Subleasing involves a tenant leasing all or part of their rented property to another individual, known as the subtenant, for a specific period. The original tenant, or sublessor, maintains the primary lease with the property owner. In this arrangement, the subtenant pays rent to the sublessor, who, in turn, continues paying the landlord as per the original lease terms.

Subletting refers to temporarily renting out the entire leased property to another party, often when the original tenant cannot occupy the space. The subtenant assumes full responsibility for the property during the subletting period. Unlike subleasing, subletting usually means the original tenant steps away from the property while retaining financial responsibility to the landlord.ype Answer Here

What is considered tenant damage versus normal wear and tear?

Normal wear and tear includes minor issues like scuffed walls or faded paint, while tenant damage results from negligence or intentional acts such as holes in walls, broken appliances, or unapproved modifications.

What rights do landlords have when a tenant damages property?

Landlords may deduct repair costs from the security deposit, seek additional compensation from the tenant, or pursue eviction in severe cases. State laws vary, so it's important to follow local regulations.

Can tenants go to jail for damaging a rental property?

Tenants may face criminal charges for intentional destruction or vandalism. Accidental damage is usually handled through civil processes.

Does landlord insurance cover tenant damages?

Landlord insurance often covers accidental damage, vandalism, and loss of rental income, depending on the policy. Some claims may require a police report.

How can landlords prevent tenant damage?

To minimise damage, landlords should screen tenants carefully, use detailed lease agreements, conduct regular inspections, and maintain open communication with renters.

What Are the Landlord's Responsibilities Regarding Tenant Smoke Alarms?

Installation, providing the first smoke alarm batteries in rentals, informing tenants of smoke detector placements, instructing tenants on proper testing procedures, informing the tenant how they can report problems, repairing and replacing malfunctioning smoke alarms, and upgrading old smoke detectors.

What Are the Landlord's Rights Regarding Tenant Smoke Alarms?

Add an Addendum to the Lease Agreement, Avoid Liability When There's a Lack of Notification, Avoid Liability for Lack of Maintenance and Battery Replacements, and Deal With Tenants Who Tamper With the Alarms.

What are the most common landlord tenant issues?

The most common landlord tenant issues are late or non-payment of rent, security deposit use, noisy tenants, maintenance issues, broken appliances, rule violations, intentional property damage, legal disputes, high turnovers, pest infestations, and unpaid utilities.

What the types of tenancy termination notices?

It varies from state to state, but there are basically three types of tenancy termination notices: Pay Rent or Quit, Cure or Quit, and Unconditional Quit.

What are five questions you would ask the landlord about your preferred property?

Five of the most important questions to ask are: 'How much is the rent and what is included?', 'How do I pay rent and when is it due?', 'What happens if I miss the rent due date?', 'Is the security deposit refundable?', and 'Is renters insurance necessary?'.

What should I ask my landlord?

Part of sensible house hunting, though, is knowing what to ask when renting an apartment or house. You can’t blindly enter a deal without knowing rent details, lease terms, and any applicable policies. Doing that will only invite disputes down the road. Ask about rent details (how much, when it is due, what is included, etc.) as well as security deposits and renters insurance. Find out how long the lease duration is, how much notice is needed before moving out and accessing the property (for landlords), and how emergency maintenance is handled. Ask about various policies, including pet policies, guest policies, subletting policies, renewal policies, and early termination clauses, too.

Subleasing Vs Subletting: How To Decide The Best Option For The Situation

Posted on 2025/10/10 by RG

When it comes to rentals, subleasing vs subletting can be considered similar processes. However, they actually have distinct purposes, depending on several factors. One could be better in certain situations compared to the other. But what makes them different?

What Is Subleasing?

You can describe subleasing as the practice of rerenting a property by the main tenant to a third party for all or a part of the existing lease contract. However, this practice may or may not be allowed, depending on the original lease agreement. It’s also usually subject to restrictions, depending on the jurisdiction.

Additionally, the original renter needs to know that this practice doesn’t end their responsibilities on the original lease contract. They are still responsible for paying for their rent and for any repairs and damages to the property.

What Is Subletting?

When a property is sublet, the landlord rents it out to a new tenant. The new tenant has direct contact with the landlord and pays rent directly to the landlord. This usually happens if the original renter can no longer occupy the space and is out of the picture. As such, the subtenant will be responsible for the leased property.

Key Differences: Subleasing vs Subletting

Is sublet and sublease the same thing? Many people use subleasing and subletting interchangeably, but they have several key differences. Understanding the differences between subleasing and subletting is crucial for choosing the right option. Here are the primary distinctions:

Occupancy and Responsibility

In subleasing, the original renter may still be living in the property with the subtenant. They may also lease just a portion of the home. With this, the sublessor can maintain some control over the property while sharing the space with a new tenant.

On the other hand, the original renter usually doesn’t reside in the sublet property at all. Given this, the subtenant now takes on full responsibility during the said period.

Lease Agreement

In a sublease, the original agreement between the first renter and landlord stays. The subtenant usually doesn’t have any contact with the landlord. Instead, the original renter serves as the middleman who needs to ensure that the subtenant follows lease terms.

On the other hand, a landlord and the new renter usually have a separate contract for sublet arrangements. This helps simplify the arrangement and puts all responsibility on the new tenant.

Financial Arrangements

If there is a sublease, the subtenant pays the sublessor rent money, which the sublessor will use to pay the landlord.

Meanwhile, since a subtenant has direct contact and direct responsibilities in a sublet property, they will have to pay directly to the landlord.

Pros and Cons of Subleasing vs Subletting

Of course, both subleasing and subletting arrangements have pros and cons. Here’s some of them:

Pros of Subleasing

Maximizes Rental Space: This arrangement lets tenants rent out parts of the space, helping them become more flexible with unused portions of their space. It’s one of the best ways to maximize properties with extra rooms or shared living spaces.
Cost-sharing for Tenants: Through this arrangement, you can split the rental money with another person. Sharing the rent with a subtenant helps reduce the original renter’s financial burden.
Provides Short-term Solutions: Subleasing can be helpful for temporary problems, such as cases when a roommate moves out or when a tenant needs additional income for a short period.

Cons of Subleasing

Liability Remains on the Sublessor: Technically, the original renter is the only one responsible for the lease agreements. This means they’re also responsible for any damages done by the subtenant. This can create financial and legal risks if issues happen to surface.
Legal Complexities: Trying to get this arrangement approved based on the original lease terms can be tricky. However, non-compliance may lead to severe consequences, such as eviction or fines.
Disputes May Still Happen: Disputes about payment and money can happen between the sublessor and the subtenant. This is especially common when rent payments and other obligations for both parties are not discussed clearly.

Pros of Subletting

Landlord Can Vet for New Tenant: Unlike subleasing, this arrangement usually involves the landlord approving a lease transfer to another renter. With this, the landlord has the opportunity to scrutinize possible tenants via background checks to make sure they are good occupants.
Long-Term Stability: Subletting helps avoid any unexpected vacancies for the property. It helps landlords avoid any gaps in rental income.
Potential Profit: Subletting can help landlords get the opportunity to renegotiate rent terms for new tenants. For example, if market rates have gone up since the original lease, the landlord can increase the rent for the new tenant.

Cons of Subletting

Lease Turnover Involves More Work: Subletting will have to involve the landlord. So, with a new lease, the landlord needs to process it from scratch. It involves screening for new renters, updating the contract, and collecting security deposits again, among others. That’s more administrative work fo rthe landlord.
Potential for Vacancy if No Replacement is Found: In an ideal scenario, subletting allows for a seamless transition, helping minimize any property vacancy. However, it may be challenging to find suitable renters, and the unit could remain vacant longer than expected.
Risk of Lower-Quality Tenants: If the original tenant is rushing to leave, the landlord may be forced to transact with a tenant who may be less suitable than what the landlord would expect.

Landlord Considerations: Should They Allow It?

For property owners, allowing subleasing or subletting arrangements will depend on numerous factors. These considerations may include lease terms, local laws, and tenant reliability. Understanding these considerations can help landlords make informed decisions.

Lease Terms and Permissions

A lot of lease agreements explicitly outline whether subleasing or subletting is allowed. Homeowners must ensure that they have clauses clearly indicating their decision on these arrangements to prevent any loopholes. Having clear lease terms also protects landlords in disputes.

Tenant Screening

Landlords need to vet potential renters properly to minimize risk. They should perform background checks and ask for references to ensure prospective tenants are reliable and can fulfill lease-related responsibilities.

Legal Compliance

Depending on the location, some states may have laws that prohibit or limit subleasing vs subletting. Homeowners should reach out to legal experts to understand their rights and responsibilities. By complying with state regulations, both parties ensure the arrangement remains enforceable.

Financial Implications

Both arrangements have financial implications for the landlord. Before allowing these arrangements, homeowners must factor in their effects on collecting rent. Although you can take steps to ensure that renters have the ability to pay rent on time. As a result, this will help mitigate any financial risk. Additionally, having an open line of communication between all parties may help prevent any disputes.

Control Over the Property

By permitting subleases or sublets on your property, you also introduce more parties involved. This may complicate how you run things, including property management and maintenance. Therefore, landlords will need to consider both pros and cons before deciding to allow these arrangements.

When Flexibility Meets Responsibility

You may find the differences between subleasing vs subletting confusing. But, if you’re involved in such arrangements, knowing them is needed.

Do you need a property management company to help with subleasing or subletting your property? Check out our online directory to find one today!

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Tenant Damages Property: Steps To Take And How To Recover Costs

Posted on 2025/10/10 by RG

Renting out a property can be a rewarding investment, but it comes with risks—one of the most common and challenging being tenant damages. Sooner or later, you’ll come across situations where a tenant leaves behind more than just memories.

Understanding Tenant Damages Property

When a tenant damages property, you will have to identify what’s normal wear and tear and what’s actual damage. Normal wear usually includes minor scuffs on walls, faded paint, or loose doorknobs. These occur naturally over time.

On the other hand, tenant damages are either made intentionally or due to negligence. They usually lead to the following:

Structural Damage

Don’t be surprised when renters leave structural damages to your property. Some examples of this are holes in your walls, broken windows, or damaged flooring. Structural damage greatly affects your rental property’s value. As a landlord, you need to make sure to do repairs immediately.

Appliance Destruction

If your rental property comes furnished, it’ll probably come with appliances like refrigerators, ovens and stoves, or washing machines. Sometimes, renters ar careless when using these appliances. If this happens, you may have to shell out some funds for costly replacements or repairs.

Plumbing Issues

Plumbing issues caused by tenants are usually overlooked. However, if you have clogged pipes or severe leaks, it can result in more damage if you leave it alone. Even with tenant insurance, water damage can still become costly.

Unapproved Modifications

Sometimes, renters like decorating the space. This is okay if they receive permission. Although, sometimes, tenants do it without asking for permission.

Modifications and alterations to a rental usually go against lease agreements. On the side of the landlord, it’ll cost them more money to have the home repaired.

Pest Infestations

Yes, irresponsible renters can cause pest infestations. If tenants leave food or trash everywhere, pests can easily enter your property and infest it. When this happens, you, as a landlord, will have to do more than just repairs. You will also need to hire pest control experts to get rid of the problem entirely, adding more expenses.

What Are a Landlord’s Rights If a Tenant Damages Property?

Landlords have several legal rights when a tenant damages property. What rights you will have varies per state. Some of the most common ones include the following:

Deducting from the Security Deposit

Recouping the money for repairs from the security deposit is the most straightforward way for landlords to handle repairs. While you do have the right to do this, make sure to stay transparent since most states require this. To do this, you should provide an itemized list of deductions.

Seeking Additional Compensation

Sometimes, the security deposit is not enough to cover repair expenses. When that happens, you can require the renter to pay for the remaining costs. If they refuse, you may have to escalate and file a lawsuit in small claims court.

Eviction

In severe cases, intentional or repeated damages may justify eviction proceedings. However, this process should be approached carefully and by local regulations.

Steps to Take When a Tenant Damages Property

Acting quickly and methodically can make all the difference when discovering property damage. Here are some steps to take when this happens.

Document the Damage

In any possible grounds for dispute, such as renter damage, documentation is vital. Therefore, you should take photos or videos of the damage as soon as you find it. You should also add the time and date of when you took them, as well as detailed descriptions of the damaged areas.

It would also come in handy if you have images and videos of the property before a renter lived in it. It can serve as evidence that the damages weren’t there before your tenant moved in.

Review the Lease Agreement

Your lease agreement should outline tenant responsibilities and the consequences of damages. For example, if the lease explicitly prohibits specific actions (e.g., drilling holes in walls), you can hold the tenant accountable for violations.

Communicate with the Tenant

Before jumping to conclusions, discuss the issue with your tenant. Sometimes, damage is accidental, and the tenant may agree to cover repair costs. Maintain a professional tone and avoid making accusations during initial discussions.

Estimate Repair Costs

Get multiple quotes from contractors to determine repair expenses. An accurate estimate not only helps with deductions but also ensures you’re prepared if legal action becomes necessary.

Deduct Costs from the Security Deposit

Follow state laws when deducting repair costs from the security deposit. Most states require landlords to return the remaining deposit, along with an itemized list of deductions, within a specific timeframe (e.g., 21–30 days).

Consider Legal Action for Excessive Damages

You may need to take the tenant to small claims court if the damages exceed the deposit. Ensure you have all necessary documentation, including photos, repair estimates, and the lease agreement.

Can You Go to Jail for Damaging Rental Property?

The question of whether tenants can face jail time for damaging rental property depends on the extent and intent of the damage. Criminal charges may apply in cases of intentional destruction, such as vandalism. However, accidental damages are typically resolved through civil means rather than criminal prosecution. Landlords should report severe cases to law enforcement if they believe the damage was deliberate.

Does Landlord Insurance Cover Tenant Damage?

Landlord insurance often includes coverage for tenant damage, but the specifics vary between policies. Standard landlord insurance policies typically cover:

Accidental Damage

Repairs for unexpected incidents, like a tenant accidentally breaking a window, are often included in landlord insurance policies.

Vandalism

Coverage for deliberate property damage caused by a tenant or others is generally included, although some policies may require a police report.

Loss of Rental Income

Compensation for lost rent, while the property undergoes repairs, can be a valuable feature of landlord insurance policies.

It’s essential to read your policy carefully and confirm what is covered. Additionally, some policies may require you to file a police report for certain claims, such as vandalism.

Wrapping Up: Protecting Your Investment

Dealing with tenant damage is an inevitable part of being a landlord, but understanding your rights and following the proper steps can make the process manageable. By staying informed and being hands on, you can protect your property and investment from unnecessary harm.

Do you need a property management company to help with tenant rental damage and recovering costs? Check out our online directory to find one today!

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Tenant Smoke Alarms: Landlord Responsibilities And Rights

Posted on 2023/09/28 by admin

Landlords aren’t always aware of their responsibilities when installing tenant smoke alarms. But it’s certainly something they must keep in mind to foster a safe environment. They should also be aware of their rights in case of tenant misuse or mishandling.

Are Tenant Smoke Alarms Required in Rental Properties?

Almost every state and local law requires adding tenant smoke alarms in rental property. For instance, the city of Springfield, Missouri, abides by the Fire Code, which states that owners and landlords of rental properties must provide smoke alarms. Likewise, the state of Oregon requires all homes being sold or rented to have functioning smoke alarms. Some laws and codes also have specific provisions regarding their placement.

Furthermore, many states impose additional carbon monoxide rules for landlords and new buildings. In 2011, several states embraced new building codes that mandate carbon monoxide detectors in family homes with one or two stories. Years later, over 48 states have passed laws that mandate carbon monoxide detectors in homes.

However, some states do not have smoke alarm requirements for landlords. Some laws may be silent, allowing landlords and property owners more freedom. Nonetheless, installing functioning smoke detectors is always a good idea. That’s because, even without legislation, landlords are responsible for keeping their rental properties safe and habitable. Their properties should have adequate fire protection — which includes smoke alarms.

What Are the Landlord’s Responsibilities?

What are the landlord’s responsibilities regarding providing smoke detectors in rentals? Here are some of the things property owners and landlords should keep in mind.

1. Installation

Generally, smoke alarm rental laws place the responsibility of installation on the landlord’s shoulders. Property owners and landlords should take it upon themselves to install tenant smoke detectors in their rental property.

They must also verify whether the smoke alarm is in proper working condition. Moreover, they are responsible for installing the smoke detectors in the right placements according to the manufacturer’s instructions, state law, and relevant building codes.

2. Providing the First Smoke Alarm Batteries in Rentals

At the start of each tenancy, the landlord must ensure each smoke detector has working batteries. Afterward, the responsibility of battery replacements often falls on the tenant. However, tenants may purchase the batteries and ask the landlord to replace them if the tenant is incapable or uncomfortable doing so.

3. Informing Tenants of Smoke Detector Placements

Tenants have the right to know where the smoke alarms are. After all, they are responsible for battery replacements and conducting regular inspections. They cannot do so without knowing where each smoke alarm is located. Hence, landlords should carefully inform their tenants of smoke detector placements.

4. Instructing Tenants on Proper Testing Procedures

Tenants are generally responsible for testing smoke detectors and informing the landlord in writing of any malfunctions. However, they should know the proper testing procedure to be able to do this. If a tenant damages the smoke detector because of an incorrect testing procedure, they may not be held responsible if the landlord did not properly instruct them.

5. Informing the Tenant How They Can Report Problems

While it is the tenant’s responsibility to inform their landlords of any problems, landlords should make it a point to inform them how these problems can be reported. Often, tenants need to provide reports or complaints in writing. The landlord’s line of communication must be open to the tenants through mail, email, or other means.

6. Repairing and Replacing Malfunctioning Smoke Alarms

Landlords may receive feedback from tenants stating that the smoke alarms are not working. In these cases, it is the landlord’s responsibility to repair or replace any malfunctioning smoke alarms. Doing so will keep them from being liable should any accidents occur. It also keeps the rental property compliant with smoke alarm laws or building codes.

7. Upgrading Old Smoke Detectors

Smoke detectors have a limited lifespan, just like any other electronic device. Who is responsible for replacing smoke alarms in rented properties when these devices reach the end of their useful life? Naturally, the obligation falls on the landlord. Smoke detectors usually last about 10 years but may have shorter or longer lifespans, depending on the manufacturer.

What Are the Landlord’s Rights?

Landlords shouldn’t just be aware of their responsibilities regarding tenant smoke alarms. That’s because they also have certain rights they must be aware of. Awareness of these can help landlords and property owners avoid liability and protect themselves from legal repercussions.

1. Add an Addendum to the Lease Agreement

Landlords can add a tenant smoke detector agreement in the lease contract stating that functioning smoke alarms were installed correctly before the tenancy. This allows landlords to protect themselves from claims that they did not fulfill their responsibility of installing proper smoke detectors. It helps them avoid liability should anything happen.

2. Avoid Liability When There’s a Lack of Notification

Depending on local and state laws, the landlord is not required to test the rental property’s smoke detectors regularly. It is often the tenant’s responsibility. Hence, landlords can avoid liability if a fire occurs and they are not notified of a smoke alarm’s malfunctions beforehand.

3. Avoid Liability for Lack of Maintenance and Battery Replacements

Many state and local laws place maintenance responsibilities on the tenants. For example, Washington law requires explicitly that tenants maintain smoke detectors and replace their batteries. In such cases, tenants cannot hold the landlord liable for neglecting to replace batteries or conduct maintenance activities.

4. Deal With Tenants Who Tamper With the Alarms

Tampering with smoke alarms is more than just a lease violation. In most states, it is illegal for tenants to remove or disconnect any smoke alarms installed. Landlords can give the tenant a deadline to re-attach the smoke alarm if this happens. Otherwise, landlords can force the tenant to vacate the rental property.

Some landlords may even be able to evict tenants immediately if they have a monthly lease. In some cases, landlords may also be able to impose fines on the tenant. However, landlords and property owners should always consult a rental lawyer before they attempt this as state laws may vary.

Know Your Rights and Responsibilities

Landlords must always be aware of their responsibilities when it comes to installing tenant smoke alarms. They must also stay updated on state and local law changes to remain compliant. Moreover, they need to review any new building codes to avoid liability.

Are you having trouble managing your rental property and staying updated on relevant legislation? Hiring a property management company may help. Browse through our online directory to find one today!

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11 Common Landlord Tenant Issues And Solutions

Posted on 2021/03/11 by Denise

Landlords and tenants don’t always have the best relationships. As you may know, there is a lot of room for disagreements and fights. Learn how to deal with the most common landlord tenant issues below.

How to Solve Common Landlord Tenant Problems

As a landlord, you are well aware of the many problems that come with your job. Dealing with tenants is not always easy, especially when you have bad tenants. Whether you are new to the landlord game or not, though, the most common tenant problems do come with effective solutions. Here are some of the most frequent landlord tenant issues and how to solve them.

1. Late or Non-Payment of Rent

If you ask any landlord what their top tenant issues are, late rent payments or non-payment will usually take first place.

Tenants have various reasons for paying their rent late or not at all. It could stem from financial struggles, a dispute with the landlord, or just plain forgetfulness. As with a lot of problems, though, communication plays a key role in helping resolve this.

Make sure your tenant knows when rent is due and how much. If payments are consistently coming in later than usual, talk to your tenant and ask them what the problem is. You can try to help them out by negotiating a flexible payment plan. You can also prorate any applicable late fees.

If possible, allow your tenant to look for a roommate so that they have someone they can split the rent with. You can also move them to a different unit that costs less if you have any. Should the problem lie with the method of payment, try setting up more convenient ways to accept rent.

2. Security Deposit Use

This is a landlord tenant issue that is usually linked to the first one. Some tenants think that they can just use the security deposit to cover rent, but that is not what the security deposit is for. Again, communication is paramount here.

Make sure your tenant knows from the get-go that the security deposit can’t be used to cover rent, even if it is for the last month on the lease. Don’t forget to include these terms in your lease agreement. Even though many landlords withhold the security deposit for that purpose, it is important to keep in mind that the amount may not be enough. Factor in any damages you need to pay for, and you are looking at a loss.

Another option is to collect both the first month’s rent and the last month’s rent right from the beginning. Then, collect a separate amount to use as a security deposit. As with any of your terms, this should also be clearly written in your lease.

3. Noisy Tenants

Noise complaints happen all the time and are one of the most common landlord problems.

If your tenant complains about a noisy neighbor, the actions available to you depend on whether or not you are also the neighbor’s landlord. In case you are not their landlord, you can’t really do much except advise your tenant to talk to their neighbor directly. If you have another unit available, you can offer to move your tenant there instead.

If both parties are your tenants, it is still best to leave them to resolve their dispute on their own. Include a clause in your agreement that requires tenants to sort out their disagreements amongst themselves to the best of their abilities. If you must intervene, make sure your agreement reflects that tenants may not always like the resolution.

When getting involved, talk to the noisy tenant in a calm yet stern manner. Let them know that someone has complained about the noise and ask them to avoid making noise in the future. It is equally important that your lease agreement restricts the amount of noise allowed.

4. Maintenance Issues

First of all, you should make sure your lease agreement clearly defines who is responsible for what. Most of the time, though, maintenance falls under the landlord’s responsibilities. If your tenant complains about a maintenance issue you are responsible for, respond in a timely manner. Let them know you heard their complaint and when they can expect the problem to be fixed. Then, proceed to address the issue promptly.

5. Broken Appliances

If your contract says you are responsible for maintaining and repairing broken appliances, make sure to hold up your end of the agreement. Typically, the responsibility falls on your shoulders if the property already comes with appliances. Otherwise, though, you can always include a clause in your lease agreement stating that the tenant is responsible for repairing or replacing any appliances, even if they come with the unit.

But, that does not mean you should allow tenants to move into a unit with already-broken appliances. See to it that you inspect the property and its contents for any damages. If an appliance is broken, replace it before a new tenant moves in.

6. Rule Violations

Your lease agreement should include all the rules your tenant should follow. This includes any restrictions on noise, pets, subleasing, and the like. While there are certain tenants who adhere to the rules religiously, there are also bad renters who treat rules as optional rather than mandatory. Then again, there are also some good tenants who slip up every once in a while.

If your tenant has broken a rule, make sure to send them a written notification of the violation asking them to remedy the situation by a certain date. The notice should also include the penalty for failing to comply, such as eviction.

In some cases, there is room for negotiation. For instance, if you have a no-pets policy and a tenant brings home a dog, you can amend your lease to require an additional pet deposit. This deposit will cover any damages the tenant’s dog might cause.

7. Intentional Property Damage

One of the most irritating rental problems you can face is intentional damage.

There are just some bad tenants out there who purposefully damage your property before they move out. Worse yet, they will feign innocence and claim that the damage was already there when they first moved in.

Avoiding this problem will require you to take action right from the start. Before a new tenant moves in, conduct an inspection of the property (with the tenant present). Take photos of the property’s condition and ask the tenant to sign them. Then, once the tenant moves out, conduct another inspection — again, documenting the condition of the property with pictures. Both move-in and move-out inspection photos should have time and date stamps, too.

Additionally, as a landlord, your property is an investment. Therefore, you must protect it by taking out a property insurance policy. Look for a policy that serves landlords specifically since regular homeowner’s insurance may not be enough. Also, make sure your policy has sufficient liability coverage. This will save you money in the long run.

8. Legal Disputes

Have you ever had a tenant bring up the law in the middle of an argument? What about a tenant who has threatened to file a lawsuit against you? Believe it or not, this type of thing happens a lot. But, not all landlords even know that they are violating the law until it is pointed out to them.

The best way to avoid legal troubles is to familiarize yourself with the law. This includes federal, state, and local laws that apply to landlords and tenants, such as the Landlord Tenant Law. Some landlords can’t be bothered to go through this time-consuming process, so they seek the help of a property management company instead.

9. High Turnovers

Many landlords wonder why their tenants never renew their leases. But, if you look closely at the state of your rental property, it is easy to see why. One of the top tenant issues that cause them to leave is maintenance and repair disputes. Tenants simply don’t like living in a poorly maintained, dilapidated unit. With tons of better options out there, they make the easy choice of packing up and moving out.

Thankfully, this problem comes with a simple solution — respond and address. When a tenant makes a maintenance or repair request, address it as soon as possible. And don’t make hasty repairs, too. Make sure the work done is of great quality so that tenants remain satisfied and don’t have to keep making the same requests.

Another way you can minimize your turnover rate is to make upgrades to your property. Give your tenants a comfortable space to live in and amenities that put you on the map.

Perhaps you need to update your landscaping or do some repainting. You should also make sure you are charging a competitive rate. Additionally, talk about the possibility of a lease renewal about 3 to 4 months in advance. You can even offer a discount, if possible, should they agree to renew.

10. Pest Infestations

Pests are another one of the landlord issues that drive away tenants. Nobody wants to live in a property with rats and cockroaches for roommates.

Pests come from anywhere — tenants can even bring them into the unit from the outside. Bedbugs, in particular, easily spread from unit to unit. The best way to address pests is to hire an exterminator at the first sight or mention of them. In doing so, you can prevent a full-blown infestation.

11. Unpaid Utilities

The responsibility of paying for utilities is another common point of contention among landlords and tenants. Your lease agreement should clearly define who shoulders this responsibility. Even if the utility bills are registered under your name, if your lease agreement states that the tenant pays for utilities, then the tenant should follow through.

This usually creates a problem, though, if your tenant moves out without notice. When that happens, since the utilities are under your name, then the company will ask you to pay for them. But, if the utilities are under your tenant’s name, then the company will track them down in an attempt to collect unpaid bills.

The Importance of Thorough Screening

Landlord tenant issues are often a source of frustration. The good news is you can avoid most of these problems with the help of a thorough tenant screening process. Bad tenants are usually the ones who pay rent late, violate rules, leave without paying for utilities, and make a lot of noise. A thorough screening process, though, will allow you to weed out the bad eggs.

Tenant screening, along with handling maintenance requests, collecting rent, and keeping up with the law, can be a difficult and time-consuming endeavor. Start looking for a property management company that can assist you with your landlord duties. Use our online directory in your search for the best one in your area!

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What Is An Illegal Eviction? And What Can Tenants Do About It?

Posted on 2021/02/042022/10/18 by Denise

Illegal eviction is a real problem in the United States, and many tenants don’t even know they have fallen victim to it. You must know how to identify when a landlord is evicting you unlawfully and what recourse you have available.

What Is the Meaning of Illegal Eviction?

When a landlord wants to evict a tenant, they must go through a legal procedure as outlined by state laws. The specifics of this procedure can vary from state to state, though it generally involves the following steps:

Send a termination notice to the tenant (Pay or Quit Notice, Cure or Quit Notice, or Unconditional Quit Notice)
File an eviction lawsuit if the tenant fails or refuses to remedy the situation (Pay or Cure)
Allow the tenant time to respond to the complaint and summons
Obtain a judgment for possession
Remove the tenant with the help of law enforcement

The process can take a lot of time and the court costs can definitely add up. Because of this, a lot of landlords willfully choose to forgo the eviction process, taking the matter into their own hands. When landlords fail to follow the legal guidelines for evicting a tenant, it is considered an illegal eviction.

Types of Unlawful Eviction

Illegal eviction can also extend to the grounds the landlord cites to evict a tenant. A landlord may follow the eviction process to the letter but have unlawful reasons for forcing a tenant out.

This can include discriminatory eviction, retaliatory eviction, eviction due to nonpayment of rent until a health or safety issue is remedied, and eviction of a protected tenant.

Discriminatory Eviction

The Fair Housing Act offers protection to certain classes of people, namely race, color, religion, national origin, sex, disability, and/or familial status. When a landlord evicts a tenant because they are a member of a certain class, that is called discriminatory eviction. And, evicting a tenant as a result of discrimination is illegal.

Keep in mind that your state may also have its own Fair Housing laws. In California, for instance, protected classes also cover gender identity or expression, medical condition, age, and more.

Retaliatory Eviction

Landlords and tenants sometimes have a contentious relationship. Conflicts can arise and arguments can turn heated. But, a landlord can’t evict you in retaliation for something you did.

For example, if you complained about an issue with the unit, your landlord can’t force you out just because they are mad that you brought it up. Retaliatory eviction also usually happens when tenants legally report their landlords to the housing authority or health department.

Eviction Due to Nonpayment of Rent Until Health or Safety Issue Is Remedied

Nonpayment of rent is a common cause for lawful eviction because it violates the lease agreement. But, if a tenant is withholding rent because the landlord refuses to address a health or safety issue, then the landlord can’t legally evict them for that reason. It is important to know your tenant rights eviction process.

Protected Tenant Eviction

In some states or counties, some tenants are considered protected tenants. Examples include tenants who are above a certain age or tenants who have resided at a unit for a set number of years. Landlords will have a hard time evicting protected tenants, and it may even constitute an illegal eviction even if the landlord has a good reason to remove them.

Self-Help and Landlord Harassment

Landlords will sometimes use self-help methods to evict a tenant and re-assume possession of the property. These methods, though, are illegal and can even represent landlord harassment. A majority of states do not allow landlords to use self-help for tenant evictions.

Illegal landlord actions that constitute self-help include but are not limited to:

Changing the locks
Shutting off utilities
Removing the unit’s front door
Removing the tenant’s belongings from the unit
Harassing, intimidating, or threatening the tenant in any way

What to Do If You Are Wrongfully Evicted

Can I sue for wrongful eviction? This is a question that many tenants ask when they feel their landlord has removed them illegally from the property. The short answer is yes. If you have been wrongfully evicted and served with an illegal eviction notice, you can sue your landlord.

If your landlord turned to self-help methods, some of the things you can sue your landlord for include but are not limited to:

Wrongful eviction
Trespassing
Assault
Battery
Libel
Slander
Intentional infliction of emotional distress

Keep in mind, though, that you will need to prove your case in a court of law. That means you need to have evidence of wrongdoing on your landlord’s part. It is best to hire a wrongful eviction lawyer to help you out.

Additionally, if you have been illegally evicted, you must take action as soon as you can. The wrongful eviction statute of limitations can vary from state to state, but tenants generally have about a year to file a lawsuit. In some cases, it is even less than that.

It is also worth noting that your landlord cannot use your bad behavior, lease violations, or nonpayment of rent as their defenses to the case. If your landlord evicted you in a wrongful manner, then according to unlawful eviction law, you do have grounds to file a lawsuit against them.

Damages for Illegal Eviction

As a tenant, you are entitled to actual money damages as illegal eviction compensation.

A court may order your landlord to provide reparations for a variety of things such as any food that spoiled as a result of your electricity being turned off or any belongings you lost because your landlord removed your front door. Your landlord may even need to provide you with compensation for temporary housing. Collectively, these are known as economic damages.

You may also receive compensation for non-economic damages as well as punitive damages. Non-economic damages refer to compensation for the pain, suffering, or emotional distress you went through. Punitive damages, on the other hand, are monetary amounts designed to penalize your landlord. This can be as much as two to three times larger than your economic damages, though it depends on where you live.

How Much Can I Sue for Wrongful Eviction?

Illegal eviction penalties can vary from state to state. In California, for instance, you can sue for actual damages in addition to $100 per day of violation with a $250 minimum. The state statute also provides for your attorney’s fees, court costs, and gives you the right to stay.

In contrast, Colorado allows you to sue for any damages. But, unlike California, the Colorado statute does not provide for your attorney’s fees and court costs. Plus, the statute does not give you the right to stay.

In Florida, you can sue for actual damages or three months’ worth of rent, whichever is higher. The Florida statute also provides for your attorney’s fees and court costs. But, like Colorado, the statute does not give you the right to stay.

The extent of the damages for unlawful eviction can change from one state to another. Thus, it is imperative that you check your own state laws to see how much you can sue your landlord for.

FAQs

Can a landlord evict you for no reason?

It depends on whether you have a month-to-month rental agreement or a fixed-term lease. If you have a month-to-month agreement, then your landlord can generally evict you without reason. But, in some cities and states like California, New York, and New Jersey, landlords need just cause to evict a tenant. Compared to evictions with just cause, evictions without just cause usually require a longer notice period. Of course, your landlord still can’t evict you in retaliation, as a result of discrimination, or through illegal means.

If you have a fixed-term lease, then your landlord must have just cause to evict you mid-lease. Normally, this happens when you violate the terms of your lease such as failing to pay rent or allowing another occupant to stay as your roommate without permission. Landlords can also evict you mid-lease if you participate in any illicit acts on the property.

Can I call the police to evict a tenant?

Landlords can’t ask law enforcement to evict a tenant for them. They must still go through the eviction process. Once a court rules in favor of the landlord, the tenant receives time to vacate the premises. If the tenant refuses or fails to do so by the deadline, the landlord can then ask a law enforcement officer to help them remove the tenant from the property.

Can a landlord remove my belongings?

A landlord cannot use self-help methods to evict a tenant. This includes removing your personal belongings from the property in an effort to get you to move out. Most states prohibit self-help, and a landlord that uses such methods may face punishment.

Can a judge stop an eviction?

If the eviction is in any way unlawful, you may file a lawsuit against your landlord. Once a judge rules in your favor, they may serve an illegal eviction injunction and order your landlord to provide compensation. Some state statutes even give tenants the right to stay.

Knowledge Is Power

Both landlords and tenants must know what constitutes an illegal eviction. That way, landlords can avoid it and tenants can learn to recognize it. Given the consequences of illegal eviction, landlords must do their best to act within the law. Tenants, on the other hand, now know that they have the ability to sue when faced with such a situation.

Managing tenants is a tough job, and many landlords are not cut out for it. This is where a property management company can help. Find the best one in your area today using our comprehensive online directory.

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When Is It Right To Evict A Tenant?

Posted on 2020/09/142022/01/26 by admin

Tenant eviction is a normal part of managing a rental property. But, as a landlord, you need to know when you can legally evict a tenant. This way, you can complete the process in a seamless and efficient manner without breaking any laws.

How to Evict a Tenant the Right Way

Eviction is not a one-step process that takes effect as soon as you decide to push a tenant out. Although an eviction lawsuit is one of the quickest civil cases anyone can go through — typically taking place over the span of just a few weeks — it is not something you can start without the right reasons. There are many moving parts involved, and you need to be able to terminate the tenancy first.

Check Your State Laws

Tenancy termination does not just happen in a blink of an eye. As a landlord, you must give your tenant written notice of termination.

The notice period is not fixed and usually depends on state statutes. Not all states have the same laws about termination notice periods, so you must check your state laws to see what applies to you.

You also need to abide by the rental or lease agreement you and your tenant signed. Most lease agreements dictate how long in advance landlords must give tenants notice of termination, provided they do not conflict with state laws.

Following termination, most tenants either just pack up and leave as told or settle the reason for termination. However, some stubborn or bold tenants might refuse to leave or settle the issue. When that happens, you can then file a lawsuit to evict the tenant. This is called an unlawful detainer lawsuit, otherwise known as UD.

The Three Types of Termination Notices

It is important to stress that termination laws differ from state to state. Each state has its own set of protocols when it comes to writing and serving termination notices as well as eviction papers. Therefore, if you intend to send a termination notice to your tenant, you must check your state and local regulations to avoid legal trouble.

Additionally, termination notices can vary depending on the situation. That said, there are three basic types of tenancy termination notices you must know about. These notices apply only to situations wherein a tenant misbehaves, giving landlords just cause to terminate and evict.

Though the terms may not be the same across all the states, here are the three types of termination notices:

1. Pay Rent or Quit

The most common reason landlords terminate tenancies is due to unpaid rent. Although tenant screenings can give you a general idea of a potential tenant’s behavior, bad tenants sometimes slip through the cracks.

When a tenant has missed paying rent, you can send them a Pay Rent or Quit Notice. This gives tenants an ultimatum to either settle their overdue rent or move out. In most states, such as California, the time given to tenants to clear their debt ranges from 3 to 5 days.

It is worth noting that not all states require landlords to allow tenants time to pay their rent. As such, if you would rather terminate tenancy than giving your tenant the chance to settle their overdue rent, you can use the Unconditional Quit Notice (explained below) instead.

2. Cure or Quit

Lease agreements exist to maintain order and express which responsibilities both tenants and landlords must fulfill. Terms usually include pet policies, noise policies, and the like. When a tenant violates a term in your lease agreement, you can send them a Cure or Quit Notice.

Just like the Pay Rent or Quit Notice, the Cure or Quit Notice gives tenants a chance to right their wrong within a set amount of time. If your tenant refuses or fails to remedy the violation, they must either move out or face eviction.

Some states are friendlier to tenants and have laws requiring landlords to give tenants an opportunity to correct their violations. In states where such laws do not exist, landlords have the option to terminate tenancy unconditionally.

3. Unconditional Quit

The Unconditional Quit Notice is the most severe type of termination notice. It does not give tenants a chance to settle their overdue rent or fix a lease violation. A majority of states, though, only allow this type of notice provided the tenant has committed one of the following:

Missed the rent deadline more than once
Violated a significant term or clause in the lease agreement repeatedly
Caused serious damage to the property
Taken part in or performed illicit acts such as dealing drugs

Evicting a Tenant Without Cause

Typically, landlords have no right to terminate the tenancy without just cause, especially when operating on a fixed-term lease. However, landlords can send tenants a 30-day or 60-day Notice to Vacate without just cause. This usually only applies to month-to-month tenancies, though. Moreover, this type of termination is only allowed in a handful of places. Most cities require just cause to evict a tenant.

Possible Defenses Against Eviction

Some tenants will put up a fight when faced with eviction either because they believe they are right or simply in an attempt to have the case dismissed. This can prolong the eviction process and cost you more money in the end.

Tenants can identify mistakes in written notices or claim that you delivered them improperly. Your tenant can also claim that you violated the tenant’s legal rights, such as failing to provide a habitable home. This might justify the tenant’s misbehavior or turn the focus away from the issue. If you want to win your unlawful detainer lawsuit, you must be prepared for anything.

Dealing With the Aftermath

If everything goes well, you can win the lawsuit and successfully evict bad tenants. They usually have anywhere from 48 hours to a week, depending on state laws, to evacuate the unit. Though, it does not necessarily end there.

If your tenant still refuses to leave the premises even after you win the case, do not resort to self-help. It is illegal in every state to take such matters into your own hands, even if the tenant squats or deals damage to your property.

You cannot physically remove the tenant or their belongings from the unit. You also cannot change the locks on the door or lock the tenant outside. It is also unlawful to turn off essential utilities or harass the tenant in any way, shape, or form.

What you can do, though, is to seek help from law enforcement. Go to the sheriff’s department and show them the court judgment. The sheriff or marshal will then allow the tenant a set amount of time to clear the premises. If they still refuse to do so, the sheriff or marshal will be the one to physically remove the tenant.

A Necessary Part of Being a Landlord

As much as you would like to, it is impossible to have model tenants all the time. Once in a while, you will come across a bad tenant who always misses rent or breaks lease terms.

Sometimes, no matter how uncomfortable it makes you feel, you have no choice but to evict a tenant. When that time comes, remember to act within the law. If you need more help navigating the often-confusing laws on eviction, look for a property management company using our online directory. Search by zip code or city to find the best company near you.

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15 Key Questions To Ask A Landlord Before Renting

Posted on 2020/07/152020/10/29 by admin

Any responsible renter knows that you should not enter a lease agreement with your landlord without knowing all the pertinent information. Before renting an apartment or house, there are some crucial questions you must ask a landlord first.

Important Questions to Ask a Landlord When Searching for a Home to Rent

There are an estimated 43 million rental properties in the United States alone, and that number seems to increase with each passing year. That means the options for renters are growing, and there are more prospects to consider. Part of sensible house hunting, though, is knowing what to ask when renting an apartment or house. You can’t blindly enter a deal without knowing rent details, lease terms, and any applicable policies. Doing that will only invite disputes down the road.

Here are the most critical questions to ask before renting an apartment or house:

1. How much is the rent and what is included in it?

Although listings usually show how much you expect to pay in rent, a lot of things could change in between posting the ad and signing the lease.

Make sure to ask how much the rent is and what is included. Does it cover utilities? If so, which ones? What about parking? It is imperative to get specific here so that you know exactly what you are paying for. Other than that, ask if there are any rent increases, incremental or otherwise.

2. How do I pay rent and when is it due?

Apart from the rent amount, it is equally important to ask about the method of payment and the deadline. Some landlords only accept cash or check while others make rent payments convenient with direct debit or even Venmo. Also, ask a landlord if there is a grace period for late payments, which will allow you some breathing room when you are strapped for cash.

3. What happens if I miss the rent due date?

Let’s face it — there may be times when you miss the deadline for rent and even go beyond the grace period. As such, one of the most important questions to ask when renting an apartment is, “Are there any penalties for late payments?” Most landlords will let you off with a warning the first time around and then impose a late fee or fine for subsequent occurrences.

4. Is the security deposit refundable?

Security deposits are generally refundable, though there are some cases when a landlord can keep a portion of your entire deposit. This usually happens if you break the terms of your lease or cause damages to the property.

5. Is renters insurance necessary?

Another question to ask a landlord is whether or not renters insurance is required. This type of insurance covers the cost of your belongings in the event of theft or damages arising from peril.

It can also offer liability coverage in case you cause damage to the property or injury to a person. Renters insurance is an out-of-pocket expense, so if you prefer not to pay for insurance, make sure your landlord does not require it.

6. How long is the lease duration?

Most leases run for 12 months, but there are some landlords who operate using a 6-month or 18-month lease duration. The apartment or house you ultimately rent should have a lease term you are comfortable with. After all, if you do not intend to stay for 18 months, there is no point in signing an agreement that binds you for that long.

7. How much notice is required before moving out?

One of the most critical questions to ask before signing a lease has to do with notice periods. Namely, how much notice your landlord requires before you vacate the premises. Your lease agreement will typically outline this information, which can range from a month to three months. Make sure to check with your landlord before renting so that you avoid breaking the lease terms when you decide to move out.

8. How much notice do you give before entering my unit?

Landlords must respect their tenant’s privacy, as outlined in the Landlord-Tenant Law. However, there will be times when your landlord must enter your unit for maintenance or repair purposes. Your landlord will need to provide you with notice before they access the property. Make sure to ask how much notice will be given (usually 24 hours) so that you can make the necessary arrangements ahead of time.

9. How do you handle emergency maintenance?

Maintenance is a common point of contention between landlords and tenants, especially when it comes to emergencies. Make sure to ask what constitutes an emergency and find out what sort of maintenance your landlord provides. You must also learn the process for making maintenance requests, which is usually covered in the lease agreement as well.

10. What is your pet policy?

Pets are family, and you may not want to live in an apartment or house that does not allow them. Ask a landlord if they allow pets in the first place. If they do, ask about any restrictions they may impose, such as limiting the size, breed, and number of pets.

11. What is your policy on guests?

Not all landlords have the same policy when it comes to guests. As such, it is one of the most essential questions to ask when renting a house or apartment. Find out if there is an occupancy limit and whether or not it applies to overnight guests. Ask your landlord what counts as an extended stay.

12. Can I sublet the unit?

You may have an upcoming trip or long-term out-of-town assignment for work. Either way, you will be gone for many months and don’t want to waste money paying rent for a unit you won’t use for a while. In this case, you may want to sublet your unit, though it will depend on your landlord’s subletting policies.

13. Can I renew my lease when it expires?

Most rental property owners will want to renew a quality tenant’s lease. As long as you fit the bill, your landlord will welcome a lease renewal with open arms.

However, if your landlord plans to sell the property after your lease expires, renewal is no longer an option. That means you will need to pack up and restart the house hunting process all over again. If you don’t want to do that, then make sure to ask if renewal is even possible at the end of the term.

14. Can I end the lease early? What happens if I do?

Early lease termination is something you may have to go through, so see to it that your landlord allows it. Most agreements will include a clause indicating the consequences of premature termination. Regardless, it is paramount that you ask a landlord whether early lease termination is possible and what penalties you will face when you break the lease.

There is usually a fee involved, but the amount varies from landlord to landlord. That said, you must stay away from landlords who don’t allow you to break your lease for any reason.

15. Would you live here?

Perhaps the most revealing question of all, asking this will determine whether or not the property is even worth your time. When you ask a landlord this question, remember to study their reaction. You can tell a lot about a property by the way the landlord responds. If they hesitate, wince, or avoid eye contact, there is a good chance the property comes with underlying issues.

Get the Answers in Writing

It is vital for any renter to ask a landlord these questions prior to signing a lease. The search for a place to live can be long and tiring. You can make the process a lot easier by coming in prepared with a set of questions. You may have some non-negotiable terms, such as permitting pets on the premises, and asking the right questions will allow you to narrow down your options.

Though, keep in mind that it is not enough to ask questions. You may get the answers you want through a verbal discussion only to get betrayed down the line. Make sure to get these answers in writing and review your lease thoroughly before signing.

Landlords can make the tenant selection and screening process faster and easier by partnering with a property management company. Look for the best ones using Rental Choice.

Broker, Owner, And Landlord Responsibilities

Posted on 2019/08/272022/01/26 by melissa

What does a real estate broker do? Do they share the same responsibilities as a property owner or landlord? Whichever role you assume, you must understand your function and the duties you are obliged to fulfill.

What Does a Real Estate Broker Do? Answered!

There are plenty of lucrative opportunities in real estate, which is why many investors choose to spend their money on properties. But, real estate sales and management are not as easy as they seem on the outside. In truth, it involves a number of parties — from real estate brokers to landlords and property owners. To stay on the right side of the law, you must attain a deeper understanding of the differing responsibilities of these three occupations.

All About Real Estate Brokers

What is a broker? How does a broker differ from a real estate agent or realtor? What are the real estate broker duties and responsibilities? This section covers all the basics concerning real estate brokers.

What Is a Real Estate Broker?

A real estate broker is someone who coordinates, mobilizes, and negotiates real estate transactions. Becoming a real estate broker requires a license.

What does a broker do? A real estate broker can work as a traditional agent with duties such as marketing and showing properties, negotiating prices, and overseeing property sales transactions. Additionally, brokers can also work as designated brokers, which are brokers who own or manage a real estate firm.

Real Estate Broker vs Agent vs Realtor

Some people — even those who work in the industry — mistakenly use these three terms interchangeably. While there is some overlap when it comes to their duties, real estate brokers, agents, and realtors are not one and the same.

What does a real estate agent do? A real estate agent is simply someone who holds a license to practice real estate sales. They are, in essence, salespeople. The requirements to become a real estate agent can vary from state to state. For instance, in California, those who wish to apply for a real estate license must be at least 18 years of age and must have finished three college-level real estate courses.

What is the difference between a real estate agent and a real estate broker? Compared to a real estate agent, a real estate broker has typically had more training. A broker is like an agent, but with added education and an accompanying real estate broker license.

Can you practice real estate without a broker? The short answer is no, though specific regulations can vary depending on the state. Generally, though, unlike agents, real estate brokers can work independently. Brokers can also start their own real estate firm and hire agents to work under them.

What is a realtor? Is there a difference between a real estate agent and a realtor? A realtor is simply a real estate broker or agent who belongs to an organization known as the National Association of Realtors (NAR). Realtors pay annual dues to NAR and must abide by their strict code of ethics. Therefore, all realtors are either an agent or A broker, but not all agents and brokers are realtors.

Real Estate Broker Responsibilities

You know what a real estate broker is and how the position differs from agents and realtors. Now, it is time to go into a broker’s responsibilities. What does a real estate broker do?

Real estate brokers who are working for property sellers usually take on the following responsibilities:

Market the property through various mediums
List homes for sale on the local Multiple Listing Service (MLS)
Share the listings with other MLS brokers
Help the seller prepare their property for listings and showings
Oversee property showings
Report property showing results to the seller
Manage and also present offers to the seller for review and deliberation
Negotiate offers
Attempt to close deals
Carry out a purchase contract with a buyer
Facilitate the transaction process, including submitting and explaining documents, disclosures, and other items
Assist in closing
Help with seller’s move-out of the property

Real estate brokers who are working with property buyers usually take on the following responsibilities:

Assist with the property search process while taking into account the buyer’s location choice, price range, and other criteria
Schedule visits and also accompany the buyer to property showings
Help the buyer come up with an initial offer and purchase agreement
Negotiate with the seller (or seller’s agent/broker) on the buyer’s behalf
Facilitate the transaction process, including submitting and explaining documents, disclosures, and other items
Arrange property inspections
Negotiate repairs
Assist in closing

Real estate brokers can also choose to become designated brokers, otherwise known as supervising or managing brokers. In that case, their responsibilities include:

Recruit and hire agents
Negotiate agent contracts
Supervise as well as instruct all agents working under them
Oversee operations
Ensure all agents receive continued licensing
Provide further training for agents
Take responsibility for their agents’ performance, actions, and legal compliance

All About Property Owners

After purchasing a property, the owner can choose to do whatever they please with it. They can opt to live in the home or rent it out for extra income. In the case of the latter, what duties must a property owner fulfill? This section covers property owners and their responsibilities.

What Is a Property Owner?

A property owner is exactly as it sounds — it is someone who owns a property. These individuals go through the real estate transaction process, usually with the help of a broker or agent, to become property owners. Additionally, a property owner can own a residential or commercial property, which they can open up for rent.

Property Owners Responsibilities

Many property owners hire a manager or management company to handle their rental property. While property managers or companies do most of the work, there are still some responsibilities that a property owner must not skip over, such as:

Registrations. Depending on the location, the local government may require owners to register their rental property. While owners can ask a property manager for advice, they must not rely solely on their managers to complete this critical step.
Tenant Screening Instructions. Most property owners want to be removed from the tenant screening process and only be notified after a tenant has been approved. But, owners must not completely disassociate themselves from the process. Property owners must provide their manager with directions — such as any pet or vehicle restrictions — when choosing a tenant. Moreover, owners must not discriminate against any class, as that would be a violation of the Fair Housing Act.
Maintenance and Repairs. Property managers usually take care of maintenance and repairs. But, if something requires the approval of the owner, property owners must provide or deny approval immediately. This will prevent any maintenance or repair issues from worsening.
Property Improvements. Owners must have a separate fund for property improvements, such as repaintings, replacements of items or fixtures, and upgrades. This will help keep the property in good condition and preserve its value.
Mortgage, Insurance, and Taxes. There are property management companies that offer this type of service, but it usually costs extra. Even if property owners delegate this responsibility to their manager or company, they must ensure proper completion and settlement. After all, the owners are the ones who will suffer should any of these payments be missed.
Legal Fees. Property owners who find themselves in legal proceedings (like an eviction) are responsible for paying the fees involved.

All About Landlords

Is a landlord the same as a property owner? What responsibilities does a landlord have? This section covers landlords and also the duties they must fulfill.

What Is a Landlord?

A landlord is someone who owns and rents out a property. Typically, landlords are also property owners who have chosen to take an active role in managing their rental property instead of hiring a manager or management company.

Landlord Responsibilities

A landlord has the following roles and responsibilities:

Mortgage Payments. Missing mortgage payments can have a negative influence on a landlord’s credit score. Worse yet, it can also lead to a lender foreclosing on the property.
Taxes. All property owners and landlords must deal with taxes on an annual basis. Therefore, it is important that these owners familiarize themselves with the tax process, including what counts as a deductible.
Insurance. Landlords must make sure they have all the necessary insurance policies. Homeowner’s insurance is a given, but there are also other types of essential insurance. This includes an umbrella policy as well as coverage for fire, flood, natural disasters, and even lawsuits.
Safety Codes. Landlords must also stay up-to-date on and ensure compliance with all federal, state, and local safety codes. Failure to comply can lead to legal issues.
Utilities. If utilities are included in rent, landlords must also religiously pay utility bills and keep tenants happy. When landlords fail to pay utilities, they run the risk of violating their lease agreement and having tenants take legal action against them.
Maintenance and Repairs. Landlords must also perform preventive maintenance as well as routine maintenance on their rental property. This includes regular exterminations, ensuring all smoke and carbon monoxide detectors are working, cleaning all common areas, and the like. After all, tenants have a right to a habitable home.

A Helpful Guide

Real estate brokers, property owners, and landlords all have different roles and responsibilities. If you are looking to go into one of these occupations, it is imperative to first gain an understanding of each one. What does a real estate broker do? And how does a property owner differ from a landlord? Hopefully, this guide has answered your most critical questions.

Property owners are often too busy to perform landlord duties. If you need help managing your rental property, look for a property management company with the help of our online directory. Rental Choice allows you to search for the best company in your area.

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The Pros And Cons Of Tenant Screening Services

Posted on 2019/08/262022/05/25 by melissa

The tenant screening process is essential, but it can also be very time-consuming to conduct comprehensive tenant credit and background checks. As such, many landlords turn to tenant screening services for more expedient evaluations. Before you try it out for yourself, consider the pros and cons of tenant screening services.

How to Screen Tenants: Do You Need Tenant Screening Services?

Tenant screening is the process by which landlords or property managers evaluate prospective clients on their capacity to meet the lease agreement. Through this tenant verification and evaluation process, landlords can double-check the information listed on a prospective tenant’s rental application form to see if it is true and accurate.

Why Do You Need a Background Check for Renters?

A tenant background check can tell you whether a prospect has the capacity to pay rent on time, follow tenant rules and regulations, and take care of your rental property. Here are the standard items included in a tenant screening report and why they are important.

Copy of ID: Each applicant submits this for identity verification.
Income: A tenant’s income must be able to cover monthly rent payments. Most landlords require tenants to have a 3:1 income-to-rent ratio or rent should be 30% of gross income.
Employment History: A landlord should check if a tenant has a stable employment history. This ensures that a tenant has a steady source of income for rent payments. It’s important to also ask for their current employer, job description, and employment references.
Credit Report: A tenant credit check is a crucial part of the screening process. You may decide to accept or deny an applicant based on their credit score. If their credit score is not strong enough (below 650), landlords may decide to ask for a higher security deposit or require a cosigner for the lease agreement.
Criminal Background Check: A tenant background check also checks if an applicant has a criminal record. While landlords must not have discriminatory screening practices, knowing an applicant’s criminal history can tell you about their ability to pay rent on time or whether they might pose a security risk for your building or other tenants.
Rental History: The screening process helps determine how an applicant will be as a tenant in your property. As such, it’s important to look at their rental history. One of the most important things to look for is previous evictions. A tenant who has been evicted once may have a higher risk of being evicted again.
Landlord References: Talking to an applicant’s previous landlord can reveal a lot of useful information such as late payments, lease violations, complaints from other tenants, and cases of property damage.

Pros of Tenant Screening Services

Landlords know the importance of conducting comprehensive tenant background searches. However, this screening process can be very tedious and time-consuming, especially if you are evaluating a lot of applicants. Here are the pros of tenant screening services for landlords:

Quick and Convenient

A tenant screening service can deliver your results in a matter of minutes. You’ll get the information you need to properly assess the background and financial capability of a potential tenant. It’s also very convenient as everything is done online. Landlords just have to enter the details and they’ll get a report within minutes.

More Efficient Tenant Screening

With a tenant screening service, landlords can approve or deny applications at a much faster rate. As you’re able to screen more applicants, you have a much better chance of finding quality tenants and avoiding bad tenants.

Consistent Screening Process

A tenant screening service uses the same procedure for evaluating your applicants. As such, when you deny applicants, they won’t be able to accuse you of employing screening practices that are discriminatory or go against the Fair Housing Act.

Low-Cost

Most tenant screening services offer bundles or charge on a per report basis. This is more cost-effective than a subscription-based service. Some also offer different tiers or packages based on the extent of the background check. Landlords won’t have to spend more than they have to. Just keep in mind that you’ll also get what you pay for.

Cons of Tenant Screening Services

When deciding on a professional tenant evaluation provider, here are some potential risks to consider.

Higher Risk for Errors and Inaccuracies

While instant tenant screening reports are convenient, there’s a potential disadvantage to it as well. In order to deliver quick results, tenant screening services use automated programs to compile information about your prospective tenants. Most databases have errors that automated programs cannot detect. As such, there’s potential for your tenant screening report to have errors or inaccuracies, especially since there’s no one to double-check your report.

Lack of Personal Touch or Qualitative Data

Another potential issue with tenant screening services is that there is a lack of personal touch. Since a machine is compiling the data, it may miss out on qualitative data that would be easily discovered with a hand-compiled report. For instance, an automated report can tell you how many evictions a tenant has had, but it may not tell you why these evictions happened.

Tenant Involvement

A lot of tenant screening services have tenant involvement. The service uses an applicant’s email address to obtain and verify personal information. However, not all tenants will complete these requests. There are many reasons: laziness, lack of time, or in some cases, they won’t even see the email request. If the applicants don’t complete the process, you won’t get your report.

Issues with FCRA Compliance

The Fair Credit Reporting Act (FCRA) aims to protect the rights of prospective tenants, particularly when it comes to using their private information for a background check. They have a right to dispute inaccurate, incomplete, and unverifiable information that may be included in a tenant screening report. If a tenant screening service is not transparent with its practices, you cannot be sure if they are complying with the FCRA or not. If there are compliance issues, you could end up being reported or sued by your applicants.

Lack of Customer Support

A lot of tenant screening services do not offer customer support. Even if they do, the level of service might be questionable at best. As a result, landlords may have a hard time following up on the information contained in a tenant screening report. If you are left with lingering questions, you may end up with issues with prospective tenants including disputes and compliance issues.

Is There an Alternative to Tenant Screening Services?

For landlords who simply have no time to perform comprehensive background checks, a tenant screening service is the best alternative. However, it’s important to remember that not all tenant screening services are the same. For instance, you cannot really expect much from free tenant screening services or those that charge a very low price.

In order to protect yourself from potential liabilities, make sure to choose the best tenant screening services. Practice due diligence when searching for a tenant screening service. Learn about how they perform background checks and what information will be included in the tenant screening report. You may end up paying a higher price, but you have better peace of mind knowing that the tenant screening report is accurate.

On the other hand, if you want a more personal tenant screening process, you can also consider partnering with a property management company. They will have the expertise to conduct a thorough background check. If they won’t do it personally, they will still have a network of the best tenant screening services. With this option, landlords can be confident with the quality and content of their tenant screening reports. A property manager can also be invaluable when it comes to the day-to-day operations of your rental property.

Tenant Screening Services Can Make Landlords’ Lives Easier

Landlords should take the time to find the best tenant screening service. If a tenant screening service leaves you with more doubts and questions, It’s probably not worth it. Make sure that you find a reputable company so that you can enjoy all the benefits and not have to worry about the potential risks or issues mentioned in this article.

If you need help finding tenant screening services in your area, feel free to browse the Rental Choice online directory. You can find top-rated property management companies that can guide you through the entire tenant screening process.

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A Guide For Landlords On How To Make A Rental Contract

Posted on 2016/11/232022/01/27 by admin

The landlord tenant agreement is an important document that details the responsibilities of both parties. As such, landlords should know the basics of a rental contract, as well as how to make one. If you’re a first-time landlord, here’s a helpful guide to get you started.

What is a Rental Contract?

A rental contract, also known as a rental agreement, is a legal document signed by tenants and landlords. It establishes the rights and responsibilities of each party.

For example, a landlord is responsible for creating a safe and habitable environment for the tenant. In turn, the tenant is responsible for keeping the rental property clean and well-maintained. Rental contracts also serve as legal protection in case there are issues with the tenant, landlord, or the leased property.

Rental Contract vs Lease Agreement

Most people use rental contracts and lease agreements interchangeably. While these two documents are very similar, they differ when it comes to tenancy periods.

A rental contract has a short-term tenancy period — usually 30 days. The standard rental agreement renews every month until either the tenant or landlord terminates the contract.

One advantage of having a rental contract is that both tenant and landlord can renegotiate the terms of the contract on a month-by-month basis. For example, landlords can raise the rent to remain competitive. However, one downside of a rental contract is a potentially high turnover rate. Landlords may have to work harder to keep the rental property occupied throughout the year.

Meanwhile, a lease contract has a long-term tenancy period — usually 12 months or longer. The basic lease agreement is terminated at the end of the agreed-upon period. With a lease agreement, landlords have a more stable rental income while tenants don’t have to worry about a rent increase. However, terms cannot be negotiated until the end of the lease agreement.

Apart from the tenancy period, though, rental contracts and lease agreements have similar content. They establish the terms of tenant-landlord relationships.

What Is Included in a Rental Contract?

A basic rental agreement or residential lease agreement should contain these important components:

1. Tenant Names and Contact Information

The residential rental agreement should contain the names and contact information of tenants. It’s important to have everyone who intends to occupy the rental property sign the rental contract. In case one tenant fails to pay the rent, the other tenants can be held equally responsible. Similarly, if one tenant violates the lease terms, other tenants can also be evicted.

In this section, the landlord can also establish occupancy limits. Only those included in the rental contract, as well as their minor children, will be allowed to live in the rental property. You can also have a stipulation that guests can only stay a maximum number of days. If there are unapproved tenants, the landlord has the right to terminate the lease and evict the tenants.

Landlords can also set a maximum occupancy limit based on the square footage of your property. Make sure to check federal, state, and local regulations to determine enforceable occupancy limits in your area.

2. Landlord Name and Details of Rental Property

A lease contract should include the name of the landlord, as well as his/her contact information. Tenants must know how to contact their landlord and where to send notices, requests, or complaints. It’s also crucial to include details of the rental property including the complete address. If you are offering parking and storage, the contract should identify which specific spot or stall a tenant has access to.

3. Lease Terms

The lease term explicitly states the length of tenancy. It can be a month, 6 months, 12 months, or longer. The lease term should indicate the start date of the rental contract. Most lease terms begin on the first day of the month. The expiration date of the lease should likewise be included.

4. Rent Details

A residential lease agreement must include the dollar amount of rent that tenants pay each month. Landlords should specify when the rent is due (typically on the first day of every month), acceptable payment options (personal check, debit, or credit card), and how to pay rent (in-person, mail, or online).

The rental contract also contains information about late rent payments. For example, will the landlord have a grace period for rent payments before he/she charges a late fee? In addition, the landlord can establish consequences for late rent payments — such as possible eviction from the rental property.

5. Security Deposits

A basic house rental agreement will have stipulations on how the security deposit is kept and/or used. For example, can the landlord use the security deposit to claim unpaid rent, to pay for damage caused by the tenant, or for move-out cleaning costs? The landlord can also state that the security deposit cannot serve as last month’s rent. In addition, the lease agreement should cover when and how the security deposit will be returned to the tenants.

6. Maintenance and Repairs

Even if you opt for a simple lease agreement, it should clearly detail the responsibilities of both landlord and tenant when it comes to maintaining the rental property. The rental contract may stipulate that the landlord is responsible for maintenance and repairs. Meanwhile, tenants are required to maintain the rental property, as well as provide proper notice in case there are maintenance issues such as water damage or mold removal. Landlords can also impose restrictions on what alterations tenants can and cannot do to the rental property.

7. Rules and Regulations

Landlords must enumerate the rules and regulations for their rental property. Having these policies listed in the rental contract can ensure compliance from the tenants. This section can include a no-smoking policy, pet-related policies, proper use of amenities, and what constitutes criminal or illegal activity. The rental contract should also include fines and penalties for tenants who violate these rules and regulations.

Important Clauses to Include in Your Rental Contract

Apart from the basic components of a rental contract, there are important clauses that landlords should consider including as well. If these clauses are not included in the standard rent agreement, landlords can also create lease addendums to address specific issues or concerns.

Landlord’s Right of Entry: It’s important to include a clause regarding the landlord’s right to enter a rental property to prevent claims of illegal entry or violation of privacy from tenants. This clause establishes procedures for making repairs or showing the unit, as well as proper notice prior to entering the premises.
Disturbance Clause: A disturbance clause can help maintain peace and quiet in your rental property. Tenants have to keep noise levels low at certain hours (from 9 p.m. to 7 a.m.) so that neighbors do not complain of excess noise or disturbance.
Termination of Lease: Landlords may opt to have a termination clause in their lease. IT establishes valid reasons for terminating the rental contract early. For example, the landlord may break the contract and evict a tenant who has not paid rent for several months. This clause can also protect tenants in case their landlord does not fulfill his/her duties and responsibilities.
Dispute Resolution: Including a dispute resolution clause in the rental agreement can help landlords avoid costly and time-consuming litigation. Landlords and tenants can pursue alternative methods such as arbitration and mediation.
Required Landlord Disclosures: Depending on your state, landlords are required to make disclosures regarding rent control, smoke and carbon monoxide alarms, presence of lead-based paint, a previous case of mold, and/or bed bugs, recent flooding, and non-refundable fees.

Importance of Having a Rental Contract

The importance of having a rental contract cannot be overstated enough. A rental contract is critical in setting expectations for both the landlord and the tenant.

A simple but clearly defined lease agreement can pave the way for a good landlord-tenant relationship. If tenants are happy, they’re likely to pay rent on time and extend their lease contract. Meanwhile, if landlords are happy, they’re able to provide quality service to their tenants.

Since this is a legal document, make sure to have your attorney or property manager look over the provisions. This is to ensure the rental contract is fair and does not violate the laws and rights of both parties.

Need help with drafting your rental contract? Consider the benefits of having an experienced property manager by your side. Property managers know how to create lease agreements that protect both the landlord and the tenant. If you’re interested, feel free to browse the Rental Choice online directory to find the best property management company in your area!

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