potential tenants who have financial difficulties and cannot afford it.
If you agree that requiring renter’s insurance of all tenants is a good idea, add a clause to your lease agreement that states the following:
- The tenant acknowledges that the landlord’s insurance does not cover the tenant’s possessions.
- That the landlord’s insurance does not prevent tenant liability due to the tenant’s actions or negligence.
- In case of fire, flood, theft and other acts of nature, the landlord is not responsible for the tenant’s losses.
- Therefore it is required that the tenant retains renter’s insurance coverage.
- Allowing the policy to lapse may subject the tenant to responsibility for losses suffered by others due to the tenant’s or their guests’ actions.
Have your attorney provide you with an actual, legally binding provision, of course. Requiring renter’s insurance is an easy way to help landlords sleep a little better at night!
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.
Everyone wants to live in peace, but that’s not always possible when living in multi-family housing. Babies cry, stereos are played too loudly and some neighbors have no concept of “quiet.”
