Posted by Teresa on July 10, 2009 under Landlord and Tenant FAQs, Tenant Credit Checks, Tenant Screening & Background Checks | 
From time to time, we get a handful of rental property-related questions that concern many landlords—but don’t fall neatly into any category. We hope you find one or two that you’ve been wondering about, too!
Q: My rental unit has a jetted tub. If it breaks, am I responsible for repairing it—or replacing it with the same type tub?
A: You might want to consider adding a clause in your lease agreement that states the jetted tub is as is; the tub itself will be maintained for bathing purposes; however, if the jets malfunction, they will be repaired at your discretion only.
Q: I live in a city where only the owner of the property can be billed for the water and sewer service. How can I handle this with my tenants? I’m afraid they’ll run up the water bill, since they’re not paying it.
A: Your lease can state that you will pay for a certain amount of the water and sewer, based on average rates in your area. The lease can require the tenant to pay anything above that amount, to be included with the following month’s rent.
Q: Is it necessary to prescreen tenant applicants if they were referred by a good friend of mine?
A: Not only is it necessary, it is the most important thing you can do to protect yourself, your other tenants and the neighborhood residents. You need the peace of mind that a professional credit and background check will bring you. But just as important, if you don’t follow consistent procedures for each applicant, you could be accused of discrimination. Apply the same rules and follow the same procedures on every single tenant applicant—no matter who recommends them!
Q: What’s the absolute most effective way to advertise my for lease property?
A: Landlords we talk to say that good signs in the yard or window, visible from the street, plus an ad with photos on Craigslist.com, are the two best ways to advertise. Do beware of scams on Craigslist—read the warnings posted on the site and don’t allow anyone you have not personally met send you a check to hold a rental—many scammers operate like this.
Q: What should I do to make my rental property appealing to high-quality tenants?
A: Give your rental the best curb appeal possible! Get rid of unsightly trash, hide the trash cans, trim shrubs and low-hanging branches, and plant some new flowers. Repair any broken windows or screens, and paint the trim if it’s needed. A bright color for the front door is a great way to make the property pop!
Q: How do I know when it’s time to hire a property management company?
A: If you no longer enjoy or have the time to spend on property maintenance, dealing with tenant questions and problems, and finding new tenants, you should research property managers. Base your decision on the out-of-pocket expense; if you decide your time and peace of mind is worth more than what you’ll pay the management company, give it a try!
Posted by Teresa on June 30, 2009 under Landlord and Tenant FAQs, Landlord Tips |
Every year, carbon monoxide poisoning kills 500 people.* Most could have been saved with a properly working carbon monoxide detector. If you are a landlord, your state may require carbon monoxide detectors to be installed and maintained in your rental units. But keeping your tenants safe is the right thing to do, whether or not you are required by law to install detectors.
What is carbon monoxide? Carbon monoxide (CO) is a toxic gas produced by incomplete combustion of fossil fuels: oil, natural gas, wood, coal, and gasoline. In homes, the major sources of CO are fossil fuel burning furnaces, boilers, water heaters and fireplaces.
How can you detect carbon monoxide? This is the problem. You can’t. Carbon monoxide is odorless and tasteless. It is colorless, and unlike other dangerous emissions, CO does not irritate the skin, eyes, or nose.
Is carbon monoxide dangerous? Yes! It is highly toxic, and CO poisoning can be fatal.
What are the warning signs of CO poisoning? Headaches, dizziness, tiredness, and nausea. These symptoms are often mistaken for the flu.
What should one do if CO poisoning is suspected? Open all windows, call the Fire Department and remove all people and animals from the home.
What precautions should a landlord take?
1. Have furnaces, fireplaces, chimneys, and venting systems inspected annually.
2. Properly install and periodically inspect CO detectors. All detectors have test buttons.
3. Replace batteries in battery-powered detectors. twice a year—when clocks are changed for daylight savings time.
4. Regularly check all gas-fired appliances for leaks.
5. Instruct your tenants to notify you immediately if they detect any odors that indicate leaks.
6. Never allow tenants to use the range or oven for heat or to cook with charcoal grills inside the home or garage.
7. Never paint over detectors.
8. Replace detectors when recommended by the manufacturer. Keep instruction manuals and record the date purchased and installed. Record replacement dates in your annual inspection/maintenance logs.
What types of carbon monoxide detectors are available? Some detectors run on batteries, allowing them to be placed wherever needed. Others are hard-wired with battery backups, and the third type plug into power outlets. Some have talking alarms, while others have digital displays.
Where are CO detectors installed? CO detectors should be placed five feet or more above the floor, because CO is lighter than air. They may go on the ceiling, as well. CO detectors should not be installed near a fireplace or gas-fired appliance, such as a water heater. Each floor should have at least one CO detector, ideally near sleeping areas.
Landlords are responsible for keeping their rental units habitable and safe. One easy way to do so, which may be required in your state, is to install and properly maintain carbon monoxide detectors in all your rental properties!
*Source: Journal of the American Medical Association, Vol. 299, No. 9.
For more landlord resources, including forms and information on
tenant screening, turn to
E-Renter.com. You’ll know that you have the best possible tenants when you
prescreen tenants.
Posted by Teresa on May 13, 2009 under Fair Housing Act, Landlord and Tenant FAQs, Landlord Tenant Lawsuits |
If you are a landlord, reducing risk should be an ongoing part of your business. Nobody likes to think about lawsuits and liability insurance, but the facts are that rental property owners are sued every day. You cannot control every liability that comes with rental property ownership, but you can minimize risk with awareness and planning.
Smart landlords know that keeping their properties in good repair and prescreening tenants are two ways to reduce the liability of owning income property. But there are other areas you may not be aware of that could be putting you at risk. Protect yourself and your assets by controlling your actions in these areas.
Hiring workers: Both federal and state government entities actively search for employers who don’t properly document their employees. Landlords who hire workers fitting the description of “employee,” who then pay them in cash and do not withhold proper taxes, unemployment and insurance, are breaking the law.
Employers who pay “off the books” are subject to back taxes and penalties if they get caught—and the IRS and state agencies are definitely on the lookout for these folks. Your best bet is to hire contractors and repair people who are self-employed, with their own corporations. Keep their business cards and check out their form of ownership. Require proof of insurance, too.
Discrimination in renting: Federal laws make it illegal to discriminate when renting on the basis of race, color, religion, nationality, familial status, age, gender, and disabled status. Your local and state laws may protect additional groups. Even if you do not intend to discriminate, you must be aware of how the laws affect your advertising and rental procedures.
For example, you should avoid advertising your property as being close to a church, because you could be sending the message that you prefer churchgoing tenants. You cannot advertise that your property is “perfect for a nice family,” because you could be seen as discriminating against single people. Avoid asking personal questions as a rule. You cannot rent based on tenants’ marital status, whether or not they have children, or how they choose to worship—or not.
We have covered renting to persons with disabilities in this blog. But while most landlords know that a person in a wheelchair must be accommodated, keep in mind that it is discriminatory to ask about the disability. All disabilities—even those that are not obvious—are protected under the law. Knowing how you must comply and keeping good records are both vital to all landlords.
Improper legal documentation: It may be tempting to use real estate forms that you buy from an office supply store or borrow from a friend, but it’s in your best interests to cover yourself thoroughly before signing any legal documents. Sure, you can download forms from the internet, but have them reviewed by a real estate attorney before you start using them for your tenants.
Be sure to periodically update your forms, too. Outdated forms could put you at risk if new housing laws have been passed. Plus, you may be asking tenants to sign agreements that are unenforceable.
Respecting tenants’ rights to privacy: Landlords must avoid entering properties without proper notice. In most states, it is not okay to stop by unannounced to check on things or make repairs. It’s not worth it if this type of action results in a tenant being released from the rental agreement or is awarded damages.
Reducing your liability and staying out of court will definitely increase your bottom line! So, keep up with changing laws, stay informed, and always ask yourself if there is a better way to do things.
For more landlord resources, including everything you need to know about
tenant screening, turn to
E-Renter.com. You’ll know that you have the best possible tenants when you
prescreen tenants.
Posted by Teresa on January 10, 2009 under Landlord and Tenant FAQs |
Of course, it is your property and you should choose how you manage it. You should always do research so you know as much about your choices as possible. Section 8 housing programs are designed to help very low income families, people with disabilities, and the elderly find affordable housing.
If you become familiar with the programs, you can benefit from Section 8 housing programs as well. After you are approved as a landlord for Section 8 tenants:
- your tenants will come to you already approved
- many of these people are very eager to have a new start in life
- they have been made very aware that if they get evicted from your property, they lose their approval for Section 8 housing
The local Section 8 housing authority will be paying a large share of your rent each month for the Section 8 units, and it arrives on time each month. The remaining rent you will collect from the tenants, who generally pay promptly. They know that there is a waiting list of eligible renters, so they are good tenants.
Posted by Teresa on January 3, 2009 under Landlord and Tenant FAQs |
Managing commercial property is different than managing residential property. There are additional questions to ask tenants applying to rent commercial property.
Questions to Ask:
- Who is the actual tenant
- What is the business
- Who will be guaranteeing payment on the lease? In other words, is there an individual who will guarantee payment, or will it be the legal business entity?
- Who are the customers of this business?
- If this is a new business, you might want to see a copy of the business plan to see what history there is, ownership and management resumes, and operating budget (where is the rent coming from?).
- If this is an established business, you should request some financial information to show income for the last few years. And if the lease is guaranteed by an individual, ask for evidence of their financial ability to pay as well.
Posted by Teresa on December 27, 2008 under Landlord and Tenant FAQs |
Many landlords will require the Move In Checklist as a part of the process, just like signing the lease. But as a tenant, you should be glad because it protects you as well.
Taking the time to complete such a checklist carefully will eliminate misunderstandings when you move out.
- Carefully noting any damage to the property will mean that you won’t be held responsible for it when you leave.
- It’s also important to note any personal property (furniture, window coverings, and appliances) included in the property, so that you aren’t liable for the disappearance of something that was never there!
- Be sure that the list is signed by both you and the landlord, and get a copy with all signatures for your file.
Posted by Teresa on December 24, 2008 under Landlord and Tenant FAQs |
Waiting for tenant notification that something needs fixed can end up costing you money. Tenants are likely going to care more about how things look, like wanting new paint.
You should instead perform an annual inspection and take care of anything you find at that time. Since you must change batteries in smoke alarms (and perhaps fire extinguishers) annually, it’s simple to do your own inspection at that time.
Check for (and repair) things such as leaking windows and pipes. This will prevent more costly repairs like dry rot and mold.
You’ll also have the bonus that tenants will know you are involved with the property, and they are more likely to take greater care with how the treat your property, and whether they can get away with moving in a roommate or a pet.
Effective
tenant screening is another important tool for landlords. Visit
E-Renter USA for tenant screening and background check services.
Posted by Teresa on December 9, 2008 under Landlord and Tenant FAQs |
If you are considering buying your first rental property, you are probably expecting to be able to cover your payments for the property and perhaps have enough left over to provide some income.
Be sure you have considered all your expenses before you make your final decision. Each property may require a different mortgage payment, as well as have a different rental rate you can get. However, that isn’t the only consideration.
Additional Costs to Consider
It’s also important to know the rest of the expenses that will be involved with each property you are considering:
- In addition to mortgage payments, you’ll have taxes and insurance which can be quite different for each property.
- There’s also routine maintenance, which for some properties might include landscaping, or be more costly because of the age or condition of the property.
- Another consideration is the likely length of time a property would remain vacant between renters, which depends on location, type of property, and other factors.
- Of course, you should also budget for unexpected emergencies for all properties.
Fair Housing Laws
In addition to these financial considerations, be sure you become familiar with laws regarding Fair Housing, and with the best practices for attracting and keeping good tenants, and what to do if you should have to evict.
Once you have all the facts, you can make an informed decision. An experienced tenant screening company can also assist you with compliance with all credit reporting laws when you screen your tenants.
Posted by Teresa on December 3, 2008 under Landlord and Tenant FAQs |
Choosing tenants is about more than getting your rent paid. If you think the applicant seems like a nice person, checking employment by calling employers yourself might seem like all you need to do.
By taking a little more care, however, your overall experience with being a landlord can be easier, and more profitable. Great tenants will pay the rent, but they will also:
- stay longer (so you have less lost rent between renters)
- pay more promptly
- take better care of your property (which is your investment!).
You can make owning rental property easier and more profitable with tenant screening:
- carefully review each application
- do a tenant background search and check tenant credit report
- check references
- call previous landlords (more than just the current one)
- take time to talk with the tenant, and be clear about expectations on both sides.
You can hire a property management company to do many of these things, but if you do you will still need to make sure you clearly communicate to them what your own expectations are for the kind of tenants they place in your property. You want great tenants, not just good tenants, no matter who manages the process.
Increase your tenant screening abilities by hiring a company that specializes in those services. Visit
E-Renter USA for
tenant screening and background check services.
Posted by Teresa on November 26, 2008 under Landlord and Tenant FAQs |
No, if you want to be sure who you are renting from, you should request both a rental application and photo identification from any tenant you are seriously considering. Unfortunately, many people will apply for rental property and provide false information on an application.
Good forms of photo identification include:
- Current Driver’sLicense
- Instruction Permit
- Other State-Issued Identification Card
- If one of the above isn’t available, get two other documents showing full name and date of birth. It’s best if at least one of the documents has a photo so that you know it is the same person.
- An excellent form of ID is always a passport.
Check Names
If names don’t match between documents, be sure they provide some proof of change, such as a marriage certificate. Be sure to check spelling on all documents, and compare the information with their rental application. If there are differences, request an explanation.
Effective tenant screening is another important tool for landlords. Visit
E-Renter USA for tenant screening and
background check services.
