A Checklist For Reviewing Rental Leases – Part II

Posted by on February 19, 2007 under Landlord Paperwork and Forms | icon: commentBe the First to Comment

It is of vital importance for both landlords / tenants making a checklist of things to be thoroughly reviewed before signing or having a lease signed. A contract, one should understand all the clauses contained in the lease, including how they will impact one. Since, a lease is a contract, it is possible to negotiate changes to it, and if it is a pre-printed lease form, all the more reason for reviewing it very carefully, as there may be clauses that probably weigh heavily in favour of a landlord. Always, best to have a lawyer review it, before putting your signature on leases and contracts. He / she will be able to point out illegal provisions, or explain how others work, whether they are favourable or unfavourable to landlord / tenant, including suggesting changes and additional terms. The next step is to ensure the following:

  1. Clauses in the lease relating to terminating a tenancy should be reviewed carefully. One should be aware of how much advance notice is required to be given to the landlord, and whether if you do not give notice on time, is the lease automatically extended for another term.
  2. A tenant should also be aware of the consequence of holding-over i.e. not moving out on time.
  3. It is also important to check your lease to see it does not contain a ‘liquidated damages clause’ that says if the lease is broken, then automatically you are under obligation to pay the landlord a stated sum of money. On his / her part, a landlord does not have to prove the actual monetary damage caused by the breach of contract, and is a provision that is very unfair to the tenant. In case, your lease contains such a clause, ask your landlord to remove it before putting your signature on it.
  4. Knowing rent due dates is also important, whether there are late fees, whether there is a grace period after the due date to pay rent, without triggering late fee charges.
  5. As well, you must know the security deposit requirements i.e. whether the state you live in asks for deposit to be returned with interest, including an itemized statement of deductions from the deposit, and if your lease reflects this requirement.

A Checklist For Reviewing Leases – Part I

Posted by on February 14, 2007 under Landlord Paperwork and Forms | icon: commentBe the First to Comment

It is of vital importance for both landlords / tenants making a checklist of things to be thoroughly reviewed before signing or having a lease signed. A contract, one should understand all the clauses contained in the lease, including how they will impact one. Since, a lease is a contract, it is possible to negotiate changes to it, and if it is a pre-printed lease form, all the more reason for reviewing it very carefully, as there may be clauses that probably weigh heavily in favour of a landlord. Always, best to have a lawyer review it, before putting your signature on leases and contracts. He / she will be able to point out illegal provisions, or explain how others work, whether they are favourable or unfavourable to landlord / tenant, including suggesting changes and additional terms. Ensure the following:

It is of vital importance for both landlords / tenants making a checklist of things to be thoroughly reviewed before signing or having a lease signed. A contract, one should understand all the clauses contained in the lease, including how they will impact one. Since, a lease is a contract, it is possible to negotiate changes to it, and if it is a pre-printed lease form, all the more reason for reviewing it very carefully, as there may be clauses that probably weigh heavily in favour of a landlord. Always, best to have a lawyer review it, before putting your signature on leases and contracts. He / she will be able to point out illegal provisions, or explain how others work, whether they are favourable or unfavourable to landlord / tenant, including suggesting changes and additional terms. Ensure the following:

It is of vital importance for both landlords / tenants making a checklist of things to be thoroughly reviewed before signing or having a lease signed. A contract, one should understand all the clauses contained in the lease, including how they will impact one. Since, a lease is a contract, it is possible to negotiate changes to it, and if it is a pre-printed lease form, all the more reason for reviewing it very carefully, as there may be clauses that probably weigh heavily in favour of a landlord. Always, best to have a lawyer review it, before putting your signature on leases and contracts. He / she will be able to point out illegal provisions, or explain how others work, whether they are favourable or unfavourable to landlord / tenant, including suggesting changes and additional terms. Ensure the following:

  1. Check to see how long the lease runs for. Typically, one year is the usual though some landlords prefer to rent month-to-month, giving both tenant and landlord greater flexibility. This kind of lease is ideal for students or those whose job requires them to move a lot.
  2. Legal terms are used in leases and contracts, and a tenant may find himself / herself referred to as a ‘lessee’, while the landlord is referred to as the ‘lessor’, and the rental space is referred to as the ‘premises’ or ‘leased premises’.
  3. If, you run a home-business, check to see if the lease prohibits you from doing so from your rental unit.
  4. As well, a landlord may include a clause that limits the number of people who can reside on the premises.
  5. And, if you have a pet, look to see if there is a NO PETS clause that prohibits you from keeping one. Best to discuss it with the landlord before signing, in case you wish to bring along Rascal or Scandal. It is just possible the landlord may agree to drop that clause.

Tenant Associations Or Organisations

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Tenants often come together to form a group or tenant association / organization made up of people living, either in a certain building or development, or else a larger scale membership involves those belonging to a county or citywide local tenants’ association. These associations are formed keeping a number of goals in mind, including:

  1. Ensuring tenants are informed and up-to-date on their legal rights under local, state, and federal laws.
  2. Organising lobbies for taking up cudgels on behalf of tenants and their rights, especially at city and county levels of government.
  3. As well, for improving the relationship between tenants and landlords, the conditions of rental buildings, and services for tenants.
  4. Tenant organisations also encourage regular communication and community awareness among tenants.


Right to Organize

Usually, periodic meetings are held by tenant associations in order to encourage active tenant participation, and for promoting awareness amongst tenants of the role played by the association and the services provided.

Just as, employees who join a labour union cannot be stopped or discriminated against for doing so, similarly federal and state fair housing laws prohibit landlords from taking any negative action, in case a tenant participates or obtains membership in a tenant association or similar organization. Prohibited landlord behaviour includes:

  1. Random increases in rent;
  2. Necessary repairs refusal;
  3. Eviction threats.

In addition, landlords cannot prevent tenant associations from holding meetings in a building’s common areas, if other groups are permitted to do so, so long as meeting conditions (i.e. time, place, noise level) are reasonable.

Get Involved

If, you are a tenant in a large residential building or development, or if you rent your home in a mid- to large-size city, why not take the opportunity of getting involved in a tenant association or organization. You can find out more about it by contacting your city’s housing department.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting a lease, and must take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Tenant Tips – Part II

Posted by on February 13, 2007 under Landlord Tips | icon: commentBe the First to Comment

While, it is important for tenants and landlords to be on their best behaviour, both are entitled to certain rights, and tenants should be aware of them, when renting a house or apartment. The following tips are designed to help tenants make a good impression and get the best landlord deal, of all.

  1. Before, getting into a nasty spat that might lead to an expensive legal battle, a tenant must keep all communication lines with the landlord open, if there is a problem regarding tardiness in the landlord’s response regarding a request made for necessary repairs to your rental unit.
  2. Insurance policies taken out by landlords do not cover tenant losses due to theft or damage. It is best to take out renters insurance, as it will cover you even in the event of being sued for injury caused on the rental premises, as a result of your carelessness. Typically, renters insurance costs about $350 a year for a $50,000 policy and will cover loss due to theft or damage caused by other people or natural disasters. There are cheaper policies as well, in case you do not need that much coverage.
  3. Tenants can avoid misunderstandings and protect themselves by ensuring their lease or rental agreements are clear on the subject of use and refund of security deposits, including allowable deductions. At the time of moving in, do a walk-through with your landlord, recording existing damage to your rental premises on a move-in statement or checklist.
  4. Check out the safety of the building and neighbourhood, and what steps your landlord has taken to ensure it is a safe and secure environment for tenants, such as, safety devices like deadbolts and window locks specified in state and local laws. Check out if the property is vulnerable to intrusion by a criminal, and whether the property or neighbourhood has been the scene of criminal incidents in the past or present. If, the area is prone to high crime, then your landlord is obligated to take adequate steps to protect all tenants.
  5. Any eviction must be dealt with properly, and a tenant must know if a notice for eviction needs to be fought out or obeyed. In case, a landlord has not issued a proper eviction notice, or the premises are uninhabitable, clearly he / she is in the wrong, and you may want to fight the eviction. However, remember without the law and facts that can be proved on your side, fighting an eviction notice is useless. Losing an eviction lawsuit could leave you in debt and damage your credit rating, including the easy ability to rent from other landlords.

Tenant Tips – Part I

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While, it is important for tenants and landlords to be on their best behaviour, both are entitled to certain rights, and tenants should be aware of them, when renting a house or apartment. The following tips are designed to help tenants make a good impression and get the best landlord deal, of all.

  1. In order, to give yourself a competitive edge over other rental applicants, it is important to win over a prospective landlord by carrying all necessary information with you, such as, a neatly and fully completed rental application; written references from landlords, employers, colleagues and friends; including a current copy of your credit report.
  2. Before signing on the dotted line, do give yourself time to carefully and thoroughly review all tenancy conditions, as it may contain clauses you may not find acceptable e.g. a no pet policy, guest restrictions, veto for running a home business, or any alterations to the place.
  3. Always, get everything in writing, since it will help avoid future disputes and misunderstandings between tenant and landlord. All correspondence copies should be kept, and any oral agreement should be followed up with a letter that plainly sets out your understanding of the agreement. For example, any requests to your landlord regarding repairs should be made in writing, and if he / she verbally acquiesces that repairs will be made, send a letter confirming his / her agreement to your request.
  4. Next to rent and security deposit disputes, misunderstandings often arise from a landlord’s right to enter a rental unit and a tenant’s right to privacy. Tenants must understand their privacy rights i.e. the amount of notice a landlord must provide before entering rental accommodation.
  5. Tenants should also be aware that they have a right to live in a habitable rental unit that includes adequate weather-proofing; heat, water, and electricity; and clean, sanitary, and structurally safe premises. In case, a rental unit is not kept in good repair, a tenant has a number of options, from with-holding part of the rent, to paying for repairs and deducting the cost from the rent, to informing the building inspector, who can order the landlord to carry out the repairs. In such an eventuality, a tenant with a signed lease can move out without any liability for breach of contract, or paying rent for the duration of the lease.

Preparing For Court Proceedings

Posted by on February 12, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

Say, you have a tenant who is suing you in a small claims court for returning too little of his / her security deposit, despite the fact that he / she has been given an itemised list of the much-needed repairs you carried out, after he / she moved out. To add insult to injury, your ex-tenant is asking not only for payment of the security deposit, but also for the grief caused, the time spent on going to court, and gas mileage, as well. The question is if he / she can get all that, considering you have pictures of the damage, receipts for some of the work, including estimates for material costs.

Well, to be exact, it does not matter what you say in a small claims court, as the evidence you provide, will clinch the case. If, you are well prepared with all the necessary paperwork to show why deductions were made before returning the security deposit, all you need to do is convince the judge, the rental unit was undamaged when your tenant moved in. As well, that you had to spend a considerable amount of money for much-needed repairs, even following to a T, all state procedures by itemising deductions and refunding the security deposit balance. Receipts, photos, and witnesses, if any, will have to be produced in court. In case, the witnesses are not able to appear in person, a signed declaration will suffice. You must not only impress the judge with your reasonableness, but also be calm, factual, and as succinct as possible, when delivering your spiel.

In the unlikely event that the tenant wins, you can rest assured the judge will not award the compensation for transportation costs.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting a lease, and must take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Rent Collection – Part V

Posted by on February 8, 2007 under Landlord Tips | icon: commentBe the First to Comment

Direct Deposit

Another way of collecting monthly rentals from your tenants is via the direct deposit system. Very useful, it saves the bother of waiting for the cheques to arrive, then having to deposit them, finally waiting for them to clear. While, there are direct deposit services designed for huge apartment complexes with fee structures that may be priced way out of a small fry landlord’s league, the CheckMan application is just what small-timers need. Sign up all new tenants on it stressing it is standard company policy, while coercing existing residents to join, as well.

A fantastic application, tenants will receive an email that notifies them of the coming draft, as it runs through the banks Automated Clearing House systems (ACH), so there is absolutely nothing a landlord has to do. Tenant accounts get debited automatically on a designated day, with an email sent to the landlord the very next day showing him / her accounts drafted successfully, including ones that failed, if any. Three days later, funds are automatically deposited into your account.

Tenants, who have signed up, are aware that their accounts are going to get drawn on like any other bank drafts, without the bother of writing any cheques / drafts on their part. The simplest of solutions, it is very affordable rent collecting to boot. Once you know about all the features and benefits of the application, you too will be singing praises of it. Look it up on the following website i.e. www.clearnow.com/public/ClearNowEnrollmentGRQ1.pdf, and if you sign on, you will get a full two months to try the service absolutely free of cost. No doubt, you’ll be hooked enough to go for it.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting a lease, and must take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!

Rent Collection – Part IV

Posted by on February 7, 2007 under Landlord Tips | icon: commentBe the First to Comment

Printing Rental Cheques

Successfully tried by a number of landlords, you can also see whether this inexpensive method of rental collection works for you. All that is required is to just sit down and print monthly payments at one go. Get all new residents to sign on and bribe your existing ones to join in.

An auto-draft service, residents can sign a one-page form authorising you to debit their account. A Windows-based software application programme, it allows you to print these ‘Demand Drafts’ any time you like, after arranging for recurring monthly rental payments from tenant bank accounts . No longer, do you have to wait for the mail to arrive, simply turn on your PC and hit the print button for the cheques to roll off the printer. And, on the first of each month (or whenever), you can simply head for the bank and collect the month’s rent.

Again, it remains to be seen whether the tenant has sufficient funds in his / her bank account, but at least the wait for the cheques to arrive before depositing them is over, though it remains to be seen whether they are honoured or not. Another disadvantage is purchasing stocks of cheques, but a good number will come free of cost on your initial purchase.

An additional advantage of this software is the ability to set up your own bills, so each month recurring bills can be printed or even a set of blank cheques with your relevant information. You can find out more about this software from www.TexasRealEstateClub.com/checkman.html, and even purchase it online. A trial of this method is the only way to find out whether it works for you or not.

Rent Collection – Part III

Posted by on February 6, 2007 under Landlord Tips | icon: commentBe the First to Comment

Tenant Rental Deposits

While, some landlords may baulk at the idea, it has proved successful and saves the effort of chasing tenants to collect monthly rental cheques. Simply, give your tenants a bank account number into which monthly payments can be deposited, directly.

Moreover, you can provide them with pre-printed deposit slips to ensure the account name and account number are not inaccurate. This way, you will also reduce monthly telephone calls from tenants asking for such and such information. If, you are concerned about an attempt to withdraw from your account, a reasonable possibility, decrease the risk with a separate bank account for rental deposits, from which funds can be swept into another account at regular intervals.

This method of rent collection also has to factor in that potentially one could run into a failed eviction for accepting partial payments. Whether or not, a judge considers a tenant making a small rental deposit in a last ditch effort to avoid getting evicted as ‘constructive receipt’, is solely dependent on the judge’s discretion. What also needs to be considered is that tenants with an unethical streak may make partial payments, leaving you trying to determine who paid what.

However, this method has advantages, such as a trip to the bank being eliminated, and online banking that allows you to find out within a day or so, how much rent has come in. Though this method is not recommended for each and every tenant, it can be considered for one who is honest and can be trusted.

Rent Collection – Part II

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Mailed Cheques

Being a landlord is not an easy job, and the toughest bit is collecting rent from tenants who begrudge it. You may have arranged a drop-in box for rental cheques, but they don’t seem to arrive and if and when they do, your mortgage payment is already long overdue. On being questioned about delayed payments, defaulting tenants have a ready excuse, claiming the cheque has been mailed and should be arriving any time soon. Indeed, it may arrive, but whether it will clear or not, remains to be seen.

Though, there are advantages to this method of rent collection, one that most landlords and tenants find hassle free, it is good only as long as the tenant believes in making timely and regular rental payments.

However, the method also has its downside, as everything depends on the tenant remembering to write the rental cheque on time, putting the correct address and postage on the envelope, and actually remembering to drop it in the mail. If, all is as it should be, then a landlord has to rely on the postal service to deliver the payment to the correct address on time.

A landlord may provide self-addressed stamped envelopes, so as to remove some of the risk associated with this method of rent collection. However, it does not always produce any noticeable results, and is not a method that comes highly recommended, with more involvement on the tenant’s side.

It is important landlords make themselves cognisant with all rules and regulations before drafting a lease, and take all necessary precautions, such as, screening tenants and conducting background checks on prospective tenants, including ensuring all promises in the rental lease are adhered to, as their insurance for a litigation free landlord / tenant relationship. A simple click of the mouse and any landlord or property manager can visit www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!