Unfortunately some landlord/tenant situations don’t go as well as everyone would hope, in fact there are people who routinely take advantage of landlords by refusing to leave the premises after they’ve broken the rules, failed to make payments, and been asked to leave by the landlord. If you find your self in this situation you will have to take legal measures to remove a tenant from your property.

Your first step is serving the process is serving the tenant with an unconditional quit notice, this lets them know they have to vacate the premises in a specified amount of time and they have no chance of rectifying the situation. Check with your state or local laws to see how long the tenant has after notification to vacate.

If the tenant still won’t leave then you need to move ahead with eviction proceedings. Again, you’ll have to check with your state and local laws or look for a landlord organization and they should have packages of information that will help you with the process and provide you with the appropriate paperwork. Make sure you follow every step to the letter because not doing so may delay the process.

Each court is different but yours will assign a trial date at which time you’re expected to show up with all of your evidence. If you win the case your tenant will be given some time to gather their belongings and leave, this can be several days or several weeks.

If the tenant has still not left the property at the prescribed time then you’ll have to call your local police and tell them that you need a tenant forcibly evicted, at which point they will come over and escort the tenants off the premises.

If this is new to you, you may want to hire a lawyer who is well versed in tenant law and has handled this sort of case before.

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Constructive Eviction can actually be a good thing for a tenant unlike a traditional eviction which can be quite traumatic and leave you stranded without anywhere to go. Constructive Eviction is when the landlord has rented someone a place that is so substandard or unlivable that you are legally considered evicted and the lease no longer applies, leaving you free to move without further obligation.

Some common Constructive Evictions include a landlord that turns off the heat or water or if there’s an environmental health hazard that is not property attended to. In these situations tenants are able to move without fear of legal repercussions, but each instance should be documented as well as your attempts to inform the landlord of the problem and his or her attempts to remedy it, if any were made.

Quite often you’ll hear small claims cases on court television where one tenant changes the locks on another tenant, this too is a form of Constructive Eviction which will leave the remaining tenant entirely responsible for any rent bills and typically will get sued for this action.

If you’re a landlord its important to take care of any complaints your tenants bring to your attention, especially health hazards. And if you have a troublesome tenant it may be tempting to have the heat and water shut off but as soon as you do that you lose your legal upper hand. If you’re a tenant, know that you have the right to leave if your landlord performs a Constructive Eviction and you are no longer tied to the lease.

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With all of the smoking bans popping up across the United States, Florida just recently had an interesting situation that could lead to banning smoking in privately owned condominiums.

Florida’s Clean Air Act initially contained a provision that banned smoking on common elements of a condominium. But this provision didn’t stay in effect for long and the anti-smoking restriction was removed. It’s unclear exactly why this was removed from the law but the initial step in that direction may be a harbinger of things to come.

In addition, there have been some situations in Florida where secondhand smoke which seeps into another condo unit has been considered a nuisance. The courts have stood by the neighbors and declared the secondhand smoke a nuisance and banned the smoking condo owners from smoking in their own homes.

It’s easy to see where this is headed and how quickly smoking could be banned across the United States. So if you’re a smoker and wish to continue to be a smoker you may want to dig deeper into local laws and regulations before you move into a housing unit that shares common walls and heating and air conditioning vents with other units. Public sentiment is definitely not on your side.

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One of the most common lawsuits that landlords find placed against them by tenants is fair housing disputes. There are some steps you can take as a landlord to try to avoid a fair housing lawsuit from your tenants and the first ones start before you even have a tenant.

Screening

Every person who responds to your vacancy needs to be treated in exactly the same manner. This means that you need to have the same application and screening process for everyone, no matter what their age, race, gender, etc. If you discover a good business reason not to rent to someone during the screening process it’s a good idea to note these on the application.

Know the Law

You should become familiar with all laws relating to fair housing whether they’re federal or local laws. If you happen to have a staff or property management company its important that they also understand all of the rules related to fair housing for your region.

Stay the Course

It seems obvious that all tenants should be treated equally but you may be tempted to give someone a break based on their situation but by doing this you’re simply setting yourself up for future discrimination suits from other tenants. So stay the course and treat all tenants the same.

Even if you do everything right it’s not a guarantee that you won’t be sued so keep accurate records to prove your case in court.

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There are a lot of legal matters involved with being a landlord but quite often you can handle them yourself if you keep good records, follow the law and are willing to stay abreast of what’s happening locally in the landlord/tenant realm. But there are some times when you may want to hedge your bets and hire an attorney.

Contested Eviction

Most evictions you can handle yourself as long as you follow the rules and the detailed procedure but if you have a tenant who is contesting the eviction and has retained their own attorney then it might be time for you to pull out the big guns and get your own attorney involved.

HUD Investigates

If a tenant has filed a complaint against you and Housing and Urban Development (HUD) thinks there is enough merit to investigate then you may want to have a lawyer on your side as the fines issued by the HUD are very large.

Personal Injury Case

If a tenant claims that they became injured or sick because of something related to your property then you will probably want to have an attorney help you through the case as personal injury cases can be extremely expensive.

Buying/Selling Property

A real estate attorney can be an invaluable asset if you’re thinking about buying or purchasing property. They know all the ins and outs and the really good ones have a great handle on the value of property in the area and the current local market.

First Time in Court

You don’t need an attorney for your first court appearance, but it may help you understand the process and get your paperwork and information in order. You probably can do it alone but for some, having an experienced teacher at your side is well worth the expense.

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Many people have heard of the Federal Housing Administration (FHA) but when pressed its hard to come up with a description of what this group does or how they help American people purchase homes.

The FHA provides mortgage insurance for loans made by approved lenders. It is actually the largest mortgage insurer in the world. FHA insurance protects lenders from people who default on their loans as long as they meet certain requirements. If someone does default the lender receives a monetary claim that helps defray the lender’s expenses. Remarkably the FHA is the only government agency that is completely self funded and costs taxpayers nothing.

By helping lower income Americans purchase homes with lower down payments and more generous household income calculations, the FHA stimulates the economy by encouraging more home ownership, more jobs for builders and contractors and other related industries, improves tax bases in certain targeted areas which in turn help local schools and other government funded groups.

Unlike regular loans, if you have an FHA-insured loan you don’t have to come up with a 20% down payment. The cost of the FHA insurance is passed through your lender to you and is tacked onto your monthly mortgage. As you continue to pay down your mortgage balance the FHA insurance will drop.

The FHA has a storied history of over 70 years of helping American people who own homes or who are affected by the industries that are supported by an increase in good economic housing, so basically everyone.

Popularity: 3% [?]

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If you’re creating a lease for new tenants there are several things to be considered but no matter what, make sure the following five are included to prevent future problems.

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Do all property owners need a lawyer? The answer is probably yes, but in varying degrees. It’s usually very beneficial to have a real estate attorney to make sure your initial purchase goes as planned. But after that, most property owners don’t need to have an attorney. If you only own one or two properties you can probably handle most issues on your own and can contact your real estate attorney when and if you have a concern. (more…)

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Taking a tenant to court or being taken to court by a tenant can be a very stressful situation. You can alleviate that stress a little bit by taking the proper steps from the very beginning, in fact, if you’re meticulous enough, you might even be able to avoid court all together. (more…)

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Taxes are tricky. Are you taking advantage of all the breaks you’re entitled to as a real estate owner? Everyone knows you can deduct your mortgage interest from your federal taxes, but property owners can also take advantage of a number of other breaks.

• Points: The IRS consider those hefty fees paid to lenders as a form of prepaid mortgage interest. So if you bought a home in 2007–or refinanced your adjustable rate mortgage you get a break.
• You may also qualify for a mortgage interest deduction on a second vacation home as well as any second mortgages or home equity loans you hold.
• Owners of investment property can deduct expenses related to the property, so keep receipts for repairs, upgrades, or real estate management fees.
• If you rent out your vacation home when you aren’t using it, you might be able to deduct the cost of travel there and routine upkeep.
• Home improvements made for health reasons are deductible from your taxes, if they’re made for the chronically ill or disabled and don’t add value to your home.
• Tax credits can also be deducted for “green” improvements, such as energy efficient windows and doors and solar energy systems.

If you sold your home and moved because of a job, you may be able to deduct some of your moving expenses. You must move at least 50 miles and you must have moved in order to take a full-time job. You can deduct the cost of packing and transporting your household goods. You can also deduct travel expenses for yourself and your family, which includes lodging, but not food.

You cannot deduct:

• Any part of the purchase price of your new home
• Expenses of buying or selling a home
• Expenses of entering into or breaking a lease
• Home improvements to help sell your home
• Loss on the sale of your home
• Losses from disposing of memberships in clubs
• Mortgage penalties
• Pre-move househunting expenses
• Real estate taxes
• Refitting of carpet and draperies
• Return trips to your former residence
• Security deposits
• Storage charges except those incurred in transit and for foreign moves

If you invest in real estate good record-keeping is essential. Keep the purchasing contract and closing statement, which establish the basis on which you’ll calculate depreciation as well as capital gains. Also keep track of capital improvements you’ve made, which you can depreciate; rental income records, including vacancy periods and security deposits received; and operating expenses.

If you work from home, you can deduct expenses that are related to business, including real estate taxes, rent, insurance and maintenance and repairs. Those expenses are based on the amount of square footage you use exclusively for business.

If you have a lot of complex real estate investments, or even if you just own your own home, it’s a good idea to read up on what the IRS allows you to deduct and when.

For example, timing is everything. If you sell your home but immediately reinvest the windfall in a better property, you may be entitled to defer the taxes on those capital gains. On the other hand, homeowners who have lived in a house that served as their primary residence for two years can exclude up to $250,000 of the profit from their reported income–twice that for married couples. Investment property, on the other hand, has a whole different set of rules.

There are a number of places on the Web with information on real estate taxes, starting with the IRS:

• IRS: Selling a home looks at when you can avoid paying capital gains on the sale of your property.
• IRS: Rental Income and Expenses details how to report income and what expenses are deductible.
• IRS: Passive Activity Losses covers rentals.
• IRS: Residential Rental Property is the IRS’ guide to preparing your 2007 return if you own a vacation or rental home.
• Financial Web: A few investment real estate tax tips.
• Motley Fool: Trump Your Taxes With Real Estate.
• Field Guide to 1031 Exchanges by the National Association of Realtors looks in depth at the rule that investors to defer capital gains taxes on the exchange of like-kind properties.
• Financial Web: Taxes and Your Investment Real Estate.
• Smart Money: Taxes when you sell your home.
• Federal Real Estate Tax Rules for Property Owners.

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