Ask The Following Questions, Find The Answers To Be A Successful Landlord – Part II

The answers to yesterday’s questions are pretty simple, and perhaps, experienced landlords already know the established rules of the rental business. However, for those new to the game, the following information holds the key to being a successful landlord.

Q. 1. What laws must a landlord consider when renting out his / her property i.e. federal, state, local laws, or rules laid down by condominium or homeowners’ association?

Ans. All, as it is essential for landlords to confer and follow every single federal, state, and local law, including any applicable rules set out by condominium or homeowner associations, when leasing out a property.

Q. 2. Where is a tenant’s security deposit amount to be held i.e. in a segregated bank account, personal savings or chequing account, or in accordance with state laws.

Ans. Every landlord needs to know his / her state’s specific rules regarding security deposit holdings, and therefore, they must be held in accordance with state laws.

Q. 3. Can a landlord legally refuse to lease his / her unit to prospective tenants on the basis of their religious beliefs, or because they are dirty and shabby in appearance, or refuse to submit to having a credit check carried out, or because of they belong to an ethnic or racial group, not in keeping with a landlord’s preferences.

Ans. Truth to tell, landlords should never discriminate on the basis of race, colour, religion, or national origin. As well, sexual preference, and age should also be added to that basic list. The only exception being, if according to state laws, your condominium association is organised as a senior citizen community, it is only then, a landlord can refuse prospective tenants who do not classify as senior citizens.

As well, a landlord has every right to turn down a prospective tenant, unwilling to submit to a credit check. However, if the landlord only demands credit checks from certain people belonging to protected classes, he / she may be held in violation of anti-discrimination laws. Therefore, uniformity in a landlord’s rental policies is a requisite requirement.

Q. 4. Whether a lease agreement should or should not contain a clause for restricting pets, number of overnight guests, and who pays for repairs to the property.

Ans. In order, for a rental agreement or lease to be water-tight, a landlord must ensure his / her rules and stipulations are part of the agreement or lease, couched in easy to understand terms, so as to avoid any trouble in the future.

Q. 5. In order, to be considered valid, must a lease contain the lease commencement date, termination date, parties to the agreement i.e. both landlord and tenant, rental amount, security deposit amount, etc.?

Ans. A bit tricky, the basic elements for a contract to be valid are offer, acceptance and consideration. For example, the landlord offers his / her property to the tenant, who accepts it, including the rental amount, which is the consideration. However, for a valid lease agreement, all these elements must be communicated in the written contract. Thus, the contract requires the names of the parties to the agreement, including the rental amount.

Since, security is just a term of the agreement and not the primary consideration, for the contract to be valid, a specific date of commencement and termination must be contained within it.

Contracts can be drawn to automatically renew themselves after a specific period of time, unless one or both the parties object to the renewal, however, a termination date is still required.

All of the above should prove to be of considerable help in ensuring a landlord does not overstep any legal boundaries, nor breaks any important rules that may result in unwarranted trouble. More tomorrow, as we turn every rookie into a successful landlord!

As well, landlords should view taking of necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring whatever is promised in the rental lease is provided, 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!