It is important for landlords to know that they cannot begin eviction proceedings, unless and until, they have first legally terminated the tenancy. What this means is, first, the tenant must be given a written notice, as specified in state termination statutes. If, a tenant refuses to vacate the premises, or change his / her attitude, for example, by paying up rent, or moving the pet to a new home, then this gives a landlord the opportunity to file an eviction lawsuit, which also goes under its technical name of unlawful detainer.

A careful scrutiny of state laws shows how they have set out very detailed requirements to end unwanted tenancies. According to them, different kinds of termination notices are required for different situations, each state having its own procedures on the phrasing and servicing i.e. delivery of termination notices and eviction papers.

Termination Notice

While, terminology may vary from state to state, basically, there are three types of tenancy termination notices that landlords can issue to misbehaving tenants.

• Typically, when a tenant has not paid rent, Pay Rent or Quit Notices are used. These notices give a tenant a few days (3-5-days in most states) to pay the rent or vacate (quit) the premises.
• Cure or Quit Notices are given when a certain term or condition of the lease or rental agreement has been violated by a tenant. It could be the violation of a no-pets clause or to refraining from making excessive noise. Usually, the tenant is given a period of grace in which to rectify, correct, or ‘cure’, the violation. Failure to do so means, the tenant must vacate the rental premises, or face the possibility of an eviction lawsuit.
• Harshest of all are the Unconditional Quit Notices. The tenant is ordered to vacate the premises and is not given any chance to pay the rent, or correct a lease or rental agreement violation. However, most states allow unconditional quit notices, only when a tenant:
  • Repeatedly violates important lease or rental agreement clauses.
  • Has paid rent late on several occasions.
  • Has seriously damaged the premises.
  • Or, is engaged in serious illegal activity on the rental premises e.g. drug dealing.

Before drawing up a lease or rental agreement, a good question to ask is what terms should be included in it. An agreement sets down rules for landlords and tenants to follow during a rental relationship. Rental agreements are not only legal contracts; they are also practical documents containing critical business details, such as, duration of the tenancy, monthly rental, and more. Lengthy or brief, professionally typed or brief, rental agreements should cover basic tenancy terms, including the following points:

1. Names of all the tenants. Every adult renting a unit, including both halves of a married or unmarried couple, should be named as tenants and made to sign the lease or rental agreement. This ensures each tenant is legally responsible for all agreement terms, including full rental amount and correct use of the rental property. This means, if one of the tenants is unable to pay rent or skips out; legal redressal for the entire rent can be sought from tenants that remain. As well, if one tenant violates an important lease term, the tenancy for all tenants on that lease or rental agreement can be terminated.
2. Occupancy limits. The agreement should clearly specify the rental unit is only to be occupied by those tenants, whose name and signature is on the lease, including minor children, if any. This guarantees a landlord’s right to determine who has the right to live on his / her property, as well as, allowing him / her to limit the number of occupants. This clause provides a landlord sufficient grounds to evict a tenant who allows an unauthorized person to move in, or even sublets the unit, without permission.
3. Tenancy Duration. All rental documents should state, whether they are rental agreements or fixed-term leases. Usually, rental agreements run month-to-month and automatically self-renew, unless and until terminated by a landlord or tenant. On the other hand, leases, typically last a year.
4. Rent: Each lease or rental agreement should specify the monthly rental amount, its due date (typically, the first of the month), its mode of payment, i.e. by mail or in person. Avoid unnecessary confusion and disputes by clearly specifying the minutest details, such as:
   1. Acceptable payment methods (e.g. personal cheques only)
   2. Whether, late fees will be charged for rent not paid on time, the fee amount, and grace period, if any.
   3. Charges for bounced cheques.
5. Security deposits and fees: Security deposits are a frequent source of friction between landlords and tenants, therefore, a lease or rental agreement should be clear on the following points, to avoid legal problems later on:
   1. The amount that is to be charged as security deposit, which should comply with the maximum amount set by state law.
   2. What the deposit will be used for i.e. damage repair, and what it may not be used for i.e. the tenant applying it to last month’s rent.
   3. When and how the security deposit will be returned after accounting for deductions, after a tenant moves out.
   4. Any legal non-returnable fees, such as, for cleaning or damage caused by pets.

   Details of where the security deposit is being held and, if interest incurred on the security deposit will be paid to the tenant, should also be included in the rental agreement.

6. Repairs and maintenance: Avoid problems resulting from rent-withholding by clearly setting out landlord / tenant responsibilities for repair and maintenance in the lease or rental agreement, including:
   1. Tenant’s responsibility to keep the rental premises clean and to pay for any damage caused by abuse or neglect.
   2. The tenant should be responsible for immediately informing about any defective or dangerous conditions on the rental property. And, the agreement should also contain the specific details on your procedures for handling complaint and repair requests.
   3. Specify your restrictions on tenant repairs and alterations without permission.
7. Entry to rental property: To avoid tenant claims of illegal entry or violation of privacy rights, the lease or rental agreement should clarify a landlord’s legal right of access to the property for making repairs, or if the tenant is moving out, for showing it to prospective tenants, by stating how much advance notice will be provided to the tenant before entering.
8. Restrictions on tenant illegal activity: There should be an explicit clause in the lease or rental agreement that prohibits residents from indulging in disruptive behaviour, such as excessive noise, including illegal activities e.g. drug dealing. This will help avoid trouble from other tenants, prevent property damage, and limit exposure to lawsuits from residents and neighbours.
9. Pets: A rental agreement should be clear on the subject of a landlord’s No Pets or Pets Allowed policy. If, pets are allowed, identify any special restrictions, such as, a limit on the size or number of pets, or that the tenant will keep the yard free of doggie poop.
10. Other Restrictions: Ensure the lease or rental agreement complies with all relevant laws, including rent control ordinances, health and safety codes, occupancy rules, and anti-discrimination laws. Comply with all state laws, such as, setting security deposit limits, notice requirements for entering rental property, tenant subletting or additional roommates rights, rules for changing or ending a tenancy, and specific disclosure requirements, such as, past flooding or lead / asbestos in the rental unit.

Other legal restrictions, such as, limits on the type of home business that a tenant can run from the rental property, including important rules and regulation governing parking and common area usage should also be specifically mentioned in the lease or rental agreement.

Before renting out property, landlords must make it a point to understand federal and state laws to avoid legal hassles, later on.

To be a successful landlord, one requires a lot of practical, business know-how, and of course, familiarity with the rental market. As well, since federal and state laws closely regulate almost every aspect of the residential or commercial rental business, if a landlord is not aware of the rules, he / she could land himself / herself into legal trouble. A landlord should always keep in mind the following, when renting out his / her property.

1. Under no circumstances should generic or outdated lease forms be used. While, every landlord knows it is important to have a written lease or rental agreement, using the wrong form could spell trouble. Avoid the ‘standard’ forms sold everywhere, as likely as not; they do not comply with state laws. By using the wrong form, you could end up short-cutting tenant rights, which could lead to finding yourself at the losing end of a lawsuit. Then too, sometimes some standard forms will actually impose greater obligations and restrictions on a landlord than the state’s law dictates!
2. Be careful not to ask the wrong questions while screening prospective tenants. Tenant screening is the most important aspect of a rental business and poor tenant selection can result in unwanted headaches, such as, non-payment of rent, trashed or damaged property, perhaps, worse. However, questioning rental applicants, even in the most well-meaning manner about a disability, or whether a couple is married, could be termed as illegal forms of discrimination. If, the applicant is rejected, even though the rejection has nothing to do with questions asked, a disappointed tenant may use them to lodge a complaint with the fair housing watchdogs.
3. Do not set policies that discriminate against families with young children. Remember, discriminating against families and excluding them, because children cause more wear and tear, and a ‘mature, quiet’ environment is preferable is absolutely illegal. And, while a landlord is allowed to limit the number of residents in a unit i.e. two occupants per bedroom, in most situations, the same standard cannot be applied in a different manner, to prevent renting out to a family with young children. This type of discrimination could also end up with a trip to a lawyer’s office, to deal with a fair housing complaint.
4. Avoid making promises that can’t be delivered on. Don’t stretch the merits and benefits of your property. While, it may be necessary to do so in a competitive rental market, try to understand your enthusiastic promises can become binding, if an applicant’s decision to rent your property is based on them. For example, if you assured the applicant your rental property provided parking space, satellite service, or a new paint job; ensure that is exactly what they get. If, after renting a tenant does not get what has been promised, he / she is legally entitled to break the lease, or even sue for the difference between, the services promised and those delivered.
5. Avoid excessive late fee charges. While, late fee charges are powerful enough to motivate tenants to pay rent on time, don’t cross the line, by setting fees that have little bearing on actual damages suffered, when a tenant pays rent late. Far better a modest fee that reflects your true damages, while dealing with chronic late-payers by serving them with pay-or-quit notices.
6. Do not violate a tenant’s rights to privacy. Despite, detailed state rules as to when, for what reasons, and with how much notice a landlord may enter a tenant’s rental unit, many landlords still stop by unannounced and ask to check things over, or perform on-the-spot repair, or show the place to prospective tenants. Repeated tenant privacy violations excuses a tenant from being bound or obligated to your rental lease terms, and if he / she goes to court, the result could be the court asking the landlord to pay damages in currency.
7. Do not use security deposits for any other unrelated purpose. The basic rule is that security deposits are only to be used to cover damage beyond wear and tear, necessary cleaning of the rental unit, and unpaid rent. Beyond that, they cannot be used to cover appliance upgrades, cosmetic improvements and other refurbishing.
8. Do not ignore dangerous conditions in and around the rental unit. In every state, landlords are required to offer and maintain housing that meets basic health and safety standards, in compliance with state and local building codes, health ordinances, and landlord-tenant laws. Failure to take care of important repairs, deal with environmental hazards, or respond when your property has become an easy target for criminals, can result in tenants breaking the lease, or withholding the rent, or making repairs themselves, deducting the expense from the rent. Failing to make a rental property secure in the face of repeated on-site crime can result in court orders to compensate the tenant-victim, in the face of another crime.
9. If, a tenant breaks the lease, do not make the mistake of keeping the security deposit. Landlords tend to keep the entire security deposit in the event a tenant breaks his / her lease and leaves early. They reason a tenant’s bad behaviour is adequate justification for doing so, and that ultimately it is needed to cover the rent. This is illegal in most states, as a landlord is required to take reasonably prompt action to re-rent, crediting any new rent toward the tenant’s obligation for the rest of the lease.
10. Ensure the security deposit is returned as the law demands. Use security deposits properly, and return them according to state laws. Many states have deadlines for landlords to itemise their use of the deposit and to return the balance.

From time to time, a landlord needs to advertise to attract tenants for his / her rental property. Before advertising, a landlord’s first step to finding good tenants is to set out his / her basic rental terms. Finding and selecting tenants is the most critical decision, and a landlord needs a reliable system to help make the best choice, possible. Smartly savvy landlords, follow specific steps, maximising their chances of opting for tenants, who not only pay their rent on time, but also look after and maintain their rental units and keep them in mint condition, without giving cause for any legal or practical problems, later on.

As the first step, all rental terms should be clearly defined, so that a rental property can be advertised in the proper manner.

1. Determine Basic Rental Terms
   Before advertising a property, make a number of basic decisions, such as:
   • How much rent to charge.
   • Whether, a fixed-term lease or a month-to-month tenancy should be offered.
   • How many tenants will be allowed to occupy the rental unit?
   • The security deposit amount that should be asked for.
   • Whether, pets will be allowed or not.
2. Rental AmountDecide on the rent to be charged, ensuring it is according to market rates. Don’t charge higher than that, though equivalent or slightly below is a smart idea. Far better to have a full house than unoccupied units, which will be the case if above the market rent is asked for.
3. Lease or Month-to-MonthUltimately, fixed-term lease, typically, for a year, or a month-to-month rental is a landlord’s decision. A fixed term lease in a soft rental market offers the assurance of knowing your rental units are occupied for at least a year. However, if the rental market is strong and rental space at the minimum, a month-to-month agreement allows you the option of increasing it, after adequate notice, of course.
4. Number of TenantsTaking into consideration the number of bedrooms, a landlord should decide how many tenants he / she is willing to rent out the unit to. The general rule is to allow two persons per bedroom; however, the law in some states permits three.
5. Security DepositA security deposit is required to cover damage beyond normal wear and tear, and any unpaid rent. Many states limit the amount that a landlord can ask for, and set limits based on the monthly rent i.e. twice the monthly rent.
6. PetsIt is for a landlord to decide on a Pets Allowed or No Pet policy. However, allowing pets in a tight market gives landlords a competitive edge, and pet owners are bound to be extra conscientious, knowing there are limited rentals with a Pets Allowed policy.
7. Terms to Include In Rental Listings Or AdvertisementsAll basic details decided on should be written down, i.e. monthly rent, size of rental unit, location, length of lease or month-to-month rental agreement, special features of the rental unit, how many tenants are allowed to share the unit, whether, pets are allowed or not, a phone number they prospective tenants can call if they need more details, as well as, the date and time of open house, if any, to allow potential tenants to check out the rental unit.

To avoid any legal issues, landlords must advertise rental units, accurately, honestly and in easy to understand language.

Ques. Are tenants entitled to rent receipts?

Ans. The law in many American states requires landlords to offer tenants a receipt for rent paid. This is to protect those tenants who prefer to pay in cash, and who without a rent receipt, would have no other way of proving, they did indeed pay the rent, in the event, a landlord decides to challenge the issue.

A vast number of tenants these days prefer to make payments, either by cheque or credit card; yet, landlords in these states are still required to issue rental receipts, if the tenant requests it. Even, if the cheque bounces, the receipt given for that bounced cheque will not pose a problem in getting the tenant to pay up.

If, a tenant asks for a rental receipt, he / she probably needs it for tax purposes, as many states give tenants a ‘renter’s tax credit’, and they need the receipts to back up their deduction, while filing taxes. There is no need for a landlord to go into a tizzy, just because a tenant insists on getting a rental receipt. Go ahead and issue one, no harm in it!

However, a landlord need not worry about bounced cheques and can also avoid unnecessary litigation by screening prospective tenants and conducting background checks. Simply visit www.e-renter.com for tenant screening and background check services.

Ques. What kind of discrimination is considered illegal when choosing a tenant?
Ans. The Fair Housing Act has been enacted to keep a check on discriminatory practices in the rental housing business. Accordingly, fair housing laws lay down specify rejection of an applicant on the basis of his / her race, religion, ethnic background, gender, or because the applicant is disabled, or has young children, is considered illegal.

As well, certain state and local laws prohibit landlords from discriminating on the basis of a person’s marital status, sexual orientation, or age. As long as, landlord decisions comply with these laws and are based on legitimate business criteria, landlords are at liberty to make their own selection from among prospective tenants. For example, a landlord is entitled to reject any applicant who has a poor credit history, or insufficient income to meet the rental payments, or is he / she has a criminal record, and if an applicant has damaged property in the past, he / she can be considered as a bad risk. As well, a valid occupancy policy that limits the number of people per rental unit, and is clearly tied to health and safety, is also a legal basis for refusing a prospective tenant.

Selection standards, such as, requirement of a minimum income, including a good credit report, must be applied equally to all tenants.

Ques. What sort of subtle actions could be considered illegal discrimination on the part of a landlord?
Ans. The Fair Housing Acts prohibit landlords from taking any of the following actions based on race, religion, or any other protected / minority category:

1. To falsely deny a rental unit to one applicant, while making it available to others.
2. Group characteristic advertising that indicates a preference based on, perhaps, skin colour, nationality, etc.
3. More restrictive standards, such as, higher income, for certain tenants.
4. Refusal to reasonably accommodate the needs of disabled tenants i.e. guide or hearing dog, or other service animal.
5. Different set of terms used for some tenants, such as, an inconsistent policy for responding to late rent payments, or
6. Tenancy termination for discriminatory reasons.

While, no landlord should have to pay more than necessary for rental property utilities and other operating expenses, however, the truth is that millions of landlords end up paying more taxes on their rental income, than they need to. For the reason, they simply fail to take advantage of tax deductions that are available to owners of rental property.

Probably, this is due to the fact, they are not aware that rental real estate provides more tax benefits than almost any other kind of investment. If, a landlord knows how to take advantage of these benefits, often it makes the entire difference between losing money and earning profit from a rental property. However, tax deductions are useless, if one does not take advantage of them. Small residential rental property owners can apply for the following top ten tax deductions:

1. Interest: A landlord’s single biggest deductible expense, landlords are permitted to deduct mortgage interest payments on loans used to acquire or improve rental property, including interest on credit cards for goods or services required in rental activity.
2. Depreciation: The actual cost of a house, apartment building, or other rental property is not fully deductible in the year it is bought and paid for. Instead, landlords can get back the cost of real estate through depreciation, by deducting a portion of the cost of the property over several years, as residential rental property must be depreciated over 27.5-years.
3. Repairs: The cost of necessary repairs to rental property can be fully deducted in the year in which they are incurred, as long as they are reasonable in amount. Good examples of deductible repairs. include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.
4. Local travel: Any travel by a landlord, such as, driving to a rental building to deal with tenant complaints, or a trip to the hardware store to purchase repair items for a rental property can be deducted as travel expenses, since landlords are entitled to a tax deduction, whenever they drive anywhere for completed errands that relate to their rental activity. They can deduct either actual expenses i.e. gasoline, upkeep, repairs or they can use the standard mileage rate e.g. 44.5 cents per mile in 2006; 48.5 cents per mile Sept. – Dec. 2005; and 40.5 cents per mile from Jan. – Aug. 2005.
5. Long distance travel: If, a landlord’s rental activity involves overnight travel, airfare, hotel bills, meals, and other expenses can be deducted as business expenses. To stay within the law, landlords must document properly long distance travel expenses, while combining business with pleasure.
6. Home office: Provided certain minimal requirements are met, landlords can deduct home office expenses from their taxable income, such as, space devoted to office work, or to a workshop, or any other home workspace used for their rental business.
7. Employees and independent contractors: If, a landlord hires anyone’s professional services for his / her rental business, he / she can deduct their wages as a rental business expense.
8. Casualty and theft losses: If, a landlord’s rental property is damaged or destroyed by fire or flood, he / she can obtain a tax deduction for all or part of their loss. Called a casualty loss, the entire cost of property damaged or destroyed by a casualty cannot be deducted, but how much can be, depends on the property area that is destroyed, and whether the loss was covered by insurance.
9. Insurance: Premiums for almost any kind of insurance that covers a landlord’s rental activity can be deducted e.g. fire, theft, flood insurance for rental property, as well as landlord liability insurance. If, a landlord has several employees, the cost of their health and workers’ compensation insurance can also be deducted as a rental business expense.
10. Legal and professional services: Finally, lawyers, accountants, property management companies, real estate investment advisors, and other professional fees can also be deducted as operating expenses, as they are paid for work related to rental activities.

One may well ask, why all the dribble about lawyers and legal fees / costs? It is only to make a point and drive home the importance of tenant screening and background checks. Litigation can prove to be more expensive, than if one were to spend a little time and effort on vetting potential tenants. And, as landlords will find, apart from lawyer’s fees, there are other legal costs that add considerably to the expense of going to court.

The amount a lawyer charges for legal services may include his / her fees, plus additional expenses and costs. If, the lawyer represents you in a court proceeding, there are filing fees or other court costs to be paid, as well.

You will find a number of costs that appear on your lawyer’s bill, while some lawyers may charge separately for these costs; others may group these expenses together as separate items on your bill, while still others may include some of these costs in their fee. Before hiring a lawyer, find out if these types of costs are included, and whether they will be itemised on your bill. In addition, to paying for the lawyer’s time, you will also be required to pay for filing fees and court costs, photo-copying, telephone and postage charges, paralegal time, messengers, if used, computer or research related costs, secretarial and staff time, deposition and court reporter costs, facsimiles (faxes), experts, consultants, and witness fees, investigators, process servers (delivery of legal documents relating to case), travel expenses.

The costs of going to court are many and there may be other charges that have not been listed above. It is a good idea to get the lawyer to give you a written estimate of anticipated costs to ensure you understand all the different costs that you may be required to pay. One can get an estimate, as there is a set rate for certain costs, such as, the cost of photo-copying fixed at $0.15 per page.

However, if going to court cannot be avoided, one can limit costs from building up, by informing one’s lawyer, any costs over a certain amount have to be approved by you in advance. Quite possible, one may also be able to negotiate the amount charged for many of these costs, in advance.

However, at the cost of repeating oneself, landlords can and should avoid unnecessary litigation by screening prospective tenants and employees, as well as, conducting background checks, simply by visiting www.e-renter.com for tenant screening and background check services.

There are many different ways a landlord can advertise his / her rentals property. The kind of advertising that works best depends on numerous factors that include property characteristics, location, landlord’s budget, and whether he / she is in a hurry to rent. There are many combinations of advertising methods landlords and property managers use to achieve the best results, some of which are as under.

1. ‘For Rent’ Signs

The most common method of advertising is the putting up of a ‘For Rent’ sign, either in front of the building, or in one of the windows. A relatively cost-free method, it works best if a lot of foot and motor traffic goes past the building. It also helps if the building is as attractive as the rental unit.

2. Advertising in the Newspapers

As much of a tradition as ‘For Rent’ signs, newspaper ads are also available online, if the paper has an online version. Many potential tenants begin their search for a place to rent by scanning the classified ads in newspapers, while, out-of-towners can log on online to the local paper from wherever they are. Ads should always be placed in papers having many residential listings, as it has been found they work best.

And, they should be targeted to produce the right kind of prospective tenants i.e. if a landlord primarily rents out to college students, the best bet is to advertise in the campus newspaper or put up a ‘For Rent’ sign in the housing office. To play it safe, it is also a good idea to list the rental in a general newspaper, as well.

3. Neighbourhood Flyers

As well, a landlord can post ads on neighbourhood public bulletin boards to be found at grocery stores, Laundromats or coffeehouses, complete with tear-off strips listing their phone number. However, if the property is upscale, this is not the best way to advertise for it, though there might be takers at the high-end gym down the street.

4. Listing Online

Online rental services have mushroomed like crazy in recent years, from national in scope, to regional. After finding a residential rental listing for your area, you can add your property to it.

5. Home Or Apartment Finding Services

Home or apartment-finding services are very popular in some areas, with landlords paying to list their properties, though sometimes it is the tenants themselves, who pay the fee when the unit is rented.

6. Spreading the Word

Small-time landlords instead of advertising widely and screening potential tenants, find it easier to market their rentals through word-of-mouth i.e. telling friends, colleagues, neighbours, and current tenants. After all, people already living on your property will invite decent neighbours. So, when a property becomes vacant, simply send a note around to every one, asking them to tell friends or relatives about the available apartment.

7. Real Estate Offices

Many real estate offices handle rentals, but of course, there is a fee involved.

8. Property Management Firms

Going through a property management firm is the easiest way to do it. They handle advertising, showing tenants around, as well as, selecting tenants, collecting rents, and interacting with residents during tenancies (handling repairs, etc. etc.). A paid service, it is for landlords with large rental properties and no time to spare.

Next Steps

Once, the advertising has been done, the next step is to create a rental application and select a tenant. When advertising vacancies and selecting and rejecting applicants, read up on the Fair Housing Act, so as to avoid any inadvertent lawsuits. Evaluate prospective tenants by thoroughly checking out their rental applications, legal residency forms, and tenant consent forms for contacting references, performing credit checks and criminal and background checks.

The only way to avoid unnecessary litigation is by screening prospective tenants and conducting background checks. Simply visit www.e-renter.com for tenant screening and background check services.

Ques. Is there a best way for landlords to screen prospective tenants?
Ans. Of course, there is, and that is to do what all business savvy landlords do i.e. always ask each prospective tenant to fill out a written rental application that includes the following detailed information:

1. Employment, income, and credit histories.
2. Social Security and driver’s license numbers.
3. Past evictions or bankruptcies, if any.
4. Work and personal references.

Before selecting tenants, a landlord should check out and verify previous landlords and other references; including employment, income and bank account information; as well as, obtaining a credit report. The last is especially important, because it informs one, whether the person concerned has a history of late rent and bill payments, or whether he / she has ever declared bankruptcy, or even been evicted, ever.

Ques. Do landlords and property managers allowed to obtain prospective tenants credit reports?
Ans. Most certainly, they can, and they do have the authority to ask for and obtain a prospective tenant’s credit report. As well, it is to be borne in mind, if a tenant’s rental application has been turned down, because of negative information on a credit report, they have to send the applicant an ‘adverse action’ letter, informing the applicant of three things:

1. Reason for rejecting the applicant.
2. Name and address of the agency reporting the negative information, and
3. Applicant’s right to obtain a free copy of the report from that agency, by requesting it within 60-days.

In order to run a credit check, the following information is needed:

• a prospective tenant’s name, address,
• Social Security number or Individual Taxpayer Identification Number (ITIN).

Ques. What is the purpose behind landlords using written rental applications?
Ans. Written rental applications can protect landlords from lawsuits filed by irate applicants who may have been rejected as tenants.

For example, if a landlord screens 6-potential tenants before renting one of his / her units, to Applicant #6, feeling he / she is most likely to be the most reliable in rent payments. However, a couple of weeks down the line, a lawyer representing Applicant #3 calls the landlord claiming his / her client claims she was discriminated against, because of her status as a single mother of African-American origin. The landlord is asked to pay $10,000 to settle the matter, or else be sued for $50,000in federal court.

If, the landlord has no written documentation to back up his / her selection of Applicant #6, it is most likely his / her insurance carrier will propose paying up, otherwise, as the insurance company points out, it will look bad in court that a white male with no children was selected over an African-American single mother, with a higher-paying job.

If, a landlord can produce all the applicants’ written applications, their credit reports, and references from previous landlords, the result would likely be different. There would be written documentation to support the selection of Applicant #6 i.e. his credit history and job stability, which are far better than that of Applicant #3, as there was not only poor feedback received from previous landlords, but despite her current employment, had just recently declared bankruptcy.

The best and only way to avoid unnecessary litigation is by screening prospective tenants and conducting background checks. Simply visit www.e-renter.com for tenant screening and background check services.