Posted by Teresa on July 26, 2011 under Landlord Tenant Lawsuits | 
Disputes between landlords and tenants are part of the job of being a landlord. And sometimes it’s necessary to sort things out in a court of law. But court cases are time consuming, expensive, and mostly unpleasant. For many landlords, taking a tenant to court is the worst aspect of owning rental property.
The next time you and a tenant don’t see eye-to-eye on an issue, why not explore alternatives, such as mediation? Professional mediation is a non-adversarial process for resolving disputes that can save you time and money, as well as improve your relationship with your tenant.
What Is Mediation?
• Mediation allows both sides to share their side of the story in the presence of a trained, neutral mediator.
• Is private and confidential.
• Can result in binding agreements, but no one can be forced to accept an unsatisfactory solution.
• Is typically less expensive than court-based solutions.
• Results in a settlement about 85% of the time.
• Is offered by some municipalities or universities for free, so check to see if that’s an option where you live.
Mediators help adversaries talk through a problem without anger, for a more efficient communication process. Professional mediators also help the parties work through possible solutions and come to an agreement.
Mediation cannot be used when legal advice is needed or a case involves criminal charges.
Mediation Can Assist in Disputes Between Landlords and Tenants
• Damaged property
• Rent payments or increases
• Security deposits
• Repairs
• Noise complaints
• Property use issues
• Common area maintenance disputes
• Pet issues
A web search can help landlords locate nearby mediation services. And remember, it can be free of charge, depending on where you are located.
Posted by Teresa on July 12, 2011 under Rents and Deposits |
In Seattle, Wash, the Public Utilities Service, which provides residential water, sewer and garbage service, is putting an end to tenant accounts. Starting July 15, all water bills will go to the owner of the property.
Other utilities in Seattle, such as electricity, gas, cable and internet, are all available directly to tenants, paid by tenants in their own accounts. So why the change in the water/sewer/garbage service?
The Seattle Public Utility (SPU) says that owners were ultimately responsible for water, sewer and garbage debt incurred by their tenants anyway, and they believe that financial management of tenant accounts “should lie with the owners.”
The SPU also stated that the cost of maintaining approximately 20,000 tenant accounts should be shifted from the rest of the account holders to the landlords.
As tenants close accounts when they move to another residence or out of the area, the SPU will automatically activate a new account for the owner of the property. The account will remain in the owner’s name from then on.
This change brings up potential problems for landlords, and maybe for tenants, too:
- Will tenants waste water, knowing they won’t be receiving a bill?
- How will landlords charge tenants for water, sewer and garbage, since the bill will fluctuate depending on use?
- What about tenants who qualify for utility discounts or assistance?
- How can a landlord determine how to set the rent at a rate that will cover the water bill?
- And what about the tenant whose landlord stops paying the water bill?
The SPU indicates that there is no “hard evidence” that tenants will waste water if they don’t get a bill. But in reality, people tend to use an “out of sight, out of mind” approach to most things in life—utility bills included. The biggest detriment to using too much electricity, water and telephone minutes is receiving an unusually high bill. Who doesn’t remember their mom or dad shutting off all the lights the day after the electric bill arrived?
It looks as if landlords in Seattle have one more headache to deal with.
Posted by Teresa on July 1, 2011 under Eviction, Lease and Rental Agreements |
While a lease agreement and landlord/tenant relationship is a strictly business arrangement, landlords sometimes have to deal with a tenant’s personal problems. Loss of a job, a need to break a lease and move to another city, and other life situations cross the line into a personal nature.
When tenants have protective orders against spouses, partners, or acquaintances, the landlord may not even know. However, when the other party violates the order and enters the rental property, problems can ensue all around.
One tenant in California was faced with eviction when her husband, from whom she was separated, threatened and stalked her at her apartment. Police were called and the tenant obtained a restraining order, but the property manager informed her she needed to move to avoid upsetting her fellow tenants.
In California, and most other states, a protective order protects tenants from repercussions such as eviction. Domestic violence that has been documented, as in this case, is not a reason for terminating a lease. But what if the tenant had allowed the stalking troublemaker onto the property? That’s another story. If the tenant is voluntarily subjecting other tenants and the property to possible harm by allowing a dangerous person onto the premises, eviction may be warranted.
Under Federal guidelines for Section 8 owners, landlords may not refuse to rent to an applicant solely because he or she is a victim of domestic violence, dating violence or stalking. Nor can the tenant be evicted, even if criminal acts (such as property damage) related to the domestic or dating violence or stalking, are caused by the tenant or a guest. There is an exception for cases in which there is an actual or imminent threat to other tenants or employees of the property if the tenant is not evicted.
Many states follow the federal guidelines, but if you need guidance on a situation, it’s best to check with a local law official or landlord/tenant attorney for advice.
It’s not easy to be privy to the personal problems of tenants, but at times a landlord can’t avoid it. It’s important to know what is and is not allowed when dealing with legalities such as restraining orders.
Legal disclaimer:
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation.
Posted by Teresa on June 3, 2011 under Landlord Tips |
While the housing market is still troubled, the rental market is strong from coast to coast. With vacancies low, you might be thinking that you don’t need to do a thing to keep prospective tenants interested in your rental properties.
But being in the rental property business means generating as much rental income as possible. And if you can make your rental units more attractive to prospective tenants, you may be able to attract better tenants and make more income, too.
In fact, upgrading your rental is not an expense—rather, it’s an investment that should earn you a return. Compare the cost of each upgrade with the corresponding possible increase of rent to determine whether it makes sense to do it.
Perhaps you don’t need to completely renovate every rental unit. Think about ways to maximize the rent you can charge, based on size, location and condition of the rental unit, as well as what the competition is charging. Here are some possible upgrades that won’t break the bank, and can push your rent up:
Kitchen: Replacing countertops and painting cabinets will change the entire look of the kitchen. If you’re pursuing a higher-end tenant, replace those old formica countertops with granite. And if the kitchen has tired old oak cabinets, give them a fresh coat of white paint and some new hardware: instant style!
Bathroom: You can easily replace a worn-out vanity with a new one; add a new faucet, a new light fixture and a nice-looking sink—and the entire room changes. If the flooring has seen better days, large tiles are not very expensive; or, install a solid piece of marmoleum to make a big difference.
Outdoors: Spruce up the patio area or add a small deck. Tenants love having space to relax outside.
Invest in New Appliances: There’s nothing worse-looking to a prospective tenant than a dirty or worn out old stove, refrigerator or dishwasher. Look for a good deal on a package—or buy used. You can find great deals on nearly-new appliances on Craigslist.
Closet Space: Find ways to add storage. Tenants love walk-in closets and built-in shelves. Easy-to-install closet systems are available at most hardware stores and they can completely change the look and functionality of every closet.
If you want to attract higher-end tenants—and increase your rental income—these simple upgrades can be a quick and easy way to do it.
Learn more about protecting your rental property and assets through tenant background checks. Proper tenant screening will ensure you are leasing to the best possible tenants.
Posted by Teresa on May 31, 2011 under Eviction, Lease and Rental Agreements |
A young college student in Orlando moved out of a shared apartment before the lease was up. She left several pieces of valuable stereo equipment behind because she had no room for it in her new apartment. When the lease expired, her roommates moved out and left her property in the unit. The landlord then discovered the stereo equipment and that she’d painted her bedroom without permission.
The landlord informed the former tenant that she would not get her property back because she left it for so long and had painted her room. She offered to give the equipment back if the former tenant repainted the room to match the rest of the rental unit.
What was this landlord thinking?
In most jurisdictions, it is not legal to hold a tenant’s property in return for back rent or repairs. Nor is it the landlord’s responsibility to serve as a storage business for a former tenant’s property. This landlord could assume the property was abandoned. And that the tenant never read the lease clause where she agreed to ask for permission before painting. Still, holding property for ransom is not allowed.
Recently, a landlord in Minneapolis ranted about a tenant on his Facebook page. While he didn’t use any names, the description was clear enough—especially since the complaint was about hearing loud outbursts from a tenant’s developmentally challenged child. Not only was this heartless, it was not smart. The description narrowed the possibilities down to one.
What was this landlord thinking?
There is no substitute for discretion when you’re a landlord. Tenant issues should be confidential. And of course this landlord chose the wrong venue to discuss a tenant problem! Facebook posts have a way of going beyond your circle of friends. Plus, there’s no way to know who your friends’ friends are. In this case, the tenant caught wind of the rant and consulted a lawyer.
A landlord in California did not require a tenant to sign a new lease when her boyfriend and his toddler son moved into her apartment. She completed a new lease application and paid the fee, and assumed he had been added. However, she didn’t question that no new lease ever appeared for her to sign. Her rent checks were paid from a joint account under both her and her boyfriend’s names.
Eventually, the tenant discovered some peeling paint and, because the building was old, she tested it with a home lead paint detection kit. The results were positive. She filed a complaint with the landlord, who claimed she was not entitled to action because the boyfriend was not on the lease, and that he and the young child were squatters. The landlord threatened eviction. The tenant countered that she filled out an application and paid a fee, but had no copy of the application or of the $35 payment.
What was this landlord thinking?
Especially in California, every interaction with tenants should be in writing. In this case, the tenant probably has a case that she is being retaliated against because of the lead paint complaint. Both sides should have kept better records, but when it comes to eviction, a landlord should have documentation to back up every claim.
Legal disclaimer:
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation.
Posted by Teresa on May 23, 2011 under Landlord Tips |
Landlords have lots to do, with interviewing and screening potential tenants, checking on rental properties, doing accounting tasks and paperwork, and working on their rental units. But it’s good idea to add another habit to your list: checking out the competition. Sure, you can view plenty of photos online, but visiting other rental properties in person will reveal way more detail.
3 Reasons to Check Out Your Rental Competition
- You can make more money: When you look first hand at other rental properties, you can rank your own accordingly. And, when you know what comparable properties are renting for, you might even discover you need to raise your rent. Are similarly sized properties renting for more or less than yours? What about those in the same area as yours? Do higher-priced rentals offer more or fewer amenities than you?
- You can see why your vacancies aren’t filling up: Looking at other rentals gives you the chance to see what upgrades other rental properties offer, such as higher-end floor coverings, countertops or light fixtures. How do your units stack up? If you install new fixtures or appliances, will you be able to upgrade your tenants and charge higher rents?
- You might forgo planned upgrades: Why spend money you don’t have to spend? If you are offering comparable units at competitive rents, then you might not recoup an investment of new carpets, upgrades in fixtures, or new appliances.
If you are a landlord who hasn’t toured competing rental houses, apartment complexes or duplexes lately, you’re missing an opportunity. You don’t have to confess why you’re there—just act like a potential tenant, or say you’re checking it out for a friend, your daughter or your son. Or say nothing. Many apartment complexes are happy to give tours.
Posted by Teresa on May 20, 2011 under Landlord Tips |
Many landlords and probably all property managers would agree that managing rental property is a full-time job. If you’re a busy rental property owner, you may have considered hiring a property management company or an individual property manager.
Here are four questions to ask yourself when considering if you’ll continue to manage properties on your own or hire some help:
- Have you added new rental properties? If you started with just one property, or less than a couple of units, for example, you may feel you can handle all the duties that come with managing rental property. Collecting rent, interviewing potential tenants, handling maintenance and repairs, and all the associated paperwork are just a few of the regular tasks required of property managers.
But if you’ve purchased additional properties to increase your income, you may find that it’s just too much to handle all these duties on your own. You may need an experienced manager to help you do it well—and keep you from losing time and money by doing it not-so-well.
- Do you feel like you always need more time? There is a lot you can do with the extra time that hiring a property manager could bring. Take care of your own home. Exercise more. Spend more time with your family. Read a book and actually relax. Life is short, and time is precious. Think about the benefits that paying for professional property management will bring to your life.
- Is your rental property in another city or distant state? It’s probably in your best interests to have someone nearby managing your rental property. Managing from afar can lead to damage to your property, criminal activity, and a host of other problems that you’ll not hear about because you’re not there.
- Are you having trouble dealing objectively with tenant problems? After managing your own rental property, you may no longer be able to be completely objective and business-like with tenants. Keeping control and getting problems solved is a property manager’s job. They don’t own the property, so they don’t have the same emotional connection.
The right property manager can make a big difference in your cash flow, because they take care of issues that affect it. They fill vacancies, find the best tenants, and perform all maintenance and accounting. If it’s time for you to hire one, just make sure you choose a property management company that is squarely on your side.
Posted by Teresa on May 11, 2011 under Landlord Tips |
Landlords and property managers have to deal with tenant complaints. It’s just a fact of life when you’re in the rental property business. Whether you’re interacting with a tenant who complains frequently or rarely, it’s important to properly track the complaint and your response—you never know when you’ll need the facts of the matter to protect yourself and your assets.
Establish Good Communication With Every Tenant
Encourage tenants to come to you with complaints, rather than letting them go or complaining to other tenants. You can foster this by demonstrating good listening and communication skills. Get to know your tenants as people, listen for clues about what matters to them, and give them the respect they deserve. When tenants trust you, they will be more likely to approach you with a problem.
Establish a Tenant Complaint Procedure
Creating an official form demonstrates to the tenant that you are taking their complaint seriously. It also allows you to keep a record of the situation. You can record details of how you handled the complaint, what repairs or remedies were performed, and you can even make a note of when to follow up with the tenant to be sure the complaint is resolved to their satisfaction. This becomes especially important in cases where a tenant withholds rent for non-satisfaction of complaints.
Fixing broken windows or door locks, replacing noisy ceiling fans and other mechanical problems can usually be resolved to everyone’s satisfaction. When tenants complain about their neighbor’s bad parking habits or noisy parties, you have a more delicate situation on you hands. If your lease agreement includes a list of “house rules” such as quiet time or established parking areas, then you’re covered. You simply speak to the tenant who is breaking the rule and point out that expectations were clearly established. If the problem continues, written warnings and even eviction are your next steps.
It may be difficult–if not impossible–to keep 100% of your tenants 100% happy. But the goal is to keep good tenants in your properties and to keep everyone as safe and as happy as you can. Resolving issues promptly goes a long way toward that goal.
Posted by Teresa on April 8, 2011 under Landlord Tips, Marketing for Landlords |
How a landlord advertises rental property is the first step in signing a lease with the best possible tenant. If you want a tenant who pays rent on time, takes care of your property and doesn’t cause any trouble, you can start that process when you place your ads.
What to Include in a For Rent Ad
First you have to decide the basics: how much rent you’ll charge, the length of the lease, how many people your rental unit can accommodate, whether pets will be allowed and the requirements tenants must meet to qualify for a lease.
Once you’ve determined these factors, you can write your ad. Include the following:
- Number of bedrooms and bathrooms.
- Location.
- Special features, like hardwood floors, washer and dryer, water view, or proximity to trails or parks.
- Size and type of pets allowed, if any.
- Website to view photos and find additional information.
- How to contact you. Include a mobile number.
- The rent, security deposit and any other requirements that will help you screen out less-than-desirable tenants. For example, let readers know up front that you will be ordering tenant credit checks and background checks on all applicants.
What not to include:
Any language that can be considered discriminatory. Don’t mention that your rental unit is best for singles, families, elderly, young people, or those of a certain religion. Even mentioning that it’s located near a church can be interpreted that you expect to rent to church-goers.
Once you’ve placed the ad, try not to allow calls to roll to voice mail. People are impatient these days and may not leave a message or call you back.
Posted by Teresa on March 21, 2011 under Landlord Tips |
One of the biggest challenges for landlords is maintaining their rental properties. Failure to do so can lead to further damage, unhappy tenants and lower property values.
Some landlords prefer to do all their own maintenance; others are not capable or simply don’t have the time to perform maintenance. Still others make the attempt to do it themselves, only to realize they’re in over their heads.
If you’re thinking about hiring a contractor or handyman service to take care of routine maintenance and emergency repairs on your rental properties, here are a few tips.
- Do you need occasional help or a full-time maintenance person? Would you rather hire expert plumbers, electricians and carpenters each time you need specialty work? Knowing what you need is the first step. A long-term contract for routine maintenance plus regular repairs might be more economical than calling an expensive contractor for a smaller job. And don’t forget that availability is sometimes a problem with busy general contractors. A regular maintenance contract means priority when you have an emergency.
- Once you determine your rental property maintenance needs, ask for referrals.When working with an contractor, it’s sometimes difficult to know whether you’re getting a good deal and getting good work—or being ripped off. Your local builder and remodeler association is the perfect place to start your research. Also ask other rental property owners in your network. You might hear an earful about whom to avoid—and who is most trustworthy.
- Once you’ve narrowed your choices down, it’s a good idea to conduct a “job interview” with each one. Even though they will likely be a subcontractor, and not an employee, you’ll still need to be sure that there is a good rapport and mutual respect between you. If you’ve found the right person, you might be in partnership for a long time—and you want to make sure you can get along.
- Conducting due diligence on your potential handyman is another important to-do item. Check with your state licensing board to ensure your prospective contractor holds proper business and contracting licenses, and is bonded and insured. Individuals without proper licenses are best avoided. And don’t rule out conducting a background check. Anyone with access to your rental property puts you and your tenants at risk. Mitigate that risk by knowing exactly whom you are hiring. Be sure to ask for and check references before you make your final decision.
