6 Lease Renewal Tips

by Chris on January 23, 2012

Streamlining your lease renewal process helps you avoid problems, and makes it easy for a good tenant to choose to stay in your rental property.

Here are a few tips to keep in mind when it comes time to extend your current lease:

Inspect and repair the property going into the next lease term. Otherwise, minor repairs may worsen, or damage may go undetected over the next several months.

Make the lease extension official. Depending upon the language of your existing lease agreement, you may be able to offer a simple lease extension form for the tenant’s signature. This short form will indicate that all the terms of the existing lease will continue in effect for another specified term, or spell out any changes in those terms, like a rent increase or new policy.

Without a written lease extension or new lease, the tenancy becomes a month-to-month. That may not be a bad thing, especially if you weren’t planning to increase rent, but it can cause problems. For instance, the tenant now has control of when you will be filling the next vacancy. Month-to-month leases may require only 30 days notice if the tenant wants to move on. The tenant may find a great deal on a vacant unit in November, but then you may struggle to fill your vacancy in December.

Avoid auto-renewal provisions, where the lease is renewed unless the tenant serves some sort of notice on the landlord. Often, tenants simply forget these provisions are in the lease and miss the deadline for giving notice. As a result, auto-renewals are prohibited under many states’ consumer protection laws, and otherwise may not stand up in court as valid contracts.

Ask the tenant to update the rental application with any new information, like emergency contacts, employer or a new bank, or new pets.

Find out if “guests” are actually living in the property, and if so, add them to the new lease, after they fill out a rental application and your conduct a tenant background check.

Use this time to make upgrades or update items like older appliances. This allows you to reward your good tenant for their lease renewal, and at the same time improve your rental property.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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City Orders Landlord to Screen Tenants

by Chris on January 23, 2012

A landlord in Joliet, Illinois lost control of his rental property because he failed to screen his tenants.

His former tenants caused such a ruckus–including a shooting at the property, that the city effectively revoked the landlord’s rental license, according to a news report. Police insisted the landlord attend training on how to screen tenants before anyone else moved in.

Despite the order, the landlord leased the property to new tenants, but the city forced them out. The newspaper reported that the new tenants lacked the income to rent another property, and ultimately moved in with relatives.

Joliet has a strict rental licensing program which requires an application and building inspection before the landlord can rent. The inspection program applies to properties where police or fire fighters have been called to the property for disturbances. The city maintains extensive records on each property in conjunction with the licensing program.

In addition to undergoing inspections, landlords in Joliet must take steps to prevent crimes by providing new tenants with these disclosures:

That the city prohibits the use of the rental property for illegal activities or in such a manner so as to constitute a public nuisance.

That it is a public nuisance and a crime to use the rental property for the playing of loud music, the making of loud mechanical sounds or other noise that unreasonably disturbs other persons.

That it is a public nuisance and a crime to use the rental property for drug-related criminal activity, prostitution, the illegal use of alcoholic beverages, the unlawful discharge of a firearm or other illegal activities.

That it is a public nuisance and an ordinance violation for the tenant to allow garbage, animal waste, inoperable motor vehicles, junk or debris to accumulate on the rental property or to cause the rental property to be in an unsanitary condition.

That the tenant is responsible for illegal and nuisance activities that occur within or upon the rental property whether these activities are conducted by the tenant, the tenant’s family, a guest of the tenant or any other person allowed on the property by the tenant.

That the owner has the right to terminate the tenant’s lease and evict the tenant from the rental property if the tenant allows the property to be used for illegal activities or in such a manner so as to constitute a public nuisance or if the tenant allows the rental property to be used for drug-related criminal activity, prostitution, the illegal use of alcoholic beverages, the unlawful discharge of a firearm or other illegal activities.

These disclosures can be included in the lease or in a separate letter, but in either case, must be signed by the tenant. The landlord must then submit a copy to the city.

The landlord who lost his certificate of occupancy has since agreed to conduct tenant background checks, and to provide lease agreements that include the crime-free addendum, according to the report. It is expected that he will regain control of his property next month.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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Should You Require Renter’s Insurance?

January 23, 2012

Renters often believe the landlord is liable for everything that happens on the property–including any damage to their personal belongings. But this is not always the case. More likely, the landlord’s insurance will only cover damage to the building, while an uninsured tenant will have to pay to replace their belongings. The majority of tenants take a pass on [...]

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Marijuana Smoking and Human Rights

January 16, 2012

by Grant Haddock, Haddock & Company The number of marijuana smoking complaints that our offices have had to deal with over the last few years has increased. A number of factors play into this including acceptable social practices and law enforcement issues. Marijuana smoking, just like smoking, can be dealt with by Landlords by way [...]

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Ontario Landlord and Tenant Board Amends Rules and Guidelines

January 16, 2012

Ontario’s Landlord and Tenant Board announced that it amended a number of its Rules of Practice and Interpretation Guidelines on January 6, 2012. The Board also added one new Rule of Practice: Rule 32 – Legal Representatives Acting as Advocates and Witnesses in the Same Proceeding, and added two new Interpretation Guidelines: Interpretation Guideline 20 [...]

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British Columbia Sets Deposit Interest Rate for 2012

January 16, 2012

The British Columbia Residential Tenancy Office announced that the 2012 interest rate on security and pet damage deposits is 0.0%. The rate has remained unchanged since 2009. Security Deposit Quick Facts: In residential tenancies, a B.C. landlord can require a tenant to pay a security deposit (also called a damage deposit) or a pet damage [...]

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What To Do When Your Tenant Abandons a Pet

January 16, 2012

Sly is a black Labrador Retriever and Border Collie mix looking for a new home. He was found by his owners’ landlord after they skipped out of their condo without a word. Sly wasn’t alone–two dogs were left behind, and both struggled to fend for themselves in the abandoned rental property. While it is always frustrating when [...]

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Québec Landlords Association Offering Valuable Landlord Training

January 16, 2012

The Québec Landlords Association (APQ) is offering a number of upcoming educational opportunities for landlords. For instance, the APQ is offering a seminar next week, January 23, entitled Housing Perspectives in the Region of Montreal, and the Vacancy Rates. On February 13, the APQ will be holding a new seminar on how to set the rent [...]

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4 Lease Updates for 2012

January 9, 2012

The start of a new year is always a good time to re-evaluate your rental documents, and make sure you are maximizing the protections you have in your lease agreement. Here are some problem areas that deserve special attention, based on emerging property management trends: “No Pets” Policies Last year, a number of landlords were prosecuted [...]

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Growing Trend to Hold Landlords Accountable for Tenants’ Crimes

January 9, 2012

Officials Say “We’re Not Fooling Around” Sunbury, Pennsylvania is one of the latest municipalities to hold landlords accountable for policing crime in rental properties. The new measure will give the city the right to demand that landlords evict problem tenants–or face fines themselves. The city also wants the right to take control of rental units [...]

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