Before You Evict a Tenant

Posted by Teresa on April 21, 2013 under Eviction | icon: commentBe the First to Comment

tenant screeningDespite your best efforts to lease your rental property only to well-qualified tenants who pass your screening process, not every tenant works out. Some tenants stop paying rent. Others refuse to follow the rules. Eventually, you make the decision to evict and bring in a better tenant.

But before you evict a tenant, make sure you are following the laws of your state. Failure to follow the proper legal procedures can result in plenty of trouble for you, and an undesirable tenant still living in your property.

There are certain reasons you can legally evict a tenant, including staying past the termination of the lease and non-payment of rent. Having a pet, sub-leasing or allowing guests to stay without your permission are other examples of legitimate cause for eviction. Disliking the appearance of their visitors, the food they cook at home or the church they attend are not legitimate causes.

Each state will have its own detailed requirements, so be familiar with your state’s procedures before you start. You’ll be required to terminate the lease and give notice of eviction, in writing, before you begin the filing process. The number of days for the notice to vacate will vary according to the state law. Some states require landlords to give tenants time to correct the problem; others don’t.

Depending on your reason for terminating the lease, you may issue:

  • A Pay Rent or Quit Notice, which gives the tenant several days to pay or move out.
  • A Cure or Quit Notice, which gives the tenant time to correct the problem, such as having their sub-tenant move out or finding a new home for the cat.
  • An Unconditional Quit Notice, which requires the tenant to move out, with no chance to pay rent or fix the problem. These are generally used with tenants who engage in criminal activity, repeatedly break the rules or fail to pay rent on time.

Once you start the eviction process, you may be in for weeks or months of court appearances. Tenants can defend themselves, or look for errors in your documents that give them time to stay. If a tenant thinks you are being discriminatory against him or her, or are retaliating for complaints they’ve filed, you could have a long case on your hands.

Before you evict, make sure you have documented all of your correspondence with the tenant; keep things completely professional and whatever you do, don’t change the locks or turn off the utilities in order to force a tenant out. That’s illegal.

If you follow the procedures outlined by your state, you can usually evict a tenant for cause in a matter of weeks. If you don’t, you could lose your case. You can always consult with a landlord-tenant attorney if you need to. Good luck!

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.

What Do Landlords Need to Know?

Posted by Teresa on June 24, 2012 under Eviction, Fair Housing Act, Landlord Tips | icon: commentBe the First to Comment

tenant screening, tenant background check, credit checkIf you’re thinking about investing in rental property, particularly as demand for rentals is increasing and housing prices are at the low point in many markets, there is a lot you’ll need to learn. Some aspects of landlording can only be learned through experience, but others are important to understand from the very beginning, to ensure you’re in compliance with property and tenant regulations.

Even if you’ve been a landlord in the past, you’ll need to brush up on new laws. For example, in many states, certain disclosures are required to protect tenant health. You may be required to reveal exposure to floods, mold or radon. Some states require indoor air tests or other environmental testing. Federal laws require landlords to disclose lead-based paint hazards in buildings built prior to 1978. You may be required to provide smoke detectors, carbon monoxide detectors, or both.

The federal Fair Housing Act prohibits discrimination in renting property based on a person’s race, color, religion, national origin, gender, marital status or disability. Landlords may not prohibit children in rental property, unless it is a senior-only community.

Landlords are required to provide safe and habitable units for tenants, according to local and state housing and health codes. All utilities must be operational. Necessary repairs must be made promptly. Lighting, locks and grounds should be maintained to prevent crime and injuries. Landlords cannot force tenants to move by turning off heat, lights, or water, by changing locks or removing the tenant’s property. Check local statutes for the guidelines and proper process for evicting tenants.

In many states, security deposits are strictly regulated, including the amount that may be charged, where the funds are kept (such as in a separate bank account from rents or in an interest-earning account) and how they are disbursed to former tenants. You may also be limited as to what the security deposit can cover. Some states allow deposits to cover unpaid rent, while others limit their use to just damages. Landlords may be required to refund a security deposit in a certain number of days.

The proper handling of a tenant’s property is another potentially sticky area. When a tenant leaves property behind, you may be required to prepare an inventory and have a law enforcement officer sign off on it. Depending on where you live, a landlord may be prohibited from moving a tenant’s property off the premises; or they may be allowed to dispose of it after a set period of time. Check your local laws to ensure compliance.

Becoming a landlord can be a profitable venture. Just be sure you’re in compliance with local, state and federal laws, or you may have legal fees that can wipe out your potential gain.

Banning Certain Dog Breeds

Posted by Teresa on March 9, 2012 under Landlord Tips, Lease and Rental Agreements | icon: commentBe the First to Comment

tenant screening, tenant background check, tenant pre-screeningAround the country, landlords, insurance companies and municipalities are responding to reports of attacks and other problems posed by “bully breeds” of dogs—mostly pit bull terriers—by prohibiting residents from owning them. The New York City Housing Authority has banned pit bulls from its properties. Some municipalities around the country have also outlawed the breed.

On the other side of the argument are the pet owners who love their animals, as well as those who insist their dogs are companion animals, protected by law. In one such case, a 76-year-old tenant has been told she must give up her pit bull or face eviction. Her landlord has received four written complaints about the dog, from teeth-baring and lunging incidents to barking at children. While the tenant has a doctor’s order certifying the dog as a companion animal, other residents feel the dog has not been properly trained, and it’s just a matter of time before a resident or child is hurt.

The American Insurance Association says that dog bites are one of the biggest categories for homeowners’ insurance claims. In assessing risk, and with millions of dollars per year in damage awards, many insurers refuse to cover homeowners with pit bulls, Rottweilers and other breeds deemed “aggressive.”

Some animal protection groups, such as PETA, are calling for bans on breeding pit bulls, while others insist such actions are discriminatory, and that owners need to be accountable for the actions of their dogs.

Landlords have the right to prohibit animals in rental properties, with the exception of companion and service animals for the disabled. If you as a landlord allow animals, you may designate which types your tenants may keep in your property. Some landlords limit dogs by weight; others prohibit snakes and other exotic animals, while others specifically prohibit dog breeds with a reputation for aggressive behavior.

Just be sure your lease agreement clearly states the rules and the consequences of breaking them. Check with your lawyer and your insurance agent to see how allowing these breeds affect your risk.

The High Co$t of Evicting Tenants

Posted by Teresa on January 9, 2012 under Eviction | icon: commentBe the First to Comment

tenant background check, tenant credit checkThe last thing most landlords and tenants want to face is an eviction. For landlords, it’s messy, time-consuming and can be costly. For tenants, eviction can hurt their chances of renting another home, and could even leave them homeless.

There are ways to prevent a landlord-tenant relationship from ending in eviction, including proper tenant screening and conducting thorough tenant credit checks. But even good tenants lose jobs or have unexpected medical bills that can lead to difficulty paying rent. And when they stop paying rent, and won’t move on their own, eviction is the landlord’s legal recourse.

Depending on the state you live in, landlords are typically required to follow a strict protocol and process of notifying a tenant of impending eviction. Whether or not the tenant decides to fight the notice will determine whether the process goes quickly or drags out. The latter will add time and legal fees to the landlord’s case.

Other legal fees a landlord typically encounters in an eviction case include unlawful detainer for each adult in the rental unit, judgment, garnishment and service fees.

If you win your case, you then must remove the tenant from the property. In most states, you cannot just throw a tenant’s belongings out on the sidewalk. Typically, local law enforcement serves a notice and gives the tenant several days to leave. If they don’t, they will be removed by law enforcement.

In a few states, landlords are allowed to dispose of property a tenant leaves behind, but in most places, you’ll need to store the tenant’s property and follow proper notification procedures. In New York and New Jersey, for example, a landlord must store an evicted tenant’s belongings for 30 days, resulting in additional costs that are rarely recovered.

Expenses for cleaning and repairs add to the losses experienced by the landlord, since any security deposit paid by the tenant has likely been offset by loss of rent and legal fees.

By properly pre-screening tenants, offering an iron-clad lease to qualified applicants, and requiring strict adherence to rent due dates, landlords can establish a business model that lessens the chances of eviction—and saves them significant money and time.

Landlords: Five Reminders to Help With Eviction Jitters

Posted by Teresa on November 2, 2010 under Landlord Tips | icon: commentBe the First to Comment

tenant screening, tenant prescreening, tenantscreeningblogExperienced landlords know that into every investment property business an eviction or two will fall. Okay, so that’s a stretch from the old adage, “into every life a little rain must fall,” but it illustrates our point: most landlords will experience the eviction process sooner or later.

If you’re a landlord who’s been fortunate to avoid evicting tenants so far, but are expecting that lucky streak to end soon, you may be experiencing some anxiety about the process. After all, times are tough and tenants everywhere are having a more difficult time with a job market that doesn’t seem like it will ever improve.

Here are a five things to remember when you face evicting tenants—an unpleasant task no matter how long you’ve been a landlord.

Are You Up to Evicting a Tenant? If you’re having trouble evicting a tenant who has failed to live up to the terms of his or her lease, consider that being a landlord may not be your cup of tea. Owning rental property can be a tough business; it takes a tough person to be successful.

Did you Buy an Investment Property or a Non-Profit Organization? Most landlords invest in property to make a profit. The few who don’t want or need to make a profit must be running a charity. If you’re not one of those, remember that you cannot afford to lose money on tenants who damage your  property, don’t pay rent on time, or won’t follow your rules.

Being Too Nice Hardly Ever Pays. When you allow tenants to call the shots, some of them take advantage. They sense weakness, which gives them permission them to behave badly. If tenants don’t pay rent on time or otherwise live up to the lease they signed, deal with the situation quickly and move on. Not only will it send a clear message that you are not to be taken advantage of, it also allows you to bring in better tenants. And remember to properly pre-screen all tenants before signing a new lease.

Drama is For the Stage, Not Your Investment Portfolio. Investing in rental property is a business decision. Running your business is not meant to be entertainment. Drama has no place in a business relationship between a landlord and tenant. Nothing in it is worth losing sleep or money over. Keep your relationship with tenants professional and do not allow your feelings to override your business decisions.

If Eviction is Necessary, It’s Not Because of Anything You’ve Done. Remember, you’re not at fault. Theoretically, both parties agreed to the terms of the lease. If you’ve held up your end of the agreement, and your tenant has not, you are usually well within your rights to move toward eviction. That’s why the law allows for eviction.

Of course, if you’ve never been through the eviction process or need legal counsel on how to deal with a problem tenant, it’s best to consult your attorney. Eviction jitters are easy enough to get past—and moving on is good for you and for your business!

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

5 Things to Know About Evicting Tenants

Posted by Teresa on October 20, 2010 under Eviction, Landlord Tips | icon: commentBe the First to Comment

tenantscreeningblog, tenant screeningEviction is typically the last step a landlord wants to take with a tenant. But it’s a reality in the real estate investment business. Most experienced landlords say the biggest mistake they make around eviction is waiting too long to start the proceedings.

So if you’re a landlord who is heading down the road toward evicting a tenant, here are 5 things you should know:

  1. Eviction comes after you legally terminate the tenancy. The requirements for giving a tenant notice that the tenancy has been terminated varies by state; every landlord should know the regulations in his or her state. Usually, a written notice is required, for example, a notice that the tenant pay the rent due by the 5th or the eviction lawsuit will proceed. (This is a “pay or quit” notice.)
  2. Every state has its own requirements for how eviction papers are written and served, too. Look up your state law on eviction; read it thoroughly. Ask an attorney to explain it if any statute or requirement is unclear.
  3. Many rental property owners advise new landlords to hire a landlord/tenant attorney to handle your first eviction to make sure that everything is done correctly. You don’t want your case thrown out of court because you’ve missed a legal notice or mixed up the number of days you are required to give the tenant to correct the problem.
  4. If your tenant fights the eviction, your case could take many weeks or months to go through the courts. Every notice, every complaint, and your history as a landlord could be scrutinized. It’s vitally important that you keep excellent records, treat every tenant equally and abide by your state and local laws throughout the entire eviction process.
  5. Depending on your state, you may have responsibilities after an evicted tenant moves out. In some states, the property owner is required to store a tenant’s left-behind property and notify them for a minimum time period before disposing of it.

It’s not easy to evict a tenant—for a reason. Forcing a person or family out of their home is not taken lightly. Be well-prepared if you must evict—and to reduce the probability of needing to evict, be sure to order a thorough tenant screening before you sign a lease with a potential tenant.

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

Evicting Tenants: Be Prepared!

Posted by Teresa on August 27, 2009 under General | icon: commentBe the First to Comment

law-and-gavel on tenant screening blogThe most common cause for evicting a tenant is probably nonpayment of rent. Experienced landlords do not hesitate to begin eviction procedures when tenants are in arrears on rent. So if you plan toever evict a tenant, then think like a Boy Scout—and be prepared.

Be prepared for excuses: You might hear about your tenant’s difficulties, whether from the economy, job loss, health, or even the weather. You could hear that there is damage or mold in the unit that renders it uninhabitable. You might hear any number of reasons why your tenant has not paid the rent—which is the only thing that matters. As landlord, you are entitled to decide whether or not to evict based on the tenant’s situation. Just be prepared for nonpayment of rent to occur again.

Be prepared with all the eviction paperwork required by your local court. Some want a copy of your deed, the lease, the exact names of everyone living in the rental unit (whether or not they are on the lease) and copies of all notices to pay rent or quit (evict). Your jurisdiction may want more information, so be sure to ask the clerk of court or magistrate’s office. You’ll also need proof of non-payment, so gather up all check copies for the tenant for at least the previous year.

Be prepared to hire a lawyer. If you have never evicted a tenant before, many experienced landlords would strongly recommend you hire a Landlord/Tenant attorney before proceeding with eviction. They can keep you from making crucial mistakes and losing your case.

Be prepared to spend money. There will be fees associated with preparing your case. And if you decide to hire an attorney, you will be responsible for his or her fee, as well.

Be prepared to follow the court’s procedures. The court will require you to fill out paperwork correctly and follow every procedure to the letter. If you don’t, you could have your eviction case thrown out and have to start again. Consider observing a day in court when they hear eviction cases—seeing other landlord’s eviction errors could help you avoid them.

Be prepared for a fight. Your tenant may not even show up for court. If so, you will likely win your case. But if they do appear, remember that tenants have rights, too, and are entitled to plead their case before the judge. Be prepared to defend yourself. You may hear things that will surprise you, but stick to the facts and avoid arguing or confrontation.

Eviction is never easy, but it is a part of being a landlord. Just remember to be well prepared for whatever surprises may come up!