Posted by Teresa on January 15, 2010 under Eviction, Tenant Screening & Background Checks | 
On this site, we’ve covered the importance of clear rental agreements and leases a dozen times or more. And we’ve stated that the relationship between landlord and tenant is strictly a business one. Never does that distinction become more important than when it’s time to evict a tenant.
Even landlords who choose tenants very wisely, who run all the right credit checks and background screening checks, and who have good, professional relationships with their tenants will face the inevitable eviction soon or later. And, if that landlord is a compassionate person, he or she might not feel good about doing it.
This economy has made it tough for everyone. Tenants are losing jobs and landlords are having a hard time filling rental vacancies—there’s no doubt the business has changed drastically over the past year. But even in this economy, landlords must look at eviction as a business decision—hard as that can be.
Is it okay to evict a tenant in this terrible job and rental market? The answer is “yes.” If you’re in doubt, pull out the rental or lease agreement. Read it over. Check off the terms and conditions that your tenant has failed to honor. Remind yourself that when your tenant signed that lease agreement, he or she agreed to abide by each of those terms and conditions. And they agreed that if they broke the agreement, you had the right to take action, including eviction.
You took a chance that the tenant would uphold their end of the bargain, just as you performed all the duties you agreed to. In approving this tenant, you conducted your due diligence, mitigated your risk through tenant screening, and verified employment and credit worthiness. Though it was based in smart business practices, you still took a chance.
When it turns out that the tenant and you both made a mistake in entering into the agreement, then choosing to evict is okay. When it turns out that, despite the best efforts on both sides, the terms of the rental agreement cannot be upheld by the tenant, then choosing to evict is okay. Making the best business decision you can when a tenant breaks the rental agreement is okay.
This is just one reason a strong rental or lease agreement is the foundation of every landlord/tenant relationship.
On this site, we’ve covered the importance of clear rental agreements and leases a dozen times or more. And we’ve stated that the relationship between landlord and tenant is strictly a business one. Never does that distinction become more important than when it’s time to evict a tenant.
Even landlords who choose tenants very wisely, who run all the right credit checks and background screening checks, and who have good, professional relationships with their tenants will face the inevitable eviction soon or later. And, if that landlord is a compassionate person, he or she might not feel good about doing it.
This economy has made it tough for everyone. Tenants are losing jobs and landlords are having a hard time filling rental vacancies—there’s no doubt the business has changed drastically over the past year. But even in this economy, landlords must look at eviction as a business decision—hard as that can be.
Is it okay to evict a tenant in this terrible job and rental market? The answer is “yes.” If you’re in doubt, pull out the rental or lease agreement. Read it over. Check off the terms and conditions that your tenant has failed to honor. Remind yourself that when your tenant signed that lease agreement, he or she agreed to abide by each of those terms and conditions. And they agreed that if they broke the agreement, you had the right to take action, including eviction.
You took a chance that the tenant would uphold their end of the bargain, just as you performed all the duties you agreed to. In approving this tenant, you conducted your due diligence, mitigated your risk through tenant screening, and verified employment and tenant credit history. Though it was based in smart business practices, you still took a chance.
When it turns out that the tenant and you both made a mistake in entering into the agreement, then choosing to evict is okay. When it turns out that, despite the best efforts on both sides, the terms of the rental agreement cannot be upheld by the tenant, then choosing to evict is okay. Making the best business decision you can when a tenant breaks the rental agreement is okay.
This is just one reason a strong rental or lease agreement is the foundation of every landlord/tenant relationship.
Posted by Teresa on January 11, 2010 under Marketing for Landlords |
Communication is a landlord’s most important skill when it comes to filling rental vacancies. Harnessing the power of all types of communication outlets can lead to greater success. Using social media networks is another tool you can consider.
Social media networks include Facebook and Twitter, which attract the most attention and seem to have hundreds of news articles written about them weekly. There is good reason for that—Facebook and Twitter have the most users out of any online communities: 65 million and 23 million respectively.
How would a landlord use these social networks to advertise rentals? Simple. Set up a page for your business on Facebook. Reach out to your tenants, vendors, friends, and associated businesses to become fans or friends. Become a fan of as many local businesses as you can. Update your Facebook page often with information on vacancies, facts about your rental business, or news about the neighborhood. Be interesting, and of course, be confidential—don’t disclose any tenant information or gossip!
On Twitter, it’s easy to create a profile page and start “tweeting.” Use the search tools to find groups of Twitter users in your town or city, as well as real estate folks, property management companies, handyman businesses, and contractors. All of these people are good potential folks for you to follow. They’ll follow you back, meaning they’ll receive all of your status updates. And they’ll pass them along, too.
Besides letting the world know about your vacancies, social networks can help improve landlord/tenant communications. If your tenants see that you’re listening to them, they’re more likely to let you know when they’re having a problem. And contrary to what a lot of people think about social networks, your tenants are not likely to say only negative things about you.
But if your tenants do have an issue, chances are they’re talking about it anyway—wouldn’t you rather know what tenants are saying so you have a chance to address complaints and make things right?
Keeping up with a Twitter and Facebook account can take very little of your time—and the payoff can be great. You’ll expand awareness of your rental business and maybe even find ways to turn problems into opportunities!
Communication is a landlord’s most important skill when it comes to filling rental vacancies. Harnessing the power of all types of communication outlets can lead to greater success. Using social media networks is another tool you can consider.
Social media networks include Facebook and Twitter, which attract the most attention and seem to have hundreds of news articles written about them weekly. There is good reason for that—Facebook and Twitter have the most users out of any online communities: 65 million and 23 million respectively.
How would a landlord use these social networks to advertise rentals? Simple. Set up a page for your business on Facebook. Reach out to your tenants, vendors, friends, and associated businesses to become fans or friends. Become a fan of as many local businesses as you can. Update your Facebook page often with information on vacancies, facts about your rental business, or news about the neighborhood. Be interesting, and of course, be professional and confidential—don’t disclose any tenant information or gossip!
On Twitter, it’s easy to create a profile page and start “tweeting.” Use the search tools to find groups of Twitter users in your town or city, as well as real estate people, property management companies, handyman businesses, and contractors. All of these people are good potential folks for you to follow. They’ll follow you back, meaning they’ll receive all of your status updates. And they’ll pass them along to their followers, too.
Besides letting the world know about your vacancies, social networks can help improve landlord/tenant communications. If your tenants see that you’re listening to them, they’re more likely to let you know when they’re having a problem. And contrary to what a lot of people think about social networks, your tenants are not likely to say only negative things about you!
But if your tenants do have an issue, chances are they’re talking about it anyway—wouldn’t you rather know what tenants are saying so you have a chance to address complaints and make things right?
Keeping up with a Twitter and Facebook account can take very little of your time—and the payoff can be great. You’ll expand awareness of your rental business and maybe even find ways to turn problems into opportunities!
Posted by Teresa on January 7, 2010 under Housing Trends, Rental Market |
Reis, Inc., a real estate research firm just released its 4th Quarter 2009 apartment vacancy report. As expected, it hit 8%—the highest in thirty years. The poor state of the U.S. job market continues to be blamed, as job creation lags behind other positive economic indicators. Young people, who are typically apartment renters, have been hit especially hard in the job market.
A bit more positive is the news that an ever-increasing supply of newly built apartment units is starting to decline—finally catching up with the credit crunch that began in the summer of 2008. 28,000 new apartments came onto the market in the 4th quarter 2009. The total for the year: 120,000, including developments intended for condos that converted to rentals. New apartment supply should fall by half in 2011, and if jobs improve, there could be some rental market recovery by the middle of this year, according to the report.
The U.S. apartment vacancy rate rose .10 percent from the 3rd quarter, and 1.3 percent for the year, ending at 8%. Sunbelt cities like Tucson AZ, and Jacksonville, FL experienced huge vacancy increases in 2009, at 10.5% and 14.4%, respectively. Charlotte, NC and Lexington, KY were also hit hard. Nationwide, vacancies increased in 52 markets, improved in 17, and remained flat in 10.
Not only are vacancies higher than ever, but landlords are experiencing a double-whammy: both asking and effective rents are plummeting. For 2009, asking rents fell 2.3%, also the largest decrease in thirty years; effective rent fell .7% to $964 per square foot.
And while mortgage financing has toughened up, government efforts to enhance the housing market threaten apartment owners, as some renters find it easier to buy a home. In some markets, continued unrest in the housing sector and lower rents will make renting more attractive than buying.
Landlords and rental property owners will likely need to continue offering rent reductions, perks and amenities to entice new tenants—until the job market improves. And when that will happen is anybody’s guess.
Reis, Inc., a real estate research firm just released its 4th Quarter 2009 apartment vacancy report. As expected, vacancies hit 8%—the highest in thirty years. The poor state of the U.S. job market continues to be blamed, as job creation lags behind other positive economic indicators. Young people, who are typically apartment renters, have been hit especially hard in the job market.
A bit more positive is the news that an ever-increasing supply of newly built apartment units is starting to decline—finally catching up with the credit crunch that began in the summer of 2008. 28,000 new apartments came onto the market in the 4th quarter 2009. The total for the year: 120,000, including developments intended for condos that converted to rentals. New apartment supply should fall by half in 2011, and if jobs improve, there could be some rental market recovery by the middle of this year, according to the report.
The U.S. apartment vacancy rate rose .20 percent from the 3rd quarter, and 1.3 percent for the year, ending at 8%. Sunbelt cities like Tucson AZ, and Jacksonville, FL experienced huge vacancy increases in 2009, at 10.5% and 14.4%, respectively. Charlotte, NC and Lexington, KY were also hit hard. Nationwide, vacancies increased in 52 markets, improved in 17, and remained flat in 10.
Not only are vacancies higher than ever, but landlords are experiencing a double-whammy: both asking and effective rents are plummeting. For 2009, asking rents fell 2.3%, also the largest decrease in thirty years; effective rent fell .7% to $964 per square foot.
And while mortgage financing has toughened up, government efforts to enhance the housing market threaten apartment owners, as some renters find it easier to buy a home. In some markets, continued unrest in the housing sector and lower rents will make renting more attractive than buying.
Landlords and rental property owners will likely need to continue offering rent reductions, perks and amenities to entice new tenants—until the job market improves. And when that will happen is anybody’s guess.
Posted by Teresa on January 5, 2010 under Landlord and Tenant FAQs, Landlord Tenant Lawsuits |
Where are landlords required to place security deposit funds in FDIC-insured institutions? Are you allowed to earn interest on your tenant’s security deposit, or must you turn interest over to the tenant at the end of the lease? How long are you legally allowed to hold the deposit after your tenant moves out?
Every state has its own laws regarding how landlords handle security deposits. As a rental property owner, you must be familiar with your state and local regulations.
Here are some general guidelines that can help keep you on the up-and-up in most states. Dealing with your tenants as fairly, openly, and honestly as possible is the first step to keeping security deposit headaches to a minimum.
Interest: In many states, landlords with a minimum number of units are required to place security deposits in interest-bearing savings accounts. Some require separate accounts for each tenant; others allow one account, but no comingling of the landlord’s own funds. If you reside in one of these states, you have the choice of paying the interest at the end of the lease, or for long-term tenants, paying the interest once or twice a year. With interest rates currently low, the total interest earned is not much. We know a landlord who gives his tenants their interest checks each year in December—just in time for the holidays.
Rent vs. Deposit: Do not confuse the two, nor allow your tenants to do so. Rent is rent. The security deposit is meant to cover the property owner’s expenses if the tenant fails to keep the property in good working order or to cover tenant damages. If a tenants gives notice and expects you to keep the security deposit as last month’s rent, you may have grounds for eviction. Clearing up the tenant’s misunderstanding is probably a simpler way to go, however. Tip: be sure to include clear language in your lease about the amount of the security deposit, when and under what circumstances the tenant will receive it after the lease ends, and that it may not be used in lieu of rent payment.
Deductions: A move-in inspection and checklist, compared with a move-out inspection and checklist, will likely dispel any conflicts over deductions for cleaning, repairs, and damages. Conduct the move-out inspection with your tenant. Point out items that must be replaced or repaired. Obtain their signature to prove they were present and agree to the list of damages. Then, be reasonable about costs—recover your expenses, but don’t gouge your tenants.
Time Limitations: Landlords must deal with security deposits in a timely manner after the tenant moves out. It’s not fair to drag the process on indefinitely, keeping the tenant’s money tied up. Do the right thing and deal with damages, send an accounting of what was deducted from the deposit, and include a check for the balance to your tenant as soon as possible. Besides, most states require landlords to supply an explanation within a certain number of days.
Second Chance: Times are tough for almost everyone. Why not be an exceptional landlord and help your good tenants keep more of their hard-earned money? After the move-out inspection, set up a second walk-through to give the tenant a chance to right the wrongs you point out. Most tenants are capable of performing minor repairs and giving the unit a good scrubbing. Clearly communicate your expectations and give the tenant a chance to meet them.
We recommend you also automatically screen all tenants as part of your application process. For more landlord resources, including forms and information on tenant screening, turn to E-Renter.com. .
Posted by Teresa on December 30, 2009 under Landlord and Tenant FAQs, Rents and Deposits, Screening and Background Checks |
If one of your New Year’s Resolutions is to increase your cash flow, one way to do so is through application fees. Landlords and property managers use these fees to recover their expenses for background screening, credit checks, and the time it takes to vet a potential tenant.
If you’re really lucky and have several applicants for the same unit, you may opt to screen the best (on paper) applicant first and refund the fees to the remaining applicants. Or, you can screen all at once and choose the strongest applicant. In this case, the other applicants would not receive refunds, since the background check was conducted.
If you decide to keep application fees to cover expenses, avoid issues with applicants by stating very clearly both verbally and on the written application that fees are non-refundable. You’ll also want to determine your policy for refunding fees in the event the tenant changes his or her mind about going through with the rental agreement.
Obviously, a landlord would want to avoid accepting any deposit funds until all background screening has been completed and the tenant’s application approved.
Check your state and local laws for guidance—laws vary greatly and you could face limitations on keeping fees and/or time constraints for returning them. If your application fee policy is questioned, be ready to prove expenses with accounting records. Keep the application fee on a different line item from security deposits and rents in your books.
Smart—and honest—landlords also avoid questions of integrity around fees by only accepting applications for units that are truly available, and by doing some initial screening prior to running the tenant background check. If the applicant’s income is below your minimum, do everyone a favor and just turn down the application.
If one of your New Year’s Resolutions is to increase your cash flow, one way to do so is through application fees. Landlords and property managers use these fees to recover their expenses for background screening, credit checks, and the time it takes to vet a potential tenant.
If you’re really lucky and have several applicants for the same unit, you may opt to screen the best (on paper) applicant first and, upon approval, refund the fees to the remaining applicants. Or, you can screen all at once and choose the strongest applicant. In this case, the other applicants would not receive refunds, since the background check on each was conducted.
If you decide to keep tenant application fees to cover expenses, avoid issues with applicants by stating very clearly both verbally and on the written application that fees are non-refundable. You’ll also want to determine your policy for refunding fees in the event the tenant changes his or her mind about going through with the rental agreement.
Obviously, a landlord would want to avoid accepting any deposit funds until all background screening has been completed and the tenant’s application approved.
Check your state and local laws for guidance—laws vary greatly and you could face limitations on keeping fees and/or time constraints for returning them. If your application fee policy is questioned, be ready to prove expenses with accounting records. Keep the application fee on a different line item from security deposits and rents in your books.
Smart—and honest—landlords also avoid questions of integrity around fees by only accepting applications for rental units that are truly available, and by doing some initial screening prior to running the tenant background check. If the applicant’s income is below your minimum, do everyone a favor and just turn down the application.
Posted by Teresa on December 28, 2009 under General, Housing Trends, Landlord Tips, Marketing for Landlords |
Higher rental inventories and overbuilding, plus foreclosed homes and job losses combined to create one tough rental market in 2009—and it’s predicted to continue through 2010.
So what will make your rental property stand out from the rest? With tenants in the driver’s seat, asking for lower rents and other amenities, what can landlords and property managers offer them? What do quality tenants want?
Price, price, price: Tenants want to be sure the rent is in line with the going market rate.
Location, location, location: Parents want to be close to their child’s school. Most everyone prefers to be close to their work. Students like to be close to campus and to nightlife. Families want to be close to parks, grocery stores, downtown, the library—you get the picture. Convenience is a big factor.
Cleanliness: A spotless rental unit will appeal to everyone.
Fitness facilities: Apartment complexes with a bright, clean fitness room with newer equipment that works properly will score higher with most tenants.
Garages: A garage with an automatic door opener is a big draw to most mid-to-upper income tenants.
Appliances: Dishwashers are almost a must. Everybody loves washer/dryer hookups. And if your rental has the washer and dryer as well, it will be scored higher than one without.
Closets and storage: People need space to store their stuff. Lots of closets inside, plus decent outdoor storage for their toys are most appreciated by higher-income tenants.
Accessibility: For older renters and those with physical limitations, easy access to the property shows that you care (and for certain properties, is mandated by law).
Think about the type of tenant you want to attract, and add the improvements that will attract them. If your rental unit already has everything your target tenant wants, make sure your advertising says so!
We recommend you also automatically screen all tenants as part of your application process. For more landlord resources, including forms and information on tenant screening, turn to E-Renter.com. .
Posted by Teresa on December 23, 2009 under Landlord Tips |
As we close the books on 2009, here are some tips to keep your rental properties in good condition and your tenants safe:
While it’s not cold everywhere in the winter, frozen pipes are not unknown to even Florida landlords. So if you know freezing temperatures are in store, check your pipes! Call your tenants and remind them to leave a little water dripping and the under sink cabinet doors open.
If your tenants celebrate the holidays with indoor trees and exterior lights, it’s a good idea to stop by and check that overloaded circuits are not a concern. Too many house and apartment fires are started by Christmas trees. Your rental agreement should clearly state what holiday lighting is allowed—but a personal inspection is also a very good idea.
Make sure your tenants are not using space heaters improperly—if at all. Portable and fixed space heaters are associated with nearly 22,000 residential fires each year in the U.S., with approximately 300 deaths. They should not be used to warm beds, dry clothing, thaw pipes, or cook food. They can be dangerous, and should be avoided. If heating systems function properly in your rental units, there should be no need for space heaters.
If you allow smoking in your rentals, this is a good time to remind tenants of proper disposal of smoking materials. No smoking in bed; no placing cigarettes on counters or windowsills. Encourage tenants to extinguish cigarettes under running tap water.
Check your insurance coverage for water damage and fire. In fact, the end of the year is a good time to schedule time with your insurance broker or sales representative to review all of your coverage. You do not want to find out you’re underinsured after something catastrophic happens.
Keep your peace of mind by keeping your rental property and your tenants safe into the new year!
Posted by Teresa on December 21, 2009 under Housing Trends, Landlord Tips |
Some real estate investors are always looking for the next hot market for rentals. Others prefer to keep their purchases of investment property close to home—so they can better manage their properties. Still others are sitting this market out—waiting for home values and rents to stabilize before even thinking about buying additional properties.
Here are a few ideas to consider if you’re going to be searching for investment properties.
Values exist in almost every city or town. Look for older, yet safe neighborhoods that are obviously kept up by owners. Lower home prices often mean better cash flow.
Keep your eyes and ears open for activity. Is your city is planning a rezone of a particular area? Is a previously designated commercial district going residential? Or is an improvement project planned for a particular area? Knowing what’s going to happen can make a big difference In whether an area is poised for rental property growth or decline.
Areas that have been devastated by overbuilding and plummeting employment are ripe for the picking. Bargains will abound in depressed housing markets like Las Vegas and larger cities in California.
If you’re considering buying away from where you live, add in the cost of a property management company to your calculations.
Go where the jobs are. The idea is to pay attention to announcements of large-scale hiring, plant openings, or relocations. Examples are the new Boeing plant to be built near Charleston, SC, or the purchase of the prison in Thomson, Illinois by the federal government. You can even set up a Google alert to tell you when any mass hiring article hits the internet! When the picture starts improving, notice what states have the highest jumps in employment rates.
Go where the students are. We’ve covered the pros and cons of renting to students before. But the rental markets in college towns tend to be more stable—students will always need a place to live, which is a big plus!
Some real estate investors are always looking for the next hot market for rentals. Others prefer to keep their purchases of investment property close to home—so they can better manage their properties. Still others are sitting this market out—waiting for home values and rents to stabilize before even thinking about buying additional properties.
Here are a few ideas to consider if you’re going to be searching for investment properties.
- Values exist in almost every city or town. Look for older, yet safe neighborhoods that are obviously kept up by owners. Lower home prices often mean better cash flow
- Keep your eyes and ears open for activity. Is your city is planning a rezone of a particular area? Is a previously designated commercial district going residential? Or is an improvement project planned for a particular area? Knowing what’s going to happen can make a big difference In whether an area is poised for rental property growth or decline
- Areas that have been devastated by overbuilding and plummeting employment are ripe for the picking. Bargains will abound in depressed housing markets like Las Vegas and larger cities in California.
- If you’re considering buying away from where you live, add in the cost of a property management company to your calculations.
- Go where the jobs are. The idea is to pay attention to announcements of large-scale hiring, plant openings, or relocations. Examples are the new Boeing plant to be built near Charleston, SC, or the purchase of the prison in Thomson, Illinois by the federal government. You can even set up a Google alert to tell you when any mass hiring article hits the internet! When the picture starts improving, notice what states have the highest jumps in employment rates.
- Go where the students are. We’ve covered the pros and cons of renting to students before. But the rental markets in college towns tend to be more stable—students will always need a place to live, which is a big plus!
We recommend you also automatically screen all tenants as part of your application process. For more landlord resources, including forms and information on tenant screening, turn to E-Renter.com. .
Posted by Teresa on December 18, 2009 under General |
Call them goals, call them promises–call them whatever you want! But jot these ideas down and refer to them often. Here are a few ways landlords and property managers can make 2010 a more successful year.
1. Don’t hesitate to start eviction proceedings when necessary. We’ve covered those situations before. It’s unpleasant and can be expensive, but in nearly every case, the behavior that necessitates eviction is not going to change.
2. Keep up with your local market to know whether you’re undercharging or overcharging rent. Do the former, and you’re losing money. With the latter, you’ll lose tenants.
3. Properly prescreen tenants—every tenant, every time. Nothing will do more to keep your business secure—and lead to more peace of mind for you. Don’t fall into the “desperate for a tenant” trap. Keep your standards high and you’ll have high-quality tenants.
4. Enforce the rules strictly. Don’t be afraid to let tenants know what you expect, and the consequences for breaking your rules. You’ll have fewer problems and headaches if you are clearly in charge in the landlord/tenant relationship.
5. Treat your income property business like a business. Keep excellent records, regular business hours, and a separate telephone line with voice mail. Avoid getting too personal with your tenants/clients.
6. Establish goals, make a plan and hold yourself accountable for reaching them. Whether it’s a higher cash flow, keeping expenses in line, or purchasing an additional income property, knowing what you’d like to achieve in your business is the first step in getting there.
7. Watch your cash closely. If necessary, establish an emergency fund that you do not touch. Be prepared for major repairs—you never know when you’ll need to replace a roof or fix a flooded basement.
What are your ideas for doing things differently in the new year?
Posted by Teresa on December 14, 2009 under Landlord Tips |
If you’re a rental property owner or manager who allows your tenants to keep pets you’ve probably been asked if Pit Bulls are allowed. Pit Bulls and other “aggressive” or “dangerous” dog breeds are commonly banned from rental properties. Is this discriminatory?
While it’s probably not a good idea to argue with fans of a particular breed about its merits (or lack thereof), landlords must deal in facts, not opinions.
Fact: all dogs have the capacity to bite and under the right conditions, will do so;
Fact: all dog breeds have their share of gentle and aggressive individuals;
Fact: Pit bulls Dobermans, and Rottweilers are banned from public housing in New York City, as are dogs over 25 pounds;
Fact: Denver, CO banned Pit Bulls in 1989, and again in 2004 after a state law prohibited singling out certain breeds; Kansas City and Miami followed suit
Fact: England bans the breeding of Pit Bulls and three other breeds, and requires owners to muzzle and leash them in public;
Fact: dozens of Insurance companies will not write a homeowner’s policy if certain breeds are on the property;
Fact: dog bites send nearly 368,000 people to hospital emergency rooms every year;
Fact: In 2007, there were 33 fatal dog maulings in the US—nearly double the average of 17 for the 1980s and 1990s;
Fact: According to a study by Merritt Clifton, Pit Bulls, Rottweilers, Presa Canrios (member of the Mastiff group) and mixes of these breeds were responsible for 74% of dog attacks in the US and Canada from September 1982 to November 2006;
Fact: Dog attacks cause over $1 billion in losses for victims in the US every year.
It seems that owning pets is more popular than ever before—and in a tight rental market like the one we’re in currently, not allowing pets can be a disadvantage. However, allowing potentially dangerous pets is a risk to rental property owners. If you do allow dogs, check your coverage with your insurance agent—you may not have a choice other than banning certain breeds on your property.
Whether a landlord allows pets or not—and Pit Bulls or not—is up to each individual. Knowing the facts can help make that decision easier.
If you’re a rental property owner or manager who allows your tenants to keep pets you’ve probably been asked if Pit Bulls are allowed. Pit Bulls and other “aggressive” or “dangerous” dog breeds are commonly banned from rental properties. Is this discriminatory?
While it’s probably not a good idea to argue with fans of a particular breed about its merits (or lack thereof), landlords must deal in facts, not opinions.
- Fact: all dogs have the capacity to bite and under the right conditions, will do so;
- Fact: all dog breeds have their share of gentle and aggressive individuals;
- Fact: Pit Bulls, Dobermans, and Rottweilers are banned from public housing in New York City, as are dogs over 25 pounds;
- Fact: Denver, CO banned Pit Bulls in 1989, and again in 2004 after a state law prohibited singling out certain breeds; Kansas City and Miami followed suit
- Fact: England bans the breeding of Pit Bulls and three other breeds, and requires owners to muzzle and leash them in public;
- Fact: dozens of insurance companies will not write a homeowner’s policy if certain breeds are on the property;
- Fact: dog bites send nearly 368,000 people to hospital emergency rooms every year;
- Fact: in 2007, there were 33 fatal dog maulings in the US—nearly double the average of 17 for the 1980s and 1990s;
- Fact: according to a study by Merritt Clifton, Pit Bulls, Rottweilers, Presa Canrios (member of the Mastiff group) and mixes of these breeds were responsible for 74% of dog attacks in the US and Canada from September 1982 to November 2006;
- Fact: dog attacks cause over $1 billion in losses for victims in the US every year.
It seems that owning pets is more popular than ever before—and in a tight rental market like the one we’re in currently, not allowing pets can be a disadvantage. However, allowing potentially dangerous pets is a risk to rental property owners. If you do allow dogs, check your coverage with your insurance agent—you may not have a choice other than banning certain breeds on your property.
Whether a landlord allows pets or not—is up to each individual. Knowing the facts can help make that decision easier.
