A recent report from the Center for Housing Policy uncovered the fact that the number of renters paying 50% or more of their income for rent has increased to one in four.

According to the study, median housing costs of working renters rose nearly six percent between 2008 and 2011, while their median incomes fell more than three percent.

If this disparity continues to climb, the rental industry could begin to see ripple effects before long, including:

1. High Turnover: If monthly rent continues to consume higher percentages of their income, tenants will be left with no alternative than to seek cheaper apartments that may be less desirable for them. They may move to smaller or less geographically desirable apartments, just to keep their head above water.

2. Rent Concessions: Landlords may see an increase in requests for rent reductions, as tenants struggle to make ends meet. This may happen upon renewal, or before new tenants move in.

3. Late Pays and Defaults: The worst case scenario will be a steady increase in late rent payments, with some tenants defaulting on their leases as they get further and further behind.

4. Renters Turned Home Owners: With mortgage rates hovering around historical lows, and demand driving up rents, more qualified renters are finding it is more affordable to own than it is to rent.

But it’s not all bad news.

The Center for Housing Policy report also states that median incomes appear to have improved slightly over the most recent year, yet still have not fully rebounded to 2008 levels.

If the downward trend has leveled off and is starting to slowly turn around, there may be a light at the end of the tunnel for tenants, as their discretionary income begins to show positive growth.

Landlords who provide amenities or conveniences to reduce the financial burden of their tenants are more likely to be insulated from these challenges. For instance, here are a few examples of amenities that can make a big difference for tenants:

Apartments located near public transportation, so tenants can save money on auto transportation and parking expenses;

Easy access to grocery stores and other amenities that reduce the expense and hassle of daily errands;

On-site laundry facilities that reduce the cost associated with these simple, yet time consuming chores;

Strategies that might reduce the cost of utilities, helping the tenant to reduce their costs while providing higher value for the landlord as the economy begins to recover; and,

On-site fitness facilities that make it easier for tenants to exercise at home, rather than spending extra money for a gym membership.

Landlords who are sensitive to the financial plight of their tenants are more likely to weather the storm alongside them, resulting in happier tenants, lower turnover costs, and more profitable rentals.

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.

What do noisy neighbors and cigarette smoke have in common?

These are both examples of possible violations of a landlord’s duty to provide a tenant quiet enjoyment.

This covenant is implied in every lease, whether verbal or written, and it cannot be avoided, regardless of any limitations that may be stated in the lease agreement.

Understanding this illusive right to quiet enjoyment is an important aspect of property management. Not only do violations of the covenant lead to costly lawsuits, but protecting the right is good business, as it will increase tenant retention.

What does this covenant mean for landlords and property managers?

A violation of the implied covenant of quiet enjoyment is a breach of the lease agreement. If the landlord commits a breach, the tenant may be excused from future performance, including payment of rent. In addition, an injured tenant may be able to claim the right to compensation.

Secondhand smoke and unscheduled landlord visits are common ways the covenant is breached, along with barking dogs, rowdy parties, trespassers, construction and other tenants.

Landlords and managers have a duty to resolve tenant concerns and to anticipate possible violations of quiet enjoyment. The landlord must intervene and not leave it up to a tenant to resolve the problem.

This covenant stretches beyond just other tenants or the rental property itself. If there is something going on in adjacent properties, like unmanaged tenant parties or grow-operations, landlords must do what they legally can to minimize the nuisance.

Getting to know neighbors in the area, and exchanging phone numbers can make the task of managing complaints much easier. If a phone call cannot fix the problem, then it is a good idea to follow up with a letter or notice, setting out possible consequences if the problem continues unresolved.

Participation in a local Crime Free Multi-Housing program is another way to minimize these risks. The programs offers a property risk assessment and that can include ideas for dealing with known issues within a neighbourhood. Also, the program offers social networking opportunities with other property owners in the area, and that can foster cooperation if trouble occurs.

Be careful who comes onto the property.  Always screen tenants and ask previous landlords about past problems. Prohibit tenants from carrying on business on the property that may be intrusive. Screen contractors and supervise these workers closely while they are on the property. Maintain a guest policy that reduces the risk of annoying other tenants.

Always take tenant concerns seriously. The key is to treat tenants fairly when they complain, and then stay in touch as you work to resolve the issue. Let them know what is happening, that you are on their side, and that you will protect their rights.

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.

Technology has made it easier than ever for tenants and landlords to link up. Unfortunately, these same advances also make it far too easy for problem tenants to stay under the radar.

If landlords were to go “all in” with today’s new leasing technologies,  they could advertise a vacant unit, allow prospective renters to self-tour a property, accept a rental application, and provide a lease online — all without ever having to meet the new tenant in person.

Imagine the impact this could have on tenant screening.

Email communication has its place, but its not screening tenants. Nothing can substitute for phone or personal interviews to catch a glimpse of the new tenant’s personality.

Here’s why:

1. Email and social media interactions make it easy to hide a person’s true identity and personality traits.

2. A prospective tenant who uses email may be signaling a lack of commitment to the house-hunting process. This person may not be ready to move, or unable to afford the rent. It’s very likely this individual is looking at numerous properties and won’t remember any specific ad. This can be a hard lease to close, and waste the landlord’s time in the process.

3. Email communication allows problem tenants the chance to ponder their answers and hone in on what the landlord wants to see. Spontaneous answers tend to be more trustworthy.

4. Phone numbers are still easier for a layperson to track, rather than email addresses, which tend to be generic.

While phone communications reveal more about a tenant than email, nothing beats a face-to-face meeting with the prospective new tenant. The landlord can check photo ID against the person’s actual appearance, and can match the voice to the one they just heard on the phone — minimizing the risk of being targeted by a bad tenant.

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.

According to a recent renter survey, 75 percent of tenants say they are pet owners, compared to 43 percent in 2012.

These findings, compiled by Apartments.com, a leading Internet apartment  listing service, align with the improving U.S. economy; according to an American Veterinary Medical Association survey released last year, the difficult economy played a very strong role in the first decline in pet ownership since 1991.

Even those who don’t keep pets are pet-friendly. According to the survey, 60 percent of renters said they still enjoy living around others with pets.

Landlords in general appear to be getting the message. “Nearly 80% of our survey respondents live in a pet-friendly building, indicating both landlords and residents without pets are increasingly recognizing that pet owners are, for the most part, responsible and respectful neighbors,” said Tammy Kotula , public relations and promotions manager, Apartments.com. However, more than 60% of renters surveyed also said they faced some level of difficulty in finding accommodations for pets.

Renters can tailor apartment search results on websites like Apartments.com to only show apartments that allow pets. “Understandably, nearly all pet owners surveyed said pet policies play a major role in their decision of where to live. Clearly, pets are a deal breaker for many, and apartment buildings with more flexible pet policies will be the ones to attract this growing group of pet-owning renters, and possibly, keep them for a longer period of time,” said Kotula.

While nearly 65 percent of the pet owners surveyed said they live in a two bedroom apartment or larger, many indicated they were ambivalent to the size of their space when choosing a pet. In fact, more than 75 percent said the size of their apartment only played “some importance” to “no difference” when picking a pet.

Cats rule when it comes to apartment pet choices, with a small dog in second place. About 20% choose large dogs, while a small percentage of renters prefer fish.

Tenants still have to ante up for pet deposits, with $150 being a popular figure.

As part of its What Renters Want series, Apartments.com surveys renters on various topics throughout the year. For more information on these surveys, to receive a copy of the results, or for an infographic with additional insights, contact Matt Miller at matt@salmonborre.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.

What do noisy neighbours and cigarette smoking have in common?

These are both examples of possible violations of a landlord’s duty to provide a tenant quiet enjoyment.

This covenant is implied in every lease, whether verbal or written, and it cannot be avoided, regardless of any limitations that may be stated in the lease agreement.

Understanding this illusive right to quiet enjoyment is an important aspect of property management. Not only do violations of the covenant lead to costly lawsuits, but protecting the right is good business, as it will increase tenant retention.

What does this covenant mean for landlords and property managers?

A violation of the implied covenant of quiet enjoyment is a breach of the lease agreement. If the landlord commits a breach, the tenant may be excused from future performance, including payment of rent. In addition, an injured tenant may be able to claim the right to compensation.

Secondhand smoke and unscheduled landlord visits are common ways the covenant is breached, along with barking dogs, rowdy parties, trespassers, construction and other tenants.

Landlords and managers have a duty to resolve tenant concerns and to anticipate possible violations of quiet enjoyment. The landlord must intervene and not leave it up to a tenant to resolve the problem.

This covenant stretches beyond just other tenants or the rental property itself. If there is something going on in adjacent properties, like unmanaged tenant parties or grow-operations, landlords must do what they legally can to minimize the nuisance.

Getting to know neighbours in the area, and exchanging phone numbers can make the task of managing complaints much easier. If a phone call cannot fix the problem, then it is a good idea to follow up with a letter or notice, setting out possible consequences if the problem continues unresolved.

Participation in a local Crime Free Multi-Housing program is another way to minimize these risks. The programs offers a property risk assessment and that can include ideas for dealing with known issues within a neighbourhood. Also, the program offers social networking opportunities with other property owners in the area, and that can foster cooperation if trouble occurs.

Be careful who you bring into the property.  Always screen tenants and ask previous landlords about past problems. Prohibit tenants from carrying on business on the property that may be intrusive. Screen contractors and supervise these workers closely while they are on the property. Maintain a guest policy that reduces the risk of annoying other tenants.

Always take tenant concerns seriously. The key is to treat tenants fairly when they complain, and then stay in touch as you work to resolve the issue. Let them know what is happening, that you are on their side, and that you will protect their rights.

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.

Lawmakers in Ontario have vowed to set rent increase caps on condo rentals.

The current rent increase guidelines for other rentals in Ontario is capped at not more than 2.5 per cent, regardless of economic indicators. Newer condo rentals have been exempt from that standard.

MPP DiNovo and Toronto’s Councillor Vaughan both agree that needs to change, according to a recent news report.

DiNovo calls it a loophole that the provincial government overlooked. Vaughan describes  the issue as complex, and says any legislation that is introduced must take into account both tenants and owners.

Several factors have lead to increases in condo rents, particularly downtown Toronto. For instance, condo owners have more freedom to pass along increased maintenance costs.

The report also points out that many tenants entered into leases with incentives for the first year, and are surprised when it comes time to renew and the rent is adjusted to the market rate.

The rent increase guideline for non-condo rentals was initially set based on the consumer price index. However, the provincial legislature recently amended the guideline to include the 2.5 per cent maximum cap.

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.

Tenant rights advocates are saying that British Columbia’s rental laws should be modified using Ontario as a model.

A consortium of advocacy groups recently released a report profiling thirteen suggested changes to British Columbia’s current Residential Tenancy Act.

A spokesman told the Vancouver Sun that he hopes amending the RTA will become an issue in provincial elections.

The suggested changes in the report include:

A longer grace period for late-paying renters. The advocates suggest that a tenant should be allowed ten days to pay and cancel an eviction notice for late rent;

A cap on the rent increase guideline, similar to Ontario’s 2.5 per cent maximum allowable increase, regardless of the rate of inflation;

Requiring landlords to disclose the rent amount charged to a previous tenant;

Allowing tenants a warning and the right to rectify problems before landlords can file an eviction for cause; and,

The right to re-let a property that has been renovated, at the previous market rent, and three-months compensation for evictions based on renovations.

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.

Police in Gloucester, Massachusetts were called in to settle a dispute between tenants which apparently centered around a Boston Red Sox game.

A news report says the conflict started when one tenant removed and hid the cable box for the common area TV because she didn’t want another tenant to watch the game.

The apartment manager told police the two tenants have a contentious relationship.

Territorial disputes between tenants is not uncommon; however, it’s never desirable for tenants to resort to calling the police to resolve their squabbles.

Proactive property management may diffuse similar situations — and prevent a visit by local law enforcement:

Anticipate conflicts in common use areas like laundry, fitness rooms or entertainment areas. Develop house rules that are fair to every tenant. These may include time limits or having to reserve the space in advance.

Go over house rules with each tenant at orientation.

When a dispute arises, step in and mediate the problem.

Offer a stern warning to any chronic problem tenants.

Remind tenants the property is being managed even when the landlord is not on-site. For instance, post house rules in conspicuous places, and be easy to reach by phone. Develop a reputation for being responsible and responsive to tenant complaints.

When problems come up, tenants should feel compelled to call the landlord, and leave the police to handle emergencies.

The officer responding was able to convince the tenant to give back the cable box.

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.

Q: If a tenant moves out and breaks the lease, how do you go about making him liable for the rent? If he moves, I would not know where he went or how to track him down. Since moving in, I know he has changed jobs so that would not be an option. How do you go about making him responsible for the rest of the lease. Hiring a lawyer is out of the question

If the tenant is still in the property but threatening to leave early, there are basically two options: give the tenant a warning that you intend to enforce the lease and will take action if he leaves without paying rent, or, work out an early move-out date with the understanding that the current tenant will remain liable until a new tenant moves in.

Some landlords opt for the latter strategy only because it may minimize income loss, and make it easier to get a new tenant into the property.

Generally, landlords are required to re-rent the property as soon as possible after it is abandoned, despite the lease agreement. So, the only rent that can be collected against the lease-breaking tenant is for the vacant period, and any shortfall in rent between the old lease and a new lease.

As far as tracking a tenant down, the information in the rental application, including emergency contacts and personal references, can provide clues as to the tenant’s whereabouts. The more complete and accurate the information in the application, the more likely you — or a collection service — will find the tenant after he skips out. This is one reason why it is crucial to verify the information in the application before renting to the prospective tenant.

Unless there is some local tenancy rule prohibiting it, you should be able to require tenants to update information in the rental application, such as a new job, emergency contact, or phone number. Also, develop the habit of noting banking information on monthly rent checks. That’s useful when it comes time to collect a judgment.

If the tenant tendered a security deposit, then he likely must reveal his new address, or it may be an option to request a forwarding address from the postal service.

Despite the tenant’s breaking the lease, if you are holding a security deposit, you still need to follow your local rules concerning any deductions and accounting for the deposit.

If the tenant skips out without paying the remaining rent,  you can demand payment or hire a collection specialist to collect the money owed.  A collection company may get better results, but will charge for the service.  Many companies will accept the debt on a contingency basis where you pay only if they are successful.

If the tenant contests the debt or won’t pay, you may be forced to pursue a judgment in court. It’s likely you will need a judgment in order to garnish the tenant’s wages or bank accounts.

You may have the option to use arbitration or dispute resolution, which can save money. Otherwise, landlords usually seek a judgment in their local smalls claim court. There, you will not need to have an attorney, but you will have to follow all of the court’s rules to the letter of the law or risk having the case dismissed with no resolution, or paying multiple filing fees.

At a hearing, the tenant will be able to raise defenses for breaking the lease. Those commonly include claims about the condition of the property. Be prepared. Bring adequate documentation to prove that the property was well-managed and the tenant did not raise repair or maintenance issues that were not met. The move-in checklist, the lease and records of communications may help overcome a tenant’s false claims.

Once you have your judgment, you can take more aggressive steps to collect the money from the tenant, including garnishments.

You also need to be prepared to find another tenant quickly. Be extra vigilant in screening this new tenant. Verify the information on the rental application, check the prospective tenant’s credit history, and speak with the current and previous landlords to minimize the chance of renting to another problem tenant.

Another valuable tool is signing the new tenant up to Report Tenant Pay Habits. This carrot-and-stick strategy of tracking rent payments and providing a Certificate of Satisfactory Tenancy serves as an incentive to those tenants who want to build a good credit history, and a deterrent to the others who don’t want to wreck their credit by failing to pay rent.

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.

According to Randy Frost and Gail Steketee, co-authors of Stuff: Compulsive Hoarding and the Meaning of Things, hoarding massive amounts of irrelevant objects dates back to the 14th century.

Within the last several years hoarders have reluctantly taken their place in the national spotlight with tell-all documentary series like A&E’s Hoarders. After so many decades and centuries of shamefully hiding behind their heaps of mess, hoarders have yet to find solace in knowing there may be a cure for their condition.

That may be changing soon. In May, the American Psychiatric Association is expected to releases its 5th edition of the Diagnostic and Statistical Manual of Mental Disorders, officially recognizing hoarding as a psychiatric disorder.

About five out of every 100 people are prone to hoarding. The home decluttering experts at Address Our Mess routinely help hoarders and “senile squalors” cope with the disorder. Their research shows that the majority of hoarders are men over the age of 40.

Address our Mess finds that women are more likely to seek help either for themselves or for a loved one. Therefore the rate of a successful transition to a healthier lifestyle is higher with women than men.

It has also been noted by Address Our Mess experts that the hoarding condition is usually brought on after a traumatic event like death of a loved one, loss of a job, or eviction from a home. The condition gradually gets worse as time progresses.

A catastrophic fire that claimed the life of a man who firefighters found alive but were unable to reach due to the clutter in the home serves as a grim reminder to landlords just how dangerous hoarding can be to the tenant, his or her neighbors, and the property. Blocked exits, pest infestations and noxious smells are common concerns.

If landlords and property managers wish to avoid the problems associated with hoarding, they need to understand that careful tenant screening is their best defense. That includes speaking with the current and former landlords to determine if such problems surfaced in the past.

Landlords must also conduct regular property inspections, as hoards tend to grow over time.

Professionals who treat hoarding disorders remain optimistic that the condition can be controlled in many cases. However, it is critical for landlords and property managers to have firm guidelines as to what hoarders can and cannot do. For instance, items cannot be stored near windows, doorways, stairwells, or near appliances or vents, no perishable or combustible items can be hoarded, and the hoarder must remain able to use rooms as they are intended. Stressing the safety concerns may help the hoarder comply with the rules.

Because hoarding is such an emotionally sensitive issue, experts at Address Our Mess suggest a compassionate approach may yield the best results. Talking with the hoarder and encouraging compliance rather than levying threats may help to avoid an eviction.

Some community resources which offer assistance to the hoarder are willing to serve as liaison with landlords in order to salvage the tenancy.

Unfortunately, if the hoarding cannot be controlled, an eviction may be warranted to avoid liability for injury or damage to the 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.