Posted by Teresa on January 9, 2011 under Landlord Paperwork and Forms, Landlord Tips | 
Our previous post about a cop-calling tenant raised some additional questions from landlords:
Marilyn owns a duplex and lives in one unit. She rents the other unit to a tenant who confided in Marilyn that she is afraid that her ex-boyfriend was stalking her. The man was driving past the house several times a day, and the tenant had recently seen his car in the parking lots of the mall and grocery store where she had been shopping. She was worried, and wanted to let Marilyn know about his actions in case he became threatening.
Marilyn wants to protect her tenant and her property, but is rightfully concerned about getting too involved in the tenant’s situation. “I’m planning on calling the police if I ever see him near my property,” she said.
Police might recommend that Marilyn allow her tenant to take care of this problem directly, since the tenant is the legal resident of her unit. An attorney might say that Marilyn must take some sort of action to avoid being held responsible in the event a criminal action takes place against the tenant.
Encouraging a tenant who is being harassed to obtain a restraining order is certainly within a landlord’s area of responsibility. And as soon as Marilyn feels threatened by the ex-boyfriend, she too can seek a restraining order.
It is never a good idea to attempt any confrontation with a violent person. Stalking behavior is not acceptable behavior—it is a warning sign that should not be ignored. While it is understandable that Marilyn wants to protect her tenant and her property, it’s best to follow the law and let the police handle every confrontation with the ex-boyfriend.
Scott’s tenants were robbed soon after they moved into one of his apartment units. The thief took their TV, a computer, some cash and jewelry. The tenants claimed that Scott failed to protect them by providing proper door locks. Scott is curious about the limit of protection a landlord owes his tenants in this situation.
Robberies happen every day, in every level of neighborhood in America. A landlord cannot prevent a criminal who really wants to get in from entering a rental unit. However, solid locks on the entry doors and windows are necessary, and if your rental properties are lacking them, now is a good time to remedy that situation—before a robbery or something worse happens.
To avoid any question of liability, every rental agreement should include a clause requiring tenants to purchase renter’s insurance. Further, it should explain that the landlord’s insurance does not cover theft of the renter’s contents. If a tenant does not carry required insurance, the landlord could move to eviction.
Pre-screen all tenants as part of your standard application process. Background and credit checks will help ensure you rent to qualified tenants. For more landlord resources, including forms and information on tenant screening, turn to E-Renter.com.
Posted by Teresa on March 5, 2010 under Landlord and Tenant FAQs, Tenant Screening & Background Checks |
Verifying a tenant’s employment history and income is a vital step to approving his or her application. The unfortunate economic situation makes it even more important; while many good people have lost their jobs through no fault of their own, your tenants still need to pass your litmus tests, including meeting minimum income requirements.
Here are five reasons to verify employment and income on potential tenants:
1. Because landlords and property managers must know that each tenant who signs a lease agreement can live up to its terms—including paying the security deposit and upfront fees, plus the rent in full each month. Whether the tenant will pay on time each month is certainly not guaranteed—but you need to know whether they even have the capability before you sign a lease.
2. Because even if the tenant has the upfront fees ready to hand over, you’ll want to know if their employment history is solid. Holding a job is no guarantee that a tenant will pay rent on time, but it helps!
3. Because verifying the source of a tenant’s income is a great way to prevent those engaging in illegal activities from becoming your problem. In other words, if a tenant has plenty of cash but no job, be suspicious. Same for obvious high spending with a low income. It is not discriminatory to ask a tenant to prove how much money they make. Remember: pay stubs are your friends.
4. Because tenants sometimes go to great lengths to pull a fast one on a landlord. Just because they say they’re working for Jones Construction Company doesn’t mean they do. Ask for proof. Call the supervisor—and make sure that when you do, you’re actually speaking to the supervisor, not a friend pretending to be one.
5. Because knowing that your new tenant is stable and can afford the rent is one less worry for you. And landlords and property managers need to reduce worries as much as possible!
Posted by Teresa on March 2, 2010 under Landlord and Tenant FAQs, Rents and Deposits |
While some landlords avoid bounced checks by requiring cash or money orders from tenants, most still accept checks—and the risk that goes with that. Studies show that while the number of online payment options grows, the number of checks being written is declining. Still, plenty of folks pay their bills—including rent—with checks.
What are your options when a tenant’s check is returned by your bank?
Depending on the state in which you do business, writing a bad check can range from a misdemeanor to a felony. And, bad checks can be treated by law enforcement as a serious matter—or as a nuisance. Follow these steps to avoid the need to involve your local police or sheriff’s department.
- The first thing most landlords do is to demand full payment from the tenant, including the amount of the check, plus a handling fee. Make sure this fee covers any bank charges for returned checks and your bookkeeping time.
- Check your state and local laws to determine if there is a limit to the amount you can collect as a returned check fee. Some states allow for penalties and interest; others limit landlords to a flat fee.
- Give your tenant a time limit to pay in full. Many landlords and property managers begin eviction proceedings if they have not collected the full amount due by the end of the time limit.
- It is perfectly reasonable to require payment in the form of a money order or certified check—and to require subsequent rent be paid in the same way.
- If you charge a late fee for late rent, remember your tenant will be responsible for that if they pay in full after the agreed-upon date. So add it to the total tab.
- When drawing up lease and rental agreements, be sure to include a provision that covers your policy on returned checks. Include the compensation language, time limits, and late fees, and your requirements for money orders and/or certified checks.
Posted by Teresa on February 25, 2010 under Landlord Tips |
Their reasons for hiring a property management company are different for each property owner. In general, a property management company’s job is to keep your rental business trouble-free. That means they need to be knowledgeable about federal, state and local housing laws, how to best collect your rents, maintain your properties in proper working order, and ensure your tenants are keeping their end of the lease agreement.
Property management companies will also work to fill your vacancies, advertising the rental unit, interviewing and screening prospective tenants, and keeping up with all of the new tenant paperwork.
Property management companies are not free. And their fees and services can vary widely. Many landlords we know interview several companies to determine which is the best fit for their needs.
Here are some questions you might ask when interviewing property management firms:
- What does your standard service agreement include?
- What are your costs?
- How do you conduct repairs and maintenance? If the company has their own maintenance and landscaping staff, you can check out their quality before you sign anything. If they hire outsiders, inconsistencies could occur.
- What reporting can I expect? At minimum, a monthly report should be included. Some PM companies have online accounting systems that you can log into on your own to see what’s going on—just like online banking.
- What is your fee for filling a vacant unit? It’s usually either a flat fee or a percentage of the rent.
- How do you collect rent? You might prefer a company that does everything through electronic funds transfer—or you might need a service that can handle cash, money orders, or checks.
- When will I receive my money? Most PM companies will have your check or a direct deposit to you by the 10th of the month.
- Do you mark up subcontractors, materials, and supplies? You don’t want to be surprised by a bill that includes a $6.00 roll of paper towels—after you’ve already signed the contract.
- How do you handle emergencies? You might want an agreement that allows your PM company to spend up to $500 without needing your approval.
- How often will I hear from you? If you’re the type of landlord who only wants to hear from the property manager if the building is on fire, then you won’t want one who calls three times a week with questions and problems.
- What about evictions? Find out ahead of time if they offer eviction services and how much they charge.
Get a client list and call for references. Ask other landlords about unexpected expenses, unnecessary or unauthorized repair work performed, and mark ups on maintenance parts and services.
Meet the staff you’ll be dealing with to get a feel for communication styles and professional behavior.
Finally, check out the company’s insurance coverage and bonding status.
If you do hire a property management company, be absolutely sure before you sign any agreements–because you will probably be required to pay a few months of fees if you decide to cancel!
