Landlords, Just For You: Top Ten Tax Deduction Tips – Part I

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

If, you are in the rental business, then as a landlord you can be sure and most probably, you are paying more tax than you should on your rental income. Undoubtedly, you are failing to take advantage of tax deductions available to owners of rental property. What you still haven’t realized is that rental real estate is one source of income that offers the most tax benefits. Following are some of the top ten tax deductions for owners of small residential rental property.

  1. Perhaps, you have not realized that interest is a landlord’s single biggest deductible expense. For example, interest tax deductions include:
    1. Mortgage interest paid towards loans taken for buying or improving rental property,
    2. And, interest paid on credit cards for goods purchased or services provided for or on rental property.
  2. The other way to save on rental income tax shell outs is property depreciation. As you know, the actual cost of a house, apartment building, or other rental property is not fully deductible in the year it is paid for. However, residential property must be depreciated over 27.5-years and that is how landlords get back real estate costs i.e. through depreciation. The process involves deducting a portion of the cost of the property over several years.

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!

Illegal Tenant Discrimination

Posted by on March 8, 2007 under Tenant Credit Checks | icon: commentBe the First to Comment

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!

Tips For Choosing Roommates

Posted by on under Tenant Screening & Background Checks | icon: commentBe the First to Comment

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!

Tips For Screening And Selecting Tenants – Part II

Posted by on under Landlord Tips, Tenant Screening & Background Checks | icon: commentBe the First to Comment

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!

Tenant Screening

Posted by on under Tenant Screening & Background Checks | icon: commentBe the First to Comment

While, rental applicants can be screened before they become your tenants, the question remains what can a landlord do, if he already has tenants in his / her building? Is it possible for him / her to go back now and begin screening existing tenants?

Well, the answer to the last question is no, it is not possible to do so, because in order to request a credit report, which is a first-level screening tool, one must have a valid business reason for asking for the report. However, for a landlord with tenants already in place, tenants who have signed leases or rental agreements, any valid reason for asking for a credit report is eliminated.

And, in case a landlord wishes to check the criminal background of a tenant, which again is a second-level screening tool, tenant’s permission is required, though it is a gone conclusion that existing tenants will take umbrage, and will not only be unhappy, but unwilling to accede to such a request.

For already existing tenants, the only thing a landlord can hope for is for any bad elements to be nearing the end of their leases, or that they have a month-to-month rental agreement, which can be terminated easily, after giving due notice, typically of thirty days. And, as for a really, truly bad tenant, the length of his / her lease should not pose a problem, as it can always be terminated for reasonable cause.

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!

Tips For Screening And Selecting Tenants

Posted by on under Tenant Screening & Background Checks | icon: commentBe the First to Comment

Landlords should make it a rule of law, rather than an exception to ask all prospective tenants to fill out a written rental application, as well as, providing the following information:

  1. Employment, income, and credit history,
  2. Social Security and driver’s license numbers,
  3. Past evictions or bankruptcies, and
  4. References from past landlords, as well as, employers and friends.

Before selecting a tenant, it is important to check with previous landlords and other given references. As well, it is always a good move to verify income, employment, and bank account information; apart from obtaining an up-to-date credit report. The last is especially important, since it allows one to gauge, whether your prospective tenant is in the habit of paying rent or bills late, whether he / she has ever been declared bankrupt, or been evicted in the past.

However, in order to avoid trouble and keep in with Fair Housing laws, consistency and fairness in tenant screening is required, which means you should make it a policy to require all rental applicants to provide credit reports, along with their applications.

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 one can visit www.e-renter.com for tenant screening and background check services.

Should You Use A Lease Or A Rental Agreement – Part III

Posted by on March 3, 2007 under Landlord Tenant Lawsuits | icon: commentBe the First to Comment

Lease or rental agreements are key elements of a landlord / tenant relationship, as they help to maintain and establish the code of conduct, each has to uphold for a civilised relationship. However, there is a difference between lease and rental agreements, explained as under:

Rental agreements are drawn up for short-term tenancies, usually a month. They are month-to-month agreements that are automatically renewed each month, unless of course, the landlord or tenant terminates the agreement, usually by giving adequate notice adhering to an appropriate time-frame for termination of a rental agreement, which is typically 30-days. As well, these agreements allow landlords to raise rents, change tenancy terms, or terminate the agreement on relatively short notice i.e. usually 30 days, unless local rent control ordinances specify, otherwise.

On the other hand, a lease is a binding landlord / tenant relationship set for a fixed period of time, usually a year. During this time, no rental increases are permitted, nor is a landlord entitled to change the terms of the lease, unless and until it runs out. As well, if the lease itself has a clause that provides for modifications or the tenant agrees to the changes in writing, then and then only can a landlord amend any lease terms. In addition, if there is a falling out between the landlord and tenant, the former cannot ask the latter to move out, unless the tenant has not paid the rent, despite repeated notices, or has violated an important lease term, or state or local law. Only when the lease comes to an end, can he / she either terminate or renew the lease or rental agreement.

As to which one is better? That depends on what a landlord’s priorities are, as there are many with a decided preference for month-to-month agreements, particularly in tight rental markets where tenants are aplenty and rents are always tracking an upward curve. Flip the coin and you will find month-to-month tenancies guarantee a high rate of tenant turnover, which means more work to keep rental properties full.

Whereas, leases are preferred in high vacancy areas, or where certain seasons of the year mean it is difficult to find any tenants e.g. college towns that wear a deserted look in summer that is vacation time in educational institutions.

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!