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.
Posted by Teresa on May 31, 2011 under Eviction, Lease and Rental Agreements |
A young college student in Orlando moved out of a shared apartment before the lease was up. She left several pieces of valuable stereo equipment behind because she had no room for it in her new apartment. When the lease expired, her roommates moved out and left her property in the unit. The landlord then discovered the stereo equipment and that she’d painted her bedroom without permission.
The landlord informed the former tenant that she would not get her property back because she left it for so long and had painted her room. She offered to give the equipment back if the former tenant repainted the room to match the rest of the rental unit.
What was this landlord thinking?
In most jurisdictions, it is not legal to hold a tenant’s property in return for back rent or repairs. Nor is it the landlord’s responsibility to serve as a storage business for a former tenant’s property. This landlord could assume the property was abandoned. And that the tenant never read the lease clause where she agreed to ask for permission before painting. Still, holding property for ransom is not allowed.
Recently, a landlord in Minneapolis ranted about a tenant on his Facebook page. While he didn’t use any names, the description was clear enough—especially since the complaint was about hearing loud outbursts from a tenant’s developmentally challenged child. Not only was this heartless, it was not smart. The description narrowed the possibilities down to one.
What was this landlord thinking?
There is no substitute for discretion when you’re a landlord. Tenant issues should be confidential. And of course this landlord chose the wrong venue to discuss a tenant problem! Facebook posts have a way of going beyond your circle of friends. Plus, there’s no way to know who your friends’ friends are. In this case, the tenant caught wind of the rant and consulted a lawyer.
A landlord in California did not require a tenant to sign a new lease when her boyfriend and his toddler son moved into her apartment. She completed a new lease application and paid the fee, and assumed he had been added. However, she didn’t question that no new lease ever appeared for her to sign. Her rent checks were paid from a joint account under both her and her boyfriend’s names.
Eventually, the tenant discovered some peeling paint and, because the building was old, she tested it with a home lead paint detection kit. The results were positive. She filed a complaint with the landlord, who claimed she was not entitled to action because the boyfriend was not on the lease, and that he and the young child were squatters. The landlord threatened eviction. The tenant countered that she filled out an application and paid a fee, but had no copy of the application or of the $35 payment.
What was this landlord thinking?
Especially in California, every interaction with tenants should be in writing. In this case, the tenant probably has a case that she is being retaliated against because of the lead paint complaint. Both sides should have kept better records, but when it comes to eviction, a landlord should have documentation to back up every claim.
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 May 28, 2011 under Eviction, Lease and Rental Agreements |
The Chicago Housing Authority is proposing a new rule that all adult tenants will need to be drug tested, and if they test positive, eviction proceedings will begin. While some private landlords would welcome the opportunity to test and then evict illegal drug users, more have to deal with tenants who smoke pot.
If you’ve noticed the distinctive smell of marijuana wafting out of your rental properties, how did you handle it? Some might think that smoking pot is as harmless as drinking a beer, but it’s still illegal. And if you’re ignoring a tenant’s drug use, you could be putting your business at risk.
Did you know that illegal drug use by tenants in your rental units could subject you to related property damage and personal injury suffered by other tenants or the public? Is it worth it to you?
Your best move as a landlord is to include a clause in your lease agreement that tenants agree to not violate any applicable laws, including the possession, use or sale of illegal drugs. If and when a tenant violates the lease by choosing to smoke marijuana, you have the grounds to evict.
Some landlords might think evicting over pot smoking is overkill. But allowing it can leave you open to litigation; the potential for harm is just too great. Besides, if you can smell marijuana, your other tenants probably can, too. What message are you sending if you fail to enforce the law, as well as the terms of your lease agreement?
Posted by Teresa on May 2, 2011 under Lease and Rental Agreements, Tenant Screening & Background Checks |
We’ve often advocated that screening tenants begins with placing your For Rent ad. It should continue with the phone conversation you have with prospective tenants when they call in response to your ad.
But what exactly should a landlord ask each prospective lease applicant to avoid the tire-kickers and those whose credit and rental history make them ineligible to lease the property? Here are a few suggestions for questions to ask before showing your vacant rental units:
- Where do you live now?
- Are you currently renting?
- Why are you moving?
- How many people will be living with you?
- What kind of reference will your current landlord give you?
- What kind of reference will your previous landlords give you?
- What kind of work do you do?
- What types of pets do you have?*
- How many people who will be living in this unit are smokers?*
- We run credit and criminal background checks on every lease applicant over the age of 18. Will there be any issues there?
- We require a lease application and a fee to cover the background and credit check for each tenant over 18. Is there any problem with that?
- When do you want to move in?
- Will you have the first month’s rent and security deposit ready if we sign a lease?
- Do you have any questions about the process or the rental unit?
- Do you have a problem with any of these requirements?
*Asking “how many” rather than “do you have pets?” or “does anyone smoke?” often elicits an honest answer. If you do not allow pets or smokers, you’ve just eliminated the applicant.
Depending on the answers you get, the interested party may decide you are not the landlord for him or her. And you may decide they are not the tenant for you. Either way, you’ve saved your valuable time by avoiding showing the rental unit and going through the lease application process.
Posted by Teresa on April 22, 2011 under Lease and Rental Agreements, Screening and Background Checks |
When a landlord leases a rental property to two or more tenants, and one wants to move before the lease is up, what is the best way to proceed?
Some landlords make the mistake of splitting a $1000 monthly rent so that each tenant is responsible for $500—and accepting that amount from each tenant, month after month. When one tenant leaves, they worry about finding another tenant so that the remaining one can continue paying their $500.
However, the tenants are together responsible for ensuring the rent is paid in full; therefore, when one tenant moves out, the remaining tenant or tenants must continue paying the full rent on time every month. For example, if the lease runs through September and a tenant moves out in June, both tenants are still responsible for full rent until the end of September—whether that means the tenant who moved keeps paying their half on a rental they no longer live in, or the remaining tenant pays the entire rent.
In most cases, the lease will be in the names of each tenant, and each tenant is responsible for upholding its terms—including whatever penalties are in place for breaking the lease early. It is up to the tenants to work out how the full rent will be paid until the end of the lease.
Another issue some tenants raise is the security deposit. Would a tenant who is leaving early be entitled to a pro-rated portion of the security deposit they paid at move-in? Most landlords would say “no way.” It is standard practice to tie the security deposit to the rental unit. Only the tenants still living in the unit at the end of the lease would be eligible for any return of the security deposit.
Remember, if your tenant finds a new roommate, follow your standard procedures for any new tenant. This should include a lease application, thorough tenant screening and credit check, and checking all work and former rental references.
Posted by Teresa on April 6, 2011 under Lease and Rental Agreements |
The utilities section in a property lease is one of the most important. It stipulates who is responsible for the utility bills associated with the rental property. Failing to specify which utilities the tenant will be responsible for can cause headaches and financial loss to the landlord.
Determining who’s responsible for the unit’s utilities—and having a signed agreement—is important because it protects both the landlord and the tenant. Each utility company has different ways of handling rental properties. Once you know how things work in your area, decide which arrangement works best for your situation; there are many options, including:
- In single-family rental houses, tenant pays all utilities directly to the provider
- Landlord pays for utilities that can result in liens against property if unpaid
- Tenant pays for everything except sewer and water
- Landlord pays utilities and has tenants reimburse him
- Landlord pays only for utilities the building owner is responsible for
- Tenants pay for anything that is metered to their unit; utilities with shared meters (usually water and sewer) are paid by landlord and built into the rent
- Landlord pays for garbage and recycling pickup only
Once you determine which arrangement works best, draft your this section of the rental agreement stating that the tenant is responsible for all utilities except for those (specify them) the owner will be paying. Also include language that the tenant agrees to make the payments through the term of the lease and nonpayment will be considered a breach of the agreement. State that any past due utility bills may be paid by the owner and will be charged to the resident, along with applicable fees.
As part of your due diligence before you sign the lease, check with the utility companies to be sure the tenant qualifies for an account in his or her name. Outstanding bills may prevent this—if you sign a lease with a tenant who cannot get the utilities in their name, you’ve just wasted a lot of time working with a tenant who won’t be moving into your rental property.
Finally, most landlords we know have utilities revert to their name between tenants.
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.
