Raising Rental Fees: How to Increase Rent Fairly

Raising rental fees can be necessary when operating costs increase, the local rental market changes, or a property needs additional investment.

 

Understanding the Need for Rent Increases

Increasing rent should be handled carefully so property owners can protect their income without creating unnecessary problems for renters.

Rental properties come with ongoing expenses. Property taxes, insurance, maintenance, repairs, utilities, and professional services can all become more expensive over time. If rent stays the same while operating costs continue to rise, the property may eventually become harder to manage profitably.

Market conditions can also play a role. If comparable rental homes in the area are charging more for similar properties, an owner may have room to adjust the rent. Still, a higher market rate does not automatically mean the biggest possible increase is the right choice.

A reasonable rent increase should take the property’s condition, location, amenities, operating costs, and current market demand into account. The goal is not simply to charge more. It is to set a rental price that makes sense for both the property and the market.

 

What to Consider

how to raise rent

Before raising rent, take some time to look at the numbers. A quick review can help determine whether an increase is justified and how much of an adjustment makes sense.

Consider these factors:

  1. Current market rents. Compare similar properties in the same area. Look at homes with comparable bedrooms, bathrooms, square footage, amenities, and overall condition.
  2. Operating costs. Review expenses such as insurance, property taxes, repairs, landscaping, utilities, and maintenance.
  3. Property improvements. Recent upgrades can support a higher rental rate, especially if they improve the property’s value or appeal.
  4. Tenant history. A reliable tenant who pays on time and takes care of the property has value. A small increase may be more practical than risking a vacancy.
  5. Local regulations. State and local laws may control when and how rent can be increased, particularly for certain types of housing.
  6. Lease terms. Check the existing lease before making any changes. The agreement may specify when rent can be adjusted and what notice is required.

It is also worth looking beyond the monthly rent. If a property has mandatory fees, those charges should be clearly explained rather than presented in a way that makes the advertised price appear lower than the actual cost.

 

How Much Should You Raise Rent?

There is no single percentage that works for every rental property. A rent increase should be based on the property’s financial needs and what renters are currently paying for similar homes.

Start by researching comparable listings in the area. If similar properties are renting for $1,800 while your property is priced at $1,500, there may be room for an increase. On the other hand, if your property is already priced near the top of the local market, a large increase could make it difficult to retain the tenant or attract a new one.

Think about vacancy costs, too. If raising rent by $150 results in a vacant property for two months, the additional income may not make up for the lost rent and turnover expenses.

For example, a $150 monthly increase creates an additional $1,800 in annual rent if the property remains occupied for the full year. But two months of vacancy at $1,650 per month would mean $3,300 in lost rental income before considering cleaning, repairs, advertising, and other turnover costs.

Sometimes, a moderate increase is the better financial decision.

 

Check the Law Before Increasing Rent

how to raise rent

Rent increases are not handled the same way everywhere in the United States. State and local laws may establish notice requirements, rent control rules, limits for certain properties, or other restrictions.

The lease should also be reviewed before an increase is proposed. In many situations, rent cannot simply be changed in the middle of a fixed-term lease unless the agreement allows it or another legal exception applies.

Landlords participating in certain housing programs may also have additional requirements. For example, HUD’s Housing Choice Voucher Program requires participating landlords to submit rent increase requests to the local public housing authority, and the process may include rent-reasonableness requirements and advance notice.

Because requirements vary by location and housing type, owners should verify the rules that apply to their specific property before sending a rent increase notice.

 

Give Tenants Proper Notice

Once the new rental rate has been determined and the legal requirements have been reviewed, the next step is communicating the change.

A rent increase notice should be clear and easy to understand. It should explain the current rent, the new rent, the effective date, and any other information required by local law or the lease.

A simple notice might include:

  • Current monthly rent
  • New monthly rent
  • Effective date
  • Lease renewal date, if applicable
  • Required notice information
  • Contact information for questions
  • Instructions for accepting or declining the new rental terms

Avoid vague language. Tenants should not have to search through several paragraphs to figure out how much their rent is changing.

It is also a good idea to keep a copy of the notice and documentation showing when it was delivered. Good records can make a major difference if there is ever a disagreement about the timing of the increase.

 

Be Transparent About Additional Fees

how to raise rent

Increasing rent is only one way rental costs can change. Owners may also consider fees for parking, pets, utilities, storage, amenities, or other services.

These charges need to be handled carefully. The Federal Trade Commission has been examining rental housing fee practices, including concerns about advertised rents that leave out mandatory charges and fees that are not clearly disclosed. The FTC’s recent actions involving major rental housing providers show that unclear pricing can create significant consumer protection problems.

For that reason, rental advertising should give prospective tenants a realistic picture of what they will actually pay. If a fee is mandatory, say so. If it is optional, explain that as well.

Clear pricing helps renters make informed decisions and can also reduce confusion after a lease is signed.

 

How to Communicate a Rent Increase

Rent increases are rarely exciting news for tenants. Even when an increase is reasonable, the way it is communicated can affect the tenant’s response.

Start with the facts. Explain that the rental rate is changing, when the new rate begins, and what the tenant needs to do next.

There is no need to make the message overly complicated. A professional notice that is direct and respectful is usually better than a long explanation that sounds defensive.

If the increase is connected to rising property expenses or improvements, those details can be shared when appropriate. For example, an owner may explain that the property has received significant upgrades or that operating costs have increased.

The conversation should remain professional, though. A tenant does not need to agree with an increase for the notice to be effective, provided the increase is lawful and properly handled.

 

Should You Raise Rent for a Good Tenant?

how to raise rent

This is one of the harder decisions rental owners face. A tenant who pays consistently, communicates well, and takes care of the property can be extremely valuable.

That does not necessarily mean rent should never be increased. However, tenant retention should be part of the financial calculation.

Consider what it would cost to replace the tenant. You may have advertising expenses, cleaning costs, repairs, screening fees, administrative work, and a period without rental income. There is also no guarantee that a new tenant will be as reliable.

For a long-term tenant who has been easy to work with, a modest increase may make more sense than pushing the rent to the highest possible market rate.

 

Ways to Make a Rent Increase Easier

A little preparation can make the process much smoother. Before sending a notice, make sure the new rental rate is supported by current information and that the tenant’s lease has been reviewed.

These steps can help:

  1. Research comparable properties. Check current listings rather than relying on old rental prices.
  2. Review property expenses. Know what has changed since the last rent adjustment.
  3. Check the lease. Confirm when and how rent can be changed.
  4. Verify local requirements. Look for applicable notice periods, rent caps, and tenant protections.
  5. Prepare the notice early. Give yourself enough time to meet the required notice period.
  6. Keep documentation. Save the notice, delivery confirmation, lease, and supporting records.
  7. Review the tenant’s history. Consider the cost of losing a reliable renter before making a larger increase.
  8. Update listings when needed. If the tenant leaves, make sure the advertised rental price and all applicable fees are accurate.

These steps do not guarantee that a tenant will accept the new rate, but they can help reduce avoidable issues.

 

What If the Tenant Does Not Accept the Increase?

how to raise rent

A tenant may decide that the new rent no longer fits their budget. That possibility should be considered before an increase is proposed.

If the tenant plans to leave, the property may need to be prepared for the next renter. That means planning for cleaning, repairs, marketing, showings, applications, and tenant screening.

In some cases, the owner may decide that keeping the current tenant at a slightly lower increase is the better option. In others, moving to the full market rate may make more financial sense.

The right choice depends on the property, local demand, tenant quality, and expected turnover costs. There is no one-size-fits-all answer.

 

Keep Rental Pricing Competitive

Raising rent should not happen in isolation. Rental owners should continue watching the local market throughout the year.

Rental demand can change quickly. New apartment communities may enter the market, local employers may expand or leave, or renter preferences may shift. A property that was highly competitive six months ago may have more competition today.

Regularly reviewing comparable rentals can help owners avoid pricing too high or too low. It also makes future rent adjustments easier because decisions are based on current information rather than guesswork.

For owners advertising vacancies, accurate pricing is especially important. A listing that attracts renters with an artificially low advertised price and then adds unexpected mandatory charges can damage trust and may create legal concerns.

 

Make Rental Pricing Work for Your Property

Raising rental fees can be a reasonable part of managing a rental property, but it should be approached with care.

When the new price reflects the market, follows applicable rules, and is communicated clearly, owners can protect their investment while maintaining a positive relationship with tenants.

Your next rental could be closer than you think. Let Rental Choice help simplify your search with listings designed to make finding the right property easier. Browse our directory today and take the next step toward a rental that fits your lifestyle, location, and budget.

 

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Living With a Roommate: A Practical Guide

Moving into a rental with another person can make housing more affordable, but sharing a home takes more than splitting the rent. Living with a roommate works best when everyone understands expectations, communicates openly, and respects shared spaces. With the right approach, roommates can enjoy a comfortable home while avoiding many of the problems that commonly lead to frustration.

 

Starts With Choosing the Right Person

Tips for Living With Roommates

Finding the right roommate is one of the biggest factors in creating a positive living experience. Even if someone is a close friend, they may not be the best person to share a home with. Lifestyle habits often matter more than how well you know each other.

Before signing a lease together, spend time discussing daily routines and expectations. It is much easier to address potential concerns before moving in than after disagreements begin. Honest conversations early on can prevent misunderstandings that might otherwise grow into larger issues.

Some important topics to discuss include:

  • Work schedules
  • Sleeping habits
  • Guests and overnight visitors
  • Pets
  • Smoking or vaping
  • Cleaning preferences
  • Noise levels
  • Hobbies that require shared space
  • Plans for staying long term

A roommate who keeps late hours may not be a good match for someone who starts work before sunrise. Likewise, someone who enjoys hosting gatherings every weekend may clash with someone who values a quiet home.

Compatibility does not mean having identical personalities. It simply means your lifestyles can comfortably exist under the same roof.

 

Talk About Money Before Moving In

Financial disagreements are among the most common reasons roommate relationships fall apart. Clear expectations from the beginning help everyone avoid unnecessary stress.

Rent is only one part of the monthly cost of living together. Utilities, internet service, streaming subscriptions, parking fees, groceries, and household supplies can quickly add up.

Discuss questions such as:

  1. How will rent be divided?
  2. Who pays each utility bill?
  3. When is everyone expected to submit their share?
  4. What happens if someone pays late?
  5. Will groceries be shared or purchased separately?

Many roommates find it helpful to use payment apps or shared budgeting tools to track expenses. Automating recurring payments can also reduce the chance of missed due dates.

No one enjoys discussing money, but these conversations create transparency and reduce future conflict.

 

Put Important Agreements in Writing

Tips for Living With Roommates

While trust is important, written agreements protect everyone involved.

A roommate agreement does not replace the lease. Instead, it outlines how roommates will handle day-to-day responsibilities within the home.

A written agreement may include:

  • Rent payment responsibilities
  • Utility payment arrangements
  • Cleaning schedules
  • Guest policies
  • Quiet hours
  • Pet responsibilities
  • Parking arrangements
  • Shared purchases
  • Move-out procedures

Having these expectations documented gives everyone something to reference if questions arise later.

Many roommate disagreements happen because each person remembers conversations differently. A written agreement removes much of that uncertainty.

 

Create House Rules Everyone Can Follow

Every shared home develops routines over time. Establishing house rules early helps everyone feel comfortable.

House rules should be realistic rather than overly restrictive. The goal is not to control one another but to create a respectful living environment.

Common house rules include:

  • Washing dishes after meals
  • Taking out trash on assigned days
  • Cleaning bathrooms on a rotating schedule
  • Respecting quiet hours
  • Locking doors before leaving
  • Reporting maintenance issues promptly

Consistency matters more than perfection. Everyone occasionally forgets a chore, but repeated neglect often leads to resentment.

 

Respect Shared Spaces

Tips for Living With Roommates

One of the biggest adjustments when living with roommates is recognizing that common areas belong to everyone.

The kitchen, living room, bathrooms, laundry room, and outdoor areas should remain clean and usable for all residents.

Simple habits make a noticeable difference:

  • Put belongings away after using them.
  • Clean spills immediately.
  • Return shared items after use.
  • Avoid leaving personal items throughout common areas.
  • Ask before borrowing anything.

Small acts of consideration often have the biggest impact on daily life.

 

Respect Privacy

Sharing a home does not mean giving up personal boundaries.

Everyone deserves private time, even in a shared living arrangement. Knock before entering closed bedrooms, avoid going through another person’s belongings, and ask permission before inviting guests into someone else’s personal space.

Privacy also extends to digital boundaries. Avoid using another roommate’s devices, accounts, or mail without permission.

Respect builds trust, and trust makes living together much easier.

 

Keep Communication Open

Tips for Living With Roommates

Even the best roommates experience disagreements from time to time. What matters most is how those disagreements are handled.

Address concerns early instead of letting frustration build over weeks or months. Calm conversations usually lead to better outcomes than emotional confrontations.

When discussing problems:

  • Focus on the issue instead of attacking the person.
  • Listen before responding.
  • Be specific about what needs to change.
  • Look for solutions both people can accept.

Good communication often prevents minor frustrations from becoming major conflicts.

 

Divide Household Chores Fairly

Cleaning responsibilities can become a source of tension if expectations remain unclear.

Rather than assuming chores will naturally balance out, decide who will handle each responsibility.

Some roommates prefer rotating schedules, while others permanently divide tasks based on preference.

For example:

Chore Roommate A Roommate B
Trash ✔
Vacuuming ✔
Bathroom Cleaning Alternate Weekly Alternate Weekly
Kitchen Cleaning Shared Shared

Flexibility also helps. If someone has an unusually busy week, switching responsibilities occasionally can strengthen the roommate relationship.

 

Decide How Food Will Work

Tips for Living With Roommates

Food is another area where misunderstandings commonly occur.

Some roommates purchase groceries together, while others keep everything separate. Either option can work as long as expectations are clear.

Discuss questions like:

  • Will condiments be shared?
  • Can roommates help themselves to snacks?
  • How will grocery costs be divided?
  • Is everyone expected to replace shared items?

Labeling personal food can eliminate confusion, especially in homes with multiple roommates.

 

Be Considerate About Guests

Visitors are part of everyday life, but frequent guests can affect everyone sharing the home.

Discuss guest expectations before they become an issue.

Topics to cover include:

  • Overnight guests
  • How often visitors can stay
  • Parties and gatherings
  • Parking for guests
  • Notice before inviting people over

Being considerate allows everyone to enjoy the home without feeling surprised or uncomfortable.

 

Understand Your Lease

Every roommate should fully understand the lease agreement before moving in.

The lease explains legal responsibilities, including rent payments, maintenance obligations, occupancy limits, and lease violations.

Some leases make each tenant individually responsible for their portion of the rent. Others hold every tenant jointly responsible for the full amount.

Understanding these details helps roommates avoid unexpected financial or legal issues.

If questions arise, ask the property manager or landlord for clarification before signing.

 

Handle Conflict Before It Gets Bigger

Disagreements happen in almost every shared household.

Rather than avoiding uncomfortable conversations, address concerns while they are still manageable.

Here are several steps that often help resolve conflicts:

  1. Speak privately instead of arguing in front of guests.
  2. Choose a calm time to talk.
  3. Explain how the situation affects you.
  4. Listen to the other person’s perspective.
  5. Work together toward a compromise.

Sometimes both roommates need to adjust their expectations. A willingness to compromise usually leads to stronger living arrangements.

Know When a Living Arrangement Isn’t Working

Despite everyone’s best efforts, some roommate situations simply are not a good fit.

Persistent issues such as unpaid rent, repeated disrespect, property damage, or unsafe behavior should not be ignored.

If problems continue despite honest communication, review the lease to understand your available options. Depending on the circumstances, it may be appropriate to involve the landlord or property manager.

Ending a roommate arrangement respectfully is often better than remaining in an unhealthy living situation.

 

A Comfortable Home Begins With Mutual Respect

Living with a roommate can be one of the most rewarding ways to rent a home when both people communicate openly and respect each other’s space.

Clear expectations, shared responsibility, and a willingness to work through challenges can turn a shared rental into a place where everyone feels comfortable.

Whether you’re searching for your first roommate or preparing for your next move, taking time to plan ahead can make all the difference.

Looking for a rental that fits your lifestyle and budget? Your next home is closer than you think. Compare listings, find your budget match, and start living the way you want. Search our directory today.

 

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

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:

 

subletting an apartmentOccupancy 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.

 

sublet vs subleaseTenant 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

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. Straight Edge Painting Pros, a painting company in Charlotte NC, recommends that even if you think the paint looks okay after a tenet leaves you should repaint.

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.

 

tenant insurance water damagePlumbing 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.

 

landlords rights if tenant damages propertyCommunicate 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.

 

damages by tenantVandalism

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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Renter Priorities: What’s On Top Of A Tenant’s List?

Renter priorities have changed over the last few years. Landlords and property owners need to stay up-to-date with the changing trends to stay competitive. What are the top renter priorities nowadays? Here’s what you need to know.

 

Top Renter Priorities

The common priorities of renters included apartment features, community amenities, rental rates, and lease terms. However, as the new normal set in, renter priorities have started to shift. Here are the top renter priorities and tenant rental behaviors landlords should consider.

 

1. High-Speed Wi-Fi

Remote work has affected rental prices significantly in the new normal — and it’s no surprise why. That’s because renter priorities have shifted in the last few years. Now more than ever, tenants work from home several days a week. More and more people are not expecting their remote work setup to change.

Hence, tenants want high-speed Wi-Fi connectivity at home. Some may also prioritize Wi-Fi accessibility and speed in common areas. Landlords and property owners need to pay attention to this as they can help attract new renters.

 

shared workspace in a rental property2. Shared Workspaces

Apart from staying connected, people prefer to be more mobile than stationary. Hence, people want shared workspaces within apartments and communities. This is in line with the current trend of remote work being a big part of the new normal.

 

3. Electric Vehicle Accommodation

While not a lot of renters drive a fully electric vehicle, many are planning to purchase one the next time around. Many renters also consider the option and plan to purchase or lease an EV in the next two years.

As a result, landlords may need to provide more electric vehicle charging stations in the future. Landlords should also think about the quality and accessibility of their charging stations. They may also need to rework the logistics of their parking spaces to accommodate this new trend.

 

4. Prime City Centers

Even though remote work has changed renter priorities, tenants still want to live in prime city centers. This is because renters still want their workplaces to be in commutable distance. After all, not everyone works from home full-time. Many have hybrid setups wherein they work from home only a few days a week. This is why rental values have still increased in many big cities.

 

5. Online Tools

Renters have been embracing digital experiences more and more lately. Hence, it’s unsurprising that many rely more on online tools to find their next rental unit. Landlords and property owners should make sure to prioritize marketing their homes online to reach their target audience. They may also need to provide more information online to make the hunt more convenient.

In addition, landlords may even want to provide digital tours. Many renters say they may even consider signing a lease based only on digital information and virtual tours.

 

6. Outdoor Spaces

landscape in a HOA rentalWhile city centers are still sought, renters want more accessible outdoor spaces. This is because many remote workers still want a change of scenery and fresh air. They may be unable to do that while being cooped up in their rooms. However, if their immediate neighborhood can provide that, it’s a big plus.

Hence, landlords may want to provide more communal gardens and green areas. Property owners may consider providing bigger windows or more ventilation if the property is a skyscraper or tall building.

 

7. Aesthetics

The rise of social media has played a big role in the rental landscape. Moreover, more connected generations (millennials and Gen-Z) have grown older and are looking to rent properties. As a result, landlords need to pay attention to the aesthetics of their rental homes and communities. After all, renters nowadays want to share pictures of their every experience, including how they live at home.

 

8. Pet-Friendly Homes

Renters love their pets and don’t want to part with them at all costs. Hence, providing a pet-friendly rental unit may give landlords an edge over other homes. This may lead to more property damage, but landlords who allow pets in rental properties may gain more in the long run.

 

9. Price

Price will always be a big part of renter priorities. It’s one of the biggest reasons why renters leave and seek out a different rental home. Landlords will want to do their research on local rental rates and offer a competitive price to find tenants.

 

10. Neighborhood

The more people work from home, the more a good neighborhood matters to them. Renters want a safe city with decent noise levels and good neighbors. Landlords may need to factor this in to keep their current tenants and find new ones.

 

swimming pool amenity in rental property11. Amenities

An apartment or community’s amenities might be low on the priority list, but they’re still a factor people consider. That’s because renters still want access to good amenities, especially if they’re important to day-to-day living. For example, providing on-site laundry or a fitness studio might be helpful.

 

12. Large Living Space

Besides seeking lower rent, many renters also move out to look for a larger living space. Staying in a small home can be sustainable only for so long. People will eventually want to move somewhere with more room, especially if they want to settle down or start a family.

 

13. Good Management

Tenants may often butt heads with the property management company during disagreements. Even if an apartment’s amenities and features are superb, they might not be worth dealing with an awful management company. Thus, landlords should hire the right property manager and prioritize customer service.

 

Renter Priorities: An Important Consideration

Property owners and landlords need to consider these shifting trends in renter priorities. If they don’t, it could mean a lot of monetary loss down the road. Landlords who don’t stay competitive might not even be able to find tenants at all.

Staying on top of industry trends and making changes can be hard. Landlords struggling to do this alone may want to seek professional help. Look through our online directory today to find a trustworthy property management company!

 

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Tenant Smoke Alarms: Landlord Responsibilities And Rights

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.

 

installing smoke detector 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.

 

Repairing and Replacing Malfunctioning Smoke Alarms6. 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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Everything You Need To Know About Adding A Tenant To Your Lease

Adding a tenant to the lease agreement is not easy. There are several considerations landlords should take into account before they allow another person to occupy their property. Moreover, it’s important to follow due process to avoid potential problems.

 

Why Should Landlords Add a New Person to an Existing Lease?

Landlords may be tempted to allow a new tenant to move into the property without modifying the existing lease. After all, it’s much faster and a lot less paperwork. But, adding a tenant to the lease is much safer in the long run. That’s because unofficial tenants can introduce unnecessary risks. Modifying the lease or creating a lease addendum and adding a tenant is a much safer option. Here are a few reasons why landlords should consider adding a new tenant to an existing tenancy agreement.

 

1. Updated Terms and Fees

When landlords add a roommate to the lease, it allows them to update the financials. This means they can update and increase the security deposit, applicable fees, and monthly rent payments. This allows landlords to cover the utility bills that will likely increase due to increased usage. It can also help landlords keep up with the increased maintenance costs.

 

2. Background Checks

tenant Background CheckLandlords may trust the old tenant, but that doesn’t mean the new tenant is just as reliable. That’s why we recommend going through the official process of adding a tenant to the lease instead of simply letting someone new move in. It allows the landlord to run a background check and ensure the new tenant meets the usual requirements.

For example, the landlord may not be open to adding someone to a lease with bad credit. Going through the proper procedure will allow them to verify the person’s financial history. The landlord can then deny the application and continue with the existing lease agreement.

 

3. Responsibilities and Rights

Lease agreements contain both the landlord’s and renter’s rights and responsibilities. Clearly laying these out is the key to fostering a good relationship with the tenant and maintaining order. Adding a tenant to an existing lease or adding a tenant to the lease addendum will ensure the new tenant understands their rights and responsibilities. It also clarifies the relationship between the landlord and the new tenant. Moreover, it helps both parties resolve disagreements as the lease contract terms bind both.

 

The Process: Adding a Tenant to the Lease

What are the steps to add another person to the lease? Whether the landlord is creating a lease amendment, adding a tenant, or forming a new contract, here are the steps to take to add a new tenant.

 

1. Get a Written Request

Getting a written request from the tenant is always a good idea. Simply talking to the tenant about it may pressure the landlord, forcing them to decide on the spot. Having a written request will give the landlord time to think clearly and make a wiser choice.

The letter should include who the new person is and why the tenant is making the request. This will allow the landlord to understand exactly what the tenant wants.

 

2. Verify the Occupancy Limit

Landlords must check any laws relating to local occupancy limits before deciding. Some states may not impose any occupancy limits on rental properties. But, some establish a clear limit or formula. For example, California has a two-plus-one rule that allows two people per bedroom plus one more person in the property.

That said, the landlord must make sure the tenant’s request will not exceed the property’s occupancy limit. Otherwise, they may violate local or state legislation, resulting in potential liability.

 

3. Get a Complete Rental Application

If the occupancy limit isn’t a problem, the landlord should send the potential tenant an official application form. The potential tenant must complete it and return it by a certain date. This will allow the landlord to review the person’s information and perform a thorough background check.

 

Screen the Potential Tenant4. Screen the Potential Tenant

Upon receiving the application, the landlord must screen the new tenant. Screening can include the person’s credit score, eviction history, and criminal record. Moreover, the landlord should contact any previous landlords or other references to ensure the person is trustworthy and meets their housing requirements.

 

5. Decide

After screening the applicant, the landlord must decide whether to accept or reject the potential tenant. If the landlord chooses to reject the application, they must make sure to notify the applicant of the reason why.

Meanwhile, approved applications will have a different process. In these cases, the landlord can either choose to amend the current lease or create a new lease agreement. Regardless, the landlord must invite the tenant to sign the contract.

 

6. Final Review

If the landlord approves the application, they must meet with the old and new tenants. The landlord must explain the new terms and ensure they understand any changes in the security deposit or monthly rent. Moreover, the landlord should remind the tenants that they are responsible for paying the rent. Afterward, the landlord should create copies of the signed agreement and send it to all the tenants involved.

 

7. Obtain the Security Deposit and Rent Payment

Landlords can increase the security deposit and monthly rent when adding a tenant to the lease. This is outlined in the new contract signed by the parties involved. Once signed, the landlord can ask the new tenant to pay the new security deposit. They may also ask for the rent payment for the upcoming month.

 

New Lease Agreement vs Lease Addendums

Should landlords create a new lease agreement or amend the old one when adding a tenant to the lease? Here’s what you must know about both options.

 

Amending the Existing Lease

Some landlords may want to modify the existing lease agreement without adding too many changes. In this case, the best option is to add an occupancy addendum. This addendum will include all of the changes that will occur after the new tenant moves in. It states the following:

  • All the terms for the new tenant
  • Moving in and moving out dates
  • Additional security deposit
  • Monthly rent
  • Who is responsible for the monthly rent
  • Whether the agreement is individual or joint
  • Special terms and conditions (e.g. usage and payment for parking or utilities)

 

Creating a New Lease Agreement

Creating a New Lease AgreementIf there are a lot of changes the landlord wants to implement, then a new lease agreement may be the better option. This avoids having to create a long list of addendums that may only confuse the parties involved.

The landlord can create a new full-term lease period for both tenants with a new lease. They can also include how much the new rent is, security deposits, and major changes to the terms. But, all parties must still agree to the terms laid out in the new lease agreement. The landlord should clarify the changes, especially to the old tenant, who might think the terms have not changed.

 

Does It Cost to Add Someone to a Lease?

Adding a tenant to the lease doesn’t cost the landlord much. That’s because landlords can charge a new tenant application fee to cover the cost of screening. They may earn more by increasing the security deposit and monthly rent.

 

Protection for All Parties

Adding a tenant to the lease can be tricky for the landlord. But it’s always good to follow due process instead of simply allowing a new tenant and using a verbal agreement. Updating the lease or signing a new contract will prevent complications and protect all parties involved.

Adding new tenants to a lease and screening applicants can be hard and time-consuming. But, landlords can outsource these tasks to a property management company. Look through our online directory and find a reliable property management company today!

 

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Renter’s Bill Of Rights: Protection For Renters

The recently published Renter’s Bill of Rights aims to push state and local governments into establishing a standard set of renter’s rights. But what does it cover exactly? And how will it affect landlords?

 

What Is the White House Renter’s Bill of Rights?

President Joe Biden’s administration released a Blueprint for a Renters Bill of Rights in January 2023. It is a white paper that seeks to aid the development of policies that foster fairness for renters in the United States.

The White House Renter’s Bill of Rights is a blueprint for state and local governments to follow. It is merely a statement of principles and is in no way binding. Therefore, it is not a U.S. government policy or law. The Renter’s Bill of Rights does not override, alter, or interpret any current policies or regulations at the federal, state, or local levels.

 

Renter’s Bill of Rights vs Tenant Bill of Rights

The Renter’s Bill of Rights and Tenant Bill of Rights are two interchangeable terms. Many states already have Tenant Rights in place, and you can check the regulations per state through the HUD website.

Depending on where you are, rights may already be established by law. These include the right to freedom from discrimination, the right to a habitable home, the right to privacy, the right to advance notice of eviction and the right to a disability accommodation.

The Fair Housing Act and state-level fair housing laws also protect Americans from housing discrimination based on certain protected classes.

 

The Purpose of the Renter’s Bill of Rights

The main objective of the White House Blueprint for a Renter’s Bill of Rights is to create a standard that state and local governments can use when crafting their own renter’s rights. First and foremost, it serves the renters by offering them government protection against predatory or unfair practices by landlords and rental property owners.

Landlord and tenant laws vary immensely from one state to another. Some states have laws that heavily favor landlords, while others heavily favor renters. Biden’s blueprint intends to provide some relief to renters in more landlord-friendly areas.

While renter’s rights have certainly become a hot topic, the primary concern of many tenants in the United States today is rent — specifically rising rent prices. Unfortunately, the Renter’s Bill of Rights does not address this issue, instead focusing on unlawful or unfair practices. And experts believe it is unlikely that the White House would directly interfere with rent prices or rent control laws.

 

What Does the Renter’s Bill of Rights Cover?

The Blueprint for a Renter’s Bill of Rights lists down five basic principles. The blueprint explains each principle and details proposals that federal agencies can use to take action.

 

1. Access to Safe, Quality, Accessible, and Affordable Housing

blueprint for a renters bill of rightsThe first principle talks about the safety, affordability, and habitability of housing. While the blueprint does not specifically restrict rent increases, it states that any increases should be reasonable, fair, and transparent.

Renters should pay only up to 30% of their household income on housing costs. It explains that rental property owners should make sure to provide housing that meets habitability standards. No safety or health hazards should also exist.

Additionally, owners should offer amenities and services as they advertised or included in the lease. Owners should also ensure proper maintenance of the housing unit and common areas. Furthermore, it must not be unnecessarily difficult for renters to apply for or receive housing aid. Renters should also have a right to fair and equal tenant screening.

 

2. Clear and Fair Leases

Landlords should provide fair leases with clearly defined terms, responsibilities, and rights. There is no room for mandatory arbitration clauses, hidden or unlawful fees, unfair or deceptive practices, unauthorized terms, and false representations. Policies should be clearly and transparently laid out, especially regarding security deposits.

If the landlord intends to enter the unit, they must provide reasonable notice in advance. The same goes for any significant changes to the unit. Landlords must write the lease in a way that uses clear, simple, and accessible language.

 

3. Education, Enforcement, and Enhancement of Rights

The blueprint encourages federal, state, and local governments to do their part to protect renter’s rights. It also pushes governments to educate renters about their rights and to recognize discrimination and exclusion in all forms.

 

4. The Right to Organize

The blueprint states that renters should have the right to organize without interference. Housing providers, including landlords and property managers, should not harass renters or threaten them with eviction when they decide to organize. Renters should also know who their landlords or property managers are and have a way to communicate with them.

 

5. Eviction Prevention, Diversion, and Relief

renter's bill of rights vs tenant bill of rightsLandlords should use fair and legal eviction proceedings. The blueprint also proposes that all evictions should have a just or good cause. That means landlords can’t evict renters without a justified reason. Renters should also receive reasonable notice if landlords intend not to renew their lease.

This principle also discusses other things, such as alternatives to the eviction system, proper procedures and requirements for evictions, how to file and seal eviction cases, and fair debt collection practices.

 

A Call for Property Management Companies to Follow Suit

While the White House blueprint certainly tackles several important issues, it does not constitute a law. It also does not compel state and local governments to act or craft renter’s rights. This has led some property management companies to take it upon themselves to establish their own bill of rights for renters.

The blueprint serves as a good guide for property management companies. In addition to the White House blueprint, companies should also look to state and local regulations regarding tenant rights. In doing so, companies can keep managers in check and provide more satisfactory services to renters and landlords alike.

 

A Starting Point

While the Renter’s Bill of Rights is not a law, it does let governments know where the goalposts are. It is a step in the right direction that will hopefully inspire legislators to enact more standardized laws that protect the rights of renters.

Rental Choice offers a comprehensive online directory of property management companies. Start browsing our directory today!

 

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Is Your Tenant Smoking? How To Deal With This Situation

A tenant smoking is perhaps one of a landlord’s worst nightmares. Smoking has several negative effects, both actual and perceptual, which is why it gets such a bad rap. But, how can landlords handle smoking in rentals anyway?

 

Do Tenant Smoking Rights Exist?

While tenants’ rights are something landlords should uphold, smoking isn’t one of them. There is no such thing as a tenant’s right to smoke. Currently, no federal or state law gives individuals the freedom to smoke wherever and whenever they wish.

Some might bring up the Fair Housing Act, but it does not apply to this particular situation. The Fair Housing Act prevents discrimination on the basis of certain protected classes. Smokers, though, are not a protected class. And a ban on smoking is not considered discriminatory in the eyes of the law. There are several federal, state, and local laws that support smoking bans.

 

Why Landlords Dislike Tenants Smoking in Apartment

To some people, a complete ban on smoking in rental properties may seem like an overreaction. But, there are very real consequences that the activity brings. Here are the top reasons landlords impose no-smoking policies.

 

smoking tenant1. There Are Health Concerns from Secondhand Smoke

Secondhand smoke is a major reason why landlords restrict smoking. According to the CDC, exposure to secondhand smoke can increase lung cancer risk by 20-30% in non-smoking adults. It causes more than 7,300 lung cancer deaths every year in the United States.

 

2. It Stains and Smells

Tobacco and marijuana have distinct smells that many find unpleasant. And these are smells that still linger around long after the smoke has settled. With repeated use, smoking can even leave cushions, carpets, and curtains smelling like tobacco. If that’s not enough, the nicotine can also stain furniture and upholstery.

When the smoking tenant eventually moves out, the landlord must replace the affected furniture and fixtures. This creates an undue burden on the landlord, not to mention added costs.

 

3. It’s a Fire Hazard

Smoking is a fire hazard — it’s as simple as that. Tenants may fall asleep with their cigarettes still lit. This can burn the furniture and upholstery. Worse yet, it can start a fire and put everyone at risk.

 

4. It Raises Insurance Premiums

Insurers believe there is a higher risk of fire when a landlord allows smoking on the premises. As such, they will charge a significantly higher premium for fire insurance than landlords who don’t allow smoking.

 

5. There Is Potential Liability

tenant's right to smokeFinally, smoking makes landlords more vulnerable to potential liability. There have been many cases in the past where a tenant sued a landlord for permitting smoking. The lawsuits were primarily based on two legal grounds: nuisance and an uninhabitable home.

Smoking is widely regarded as a nuisance because the odors can irritate other tenants. The odors, health concerns from secondhand smoke, and increased fire risk can also be used to argue that a landlord is violating their duty to keep the property habitable.

 

Can a Landlord Stop a Smoking Tenant?

Landlords can easily cite smoking bans that exist in their area. But, not all smoking bans apply to rental properties, and not all cities have such bans in place. Even without a smoking ban, landlords can generally prohibit smoking on the premises, even inside individual units.

Of course, it is essential to note that such a restriction should be written into the rental or lease agreement. Absent such a clause, a tenant may argue that there is no rule against smoking. No-smoking clauses generally apply to smoking of any kind. This includes tobacco and marijuana.

If the lease agreement does not contain a no-smoking clause, it gets tricky. Landlords usually can’t introduce new rules in the middle of a tenancy. The only exception is if the tenant consents to the change, which must be done in writing. Otherwise, if the fixed-term lease has yet to expire, a landlord can’t create a new policy and add it to the lease.

As for monitoring smoking on the premises, landlords can install smoke detectors in individual units. Many smoke detectors nowadays are sensitive enough or specifically designed to pick up cigarette smoke. The alarm then alerts the landlord of the breach.

For common areas, landlords can install similar smoke detectors and security cameras. However, landlords should keep privacy laws in mind when installing security cameras. The cameras should never be installed or pointed at any place where people reasonably expect privacy. This includes bathrooms, shower rooms, and windows, among other things.

 

Can You Evict a Tenant for Smoking?

Smoking is not only an unhealthy habit, but it can create all sorts of problems for landlords. Thus, it does not come as a surprise that many landlords consider evicting a tenant smoking. But, can a landlord even do this?

The first thing you must determine is whether or not smoking is permitted. Are tenants allowed to smoke as per the lease agreement? If the agreement does not include a no-smoking policy, then the landlord may not be able to evict on the grounds of a lease violation. But, if the agreement has a no-smoking clause, the landlord can evict the tenant based on a breach in terms.

Not all landlords immediately jump to eviction, though. When a tenant violates the clause, landlords usually start by sending a no-smoking letter to tenants. From there, tenants can remedy the situation, with the landlord only pursuing further action (eviction) if the tenant continues or violates the terms again.

 

can you evict a tenant for smokingWhat About E-Cigarettes and Vaping?

Some tenants might argue that the no-smoking policy does not cover e-cigarettes or vapes because they are not technically “smoking.” E-cigarettes and vapes let out vapor or aerosol instead of smoke. However, these can also have detrimental effects on the property and other individuals. That said, it is a good idea for landlords to update their leases to include e-cigarettes and vaping under their no-smoking policy.

 

Clear Communication Is Key

Dealing with a tenant smoking is never a pleasant experience. But, when the time comes, you want your side to be supported and protected. As such, if you don’t want tenants smoking on the premises, make it clear right from the get-go and ensure your lease agreement reflects this policy.

Rental Choice is your one-stop shop for all things rental management. Start looking for a property management company using our online directory!

 

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Tenant Turnover Cost: It’s Costlier Than You Think

Landlords cycle through tenants — that’s just how it goes. But, with every transition, there are some expenses involved. How much does tenant turnover cost?

 

Tenant Turnover Cost: Everything That Goes Into It

Tenant turnover is the period of time between the end of an old tenant’s lease term and the start of a new tenant’s lease term. There are many associated expenses that landlords encounter during this gap. These expenses can vary depending on a few factors, including the condition of the property, the age of the property, and the demand for rental properties in the area. Though, the average cost of tenant turnover is around $1,750 per month.

Here are all of the costs that come with tenant turnovers.

 

1. Administration

The turnover process involves a lot of administrative work. And with that comes administrative costs. These include fees associated with processing paperwork, hiring vendors for cleaning and repairs, bank fees, and tenant screenings. For landlords that employ property management companies, this also includes the property management fee.

 

2. Cleaning

high tenant turnoverCleaning is essential if you want to attract tenants. Showing prospects around a dirty place sends them a signal that the landlord doesn’t care enough to keep the property clean. It also encourages tenants to look after the property with the same level of care.

While cleaning is something you can do yourself, it’s best left in the hands of professionals. This is especially true if you manage multiple properties. Have the carpet washed, debris thrown out, the exterior pressure washed, and the lawn mowed. Make sure not to miss any corners and crevices.

 

3. Repairs

Nobody wants to live in a decrepit apartment or house. As such, you should inspect the rental home for any signs of damage and have them repaired before putting it back on the market. This is also the perfect time to do some upgrades if time and budget permit.

Don’t forget to conduct a move-out inspection with your old tenant. This way, if they left your property worse for wear, you can use their security deposit to cover some of the repairs. Of course, ideally, you would have no need for repairs at all. Repairs, particularly major ones, can extend the amount of time your property is left unoccupied, driving your lost income expense higher.

 

4. Advertising

Another essential tenant turnover cost is advertising. Unless you already have a new tenant lined up to take over, you will need to market your rental to potential tenants. Keep in mind that there are some platforms that allow you to post rental ads for free. However, many others do charge a small fee. Apart from the online route, other advertising options include flyers, newspaper ads, and printed signs.

 

minimize tenant turnover5. Property Showings

It is normal for prospects to want to see the property in person before making a decision. Sometimes, you will only need to show it once or twice. Other times, though, you can rack up a pretty high number of showings. Whatever the case, showings do take time. And, if you don’t live nearby, they also come with travel costs.

 

6. Tenant Screening

It is important to screen your tenants before you sign the lease. In addition to a filled-out application form, you will also need to review various reports. These include credit reports, criminal background reports, and eviction reports. This way, you can confirm that the prospective tenant has a good rental history and can cover rent.

All of these reports, though, cost money. And, if you don’t charge an application fee, you will have to pay for them out of pocket. As such, it is advisable to collect an application fee so you can keep turnover costs low.

 

cost of tenant turnover7. Vacancy

Vacant units don’t earn rental income. And the longer a unit remains vacant, the higher your lost income expense will be. This cost is particularly heavy on landlords who are still paying a mortgage and are using their rental income to cover it.

Vacancy rates can vary depending on your location, the time of year, and the property itself. Nice properties located in major cities or areas are more likely to get tenanted sooner. Wintertime is also pretty dead in terms of demand. Fortunately, there are some things you can do to boost your chances of finding a quality tenant.

 

8. Court Costs (Sometimes)

This is a tenant turnover cost that landlords often overlook. It’s not something you want to think about, but evictions do happen. Sometimes, they are even necessary. If you need to evict a tenant, there are certain legal fees and court costs that you will incur. Disgruntled tenants may also intentionally damage your property in retaliation, leading to higher repair costs.

 

The Tenant Turnover Process

In normal circumstances, the turnover process usually begins 1 to 2 months prior to the end of the lease term. At this point, landlords will send a notice to the tenant letting them know of the contract’s impending expiry. The tenant generally has two options: renew the lease or move out. If the tenant wants to move out, most lease agreements require them to provide a certain length of notice.

Once you receive their move-out notice, start looking for tenants immediately. Advertise your property online or using traditional methods. Then comes the move-out inspection. Make sure to thoroughly examine every inch of the property to identify if there are any damages the tenant left behind. The security deposit may cover the cost of repairs.

After your old tenant has moved out, hire someone to clean the property. This is also when you would need to do any maintenance or repair work (if necessary). After that, you will need to do property showings, process applications, and screen tenants. The end goal is to find a quality tenant and have them sign a lease with you.

 

Causes of Tenant Turnover

A high tenant turnover rate can be alarming, so much so that it can prompt you to change a lot of things about your property. But, before you drastically lower rent or completely redo your perfectly fine flooring, take a pause. There are some reasons for tenant turnover that are simply out of your control.

These include the following:

  • tenant turnover costExpiry. Tenants move all the time. This can be due to a number of reasons, such as a new job or to be closer to family. As such, once their lease expires, they will simply choose not to renew.
  • Early Termination. A tenant may want to move out and end the lease early. When this happens, you will need to begin the turnover process.
  • Eviction. This usually happens when a tenant violates a major term in your agreement. For instance, a tenant might begin taking part in illegal acts, sublet the apartment without consent, or stop paying rent.

 

How to Minimize Tenant Turnover

Because turnovers can be expensive, landlords actively seek ways to reduce their turnover rate. This, in turn, will keep the tenant turnover cost low. Obviously, the best way to minimize turnover is to enhance tenant retention. If you keep the same tenant for a long time, you can avoid incurring the costs associated with turnover.

One of the best ways to do this is to maintain a great relationship with your tenant. Communication goes a long way. When a tenant has a concern, make sure to listen. Acknowledge them and then try your best to address their concern.

Tenants are also far less likely to move if you keep rent at a fair price. Rent increases are normal, but you shouldn’t raise rent an exorbitant amount. Keep it at a fair market value.

Finally, make sure to keep your property well-maintained. A property that looks great and functions well can make a huge impact on fostering a positive landlord-tenant relationship.

 

More Than a Budget Issue

The tenant turnover cost is something that every landlord worries about whenever a renter moves out. Thankfully, you can keep costs fairly low by getting ahead of maintenance and repairs, attracting quality tenants, and charging an application fee. Some landlords, of course, are more troubled by the amount of work involved in the turnover process. This is where a property management company can help.

Look for a property management company you can trust. Start with our comprehensive online directory to find one near you!

 

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