Q: I’d appreciate suggestions on how to constructively and inoffensively give feedback to the tenants on items that require attention after a periodic mid-term inspection.

I have rented my property to some early 20′s gentlemen who are notably inexperienced maintaining a property.  I performed their 6-month walk-through and found evidence of a pet (that is not allowed as per the lease), additional occupants (again, not permitted without application of the individual), and aroma of smoked substances that they tried to disguise by opening all the windows.

As a female landlord, I’m not comfortable with confronting the tenants, but would like to have some format to provide them feedback that won’t encourage them to depart as tenants, but to be respectful of the agreement we signed. – TVS Landlord

You are right that keeping tenants in line requires periodic inspections.  That’s a good item to have in your lease because it serves to warn the tenants they will get caught if they act inappropriately. 

While it is good that you perform these  inspections, six months may be too late into the tenancy to avoid problems.  By then, your tenants will become entrenched into their habits, and this makes your work much harder.  Problem tenants tend to bend one rule, then wait to see if the landlord reacts.  When the landlord doesn’t catch the rule-breaking, this emboldens the tenant to try it again.  It doesn’t take long for them to get the impression that they will get away with anything.

Being female will have no bearing on your relationship with your tenants. What does impact your authority is your level of involvement.  You must always keep in mind that you’re the boss when it comes to your rental property. Take steps to remind the tenants that you are in charge.  Build a policy of interacting with the tenants on a more regular basis.  For instance, you could perform inspections every two months.

Because you value these tenants and want to salvage the relationship, sit down with them and have a conversation. Landlords often avoid talking to  problem tenants face-to-face because it can be stressful. Emotions run high.  After all, it is your property and your income that are at stake. For the tenants, your property is their home, and they want to feel comfortable there.

When confronting tenants who have been bad, use these negotiation strategies to resolve the problem quickly and minimize your income loss:

Know what your rights and liabilities are.  Do you have the right to evict? To give a bad reference to the next landlord?  These are your “assets”,  so to speak.  You may have liabilities, too.  In this case, your liability is that you waited too long to confront the tenants about rule-breaking.

Weigh your assets against the liabilities. Consider how long it will take you to go through an eviction,  restore the unit, and find another tenant, versus what damage or losses you may incur with the present tenants.

Visualize your best case scenario. What do you want them to do?  For instance, do you want the occupant to move, or to sign the lease?  Do you want the pet out, or do you want a pet deposit?

There are some things you can’t back down on.  If the tenants are doing something illegal in the rental property, that puts you at risk.  Landlords themselves can be prosecuted or fined for overlooking a tenant’s crimes, and crime can increase the chances of property damage.

Set time lines for changes. For instance, the new occupant must complete a rental application and undergo a tenant background check in the next ten days, or vacate. Be realistic, but force the issue if the deadline passes.

Leave your emotions out of the conversation. For you, this is business only. For them, it’s a little more personal. Avoid a harsh tone, and you can keep the conversation productive and non-confrontational.

Immediately look for areas of agreement. A good negotiator will accomplish this by breaking the dispute down into smaller, easy-to-swallow bites.  For instance, you can all agree that the lease prohibits the new occupant. All occupants must undergo tenant screening and sign the lease.  If they accept the facts, then they must agree to the outcome.  You can spend the remainder of the “negotiation” setting the deadlines.

When looking for a resolution, please keep in mind that decisions you make can impact your ability to enforce those provisions in the lease at a later date.  For instance, if you overlook the pet issue, or make concessions to allow the pet to stay, you may have trouble evicting the tenant later on for having the pet.  Talk to an attorney if necessary to avoid inadvertently modifying the lease.

 If these tenants do fall into line, then be sure to continue to follow up with them.  Convey your expectations and check back  in with them regularly to ensure they are complying. Believe it or not, they will actually appreciate your setting boundaries and it will earn you the respect you deserve.

As they continue to improve, don’t forget to praise them for their efforts.  Your willingness to work out problems will be a sign that you value them as tenants — and that will go a long way towards improving the conversation.

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.

Tim Paulsen is an international specialist training credit and collection professionals. Drawing on his experience as a collector, fraud investigator, skip-trace manager, and consultant, he is the author of Paid in Full, a popular book on collections, now in its second edition.

When Tim trains collection departments, either as a consultant or during one of his famed presentations, one of the things he stresses is that the words you choose can have an impact on your success in collecting an outstanding payment.  This is true in part because these words reflect the mood you are in, and that may not be optimal for your success.

One of the problems a collector may face is using acronyms or phrases that the debtor simply doesn’t understand. To make a bigger impact, tell the debtor what this means to them — that it will hurt their credit, for example — something of interest to them.

Quoting Fran Tarkenton, Tim drives home the point that “People don’t change their behavior unless it makes a difference for them to do so.”  It’s important to “keep it simple,” he says.

Here is an example of what you might say:

“Will you please mail me a check today for $XX?”

Only ten words – but powerful:

‘Will’ rather than can. “I want them thinking about a solid commitment,” he explains.

‘Please’. “There is nothing wrong with please and thank you, no reason to not be polite, but we don’t beg for the money.”

‘Mail’ is specific. People think in pictures and this puts one in the debtor’s mind. If you don’t want it in the mail, ask for delivery, pick up, etc.

‘Check’. Once again, specific. You may choose options of credit card payments for consumer and some commercial accounts.

‘Today’ creates a sense of urgency.

‘$XX’.  Demand the full amount due. “I’m not looking for just a payment,” Tim explains. “If we negotiate, we will do so based on the full amount, not a partial payment.”

One of Tim’s special talents is excuse-busting.  If fact, he’s made a science of it by creating a software product that automatically leads collectors to counter-statements which instantly dissolve a litany of common excuses.   Anticipating these roadblocks can prevent the debtor from delaying the inevitable collection, force them to face up to the problem and focus on how to resolve it.

Another important facet of effective debt collecting is understanding that carrots weigh more than sticks.  This is particularly important if the collector is trying to salvage the relationship with the debtor.

When motivating in-house collectors, an area of expertise for Tim, he counsels collectors to keep in mind the purpose of the business they represent. Applying his rationale, consider your objective as a landlord to provide rental housing. Keep that front and center in your mind as you sort through excuses and problems tenants may be facing.  Help when you can, and when you can’t, you must end the relationship in order to continue to provide housing for others. 
 
Don’t underestimate the benefits of preparation. “We know the value of stretching and warming up before any exercise or sporting event, getting our body ready for what it’s going to be asked to do,” he explains.  “What about your work? Too many of us pick up a telephone or walk into a meeting and haven’t taken the time to get our ‘head’ around the upcoming task or assignment.”

It is also important to keep up with accounts that show signs of delinquency — late payments. Staying on top of it is easier than getting behind it. “We all know from our high school physics classes that it takes a lot of effort to get an object in motion. Once it gets going…not so much,” Tim explains. “It doesn’t matter much whether we are riding a bicycle, driving a car, or trying to get a debtor out of the habit of paying several days past the due date.”

“If your ‘customer’ does not know your policy or you do not enforce it reasonably, then you don’t have one,” Tim warns. “It’s not entirely their fault if you have been shy.”  Call or send a letter: “We realize that perhaps we were not clear in the past about the terms you agreed to so we thought it best to…”, and then your policy will be enforced.
 
Referring to the classic movie Jaws, Tim recounts a dramatic scene where the town’s sheriff first gets a glimpse at the infamous Great White and exclaims, “We need a bigger boat!”  Recognize when you are in over your head collecting a debt, and bring in the specialists. Sometimes, you will need a bigger boat.

Collection expert, consultant and author Tim Paulsen with T.R Paulsen and Associates has delivered his highly rated training seminars on “Effective Collection Techniques” to clients all across Canada and the United States as well as in Bahamas, Bermuda, China, India, Indonesia, Jamaica, Malaysia, Philippines, and Singapore and the U.A.E. For more information, visit
http://www.trpaulsen.com/.

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.

New York Housing Court will no longer make tenant data easily accessible to landlords, a move officials say will prevent discrimination.

In a letter to State Sen. Liz Krueger, Chief Administrative Judge A. Gail Prudenti confirmed that the names of individuals in housing court actions will no longer be sold in electronic form by the New York State Unified Court System to tenant screening companies.

Information regarding individual cases will continue to be available through the Unified Civil Courts’ eCourts website and in the Housing Court clerks’ offices.  However, cases will have to be researched individually, which could drive up the application costs, and delay the application process for tenants. 

Sen. Krueger refers to the previously unrestricted sale of tenant names in electronic form to tenant screening companies as discriminatory.

A coalition of New York City elected officials and tenants’ advocates brought the issue to Judge Prudenti’s attention earlier this year.

These tenant advocates fear that individuals can end up blacklisted without having done anything wrong. Thousands of tenants are named as parties in Housing Court cases each year, they say, because their landlords face foreclosure, as the result a government agency failing to pay a rent subsidy on time, or as the result of an error. Even when these cases are quickly dismissed, the tenants’ information remains in the system and is sold to tenant screening companies, causing long-term damage.

In addition, they say that with New York City’s tight rental market and soaring property values, unscrupulous landlords routinely bring Housing Court proceedings to harass rent-regulated tenants and drive them from their homes. With the practice of blacklisting, a landlord could merely threaten to name a tenant as a defendant in housing court, and win or lose, that tenant would be faced with a black mark that could make it difficult or even impossible to secure housing in the future.

Krueger says that tenant blacklisting has had a chilling effect on tenants’ ability to exercise their legal rights. Tenants legally entitled to withhold their rent to enforce their right to safe and habitable housing have had to fear permanent consequences merely from being named in an eviction proceeding, even if their landlord is unsuccessful in the court action itself.

New York City Councilmember Daniel Garodnick adds, “Tenants who assert their rights in court should feel secure that Courts are not going to make it easier for landlords to hold it against them the next time they try to rent an apartment.”

The change goes into effect June 1, 2012.

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.

An appeals court in New York decided that mold found in an apartment is ‘toxic’, and that could spell trouble for landlords.

Injury attorney Jeffrey Lichtman of Trolman, Glaser & Lichtman in New York,  says that the New York appellate court’s recent decision in a landlord negligence case serves as a good reminder that tenants can hold landlords responsible for their injuries.

If the case is successful, the result could have significant implications for tenants seeking to sue their landlords for health issues related to mold in rental properties.

The case was brought by an apartment dweller against the property management company of a building where she lived for six years.  The former tenant claims that she developed physical symptoms, including dizziness, rashes and respiratory problems after being exposed to mold in her apartment.

The mold, discovered underneath the apartment’s floorboards, is believed to have been caused by previous water damage.

The trial court originally dismissed the case, unconvinced that the mold was toxic. But on appeal, the higher court examined information from a medical expert and evidence from scientific studies that suggested that the mold in the apartment did, in fact, create the woman’s respiratory problems.

As a result, the appellate court has allowed the lawsuit to go forward.

Lichtman notes that while it is difficult to determine the exact impact this ruling will have because the case still has to be tried, a successful result could have significant implications for tenants seeking to sue their landlords for health issues related to toxic mold.  Landlords will need to demonstrate added vigilance in tackling mold problems as soon as they occur, and take steps to eliminate maintenance problems that could lead to mold.

Lichtman advises tenants that their landlords are responsible for keeping their buildings safe, and when negligent maintenance occurs and someone is injured, then those owners can be held responsible.

According to the New York State Attorney General’s tenants’ rights guide, New York property owners also have a duty to:

Inspect apartments where children live for lead paint hazards and to repair them;

Install approved smoke detectors and carbon monoxide detectors near sleeping areas;

Take precautions to protect tenants from assault by installing proper door locks, two-way intercom systems, mirrors in elevators, door peepholes and adequate lighting in entrances and along walkways;

Install window guards in apartments with children under 10; and,

Clear ice and snow from sidewalks in a reasonable amount of time after inclement weather.

When landlords fail to properly maintain the premises, and an injury occurs, tenants have the option to pursue a personal injury lawsuit, Lichtman says.

The premise liability lawyers at Trolman, Glaser & Lichtman have represented thousands of injured New Yorkers in the past 40 years and have obtained more than $1 billion in settlements and verdicts for their clients.

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.

A landlord in British Columbia was ordered to return a security deposit to tenants who left the unit a mess because of a mistake made during dispute resolution.

The tenants had paid a $725 deposit to the landlord when they moved in. Two years later, the tenants left owing money, and without cleaning the rental property.  The unit required 11 hours of cleaning and repairs.  The landlord claimed damages of $875.60, but offered this itemization, totalling over $1,000:

$112 for carpet cleaning
$154 for general cleaning
$30.80 for cleaning materials
$336 for painting
$117 for painting materials
$100 for filling 2 holes in walls
$179.20 for furniture removal.

The landlord filed for dispute resolution in order to apply the security deposit and claim additional damages.

The landlord submitted this evidence is support of the claim: photos of the rental unit, a security deposit refund worksheet, move-in and move-out inspection reports, and the tenancy agreement. However, the landlord did not provide receipts, invoices or records of payment made. The tenants did not appear at the hearing.

The Dispute Resolution Officer found that in order to claim the right to deduct the items from the security deposit, the landlord must show:

The damage or loss occurred;
The tenants caused the damage or loss;
The actual amount of the loss is clearly established; and,
The landlord took steps to mitigate the losses.

The DRO indicated that the landlord suffered a loss,  the tenants caused that loss, and the landlord took steps to mitigate the loss.  However, it was determined that, without the receipts, the landlord failed to clearly establish the actual amount of the loss.

As a result, an order was entered for the return of the entire security deposit, and the  landlord’s application was dismissed, without leave to reapply.

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.

The Government of Saskatchewan launched a new Corporate Income Tax (CIT) Rebate that will help add 10,000 new rental units to the province by the end of 2016. This initiative is expected to increase the overall, purpose built rental market by 29 per cent.

“We heard consistently from the housing sector that the current corporate income tax structure is a barrier to the development of rental housing,” Social Services Minister and Minister responsible for Saskatchewan Housing Corporation June Draude said. “Our government has listened and, as a result, we introduced the Corporate Income Tax Rebate in the 2012-13 Budget. We are keeping our promises and we are proud that this measure will ultimately help more Saskatchewan people find safe, quality rental housing.”

The new tax rebate effectively reduces the provincial Corporate Income Tax (CIT) rate on a corporation’s eligible rental income from the 12 per cent general CIT rate to the two per cent small business tax rate. The tax rebate is earned each year for a period of up to 10 consecutive years after eligible residential units become available for rent and the eligible corporation submits the appropriate documentation to receive that year’s rebate.

Eligible rental housing must remain as rental housing for the duration of the rebate period. The non-refundable 10 year rebate will be provided to eligible corporations whose sole purpose is the rental of eligible newly developed multi-unit rental housing in Saskatchewan.

Projects can be located in either urban or rural communities across the province. Eligible rental housing must be newly constructed, multi-unit rental housing which can include:

New construction including modular construction (e.g. high and low rise apartments, town/row housing, etc.); and

Conversion of non-residential property to rental units (e.g. warehouse space conversion).

Qualifying multi-unit rental housing must consist of at least eight fully self-contained rental units, meaning that bathroom and kitchen facilities are available in the suite. Multi-unit assisted living projects for seniors are also eligible. Units registered under a building permit dated on or after March 21, 2012 and before January 1, 2014 may apply. Units must be available for rent on or before December 31, 2016.

Funding for the new rebate is estimated at $34 million for the first five years of the program.

Rebate acceptance is on a first come, first served basis. Applications for registering eligible new residential rental housing are available by visiting the Saskatchewan Housing Corporation website, calling toll-free 1-800-667-7567 or contacting the SHC office in Regina at 306-787-4177.

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.

by Marv Steier

Recently, we received these comments from a TVS Member:

“Mr. Steier, I’m a landlord of residential and commercial property that are investment properties.

I subscribed to your site about 6 years ago and refer to it often. I find the site to be most informative and learn something each time I read an article written by you or Chris.

I use all TVS forms and do all the recommended credit and background checks. I do believe that because of following your advice, I have never received a late payment nor have I received an insufficient funds cheque. You are correct — Screen, Screen and Screen some more.

Our properties (in my case anyway) did not come cheap nor handed to me, thus we must have good honest and respectable tenants.

But to all you landlords out there…I jump for my tenants, after all it is still my property and I want it well maintained for obvious reasons.

You treat others the way you would want to be treated, after all if your tenant is doing all that is required of him or her and in my case they do more, why would you not want to keep them happy?  Often they choose to extend their lease for another 2, 3, or sometimes even 5 years. This is a win-win situation.

Besides, wouldn’t you be ashamed if you were referred to as a scumlord?

Thanks for your articles. They are paying off for me!”

Benefits of Effectively Managing a Rental Business

I want to point out the importance and the benefits of effectively managing your rental business, and having a system in place to do that. This is as a result of the comments noted above on the TVS Blog from a valued TVS member,  and we appreciate her for it. 

Taking the time to set up an effective tenant screening system will reduce income loss, save time, stress, and hassles that high risk tenants bring with them, and create peace of mind knowing you are a great landlord with a successful business.

So let’s analyze why this landlord is successful at getting good tenants, why she is a happy landlord and why she has happy tenants.  I may make some presumptions along the way, but I offer this analysis for the benefit of all landlords.

First, she screens her tenants methodically and chooses them based on sound criteria, like stable employment or business, good references, whether they are credit-worthy and tenant-worthy.

As she puts it, she “jumps” for her tenants.  They obviously appreciate this, which is a credit to her because she has chosen tenants who appreciate a good landlord.  Great screening job!  How often do you choose a tenant based on how appreciative they are for what they have? I never thought of that, either, until now. Your interview with the tenant should give you some insight into this quality or character about the applicant.

She states that she has never had an NSF cheque or even a late payment — wow! In addition to a good screening format which serves to eliminate high risk tenants, serious landlords should have the tenant read and sign the Notice to Tenant form which can be found in the forms section on the TVS website after you are logged in. Would you dare be late with your payment or write an NSF cheque after reading this? Not me, especially if I had a good credit rating.

If you were advised that you could obtain a Certificate of Satisfactory Tenancy, might that be a good incentive to pay on time? It would for me and it is for most tenants who have good pay habits and a good tenant history.

In addition to establishing credit and tenant worthiness via TVS, this member likely has her own criteria for what she looks for in a good tenant. I suspect that she might be doing a little more, like educating her tenants and talking about expectations.  Here are some examples of what she may be saying:

“I will fully comply with my responsibilities as a landlord, and I expect you to do the same as a tenant. Please review your rights  and responsibilities by visiting www.tenantsinfo.com and let me know if you have any questions.

“I will treat you with respect; I expect the same from you.”

“I expect rent payments to be made on time as the bank expects me to make mortgage payments on time.”

“We have signed a lease agreement; the terms therein must be strictly adhered to.”

In addition to the tenant screening process, there is much more that you need to do as a landlord to not only be compliant with tenancy laws, but just as importantly, you need to look and act like a professional so that the tenant gets the impression that they, too, must take their responsibilities seriously and perform in a business-like fashion.

Act like a professional from the first contact and throughout the  tenant screening process.

That means:

A great ad.

A professional-looking rental application that will only be accepted when completed in its entirety.

Credit checks.

References from current and previous landlords. Visit www.criminalfraud.com (click landlord fraud) to learn more about references– like how to ask devious questions to get the truth and make sure you are not speaking to the applicant’s friend.

Inquires with or letter from employer to determine stable income.

Request bank statements to prove  bi-weekly or regular deposits. Is there a bank account? Black out the dollar amounts if tenant deems that information too personal.

Take into consideration other factors you notice when you meet with the tenant — notice the overall demeanor, vehicle condition, grooming, politeness, and level of cooperation in completing forms.

If an applicant shows up late, refuses to complete the application in its entirety, or acts rudely, this likely is how will they act as a tenant  — they won’t pay rent on time, or clean up the property when asked.

After the screening process has been completed, there still is more work to be done:

Have the tenant sign a professionally-worded lease.

Complete Notice to Tenant.

Complete the Move In Inspection Form.

Take photos of  the rental unit showing the condition prior to move-in. Have tenant sign the back of each photo acknowledging accuracy of same.

Refer to your applicable landlord tenant laws for other requirements that must be done at leasing or move-in. These are typically available online.

On move in day, if possible, you should:

Take notice of what items the tenant is moving in. Is the furniture in keeping with what was stated on the rental application — for instance, single, no roommates, no pets, doesn’t smoke, no greasy auto parts, or clutter, or home business equipment, or huge heat lamps that quickly grow large green plants?

Check out who his or her friend are. Also,  observe how respectful your new tenant is of your rental property.

Periodic Site Inspections

Inspect the property regularly. My recommendation is every 6 weeks-2 months. Don’t leave it any longer.

You must do this!

This is a personal pet peeve of mine and this is the reason why many landlords suffer thousands of dollars in damage to the rental unit. They don’t ever inspect the property! This is one of the biggest mistakes that landlords make during the entire rental process. They never inspect the property to determine if the terms of the lease agreement are being adhered to with respect to pets using carpet as a toilet, roommates not on lease, smoking, maintenance, clutter, holes in the wall, and so on.

Landlords must inspect their property on a regular basis to ensure that it is being maintained!

Please keep reading the TVS Blog, as we will continue to provide you with good information. If you come across something that you think TVS members should know, or you have specific questions you would like us to research, please send it to me at  marv@tenantverification.com and we will do our best to get it out there.

I would like to see more comments on the TVS Blog like those we received from this member. Please share your good landlord habits or bad experiences with us.

Thanks to each and every one of you as you are a valued TVS member.

Remember — as the member above pointed out — treat the tenants the way you want to be treated.

Marv Steier, President

TVS Tenant Verification Service Inc.

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.

A judge in Athens, Ohio will decide whether a landlord can boot several tenants from his property for drug offenses.

The tenants, who are students, paid rent for the academic quarter. Later, police allegedly discovered illegal drugs on the property. Other alleged infractions include getting a dog, causing property damage, and starting a fire, according to a news report.

The landlord claims that the drug violations prompted his filing an eviction against all of the tenants.

But the lawyer for the tenant argues that the landlord lost his right to evict the tenants — for any reason, once he accepted payment in advance. He contends that those tenants are legally allowed to stay at least for the term of those advance payments, according to the report.  The tenants have contested the eviction, prompting a trial and delaying any subsequent eviction order.

The landlord says he had no choice under the law — he has a duty to evict the tenants due to the drug possession charge.  However, he did hold up depositing two of the rent checks, although his lawyer insists that depositing them would not mean he is waiving the right to eviction under these circumstances, according to the report.

The landlord indicates he has witnesses who can prove that marijuana use at the property is ongoing, and claims the tenants have caused thousands of dollars of damage while waiting for the disputed eviction case to come up on the court’s calendar. The tenants deny those charges.

The property, which was rented for use as a fraternity house, is located only a few yards away from a police station, according to the report.

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.

Landlords may not realize this, but tenants reveal that they often are afraid of their landlords — so much so that they forgo regular maintenance of the rental property rather than face what could be a bad interaction.

The landlord has the most to lose in this situation, and the power to avoid it.

Fear does not foster a good landlord-tenant relationship. What the landlord needs from the tenant is respect.

That’s because a tenant who is afraid will not call the landlord right away when the property needs repairs, or if they are considering a roommate, a pet, or are having problems coming up with the rent.  As a result, the landlord receives no advance notice, and can do nothing to minimize the resulting income loss.

Tenants who are afraid are more likely to disrespect the rules.  Landlord who manage in this fashion can have a much harder time discerning the bad tenants from the good ones.  Landlords never benefit from tenants who feel they need to keep secrets.

Tenants quickly learn to respect a landlord who acts like a professional business person.  Professional landlords are clear in their communications, consistent with their actions, and don’t interject emotion into discussions about the property. Tenants come to understand that this type of landlord can be trusted. At the same time, they realize that the landlord is serious about enforcing the rules and the provisions in the lease.

A landlord can foster respect through proper education of tenants:

Spend the appropriate amount of time with the applicant before agreeing to lease to them. Speak with the previous landlords.  Pay particular attention to whether the applicant broke the rules or avoided reporting repairs in the past.  If this is a first-time renter, spend time outlining your expectations in order to discourage an applicant who thinks the landlord will bend on the rules.

Let the tenant know that they will be subject to routine inspections throughout the lease term.

Then, stick to your word and conduct the routine inspections.

Approach inspections with a little bit of skepticism and listen for any rehearsed stories used to cover up rule-breaking. For instance, the tenant may have unauthorized roommates and they are keeping it secret. Notice any extra bedding, clothing, sleeping furniture outside of the bedrooms, or cars routinely parked nearby. 

Notice smells — has the tenant just sprayed a scent into the air?

If the tenant is not following the rules, they deserve to be fully informed of the consequences. If the problems are not severe, give the tenant the opportunity to step into line before threatening them with an eviction.  Lay out the options available, if any,  to resolve the problem without losing your composure.  At the same time,  don’t ignore budding problems.  Problem tenants test the waters — not enforcing the rules will only embolden a bad tenant.

Consider how the inspection of one’s home can feel intrusive. Let the tenant know in advance what you are planning to do, and that your concern is to make sure that the property remains in good condition. This will assuage any concerns that you are there to judge them.

A common concern that tenants share is that they may be charged for  repairs. To the extent possible, assure the tenant that they are not on the hook for routine repairs, and if they did damage something, that you will work through it with them. They need to feel safe coming to you if something is broken.

Some tenants simply have a higher tolerance for what they feel are acceptable living conditions.  For instance, they might think that some amount of mold is normal; the landlord might not. Be clear about your expectations.

Without proper education and routine property inspections it can be hard to guess what is happening (or growing) inside a private dwelling. A small problem might not seem like a big deal, but it quickly can expand into a major one. Taking the time to find the right tenants, foster respect, and perform regular maintenance inspections can save the landlord from potential income loss.

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.

Landlords and property managers often encourage tenants to buy renters insurance. Some even make it mandatory. To understand why, it helps to take a look at how renters insurance works.

When there is an event at the rental property, whether that’s a fire, burglary, or even bad weather, any resulting damage to the building itself is generally covered by the landlord’s insurance. If the tenant loses their personal  possessions, this typically is not covered by the landlord’s policy.

If the tenant doesn’t have insurance, they may have no money to replace their personal items. They lose everything.

When that happens, a tenant may look to the landlord for compensation. Uninsured tenants are more likely to question whether the landlord was in some way negligent.

Meanwhile, uninsured tenants may not have the money to recover, and still pay rent on time.

Renters insurance often covers many common perils, including fire, storms, theft, vehicle damage, smoke damage, and vandalism. In addition to covering the loss of personal possessions, the liability portion of a policy can help a tenant who caused harm to the building or to other people, including their guests. It also may cover medical expenses.

It is for this reason that some landlords and property managers require renters insurance as a condition to leasing the property. The landlord may need reimbursement in order to restore a unit that the tenant damaged. If renters insurance protection is in place, the landlord has a source of reimbursement for repairs or maintenance caused by a tenant’s negligence. Because the landlord’s bottom line is protected, the well-maintained property likely will retain a higher value, and that may in turn drive down the landlord’s costs, including the premiums for building insurance.

In order to implement a mandatory policy on renters insurance, a landlord must include the provision in new leases. It may not be possible to change a current tenant’s lease to add the requirement until renewal.

In deciding whether to make renters insurance mandatory, landlords must consider whether it will be more difficult to find qualified tenants with the restriction in place. That may depend on the average cost of a renters insurance policy in your area.

Tenants often are unaware of the need for renters insurance. Many believe that the landlord is responsible for any of their losses, and they are left unprepared to deal with the financial hardship that comes from being uninsured. On the other hand, when someone takes the time to explain to the tenants the risks they face, the value of renters insurance becomes apparent.

When trying to decide how much insurance to purchase, tenants will be instructed to consider what it would cost to repurchase everything they currently own. An itemization is the best way to calculate that amount. It is also a good way for tenants to see how much they could stand to lose.

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.