Posted by Teresa on November 16, 2011 under Landlord Tips, Tenant Screening & Background Checks | 
If methamphetamine-manufacturing tenants in Cuyahoga Falls, Ohio get busted, they are expected to pay the costs of cleaning up their labs and disposing of the hazardous waste. If they cannot pay for cleanup after their labs are discovered, their landlords are now responsible, thanks to a new amendment to an existing law.
Until recently, state and federal funds paid for dismantling and removing labs, but that money has come to an end. The local police chief estimated cleanup costs of $1,000 to $5,000 for each meth lab. From removing traces of chemical residue, to dismantling and moving meth-related paraphernalia, landlords are on the hook for everything.
While recognizing that the majority of landlords don’t knowingly lease to drug manufacturers or dealers, the city council that passed the new law stated that it’s simply a cost of doing business.
Some landlords have attended training sessions about meth labs, including lessons on how to identify a lab and what to do if they find one. Meth labs are quick to set up, and the process of manufacturing meth uses easily acquired chemicals.
The real problem for landlords with meth lab cleanup costs is that insurance generally will not reimburse the expense. Not dealing with the problem is not an option. The chemicals used to make meth are extremely dangerous, and even traces of residue pose numerous health hazards, including liver, kidney and neurological damage, and increased risk of cancer.
What Is Involved in Cleaning Up a Meth Lab?
- The entire rental unit must be cleaned
- All traces of chemicals must be removed.
- Walls and ceilings painted
- Carpeting removed,
- All air filters replaced
- Ventilation systems cleaned
- Sinks and plumbing should be replaced
As the landlords of Cuyahoga Falls are discovering, meth labs are not a big-city problem. They are everywhere. The best way to avoid renting to drug manufacturers is to conduct thorough background checks and tenant screening on every applicant. If there is a history of drug convictions or other criminal records, you have the right to turn down the applicant.
Posted by Teresa on November 4, 2011 under Landlord Tips |
If you’re a landlord, it’s a good idea to try to save energy and heating fuel in your rental properties—especially since heating bills are predicted to hit record highs this winter. And even if your tenants pay their own heat bills, isn’t it in your best interest, as well as theirs, to save them money if you can? When things are tight, as in this continued tough economy, helping tenants save money can keep you rent payments coming in steadily.
What are the best ways to save more on heating by saving energy?
- Tax credits: Federal tax credits of up to $500 for energy-efficient appliances, furnaces and insulation installation. The money comes right off your taxes, and helps pay for the initial investment. If gas water heaters are more than 12 years old, consider replacing them.
- Rebates: States and utility companies offer rebates on furnaces, energy-efficient appliances, and other fuel-saving investments. Furnaces over 15 years old can often be replaced with more efficient ENERGY STAR rated models.
- Adding insulation: Many older homes are insufficiently insulated. Check into adding new insulation on your rental properties. Consider increasing ceiling insulation too. It’s easy to wrap the hot water tank with jacket insulation—very effective, especially if it’s an older model.
- Lower the thermostat: 68 degrees during the day and 55 at night is comfortable for most people. Every degree lower in the 60 – 70 degree range saves up to 5% of heating cost.
- Replacing or cleaning furnace filters: Dirty filters increase energy use. Keep them clean by changing often. If you do the replacing yourself, you also have the chance to check on your property and tenants.
- Get out the caulk: seal leaks around windows, doors, and where pipes and electrical conduit enter your building. Check under bathroom and kitchen sinks, the basement and utility closets.
- Install storm windows: for single-pane windows, storms are super-efficient. Or replace old windows with double-panes.
- Encourage tenants to use cold water when washing clothes: it reduces energy use by 75%. And remind them to clean the lint trap on the dryer after every load.
Saving energy takes information, an investment and a commitment. But the rewards can be enormous—especially if everyone does their part. Landlords could qualify for rebates that pay for upgrades, so why not look into them?
Posted by Teresa on September 23, 2011 under Landlord Tips |
It seems like more people are getting into property management. The shift from a home-buying boom to a strong rental market could be one big reason. Have you seen the seminars popping up that claim to teach real estate agents how to manage property in one 3-hour session?
Property management takes a strong set of skills and expertise. Your property manager is supposed to enhance your business and keep you safe—not be another potential liability that can cause your business harm.
Here are three things to watch out for and consider if you’re planning on hiring a property manager:
- Avoid hiring a friend or family member. Business and friendship seldom mix successfully. If your friend who’s been selling houses just added property management to his list of services, do you really want to be his guinea pig? Does your cousin really have the guts to evict tenants and handle rent disputes? And are either of them educated about rental and tenant laws?
- Realize that you need to manage the property manager. It would be nice if your PM took care of your rental business so well that you didn’t have to do anything but count your money, but you will still need to follow up on expenses, repairs, rent collection and vacancies. A good PM will provide appropriate reports on a regular basis, but do your own follow-up just to be sure.
- Find a PM who really cares about your properties and your business. The higher cost of an effective property manager could be well worth it. Interview several to find one you who knows the local market, the local and state rental laws and who agrees with your management philosophy. Ask for and check references. Get examples of their reports. Check out their insurance and bonding status.
As the rental market heats up, more people will be adding property management to their list of services. Be picky and hire one who is knowledgeable and experienced.
Posted by Teresa on August 18, 2011 under Landlord and Tenant FAQs |
Q: Can a landlord prevent a tenant from breaking a lease with 60 days’ notice, due to trauma from a violent crime that occurred in the rental unit?
A: In some cases, and in some jurisdictions, the law would allow a lease to be broken without penalty. Usually, a tenant who signs a one-year lease cannot terminate it mid-term, even with a 60-day notice. In general, a landlord is not liable for unforeseen criminal acts of a third party against his or her tenants. If the tenant had reported issues regarding safety, such as inoperable door or window locks, or insufficient lighting, the tenant may have recourse, as the landlord could be considered in breach of the lease for failing to protect the tenants.
In a case like this, landlords could find themselves between a rock and a hard place, wanting to avoid any admission of liability by allowing a tenant out of a lease, while understanding why they would want to move.
Q: If I see that a tenant is demonstrating some hoarding tendencies, should I intervene?
A: Landlords have the right to expect a tenant will keep the rental property in good, clean and safe condition. Hoarding can be a safety hazard, particularly if flammable materials are kept in large quantities or emergency crews would have a difficult time navigating through the unit. Tenants who keep debris, garbage, empty boxes and cans, and stacks of newspapers in a rental unit are endangering themselves and other tenants.
Don’t ignore this situation. Keep the lines of communication open and respectfully and gently talk to the tenant about the situation. You may need to try contacting a family member (perhaps from the emergency contact listed on the lease application).
Q: My tenant damaged a wall and hardwood floor by carelessly leaving a window open during a rainstorm. I took the repair money out of their security deposit, and they replenished it. Now I want to terminate the lease to prevent this from happening again. Do I have that right?
A: Carelessness is not gross negligence. If the tenant is on a month-to-month lease, then you may terminate with notice, with no reason given. But if it’s a longer lease, this situation probably will not qualify as an allowable reason.
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 12, 2011 under Landlord Paperwork and Forms |
If you’re a landlord who owns older rentals, you may be at risk for liability if you don’t properly disclose the possibility of lead-based paint. Lead-based paint was commonly used prior to 1978, when it was banned. If it cracks, peels or is scraped or sanded, it can still pose a health hazard, particularly to children who ingest paint chips or breathe the dust. Lead paint still exists in many older homes.
The Residential Lead-Based paint Hazard Reduction Act, commonly known as Title X, was enacted in 1992. The Environmental Protection Agency regulates the act for all rental properties built before 1978.
Under Title X, landlords must disclose any known lead-based paint or hazards on the property to tenants before signing or renewing a lease or rental agreement. The tenants and landlord must sign an EPA-approved form to prove the landlord disclosed information about any known lead on the premises. The landlord must also provide tenants a brochure, “Protecting Your Family From Lead in Your Home,” supplied by the EPA or the state. The brochure is available online or you can request printed brochures from the National Lead Information Clearinghouse at 800-424-5323.
Property owners are not required to test for lead or remove it. And, certain properties are exempt from the lead disclosure requirement:
- Lofts, efficiencies and studio apartments
- Short-term vacation rentals of 200 days or less
- Single rooms rented in a residence
- A building certified as lead-free by an accredited lead inspector
- Housing designed for person with disabilities, unless children live there
- Retirement communities, unless children are expected to live there
- Housing built after January 1, 1978
Lead-based paint should not be removed unless proper precautions are taken. Even low levels in the bloodstream pose serious health risks to everyone, but especially children and pregnant women. Landlords should read the EPA brochure to become familiar with the dangers and regulations surrounding lead-based paint.
Posted by Teresa on July 29, 2011 under Landlord Tips |
Landlords are often asked to give references on their former tenants to other landlords. And if you’re a landlord, you’ve probably asked for plenty of tenant references of your fellow landlords. It’s an important part of screening tenants before you sign a lease.
You may be surprised that a tenant who has paid rent late or caused damage would ask you to provide a reference, but it happens all the time.
Here are a few tips for when you’ve been asked to provide a reference for a tenant you don’t particularly want to recommend to another landlord.
- Some landlords are completely straightforward with their fellow landlords, telling them honestly about all the tenant’s bad and good habits.
- Other landlords offer only answers to specific questions. If a particular topic isn’t brought up, they are not going to the one to do it.
- Still others will only say whether or not they would rent to the tenant again.
- Keep it professional: Keep your personal opinions out of the conversation. Offer only facts, and let the new landlord decide whether or not he or she will rent to your soon-to-be ex-tenant.
- Consider asking tenants to sign a release that authorizes you to share information with a new landlord. Let the tenant know that you will only offer information that can be backed up by documentation.
- In some areas, you might be subject to lawsuits for releasing negative information. If you need to know for sure where to draw the line, consult an attorney before you say anything.
- That said, you can most likely avoid trouble by being honest, providing only facts and no opinions, and knowing you can back up the facts with documentation.
For many landlords, just sticking to the “Would you rent to this person again?” question is the best way to go.
Posted by Teresa on July 26, 2011 under Landlord Tenant Lawsuits |
Disputes between landlords and tenants are part of the job of being a landlord. And sometimes it’s necessary to sort things out in a court of law. But court cases are time consuming, expensive, and mostly unpleasant. For many landlords, taking a tenant to court is the worst aspect of owning rental property.
The next time you and a tenant don’t see eye-to-eye on an issue, why not explore alternatives, such as mediation? Professional mediation is a non-adversarial process for resolving disputes that can save you time and money, as well as improve your relationship with your tenant.
What Is Mediation?
• Mediation allows both sides to share their side of the story in the presence of a trained, neutral mediator.
• Is private and confidential.
• Can result in binding agreements, but no one can be forced to accept an unsatisfactory solution.
• Is typically less expensive than court-based solutions.
• Results in a settlement about 85% of the time.
• Is offered by some municipalities or universities for free, so check to see if that’s an option where you live.
Mediators help adversaries talk through a problem without anger, for a more efficient communication process. Professional mediators also help the parties work through possible solutions and come to an agreement.
Mediation cannot be used when legal advice is needed or a case involves criminal charges.
Mediation Can Assist in Disputes Between Landlords and Tenants
• Damaged property
• Rent payments or increases
• Security deposits
• Repairs
• Noise complaints
• Property use issues
• Common area maintenance disputes
• Pet issues
A web search can help landlords locate nearby mediation services. And remember, it can be free of charge, depending on where you are located.
Posted by Teresa on July 12, 2011 under Rents and Deposits |
In Seattle, Wash, the Public Utilities Service, which provides residential water, sewer and garbage service, is putting an end to tenant accounts. Starting July 15, all water bills will go to the owner of the property.
Other utilities in Seattle, such as electricity, gas, cable and internet, are all available directly to tenants, paid by tenants in their own accounts. So why the change in the water/sewer/garbage service?
The Seattle Public Utility (SPU) says that owners were ultimately responsible for water, sewer and garbage debt incurred by their tenants anyway, and they believe that financial management of tenant accounts “should lie with the owners.”
The SPU also stated that the cost of maintaining approximately 20,000 tenant accounts should be shifted from the rest of the account holders to the landlords.
As tenants close accounts when they move to another residence or out of the area, the SPU will automatically activate a new account for the owner of the property. The account will remain in the owner’s name from then on.
This change brings up potential problems for landlords, and maybe for tenants, too:
- Will tenants waste water, knowing they won’t be receiving a bill?
- How will landlords charge tenants for water, sewer and garbage, since the bill will fluctuate depending on use?
- What about tenants who qualify for utility discounts or assistance?
- How can a landlord determine how to set the rent at a rate that will cover the water bill?
- And what about the tenant whose landlord stops paying the water bill?
The SPU indicates that there is no “hard evidence” that tenants will waste water if they don’t get a bill. But in reality, people tend to use an “out of sight, out of mind” approach to most things in life—utility bills included. The biggest detriment to using too much electricity, water and telephone minutes is receiving an unusually high bill. Who doesn’t remember their mom or dad shutting off all the lights the day after the electric bill arrived?
It looks as if landlords in Seattle have one more headache to deal with.
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 3, 2011 under Landlord Tips |
While the housing market is still troubled, the rental market is strong from coast to coast. With vacancies low, you might be thinking that you don’t need to do a thing to keep prospective tenants interested in your rental properties.
But being in the rental property business means generating as much rental income as possible. And if you can make your rental units more attractive to prospective tenants, you may be able to attract better tenants and make more income, too.
In fact, upgrading your rental is not an expense—rather, it’s an investment that should earn you a return. Compare the cost of each upgrade with the corresponding possible increase of rent to determine whether it makes sense to do it.
Perhaps you don’t need to completely renovate every rental unit. Think about ways to maximize the rent you can charge, based on size, location and condition of the rental unit, as well as what the competition is charging. Here are some possible upgrades that won’t break the bank, and can push your rent up:
Kitchen: Replacing countertops and painting cabinets will change the entire look of the kitchen. If you’re pursuing a higher-end tenant, replace those old formica countertops with granite. And if the kitchen has tired old oak cabinets, give them a fresh coat of white paint and some new hardware: instant style!
Bathroom: You can easily replace a worn-out vanity with a new one; add a new faucet, a new light fixture and a nice-looking sink—and the entire room changes. If the flooring has seen better days, large tiles are not very expensive; or, install a solid piece of marmoleum to make a big difference.
Outdoors: Spruce up the patio area or add a small deck. Tenants love having space to relax outside.
Invest in New Appliances: There’s nothing worse-looking to a prospective tenant than a dirty or worn out old stove, refrigerator or dishwasher. Look for a good deal on a package—or buy used. You can find great deals on nearly-new appliances on Craigslist.
Closet Space: Find ways to add storage. Tenants love walk-in closets and built-in shelves. Easy-to-install closet systems are available at most hardware stores and they can completely change the look and functionality of every closet.
If you want to attract higher-end tenants—and increase your rental income—these simple upgrades can be a quick and easy way to do it.
Learn more about protecting your rental property and assets through tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.
If methamphetamine-manufacturing tenants in Cuyahoga Falls, Ohio get busted, they are expected to pay the costs of cleaning up their labs and disposing of the hazardous waste. If they cannot pay for cleanup after their labs are discovered, their landlords are now responsible, thanks to a new amendment to an existing law.
