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

Today, some more answers to landlord / tenants questions are offered, so that landlords are well informed about established rules of the rental business, all in an attempt to make successful landlords out of rookies.

Q. 6. How best would you describe a rental lease i.e. would you call it a unilateral contract, a bilateral contract, an agreement between a landlord and his / her tenant, or a personal services contract?

Ans. Of course, the correct answer is that a rental lease is a bilateral contract between a landlord and his / her tenant.

Q.7. When a tenant fails to pay the rent, what is the best course of action for a landlord to take? For example, should he / she inform the police, send a written notice to the tenant asking him / her to pay rent within a certain period of time or face eviction, file a lawsuit, or when the tenant is not home, change the locks after throwing his / her personal belongings out?

Ans. Changing locks and throwing personal belongings out may be tempting, however, a notice by certified mail, about late payment of rent, demanding it should be paid within a stipulated period of time, should be sent, asking rent to be paid, as a rule, within either three calendar days or a week’s time. This is the only legally right way of handling such a situation, as before, eviction proceedings can be started, most states require proof of notice, as a condition for initiating the eviction process.

Q. 8. What additional documents may be required, apart from a lease agreement for renting out property e.g. an insurance policy for appliances, an inventory of all personal property, including furniture, linens, dishes, etc., a landlord’s renter’s insurance policy, or all of the above?

Ans. It is important for any and every landlord to carry as much insurance as possible, which means, appliance insurance, a renter’s policy, and an inventory of items left in an apartment or house, should always be in your rental property file.

Q. 9. In the eventuality, a tenant demands items not listed in the lease agreement, what should a landlord do? Should he / she ignore the tenant’s demands, give a written response that his / her demands are denied as they are not a part of the lease agreement, or immediately begin eviction proceedings?

Ans. You need to respond in writing stating any demands outside of the rental agreement will not be fulfilled, as it is not only an impersonal way of handling things, but you also create a record of the issue involved, especially when the demand is going to be denied. Always, send tenant related notices or responses to issues via certified mail, to ensure no issues arise over, whether the tenant received your response or not.

Q.10. Which of the following activity related to rental property is not tax deductible i.e. repainting costs, a kitchen microwave, advertising costs for renting the property, or a Bahamanian vacation after successfully renting out your property?

Ans. Only, item costs directly related to the business of renting or maintaining rental property are tax deductible, not a personal holiday trip to the Bahamas.

Tomorrow, more information on rental and landlord / tenant issues. Till then, landlords should take necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all that is promised in the rental lease is provided, as it is 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!