Archive for the ‘Tenants’ Category

Apartment or House Rules

August 21st, 2009

If you?re new to the multifamily housing world and making your first foray into the business of being a landlord you?re going to want to establish some rules before you even think about renting your property.

If you?re doing the property management yourself you should research what rules are common and what rules are discriminatory. You want to establish fair rules that fit with your standards but ones that do not discriminate any renters or potential renters.

For landlords who?d rather have a property management company handle the ins and outs of the business you?ve got an easier road ahead when it comes to establishing rules for your renters. As long as you get an experienced property manager they?ll know the ins and outs of renter rules. The only work you need to do there is make sure you agree with their predefined rules and if you?d like to add a couple of your own you?ll have to iron that out as well.

In addition to establishing your rules there should also be a written explanation of how rule violations will be handled and the process for dealing with complaints from other tenants regarding rule breakers.

All of this information should be presented up front and in the lease. This ensures that the tenants and the landlord and/or property manager are on the same page and should make things go more smoothly.

Rent a Room in your Home

August 14th, 2009

With the economy diving so deeply many Americans are desperate to save their homes and find a way to make ends meet. If you?re in this pickle you may want to rent a room in your home as a way to do both.

The first step when heading down the road to becoming a landlord is learning what your state and city will allow and what they won?t. Are you looking to share your home with a boarder who will basically have access to every room or are you looking to convert a basement, attic, or garage into a separate apartment? This will determine what laws and regulations you need to follow. There will be more regulations and rules if you?re going to create a separate apartment.

You?ll also want to establish some rules, you may think that people would respect some certain common courtesies when living in your home but that isn?t always the case so make sure you know what you?re willing to accept and what is totally not allowed. Then put the rules in writing.

Establishing a price for your rental is a little more difficult as you can?t simply pick a number you think is fair or one that will cover your unmet bills. You have to research the area to determine what similar rental units are going for and what is fair for what you have to offer.

Selecting a tenant should be the most important part of the process for you. You want someone who you think you can live with, you want to make sure they?re responsible, and you will have to comply with federal, state and local fair housing laws.

The last step is doing a final cleaning and inspection of the property with the tenant to make sure that everything is ready for them to move in.

5 Things Every Tenant Should Know

August 12th, 2009

Whether you?re new to the rental world or you?re a seasoned renter there are some things that every tenant should know. The following 5 tidbits can help you get the most out of your renting experience.

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Read the Lease

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It seems obvious but most people don?t read contracts, they skim them and take away virtually no information. Take the time to read every contract, including a lease, before you sign on the dotted line.

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Get it in Writing

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If there are any addendums to your lease or agreements between you and the landlord you should always get it in writing. Email can be especially useful at times as long as you keep all correspondence to prove you have promises and agreements in writing.

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Protect your Privacy

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Even though you?re renting the property you live in is your home so learn what your state and city says about privacy. If your landlord has to enter your property you should be notified at least 24 hours in advance, unless there is an emergency.

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Report Repairs

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If something is broken or not working correctly you have to report this to your landlord. It is their responsibility to keep the premises and the appliances within it (as long as you?re renting them also) in working condition. If you break something it is obviously your responsibility but if not then your landlord should know and make the repair in a timely fashion.

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Get Renter?s Insurance

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Far too many people don?t know about or simply skip over rental insurance but it?s one of the best investments you can make and it?s relatively inexpensive.

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By informing yourself and being a knowledgeable and proactive tenant you can do your share to insure that your renting experience is a good one for everyone involved.

What do Renters Want

July 29th, 2009

If you’re looking to get renters into your open units then maybe it’s time to take a look at supply and demand, basically, are you giving renters what they want?

If you ask tenants what they want in a rental unit you’ll get a bunch of ideas but three things will remain constant. They want a fair price, a quality home and something that is convenient to them. Keep in mind that convenience means different things to different people.

Beyond the basics tenants are looking for some amenities that give them convenience and comfort. They like bigger bathrooms, generous kitchens, and they love storage. Many large rental units are adding fitness areas, co-op libraries, community space and other luxuries that actually don’t cost a lot for the property owner but add a lot of value to the residents.

Another trend that is catching on everywhere has hit rental units as well, is the green movement. If you’re looking to get socially and environmentally conscious tenants (usually very good tenants by the way) then incorporating as many ecofriendly aspects into your home are important.

And finally, if you’re looking to attract tenants, let them know what plusses your units offer. Advertise your highlights and gear them to the sort of tenant that you want and that best suits your environment.

Determining What to Charge for Rent

July 27th, 2009

If you?re a landlord and want to set a price for a rental unit or to adjust the current price you can?t simply pick a number out of the air. Well, you can but it?s doubtful that you?ll get renters at that price or that you?ll make ends meet. It?s a little more complicated than that and requires a little work.

The first thing you should do is determine your expenses. Is there a mortgage? Are there additional fees related to maintenance or other items that you pay regularly. Figure out any depreciation and appreciation. Remember to add in your regular upkeep fees. This gives you an idea of what you need to survive and what would give you a nice profit. But this is not necessarily what you?ll be able to get from the market.

The next step is to review your local rental market and see what people are paying for similar properties. This is really the best indicator of what you can charge for your rental units. By pricing yourself too high for your local market you may risk having too many open units. By pricing your units too low you may not break even and you risk getting undesirable tenants.

If you find that you need much more than your local market accepts then you?re probably not going to be financially successful and it may be time to consider a different line of business or make some drastic changes to your business model.

If Tenants Won?t Leave

June 5th, 2009

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.

Job Transfer and Ending your Lease

June 3rd, 2009

If you’ve got a new job offer and have to leave the city in which you live you may find yourself in the difficult situation of having a lease that you’re unable to complete or that you don’t want to complete.

Now some larger rental agencies may have a clause in your lease that lets you break a lease in the case of a job transfer or a move for any reason as long as you give a specified amount of notice.? This is the ideal situation as you simply have to follow the outlined procedure.

If your lease doesn’t have a clause that lets you terminate because of a move you’ll have to see if your landlord is willing to let you out of your lease. A lot of landlords understand that moves happen and if you’re up front and give them as much notice as possible they may be very willing to let you end your lease.

Some landlords aren’t nearly as flexible and they aren’t about to let go of a paying tenant while they have one. If this is your situation you can ask if the landlord will let you sublease the apartment, at least this way you can find a tenant yourself and recoup part of the expenses.

If you’ve got a great new employer and you can’t break the lease, see if the employer is willing to pay any of your moving expenses, this money can be used to pay part of your lease.

5 Musts of Every Lease or Rental Agreement

May 25th, 2009

Learn the 5 things that every lease must contain. Without these items your lease or rental agreement will be missing important elements which could cause your problems in the future including possible lawsuits.

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Including the names of your tenants seems obvious but many landlords only include the name of one tenant. Rather than single out one tenant, make sure every tenant signs the lease or has their own lease which they’re required to sign.

Occupancy Expectations?

Spell out occupancy expectations in writing. If you only allow two tenants per unit then let the tenants know that they cannot invite others to move in. Also if you do not allow pets then this must also be stated in the lease.

Financial Expectations?

Not only should you state how much rent will be but you should include any security deposits and other deposits, you need to state if the tenant is responsible for their own utilities and additional expenses.

Term of Tenancy

Is your lease a rental agreement or a fixed term lease? Rental agreements are a month to month agreement and tend to self renew. Fixed term leases typically last a year and then are renewed or terminated. This needs to be clear to all parties.

Access to Property

Most states or local areas have laws about when a landlord can enter a tenant’s apartment and how much notice must be given. This should be stated in the lease, but you should also include information on emergency entrance or notice necessary to make repairs or perform routine maintenance.?

By including these five points in your lease you’re protecting yourself from some problems in the future or legal actions against you. These are by no means the only information that is necessary in your rental contract but it’s a great starting point.

Constructive Eviction

May 13th, 2009

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.

How to Communicate with Tenants

May 12th, 2009

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As a landlord, there is no way around communicating with tenants. This is part of your job, and something that you will have to “settle into” sooner rather than later. If you are not confident in your ability to communicate with tenants you don’t want to get involved with this area of the real estate industry. (more…)