Ques. How much security deposit is a landlord allowed to charge a tenant?
Ans. It is permissible in all states to allow landlords to collect security deposit from a tenant at the time he / she moves in. A security deposit is a necessary requirement as landlords use it to cover unpaid rent, or for repairing or cleaning up a tenant’s messy house-keeping, after he / she has moved out. States limit the security amount landlords can charge, which is usually not more than a month or two worth of rent.

State laws state it is a requisite for landlords to put the deposit in a separate account, which is to be paid back to tenants plus interest.

Ques. How can a tenant protect his / her security deposit?
Ans. A tenant does not always get back the full security deposit amount plus interest, as more than a few landlords withhold all or part of a tenant’s security deposit on a tenant’s departure as a matter of course, to pay for house cleaning, carpet cleaning, and perhaps repainting. However, unless absolutely necessary due to a tenant’s mis-adventurous use of the rental, it is not legal for a landlord to make such deductions. He / she cannot use security deposits for ordinary wear and tear that occurs during a tenant’s occupancy.

Ques. Is there a grace period for late rent before landlords can begin charging late fees, and are they legal?
Ans. Unless, a lease or rental agreement specifies otherwise, most states do not have a legally recognised grace period for late rent. It means, if a tenant has not paid rent on time, a landlord can usually terminate the tenancy with a ‘pay or quit’ notice a day after its due date. However, some leases and rental agreements do provide a five-day grace period for late rent.

As well, there are some landlords, who charge fees for late payment of rent, or for bounced checks, and if reasonable, these fees are usually legal. Laws relating to late fees can be found in a state’s landlord / tenant statutes.

Ques. Is it a legal requirement to pay rent on the first of the month?
Ans. Custom demands rent to be paid monthly, in advance, often, on the first day of the month. However, it is perfectly legal for a landlord to ask for rent to be paid at different intervals or on a different day of the month.

Ques. When can a landlord increase the monthly rent?
Ans. A landlord can raise the rent, of course, subject to rent control laws with a proper written notice, usually 30-days, if a tenant has a month-to-month rental arrangement.

In the case of a fixed-term lease, the rent cannot be raised during the lease term, unless the increase is specifically called for in the lease, or unless the tenant agrees. When a lease expires, the landlord may raise the rent, again subject to rent control laws, if any.

Ques. How do rent control laws work?
Ans. Only five states i.e. California, Columbia, Maryland, New Jersey, and New York -have rent control laws, limiting the amount of rent landlords may charge.

Rent control ordinances (also called rent stabilisation or maximum rent regulation) limit rental increases. These rent control laws also require landlords to have a legally valid reason for wishing to terminate a tenancy, e.g. if the tenant does not pay rent, or if the landlord wants the rental property for personal use.

However, to avoid expensive litigation, landlords should as a rule screen prospective tenants and employees thoroughly, weeding out undesirable elements with past evictions or criminal pasts. Visit www.e-renter.com for tenant screening and background check services.

If as the owner of rental property, you have been unable to settle legal disputes with a tenant, there are several types of alternative dispute resolutions available, as under:

1. Arbitration. A well-known and traditional form of alternative dispute resolution, arbitration involves both parties submitting their dispute to a third, but neutral party, who after careful deliberation of the facts delivers a legally enforceable decision.
2. Facilitation. This process involves a neutral third party using his / her skills to promote communication between the two parties in dispute. The main focus of this type of resolution is the easy facilitation of communication.
3. Fact Finding. This process involves using an impartial third party to analyse the issue(s), present fact findings and make recommendations on how best to resolve the dispute. Involved parties can also use the fact findings in their own settlement continuing negotiations.
4. Mediation. Very popular, mediation is an informal process geared to dispute settlement between parties, by an intermediary, or neutral party, whose participation is typically voluntary. No decision is rendered by the mediator at the end of mediation; instead, mediation leaves the control of the outcome (i.e. the actual settlement of the dispute) to the parties. A mediator does not render a formal decision by apportioning blame on either of the involved parties, although he / she may provide an opinion relating to the strengths and weaknesses of the case.
5. Neutral Case Evaluation. This is a non-binding process with an experienced neutral case evaluator brought in to evaluate the facts and offer his / her assessment of the likely outcome of the case.
6. Small Claims Court: With limited jurisdiction, small claims courts exist for the purpose of resolving simple disputes quickly and economically. No lawyers are required to represent the two disputing parties, and the procedures in small claims court are much more informal than in other types of litigation. Usually, the judgement is made immediately after the hearing and both plaintiff and defendant appeal rights are limited. If you are trying to get back rent from a tenant refusing to pay up, a small claims courts can help resolve small dollar amount disputes, ranging from $1,500 (Kentucky), $2,000 (Massachusetts), $10,000 (Alaska and New Mexico) and $15,000 (Delaware, Georgia, and Tennessee).

Before getting involved in expensive litigation, it is advisable to try the above alternative landlord / tenant types of dispute resolution. A landlord can also prevent litigative issues arising from tenant / landlord situations by carefully selecting and screening prospective tenants. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background checks, the best and only way to prevent expensive litigation, penalty charges or property damage.

Every rental property owner wishful of avoiding expensive litigation must and should know the ten essentials to include in lease or rental agreements, in the event things turn sour between a landlord and a tenant.

The purpose behind lease or rental agreements is to set out a set of rules that landlords and tenants mutually agree to follow in their rental relationship. A binding legal contract, a lease or rental agreement is an immensely practical document containing critical information, such as, duration of a tenant’s occupancy, including rental amount due each month. Whether, the lease or rental agreement is brief or lengthy, typed or handwritten, it is important that it covers all basic terms of the tenancy.

The following important items are of extreme importance and should be covered in lease or rental agreements, a landlord may draw up for a new tenant.

1. Names of All Tenants. A landlord must ensure the names of all people living in his / her rental unit, including both halves of a married or unmarried couple are named as tenants, as well as, all of them have signed the lease or rental agreement. This way, each tenant is made legally responsible for all agreement terms, including full rental amount payment and using the property in a proper manner. Should, any of the other tenants skip without paying rent, the name and signatures of all the other tenants on the agreement will legally entitle you to claim the entire rental amount from other remaining tenants. In addition, even if one tenant violates an important lease term, a landlord can terminate the tenancy for all the other tenants.
2. Limiting Occupancy. You must clearly specify in your agreement the rental unit is only for those tenants, who have signed the lease. Incorporation of this clause guarantees a landlord’s right to determine only those he / she has screened and approved live on the rental property. As well, this clause helps limit the number of occupants living on your premises. If, a tenant moves a friend or relative, or sub-lets, without first taking your permission, this valuable clause provides you with adequate grounds to evict the tenant.
3. Tenancy Terms. It is important for every rental document to clarify, whether it is a rental agreement or a fixed-term lease. Rental agreements usually run month-to-month and are automatically renewed, unless terminated by the landlord or the tenant. On the other hand, leases, typically last a year, or longer. Choosing one or the other depends on how long you wish the tenant to stay, and the flexibility you want in the rental arrangement.
4. Rent. Specify the rental amount, its due date (typically, the first of the month), and how it is to be paid in the agreement. To avoid later confusion and tenant disputes, the following should be made clear to them:
   • Acceptable payment methods i.e. personal cheques only.
   • Late fee charges for rent not paid on time, late fee charge amount, grace period, and
   • Charges, in the event of a bounced cheque.
5. Deposit Fees. As a general rule, use and return of security deposits often proves to be a frequent source of friction between landlords and tenants. To avoid confusion and legal hassles, a landlord must ensure his / her lease or rental agreement is clear on:
   • The amount of security deposit to be paid, but, be careful to comply with state laws if any, that may have set the maximum amount that can be charged from tenants.
   • Clarify how a landlord may put the deposit to use e.g. he / she may use it for repairing any damage caused by the tenant, including making it clear a tenant cannot apply the security deposit amount to last month’s rent.
   • A landlord must also make it clear, when and how the deposit will be returned, as wells as, accounting for deductions after a tenant moves out, and
   • Any legal non-returnable fees that may be charged e.g. for cleaning or damage caused by a tenant’s pet.

   As well, it is a good to idea to include details regarding which bank the deposit is being held in (legally required in s a few states and cities) and whether, interest on the deposit will be paid to the tenant.

6. Repairs and Maintenance. Defend yourself against rent-withholding issues and other problems (especially, security deposits) by clearly setting out both landlord and tenant responsibilities for repair and maintenance in the lease or rental agreement, including:
   • Tenant responsibility to keep the rental premises clean and hygienic and paying for any damage caused by his / her abuse or neglect.
   • Tenants should alert you to defective or dangerous conditions on rental premises, with specific details on procedures for handling complaint and repair requests, and
   • Restrictions on tenant repairs and alterations, such as, adding a built-in dishwasher, installing a burglar alarm system, or painting walls without a landlord’s permission.
7. A Landlord’s Entry Rights. To avoid tenant claims of illegal entry or violation of privacy rights, clarify your legal right of access to the property in the lease or rental agreement. State how much advance notice will be provided to the tenant if, a landlord needs to enter the rental unit for maintenance or repair purposes.
8. Restricting Tenant Illegal Activity. To avoid tenant trouble, prevent property damage, and limit potential lawsuits from residents and neighbours, include an explicit lease or rental agreement clause that prohibits disruptive behaviour, such as, excessive noise, and any illegal activity e.g. drug dealing.
9. Pets. If you do not allow pets, include a No Pets clause in your lease or rental agreement. In case, you do allow pets, identify any special restrictions i.e. pet size, or number of pets or a yard kept free of animal waste.
10. Other Restrictions. Ensure your lease or rental agreement complies with all relevant laws, including rent control ordinances, health and safety codes, occupancy rules, and anti-discrimination laws. The key is to conform to State laws especially, setting security deposit limits, notice requirements for entering rental property, tenant rights to sub-let or additional roommates, rules for changing or ending a tenancy, and specific disclosure requirements, such as, past flooding in the rental unit.

Do spell out clearly, other legal restrictions i.e. limits on the type of business a tenant may run from his / her rental premises. As well, specifically mention important rules and regulations covering parking and use of common areas in the lease or rental agreement.

To avoid expensive litigation, screen prospective tenants and employees, weeding out undesirable elements that carry past evictions or criminal pasts. Visit www.e-renter.com for tenant screening and background check services.

Title X enacted by the American Congress in 1992, requires all landlords to disclose lead hazards on their property to tenants or prospective tenants. Further, in 1996, additional changes made it mandatory for landlords to disclose lead hazards for leased property built before 1978. This law, however, does not apply to landlords offering month-to-month rental agreements or those leasing out their property for less than 100-days.

For owners of property built before 1978, specific regulations have to be followed, and if the property is sold, the presence of lead on the property will have to be disclosed.

First of all, landlords are required to provide tenants with an EPA-approved pamphlet entitled “Protect Your Family from Lead in Your Home”, which informs them about the dangers of lead poisoning. Copies of this pamphlet are easily obtained from your state property management agency or can be downloaded from the EPA Web site, as well; the National Lead Information Centre can be called at 1-800-424-LEAD.

In addition, tenants must be provided with a disclosure form informing them of lead paint, or other health hazards that could be directly related to the presence of lead on the property. It does not specify health hazards resulting from lead in drinking water; but, only those dangers arising from lead paint, lead dust, or soil contaminated with lead need to be disclosed.

Title X does not require landlords to disclose, whether any present or past tenants developed lead poisoning. This disclosure is not a part of Title X, since it is difficult to determine the exact causes that lead to lead poisoning. Even if, a tenant is provided with a written lease agreement, federal law requires you to follow the lead disclosure process set down by Title X.

For month-to-month rental agreement, the mandatory disclosures laid down by Title X do not have to be followed, until the terms of the rental agreement are changed for long-term. For example, if a landlord decides to raise the rental amount, he / she will have to make disclosures required under Title X.

If, landlords allow tenants to sub-let, then they will have to educate and inform them about Title X, since the sub-lessor is responsible for notifying tenants, to whom he / she is sub-letting the property.

In recent years, many landlords have inserted liability waivers along with their lead disclosure forms, hoping it will shield them from liability, in case a tenant should experience lead poisoning. But, under Title X, these waivers cannot and do not absolve you of your liability as landlord.

If there is lead paint on your property, a landlord is required to maintain and ensure it does not chip or peel. Good maintenance reduces the amount of lead tenants are exposed to, helping safeguard their health. Request tenants to inform you of any peeling or chipped paint as soon as it is spotted, so that prompt action can be taken.

Renovation can disturb lead paint particles, so if you have plans to renovate a rental property built prior to 1978 that has lead paint, a 60-day notice will have to be issued to tenants before under-taking renovations. This notice is on top of the mandatory disclosures made, at the time your tenants moved in.

Title X does offer several exemptions, including for properties built after 1977 i.e. properties without a bedroom, such as, a dorm room, loft, or studio apartment; housing occupied exclusively by elderly or disabled persons; properties that will be leased for less than 100-days; a property that has been found to be “lead paint free”; and properties where the disclosure has already been made and no further information is available. But, before assuming your property to be exempt from Title X rules and regulations, contact the EPA or your lawyer to be sure.

Remember, violation of Title X regulations carries a rather stiff fine, as much as, up to $10,000 for each violation. If, your tenant happens to fall sick from lead poisoning, monetary compensation of up to three times the amount the tenant suffered in damages will have to be provided by you.

As for landlords, a lot of responsibilities lie with you, including the importance of carefully selecting and screening prospective tenants to avoid problems, later on. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

Courts of limited jurisdiction, small claims courts help resolve simple disputes quickly and economically. If you are a landlord trying to get back rent payment from a tenant when arbitration / mediation, including other measures have failed, you could go to a small claims court to help resolve the issue. Here, no lawyers are required to represent the two parties, and the procedures in small claims court are much more informal than in other types of litigation. Judgments are usually rendered immediately after the hearing, and both plaintiffs and defendants have limited appeal rights.

Since, individuals or small business owners file small claims actions without the assistance of lawyers, most states provide information and assistance to involved parties in these actions. A comprehensive list of links to each state’s self-help resources and information centres can be found at the National Centre for State Court’s Web site, and a guide to Small Claims Court with information on each state’s rules and requirements can be found at ConsumerAffairs.com.

Small claims courts serve to resolve the following disputes:

1. Dollar Limits. Comparatively small dollar amount disputes are resolved in small claims courts, with dollar limits ranging from $1,500 in Kentucky and $2,000 in Massachusetts to $10,000 in Alaska and New Mexico and $15,000 in Delaware, Georgia, and Tennessee. You can find a chart listing the small claims court limits for each state at Nolo.com.
2. Statutes of Limitations. Statutes of limitations are laws that set a deadline or maximum period of time, within which a lawsuit or claim may be filed. Deadlines may vary depending on the circumstances of the case, as well as, the type of case or claim. The time period also varies from state-to-state. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred, though under certain circumstances, a statute of limitations can be extended beyond its deadline. Statutes of limitations apply to actions filed in small claims court, as well as other courts.
3. Types of Disputes. Usually, the types of disputes and claims brought to small claims court range from:
   • Failure to repay a loan;
   • Failure to provide personal service;
   • Failure to pay for personal services;
   • Failure to fix a car or other major appliance properly;
   • Landlord/Tenant disputes (i.e., failure to return security deposit, destruction of rental property);
   • Debt collection;
   • Return of personal property;
   • Claims for equitable relief; and
   • Breach of warranty (claim that an item purchased does not work the way it is supposed to work).

   But, divorce proceedings, bankruptcy proceedings, guardianship proceedings, suits against the federal government, federal agency, a federal employee and criminal proceeding cannot be filed in a small claims court.

   Landlords should make an attempt to settle disputes with tenants prior to filing a claim in the small claims court. Before suing in a small claims court, make one more demand on the tenant for back rent payment, or payment for damage to your rental unit, etc. Make the demand in writing, as you may be required to demonstrate to the judge, several attempts were made to settle the dispute before filing your claim in the small claims court.

4. Where to File. A small claims court action is generally filed in the state in which the party being sued resides or does business, or where a contract was signed.If the defendant (tenant) has moved to another state and has no contact or business in your state, you will likely have to sue in a state, where the defendant resides or does business. Though, it is best to remember filing a small claims court action in another state can prove to be an unwieldy, complicated, and expensive process. It may not make sense to pursue the dispute in this manner.
5. Notify the Defendant. After filing your claim in a small claims court, give the defendant a copy of your claim before the case is scheduled for hearing. It is the responsibility of the person filing the claim notify the defendant, including bearing the cost of the notification.Defendants can be notified either by:
   1. Certified mail by the court clerk;
   2. Personal service by process server; or
   3. Substitute service by process server at the defendant’s home or place of business.
6. Case Preparation. Prepare your case as thoroughly as possible. Get together the necessary paperwork and witnesses if any, asking them to appear in court on your behalf. Try and foresee what the defendant will say and what evidence he / she will bring to court. Prepare notes on what is to be asked of the defendant and what you will say to the judge.Make a visit to the small claims court where your claim will be heard, sitting through a couple of claim cases to familiarise yourself with the entire process and the judge’s temperament.
7. Court Day. Ensure you have all of your documents and all your witnesses are available for court. Arrive early, get organized and stay relaxed. Courtroom procedures are informal, and the judge will guide you on how to proceed.
8. Explain your case briefly and succinctly. Answer all the judge’s questions. Be prepared to explain the money amount claimed. Do not argue. In case you win, ask the judge to award you court costs and any other costs reasonably incurred in bringing the action to court.
9. Appealing Small Claims Court Decisions. Appealing a small claims court decision is limited for both plaintiffs and defendants. Many states only allow the party who sued to appeal. In others, a decision can only be appealed if there was a mistake of law, not a mistake in the facts of the case. Typically, a very short time frame is allowed to appeal a small claims court decision within, generally 10 to 30-days after the decision was rendered.
10. A party may be represented by a lawyer on appeal of a small claims court decision. Lawyers are allowed for appeals as small claims court decision appeals are heard in formal court. And, while lawyers are allowed for small claims court appeals, the court proceedings still remain informal. It is up to you, whether you wish to hire a lawyer for an appeal.

But, if you carefully select and screen your prospective tenants, you can avoid having to sue or go to a small claims court. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

As zoning laws differ extensively from city to city and may or may not be consistently enforced, they pose a major hurdle for many landlords.

For the uninitiated, zoning laws are there to limit certain property types to specific areas of the city. For example, one cannot have a power plant in a residential area, and commercial areas, generally should not contain residential homes. Zoning laws help tenants and property owners co-exist in a peaceable manner by helping to limit disturbance and nuisance calls.

When landlords or investors are on the lookout for rental properties, they must be extra careful not to fall afoul of a city’s zoning laws. Since, zoning laws are subject to change over time, rental property that is legal today, may not be so tomorrow. And, it is the owners of large apartment complexes that are more vulnerable than other landlords to the vagaries of zoning laws. Large multi-unit complexes are bound to have a large number of visitors on a frequent basis, which may cause neighbours to file complaints with the local zoning commission. Tenant behaviours can also lead to zoning complaints, if they happen to run commercial businesses from your rental property.

To ensure you stay on the right side of applicable zoning laws, take the following steps:

1. Tenant activities should be limited. If you have a residential rental property, make it clear to your tenants that they need to ask for permission before they begin to run a business from your building. As long as, their home-based business does not cause a frequent rush of visitors, it should not be a problem. In case, the tenant plans to operate a beauty parlour from the apartment, the resultant traffic could disturb other residents of the building.While, tenants have a right to live their lives, as long as they are renting your property, you as landlord, have the right to place a limit on their activities, most especially if the activity may result in negative consequences for you.
2. A landlord must know the zoning laws before buying rental property. Before making a property purchase, familiarize yourself with the local zoning laws. As well, you will need to stay abreast of changes in local zoning laws and how they may affect your rental property.If other landlords are facing difficulties with the zoning laws, it would be a good idea to form a group to change those laws that limit rental property profitability. All landlords together can be more effective with a zoning commission than a single individual.
3. Have in-depth knowledge of your city districts. If your city is neatly divided into specified districts for residential, commercial and industrial zones, you will not have any problem with zoning laws. But, as the urban sprawl spills over, these demarcation lines are becoming hazy. More and more apartment complexes are coming up within commercial or industrial districts. It may be easier to attract tenants in these areas, but you could run into zoning problems. Consider this point carefully when buying rental property. If you are uncertain of how zoning laws may affect your potential rental property, investigate carefully to avoid becoming embroiled in a zoning war.
4. Property potential is affected by the zone. If your rental property is situated right at the heart of a noisy, commercial or industrial district, you could have difficulties attracting new tenants. Industrial noise can disturb the peace and quiet, proving to be particularly troublesome if a factory operates 24-hours a day.Property value is also affected by the zone it currently is in. If, neighbouring building structures are in bad shape, or they are not subjected to regular spit and polish, this can adversely affect the value of your property, especially if you plan to resell the property at a later date.

Zoning laws are not difficult to understand, you simply have to take the time to investigate local zones, and check with your zoning commission if there is any unclarity regarding zoning laws in your area.

Just as buying rental property in compliance with the zoning laws is of the utmost importance, selecting the right tenant for it serves to reassure you that your property is in good hands. Right selection also ensures your tenants will remain with you for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will respect, maintain and limit property damage to only wear and tear. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

Having tenants who are habitually late in paying rent is a difficult situation for many landlords with mortgages to pay. Then too, it could be the start of a vicious cycle that can prove difficult to break, especially if the tenant is allowed to continue to make late rental payments. Therefore, the following five strategies may help landlords put an end to the problem of habitually late rent payers.

1. Impose Penalty Charges. If you make late rent payments hurt, tenants will be forced to comply with the rules. Ensure all your lease agreements clearly state rent due dates, when payments will be considered as late rent payments, as well as, the penalty that will be imposed for late payment. You can, either charge a flat fee or a daily fee until the rent is paid up. Certain states limit the amount for penalty charges, so check that out, before deciding on the amount you wish to charge for late rent payments.
2. Send Early Reminders To Late Payers. There are some tenants who never remember the rent due date. The best way to ensure they pay on time is by sending them a friendly reminder ten days before the due date. As well, it is a good time to inform them you have a late payment penalty charge rule, which can be avoided by paying on time.
3. Stand Your Ground Firmly. If you do not take firm steps to rectify late rent payment habits, you will not be able to change them later. If, a tenant is experiencing financial or personal difficulties, inform them only one late payment will be allowed, and future late rental payments will incur a penalty charge. You must also remember not to give preferential treatment to any tenant, because if other tenants learn you have allowed one of them to pay rent late, they may follow suit.
4. Report All Late Payments To A Credit Bureau. If you report late payments to the credit bureau, it will turn up the heat for late payers. Tenants will not appreciate black marks on their credit report and will do their best to avoid the problem in future. However, it may not work with all tenants, especially if they have developed a pattern of abusing their lease agreement. If this is the case, the last solution will probably be the best course of action.
5. Serve Notice To Pay Rent Or Vacate. Seeing an official notice to either pay up or vacate sends two messages to the tenant. Firstly, it lets them know their current behaviour will not be tolerated as you actually mean business. Secondly, it lets them know if they do not begin to make timely rental payments, they stand to lose their rental accommodation. As this is a serious matter, this strategy should be your last resort.

Before beginning proceedings to evict a tenant, late payments should all be documented to protect yourself from tenant claims slapped on you. If a tenant decides to fight an eviction notice, this documentation will serve to prove your case for deciding to evict him / her.

Avoid habitual late payments by clearly stating in the lease agreement what will be considered as late payment, and the actions that will be taken if any clause of the agreement is violated. Nip the problem in the bud.

To avoid problem tenants, landlords must select them carefully to ensure they are not only models of good behaviour, but that they will remain with them for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant
screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

Owning rental property is not without its fair share of having to contend with a variety of tenant claims, ranging from discrimination to the property being inhabitable. Although, there may be no complaints from other tenants and a majority of them may be satisfied with their rented accommodation, a single dis-satisfied tenant can wreak havoc with his / her complaint.

If a tenant comes to you with a claim, it is best to adopt a friendly, though firm and businesslike manner. If the claim is untrue, you will have every opportunity to prove it so, as well, there are other ways to settle tenant claims without having to go to court.

However, the best way landlords can protect themselves from bogus claims is to maintain good records. Strong documentation regarding how incidents if any were handled, a written record of yours or tenant actions could prove invaluable, if a landlord finds himself / herself involved in a lawsuit, especially against a problem tenant.

At the very minimum, every landlord should maintain the following records:

• Keep a file on each of your tenants with their written rental applications, lease agreements, and lease addendums, if any. A record of all these documents can prove critical in a landlord / tenant lawsuit.
• Put down in writing any problems you may have with tenants, including the steps taken to resolve them. Each time a tenant breaches the lease agreement terms, document the incident. Anything, from something as simple as a late rent payment or as involved as intentional damage to your property should be put down in writing. A landlord’s record of events and his / her responses will come in handy, if a tenant’s version of events differs from yours. For example, if a tenant claims you never fixed the leaky faucet / shower / bath-tub, he / she complained about, you should have a record of each call, including the repair bill to prove your case.

With all records in place, a landlord can easily settle the claim, after taking necessary steps to do so.

First of all, attempts should be made to resolve the dispute amicably. If the claim proves to be a simple misunderstanding, ill feelings and expensive litigation can be avoided by simply discussing the problem with the tenant. As a number of cases have proved, a problem tenant could just be trying to see how far they can push the envelope. Recorded proof of your having acted fairly and legally may cause them to back down.

In case of a housing discrimination claim, on record rental applications and your reasons for denying the application can prove useful. In most cases, complete record keeping can cause a denied applicant to stop their claim at this point.

If, trying to resolve the claim on your own fails, the second step should be to go in for professional mediation. This means presenting both sides of the case to an impartial third party (the mediator). After hearing both sides of the story, the mediator will offer potential solutions. Often, a third party is all it takes to defuse hostile situations.

If mediation fails as well, binding arbitration should be your next step. What this means is an arbiters decision will be binding, and both parties will be asked to desist in any attempts for further action. Similar to mediation, this process is often the final step in settling a claim.

If a landlord wishes to allow for binding arbitration, a clause regarding the same should be inserted in the rental agreement, stating it will be used to solve any tenant / landlord disputes. Written records of all actions taken to resolve tenant claims permit a landlord to go in for binding arbitration, improving his / her chances of coming out on top.

However, remember the state law may impact the enforceability of arbitration provisions. Cities with rent control ordinances, such as San Francisco, certain rules and regulations have to be followed. Failure to comply with these can result in serious consequences requiring you to hire a seasoned landlord / tenant lawyer to represent you in tenant claims cases.

To avoid problems with tenants, selecting them carefully will ensure they remain with you for many years to come. Further, getting relevant information on rental application forms assists you screen prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

As a tenant, before you break your lease, due to preference for another location, or find the rent rather steep, or else the neighbours are much too loud, do take the time to check out your contract. Lease terms may differ from state to state, but it is still important for you to follow the rules. Consider the following:

1. An attempt should be made to re-negotiate with your landlord. If, you find the lease terms difficult to fulfil, talk it over with your landlord and try to re-negotiate. After all, it is in the landlord’s best interests to be paid what has been agreed upon in the lease contract. However, it won’t hurt to request the landlord to terminate your tenancy, or to allow you to find a replacement tenant, in exchange for being released from any financial obligations. Demonstrate your good will by offering to advertise the vacancy in the local newspaper.
2. Get it in writing. If, your landlord agrees to release you from your contract, get it in writing. As well, ensure the landlord signs a new lease with his / her new tenant. Keep all relevant paperwork with you for a minimum of 3-years, or consult with your lawyer on this point.
3. Sub-let. In case, your landlord refuses to re-negotiate, after consulting, getting permission and informing him / her, what can be expected from this new arrangement, go ahead and sub-let the place. Just don’t forget your name is still on the contract, and therefore, you can be held liable for any of your tenant’s mis-adventures.
4. Be prepared to pay the remainder of the rental payment or in lieu a penalty for breaking the lease in the midst of its term. Just because, you do not require the premises anymore does not mean your landlord will waive his / her rental dues. Remember, the same as every other entrepreneur, landlords or vendors are also in business, the business of renting out their property for a living.
5. Do some intelligence gathering. After informing your landlord of your wish to terminate the lease, try and find out, if he / she has been scouting around for a replacement tenant.
6. Take stock of penalty charges. You may find it easy to ignore that piece of paper, but a signed contract is binding. Standard penalty charges could mean forgoing your security deposit, as well as, having to pay the remainder of the rent owed, till a replacement tenant is found. And, don’t forget, news travels fast. A bad reference from a landlord or a disparaging remark about your ethics, and it could minimise your opportunities for a new lease, elsewhere, especially if you want to relocate nearby.
7. Get some legal advice. A lawyer won’t take too long to review your lease. It would be wise investment to get some legal advice, saving you much more in the long run, including increasing your rental knowledge, something that will come very handy in the future.
8. Take notes. Breaking a lease may have you short of several thousands of dollars, but keeping good records of events, will ensure it doesn’t have to happen again. For example, if the main reason for vacating the property is due to space limitations, next time round, you will be particularly mindful of the square footage. If, you happened to miss a specific clause in the leasing contract and it had a heavy impact on your wallet, next time, you will remember to read the lease contract, signing it only after a careful review.

As for landlords, it is important to carefully select and screen prospective tenants as it helps avoid problems, later on. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.

Right of entry can be a confusing issue, however, it is one single point landlords should be more than clear about. It is only natural a landlord wishes to protect his / her property, entering it even if the property has been leased out, in order to investigate against suspected damage. Nonetheless, unless it is an emergency, most states require landlords to notify tenants, 24-hours in advance before they can rightfully enter a rented unit.

Generally, most states require landlords to issue a minimum 24-hours notice, though there are some states that allow a shorter period of advance notice i.e. as little as 2-hours. To be legally correct, it is a good idea to research state requirements for a landlord’s right of entry to a rented unit, as what you constitute as reasonable notice, may differ from your state’s legal definition.

A landlord must always inform a tenant well in advance of his / her intention to enter the rented unit, even if it is to perform repairs. As well, except in the case of a specific emergency, a tenant must also be informed and permission obtained for a repairman to be granted access to his / her rented accommodation.

In addition, apart from the right of entry notice, a landlord must ensure he / she enters the property at a reasonable time, which most states specify is during normal business hours, again except in the case of an emergency. This means, unless the tenant grants permission otherwise, a landlord may gain access to rented property between the hours of 9:00 a.m. to 5:00 p.m.

There may be times, when a tenant refuses access to the property, despite sufficient advance notice. In such a situation, a landlord should maintain his calm and not try to force his / her way in. Another attempt should be made to gain entry by notifying the tenant again and giving more than adequate notice, failing which, the local law enforcement agency should be contacted to help gain safe and legal entry to the property. A landlord should follow his rights without overstepping the legal right of entry issue, thereby protecting himself against tenant claims of illegal entry.

However, an emergency, such as, a gas or water leak, an indication of smoke, fire, or some such that puts the tenant or your property in danger, almost always supersedes the usual notification process. Unlike some landlords who do, it is advisable not to abuse this emergency provision to gain entry to a rented unit, as according to law, you will be asked to thoroughly document your reasons for entering the property. Play it safe by always having a witness to testify to the emergency.

If a landlord suspects the tenant has abandoned the property, then there is no need for worrying about right
of entry. However, a landlord must be certain the tenant has actually vacated the property and not gone on a holiday, instead. Entering rented property while a tenant is vacationing could well amount to breaking the law.

There are a few landlords who feel the right of entry law is unfair, but it is there to protect tenant interests and peaceful enjoyment of his / her rented home. A landlord’s intention may be above reproach, however entering without notice is clear violation of a tenant’s private space.

Ascertain your rental agreement spells out the right of entry policy, clearly. State how much notice you will give the tenant and what emergencies will void this notice period. While, including right of entry in the lease agreement will lessen any chances of mis-understanding, it will also inform the tenant, not only of their rights, but a landlord’s rights as legal owner of the property.

But, to avoid any mishaps or unwanted tenants, visit www.e-renter.com for tenant screening and background check services.