In order, to avoid landing themselves in to legal hot water, it is essential for landlords to be up on federal, state and local laws governing rental businesses. Sheer ignorance does not amount to bliss, but to a whole lot of unwarranted and expensive litigation. Therefore, if you have property to rent out, best avoid making the following top ten mistakes most landlords make:

1. Discriminatory Family Policies
   Since, the past 20-years rental laws forbid landlords from discriminatory practices, such as, refusing to rent to families. Though, it is illegal, many owners of rental property prefer not to let their units to couples, who bring in young children or teenagers as part of the package deal. Property owners exclude families, as they feel children occupancy will lead to greater wear and tear of property, as well as, noise disturbance instead of a “mature, quiet” environment. And while, the number of residents in a unit (in most situations, two occupants per bedroom) can be limited, the same standard cannot be applied to families. Discriminating against the latter can mean only one thing, another trip to a lawyer’s office for dealing with a fair housing complaint.
2. Undeliverable PromisesDon’t rave about property benefits to prospective tenants, though it may be necessary to do so in a highly competitive market. Bear in mind, any enthusiastic promises will become binding, in the event rental applicants rely on them when deciding to rent. For example, if you have promised an applicant parking space, satellite service, or a new paint job, then you will have to fulfil your promises. Not doing so may result in a tenant, either terminating the lease or suing you for the difference in value, between what was promised and what has been delivered. Who wins is not the point; the issue at stake is that it is going to cost you both time and money to respond to the complaint.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

The last to one chapter of the tax deduction tips saga for landlords, includes the following:

1. I am sure a lot of landlords are simply not cognizant with the fact that they can deduct almost any insurance premiums paid for rental activities. A landlord’s insurance policy may cover fire, theft, and flood insurance for rental property, including landlord liability insurance, which still makes them tax deductible. As well, they can deduct the health and workers’ compensation insurance they pay for employees, if any.
2. What is not commonly known either is that landlords can deduct fees paid to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. Operating expenses paid as fees for work related to rental activities are also tax deductible.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

It is crucial for landlords to be aware of state laws governing rental businesses before renting out their property. Not only, do successful landlords have loads of practical know-how, as also business moxie, along with being familiar with the market. Thirty-years ago, the rental business was unrelated to law, however, today federal and state laws closely regulate nearly every aspect of it. Ignorance about the rules can land a landlord in serious legal hot water; therefore, it is best to avoid making the following top ten mistakes made by most landlords:

1. Using Generic or Outdated Lease Forms
   As every landlord knows, it is of the utmost importance to draw up a written lease or rental agreement, before allowing tenants to move in. However, if a wrong form is used, it can land a landlord into big trouble. That is why; landlords are advised to steer clear of so-called ‘standard’ forms sold everywhere, as it is more than probable they are not compliant with state laws. Using a stationery store lease that short-cuts tenants’ rights may well see you losing your tenant eviction lawsuit, due to an unenforceable lease clause. On the other hand, some standard forms actually impose greater obligations and restrictions on landlords than the state laws! For example, there are standard lease forms that require landlords to return security deposits within ten days. That is incorrect and no state requires it.Therefore, avoid making this mistake, either brush up your knowledge of state and federal laws or hire a lawyer to draw up a water-tight lease for you.
2. Asking the Wrong Questions During Applicant Screening
   Whilst, tenant screening is the most important aspect of a rental business, there are limits to the kind of questions that may be asked of prospective applicants. Asking a disabled person about his / her disability, or if a couple is married, may be questions asked in all innocence, but they could be misconstrued as illegal forms of discrimination. In case, you turn down the applicant on other grounds and the rejection has nothing to do with the offending question, a disappointed tenant has sufficient ammunition to lodge a fair housing complaint. Play it safe and steer clear of sensitive topics and issues.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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 their tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

On with the tax deduction tips for landlords’ saga that relates certain measures that can be taken to save on tax payments.

1. In case, a landlord hires anyone, perhaps as an employee or an independent contractor to perform services for any rental activity, any payment made to them in form of salary of for services rendered can be deducted as a rental business expense. Simply put, deductions can be made, whether the worker is an employee e.g. a resident manager or an independent contractor e.g. a repair person.
2. If, rental property is damaged or destroyed, as a result of any sudden event like fire or flood, the owner is entitled to claim a tax deduction for all or part of his / her loss. Called casualty losses, however, one may not be able to deduct the entire cost of damaged or property destroyed by a casualty. Your deduction amount will depend on the extent of damage sustained and, whether the loss was covered by insurance.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

So, to continue with Part II of tax saving tips for owners of small residential rental property, tax deductions can be taken, as under:

1. A landlord can deduct rental property repair costs, so long as, they are necessary, and the dollar spend is reasonable in amount. Repair costs are fully deductible the year they are incurred in, and some good examples of deductible repairs include, repainting, fixing gutters or floors, fixing leaks, plastering, replacing broken windows, and so on.
2. And perhaps, you weren’t aware of the fact, but landlords are entitled to a tax deduction, for gas mileage expenses, whenever they drive anywhere for work relating to their rental business. Take for example, a trip to handle a tenant complaint, or to the hardware store for purchasing a repair part, is tax deductible on both counts, as the trip was made in relation to rental business travel.

Any travel related to a landlord’s rental activity offers two options for deducting vehicle-related expenses. On one hand, one can either deduct actual costs i.e. gasoline, upkeep, repairs, etc., or else use the standard mileage rate – 48.5 cents per mile for 2007; 44.5 cents per mile for 2006. However, bear in mind that in order to qualify for the standard mileage rate, the standard mileage method must have been used in the first year the car was used for rental business activity. Moreover, standard mileage rate cannot be used, if one has claimed accelerated depreciation deductions in prior years, or taken a Section 179 deduction for the vehicle.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Both landlords and tenants should know or be aware of the fact that the Fair Housing Acts imposed by state and local governments are meant to protect tenants, while prohibiting landlords from discriminating on the basis of race, religion, or any other protected / minority category. It is illegal to deny accommodation to a rental applicant on the following grounds:

1. By falsely claiming a rental unit is unavailable, simply because he / she does not wish to rent to certain applicants.
2. Indulging in rental advertisements that subtly indicate a preference based on group characteristic, such as, colour of the skin.
3. Imposing additional restrictive standards, like a higher income, to discourage and deny accommodation to certain tenants.
4. Refusing reasonable accommodation of disabled tenant needs, such as, permission to keep a guide dog, hearing dog, or other service animal.
5. Setting different terms for some tenants, e.g. adopting an inconsistent late rental payment policy, or Terminating a tenancy for discriminatory reasons.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

State and federal fair housing laws make it illegal to refuse an applicant rental accommodation, a rejection that is based on the grounds of race, religion, ethnic background, gender, or simply because the applicant has a disabled child. In addition, certain state and local laws forbid discrimination based on marital status, sexual orientation, or age of the rental applicant.

As long as decisions comply with these laws and are based on legitimate business criteria, landlords have the freedom to choose from amongst prospective tenants. That is, a landlord is legally entitled to reject any prospective tenant with a poor credit history, insufficient income to pay the rent, or one, who is responsible for past misbehaviour, such as, damaging property, since business wise, such a person would be a bad risk. As well, if a landlord has a valid occupancy policy limiting the number of people per rental unit, a policy clearly tied to health and safety reasons, then again is sufficiently legal grounds for rejecting a tenant’s rental application.

What a landlord must remember is that selection standards, such as, the requirement for a minimum income and a good credit report, is to be applied equally to all tenants.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

Rooming together can be a lot easier, if only roommates took time out to learn about the legal rights and responsibilities of sharing a place.

Selecting Roommates

Simply, because you and your friend get along like a house on fire, it does not mean you will enjoy sharing living accommodation with each other. Before, deciding to room together, consider your potential roommate’s personality, along with health and lifestyle habits. As well, his / her budget, the friends he / she hangs out with, and whether pets will be part of the roommate deal, all need to be taken into consideration.

Written Agreement

You may be good friends, but it is always a good idea to have a written agreement with roommates on the following points:

• The split-up and payment of rent, utilities and security deposits.
• House rules regarding pets, including pet security deposits.
• Smoking and Non-Smoking zones.
• Partying hours and drug use, or lack thereof.
• Late hours and noise.
• Whether, overnight guests are allowed or not, and if so how often.
• Whether, food and cooking duties are to be shared or not.
• Cleaning schedules and how responsibilities will be shared.

While, it may not be easy for a roommate to enforce the rules, however a small claims court judge is entitled to impose agreements, as to how rent and utilities are paid.

Dealing with the Landlord
All roommates should sign the rental agreement, which means each of them is individually responsible for paying the entire rent each month. In case, a roommate is introduced after a lease has been signed, then one must take the landlord’s permission for doing so. No doubt, he / she will wish to check out your potential roommate’s credit history, in addition to getting added security and pet deposit.

Then again, your landlord may wish to raise the rent as a reflection of an additional person living in the space, or even ask for a new lease to be signed.

Roommate Lease Violations

Always, remember that any lease violations by a roommate, such as, not paying rent, damaging the rental unit, or else making too much noise, means your landlord will hold everyone renting the unit as accountable for the crime. When a roommate is proving to be too much trouble, it’s time to begin looking for a new one, encouraging the problem one to move out.

However, talk over any roommate imposed damage with your landlord and cooperate on the issue of damage repair, in short, behave like a perfect tenant. With luck, your landlord may not punish you for your roommate’s misbehaviour. And, if you cannot get rid of a bad roommate, make it easy for the landlord to evict him / her.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!

As everyone knows, tenant screening plays an essential and important role in the rental business, but what one needs to confirm is, whether landlords or property managers are permitted to pull a prospective tenant’s credit report.

The answer to that query, most certainly they can obtain credit reports on prospective tenants. What you must also know is, if tenancy rights are refused a rental applicant, because of a negative credit report, an ‘adverse action’ action letter must be sent to the applicant informing him / her of the following three things:

1. The reason behind the rejection of his / her rental application.
2. The name and address of the agency that sent in a negative report, and
3. The applicant’s right to obtain a free copy of his / her credit report by requesting it from the same agency within 60-days.

As well, before you can run a credit check on a prospective tenant, the following information is required by any credit reporting agency that may be approached:

1. First, middle and last name,
2. Complete address,
3. Social Security Number,
4. Individual Taxpayer Identification Number (ITIN).

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as 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!