EvictionRecords.com Tenant Screening

Intelligence to Make Informed Tenant Screening Decisions ™
Better Business Bureau Reliability Report  SSL Security 
You are here: Home / EvictionRecords.com Tenant Screening Eviction Blog

Proposal in Milwaukee Could Make Rental Assistance Recipients a Protected Class

by

Federal law has no requirement for landlords to accept housing choice vouchers from potential tenants who receive rental assistance. This allows landlords to legally refuse to rent to those holding the vouchers. However, in 2018 this policy changed in the county of Milwaukee, Wisconsin, the state’s largest metropolitan area.

Rental Assistance

With the passing of a proposal, rental assistance recipients in Milwaukee County are considered a protected class. The legislation related to fair housing banned landlords from refusing to rent to persons who are part of housing or rental assistance programs.

Finding a Balance Between Landlord and Tenant Rights

County Board Supervisor Marina Dimitrijevic introduced the proposal. It made illegal the practice of landlords refusal to renting properties to persons solely because they are receiving Section 8 Housing Vouchers.

Supporters of the plan believed that denying housing to persons who must rely on government rental assistance is discriminatory. However, landlords and others who were opposed to the bill worry about its potential negative effects on their business if they are forced to rent to persons with other issues.

Dimitrijevic said that in light of the challenges the city of Milwaukee and Milwaukee County faces in regards to housing, racism, segregation, high evictions and a deficit in quality, affordable housing, there had to be a change.

Creating a New Protected Class

Unfortunately, race was often suspected as playing a role. While groups such as veterans and older adults often received housing or rental assistance, many belonged to non-white races as well.

The new amendment made the entire group of people receiving housing or rental assistance a protected class. This verbiage was added to Milwaukee County’s existing ordinances about fair housing.

The goal of County Board Supervisor Dimitrijevic was to move the city toward a more inclusive model to present increased opportunities to challenged residents for economic mobility.

Some feel the problem goes beyond segregation in housing practices, including the president of the Apartment Association of Southeast Wisconsin. The group pointed out there can be numerous reasons landlords don’t accept housing vouchers.

Tenant Screening Key to Making Effective Rental Decisions

While not opposed to the proposal, the Apartment Association of Southeast Wisconsin understands why some landlords are hesitant. There could be other reasons, such as the verbiage in the rental assistance contract and the landlord’s own lease terms being in opposition.

Landlords want the ideal tenant for every vacancy. Many use tenant screening to look for issues like evictions, credit problems and a criminal past. They should still have the right to refuse tenancy to persons showing problems in these important screening areas.

Despite differing views, Milwaukee County continues to strive for fair housing solutions that benefit everyone.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source:  https://www.jsonline.com/story/news/local/milwaukee/2018/06/12/county-panel-agrees-plug-hole-fair-housing-law/692073002/

Landlord Tips For Connecting with Millennial Renters

by

An important component of success with millennial renters is the ability for landlords to anticipate and prepare for future rental trends. It’s important to stay aware of client characteristics, preferences and tendencies. The Millennial Generation – or Generation Y – was born in the 1980s and 90s and are now in their late 20s and 30s.

Millennial Renters

Although the Millennial Generation has been known for leaving the nest late and even returning to their parent’s home after leaving due to job loss or economic constraints, many are finding their independence. Since millennial’s are known to prefer renting to buying property, they are now a target market of many landlords.

Some of the positive and negative characteristics attributed to millennial renters include:

  • Technologically savvy
  • Have a short attention span
  • Prefer jobs that allow them flexible schedules
  • Liberal and open-minded
  • Can be self-centered and apathetic at times

Landlords should be aware of these personality tendencies with potential millennial renters when marketing to them. If a landlord’s properties are in areas where there is a high concentration of this demographic, it is wise to cater to both their strengths and limitations.

Technological Upgrades

Adding key upgrades and conveniences to properties can help with drawing in this tech-savvy group and coaxing them to stay on as tenants. Many will appreciate Smart technology inclusions such as modern appliances, digital thermostats and a connection to the IoT (Internet of Things). Add USB outlets, Smart home security systems, fire detectors and sprinkler systems. Free wireless Internet will always be appreciated.

How to Reach Millennial Renters

Connecting with this generation as tenants also requires using technology and Internet resources. Online listing portals such as Craigslist, Realtor.com, Cozy and Zillow Rental Manager allow landlords to market to potential tenants where they spend a majority of their time.

Online Rental Applications

Consider allowing rental applicants to apply online as well. Online applications are also more convenient for landlords. The information can be accessed via the cloud from anywhere and serve as a more streamlined alternative to paper applications, which can be easily lost or damaged.

Communicating with Millennial Renters

Keep in mind that this generation, while bright and tech-savvy, is known for their short attention span. They prefer communicating in short bursts via text or on social media. While phone calls are more ideal for detailed communication, landlords should strive to be flexible and adaptive to their millennial rental clients.

Pet-Friendly Apartment

An increasing number of millennial renters are pet owners. Landlords who aren’t already should strongly consider allowing pets in their properties to cater to these renters. Modifying properties to be more conducive to safe and satisfying pet ownership can make properties more inviting. Adding a higher security deposit to the rental terms is expected and usually won’t pose a problem for applicants who are pet owners.

Lastly, landlords should apply the same tenant screening measures with their millennial rental clients as they do with all other rental applicants. While they likely have a shorter rental history than most, a check into their past can determine if there are problems with evictions, criminal history or finances and credit score.

Sources: https://www.livescience.com/38061-millennials-generation-y.html and http://www.businessinsider.com/internet-of-things-definition

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

8 Essential Elements of Fair Housing Landlords Must Know

by

An understanding of fair housing laws and principles is essential to success as a landlord. Putting this knowledge into practice ensures that all applicants and tenants are treated fairly and reduces the chances of a fair housing related law suit.

Fair Housing

Here are eight of the most essential fair housing laws and standards landlords should put into practice:

1. Marketing Language

There are certain guidelines related to language that should be followed in all advertising. Most importantly, landlords should never use wording that could be considered discriminatory. For example, it is illegal to say that children are not allowed. Obviously, excluding any ethnic group is also illegal. Landlords may not discriminate based upon race, religion, gender, national origin, familial status or disability.

2. Clear Criteria

Landlords should create a written policy that details all of their criteria for persons chosen to be tenants. Areas such as an outline of the application process, specific rental criteria (income, employment history, minimum credit standards, etc.), occupancy guidelines, availability policy, etc. should all be included. The application shouldn’t ask about disabilities or lifestyle choices.

3. Allowable Occupancy Standards

When determining how many people are allowed to live in a unit, a general rule of two persons per bedroom is the norm. However, a small infant can be allowed to live in a one-bedroom rental with two parents. Exceptionally large bedrooms or spaces could hold more people. State standards should be followed.

4. Treat All Applicants Equally

Each applicant should have the same opportunity to rent a property. No one should be given preferential treatment or be excluded from a portion of the screening process.

5. Fair Housing Rules Are Acceptable

While the screening process should be strictly non-discriminatory, it is acceptable for landlords to have fair guidelines for tenants living in a rental property, such as “no running in the hallways,” etc. Keep rules as unbiased as possible. Don’t single out or favor certain groups over others – not even children. In addition to the Fair Housing Act, check specific local and state laws.

6. Accommodating Disabilities

Residents with disabilities have fair housing rights and may make a reasonable accommodation or modification request, and landlords must comply. However, the request must not place an undue burden on the landlord. Landlords should never offer accommodations before they are requested, as this could be considered discriminatory. If a request is denied, the landlord must send the tenant a written denial letter.

7. Keep Good Records

Keeping accurate, comprehensive records allows landlords to have a history of interactions with applicants and tenants. This greatly increases a fair outcome should the landlord get sued for any reason. Keep consistent records that demonstrate nondiscriminatory behavior in case a Fair Housing claim is ever filed.

8. Use Fair Eviction Standards

If a tenant refuses to pay rent or violates key policies set forth by the landlord, eviction may be the best action to take. However, the violation should be serious enough to warrant this action and fall in line with other eviction reasons/standards for the state. Landlords should issue and keep records of warning letters, written complaints by third parties, logs, police records, photographs and eviction notices.

A knowledge of fair housing standards is essential to avoiding legal issues. Landlords should become proficient in these eight areas. A professional tenant screening service can assist with conducting all background checks in compliance with state and federal laws.

Source: https://www.hud.gov/program_offices/fair_housing_equal_opp/FHLaws

Source: https://www.nolo.com/legal-encyclopedia/evictions-landlord-rules-29740.html

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

6 Key Steps Landlords Can Take to Minimize Eviction Risk

by

Eviction risk is a major concern for landlords and the worst-case scenario of a landlord-tenant relationship is one that culminates in an eviction. However, there are almost always signs and red flags early in the leasing process that, if heeded, could help landlords to limit eviction risk and avoid problem tenants.

Minimize Eviction Risk

The proper screening of all applicants can help to ensure landlords choose the best tenants from their available pool of candidates.

The following are six landlord tips to minimize eviction risk (the risk of having to evict tenants now or at some point in the future):

1. Verify Employment and Income

Nonpayment of rent is the most common cause for eviction. Verifying the financial viability of each tenant is crucial to avoiding this problem and minimizing eviction risk. Generally, the household of the applicant should generate three times the income required for monthly rent payments. A call to their employer and viewing a recent employer check stub can help verify that the information provided on the rental application is accurate.

2. Credit Check

Another key step to verify the financial viability of a potential tenant is running a credit check. While an applicant may currently have a good job and sufficient income to pay the rent, they could have a spotty payment record and poor credit. A check of their credit history and credit score can shed light on their financial track record and give a better picture of what kind of tenant they will be and lessen eviction risk. A professional background check company can perform credit checks for rental applicants.

3. Eviction Records Check

The best indicator of future results is past performance. If a tenant has been evicted in the past, they could be more likely to be an eviction risk in another rental scenario. Checking with former landlords and/or an eviction report check can shed light on the level of eviction risk. A professional tenant screening service can easily perform this check in a way that is legal and in compliance with state regulations.

4. Maintain and Optimize Properties

One of the top reasons for non-payment of rent cited by tenants is a problem with the condition of the property. In such disputes, the tenant feels that the quality of the unit is lacking, therefore they are justified in late rent payment, partial rent payment or complete non-payment of rent. Landlords should commit to ongoing maintenance and updates for each unit so that no tenant can claim this type of excuse for missing rent payments that could otherwise result in the need for eviction.

5. Clear Lease Terms

A concise, comprehensive and clear lease is another key to landlord success with tenants. All terms should be thoroughly considered and included in straightforward language in the lease. When landlords and tenants are on the same page in the early stages of the leasing process, this paves the way for a successful relationship going forward and reduces eviction risk.

6. Be Intuitive and Professional

Over time, many landlords and property managers develop a strong intuition when making selections regarding who to choose as a tenant. While this can be a valuable attribute, landlords should always balance this method with professionalism. Professional background checks and following up with the information on rental applicants are important components of comprehensive tenant screening and minimizing eviction risk.

A worst-case scenario in a landlord-tenant relationship is the need for an eviction. Fortunately, there are proven measures landlords can take to eviction risk and avoid this outcome. Using the six steps discussed here can greatly increase the odds of choosing ideal tenants and creating business success.

Source: http://homeguides.sfgate.com/see-tenant-evicted-before-46029.html

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

5 Key Points New Landlords Should Consider Before Renting Properties

by

The rental market is booming, enticing many owners into renting properties and becoming landlords. Large numbers of new landlords are diving into the market with enthusiasm, but without much planning and foresight.

Renting Properties

The following are five of the most important things new landlords should be aware of before renting properties and entering the property rental space:

1. Clear Lease Terms Are Foundational

Essential to the landlord-tenant relationship is the lease. It should be well thought out and carefully worded. While there are many templates and boilerplate options available, a customized lease with all terms and parameters should be seriously considered. Landlords should spend considerable time on the lease before renting properties, so that everything is covered and all expectations of tenants can be clearly mapped out in black and white.

Include elements when renting properties such as:

  • Tenant responsibilities (landscaping/degree of upkeep expected, amount of notice required when vacating, etc.)
  • Fees or penalties, such as for late rent
  • Terms regarding pets, storage, subleasing, etc.

2. A Cash Cushion is Crucial

While focus and expectation should be on everything going well, landlords should also be prepared in case they don’t. The ability to cover an emergency property repair or a bad tenant with reserve funds is essential. New landlords should establish an emergency savings account or quick loan option before renting properties. At least two months’ rent in the bank for every rental property is ideal if possible.

3. Carefully Consider Decisions About Management Before Renting Properties

Landlords must also consider if they will manage the property themselves, outsource it to a reliable tenant, or hire an outside management company. All options have pros and cons, although hiring a management company ensures that an experienced entity will be in control. They will already have reliable resources to call on for property emergencies ranging from repairs to legal disputes, and they will be on the ball in terms of keeping properties occupied.

4. Adequate Insurance is Important

Landlords renting properties that still have a mortgage will be required to carry insurance. However, this is a wise idea for all property owners. Insurance allows landlords to sleep more peacefully at night and know that there is a safety net for:

  • Physical damage to the property (read the specifics carefully to ensure a full understanding of what is covered)
  • Coverage for loss of rental income due to damages
  • Coverage for property maintenance items
  • Liability coverage for medical and legal costs

It should be noted that landlord insurance will not cover the tenant’s property, so landlords should consider requiring tenants have a renter’s insurance policy while on the premises.

5. A Reliable Tenant Screening Company is Indispensable

Screening tenants thoroughly and professionally is essential to success as a landlord. Bad tenants can damage the property, make it undesirable for other concurrent renters and ultimately cost the rental business money. A professional tenant screening company can run eviction and criminal records as well as credit checks.

The rental market is surging, with new landlords exuberant about all the benefits renting properties can bring. However, all landlords should bring attention to these five important aspects of the business before getting started and renting properties.

Source: http://www.king5.com/article/money/magnify-money/here-are-7-things-to-know-before-renting-out-your-home/507-506967949

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

6 Rental Trends for 2018 Landlords Should Consider Implementing

by

With technology seeming to make a new leap every couple of weeks, the marketplace is in a perpetual state of flux. Now more than ever, it is important for landlords to keep up with the rental trends. Practices and parameters across all industries are changing and evolving all the time. This is true of the housing and rising rental market as well.

Rental Trends

Landlords interested in keeping up with the times should consider taking advantage of the following six rental trends as 2018 unfolds:

1. Advances in Communication Options

Technology has certainly made communication easier across the boards, and landlords would do well to take advantage of these new channels. Younger renters and Millennials in particular are very accustomed to using communication methods such as texting and social media. Landlords should be up to speed to these rental trends and willing to use these channels to stay connected with current and prospective tenants.

2. The Internet of Things (IoT)

Despite concerns about the IoT being yet another channel for “big brother” to tap into consumers’ home lives, its growth can’t be denied. Some tenants might be looking for its features and conveniences, so landlords should consider adding some IoT elements to their properties. Easy and appealing additions include wireless Internet, USB charging outlets, electronic thermostats and fire/heat detectors, home security systems and other “smart” technology.

3. Online Marketing

Just about everybody is online these days, and the majority of renters start their search here when looking for a new home or apartment to rent. Landlords should take full advantage of these online marking rental trends which include sites like Craigslist, Apartments.com, Hotpads, ForRent.com and other top platforms to connect with interested parties.

4. Online Application Rental Trends

Facilitating the ability of interested parties in applying for rental properties online is a natural extension of online marketing. Ads can direct applicants to an automated online form to eliminate old fashioned paper forms and retain a digital record of correspondence. Online rental applications are convenient and can help with filling vacant units more efficiently. Landlords should ensure adequate encryption so that applicants’ personal data is stored safely and securely and data breaches can be avoided.

5. Professional Tenant Screening

As the world becomes more complex, so does the process of screening tenants thoroughly and accurately. Connecting with a professional tenant screening company helps with taking the guesswork out of the process and compliance with current state and federal laws and ensures it is done thoroughly.

6. Online Rent Payment Processing

The rental trends in the digital realm has also made it easier for landlords to get paid. The old, archaic system of clumsy paper checks has been replaced with slick, digital online processing. Sites like PayPal make it extremely easy for tenants to pay with a few clicks. The option of a monthly online checking account debit can make rent payment easier as well. Landlords might consider offering a small discount to tenants who sign up for automated deductions of rent payment versus manual payment.

The upcoming year promises continued evolution of technology, and with it more changes to the rental industry. Landlords should be aware of these six rental trends and consider making changes to their processes accordingly.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source: https://www.forbes.com/sites/forbesrealestatecouncil/2017/12/22/rental-trend-predictions-for-2018-in-property-process-and-policy/

The Anatomy of An Ideal Tenant: 5 Key Qualities to Look For

by

High-quality, trustworthy ideal tenants are crucial to success as a landlord. A less than ideal tenant can cost both time and money. They can also increase stress levels and make being a landlord a frustrating experience.

Ideal Tenant

The following are five of the key qualities to look for in an ideal tenant to help ensure a positive experience for everyone involved.

  1. Financially Sound

This is, of course, a major consideration when selecting an ideal tenant. If tenants are not financially viable and secure, they could quickly begin paying the rent late – or skip payments altogether. Ideally, the cost of rent should comprise one-third or less of the tenant’s income; however this can vary depending upon an area’s rental market and economy. A credit check with the assistance of a reputable tenant screening company can help to ensure that they are financially responsible and have a good credit rating with the credit bureaus.

  1. No Criminal History

Having a criminal record is a definite red flag when it comes to rental applicants. It could be a sign that this behavior will continue in the future. However, check to ensure that state, city and local law allows landlords to factor criminal history into their decision; in some areas, doing so against the law. Enlisting the help of a professional tenant screening service can help to take the guesswork out of screening for criminal history. Landlords can enjoy the peace of mind that it will be done property and in compliance with relevant tenant’s rights laws.

  1. Conscientious

The ideal tenant is also polite and conscientious. While it is more difficult to screen for this quality, a few calls to the tenant’s listed character references and/or former landlords can help to yield this information. What do their references say about them? Finding out their track record regarding on-time rent payments is important as well.

  1. Respectful

Find out if the applicant kept past rental properties clean and in good condition during their time there. This is an indicator of the level of respect they have for the property of others. Ask previous landlords how they got along with other tenants in the building as well; respect for other people is just as important as respecting the property they will be renting. It is also an indicator that they will be respectful of landlord policies such as not subletting the property or giving a specific amount of notice when they will be moving out.

  1. Friendly (but Not Too Friendly)

Everyone prefers to be around friendly, pleasant people. While friendliness is a positive quality in tenants as well, some personality types can take it a little too far. Tenants who try to tell their life story or vent about their personal lives may bring more drama than most landlords care to deal with. Landlords and property managers should screen tenants in this way during the initial interview. A tenant who seems too talkative or “needy” can turn out to be problematic in terms of complaints and personal drama. They could also take up excessive amounts of a landlord’s time.

Leasing to new tenants always involves some degree of risk; however, there are ways to mitigate and minimize this risk. Looking for the five qualities discussed here can help landlords to find the ideal tenants who will be problem-free and profitable.

Intuition goes a long way in finding an ideal tenant, and a professional tenant screener can assist in checking the backgrounds of potential renters. Professional tenant screening can also help ensure that screening is done in compliance with the Fair Housing Act and local laws.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source: http://www.sfgate.com/business/networth/article/One-third-rule-not-always-feasible-in-Bay-Area-5300473.php

5 Tips for Reducing Landlord Challenges and Landlord Stress

by

Stress is the number one factor in health problems and lowered quality of life in every vocation. While landlords face some challenges in renting apartments that can be somewhat invigorating, if landlord stress is excessive, it takes the enjoyment out of renting.

Reduce Landlord Stress

The following are five tips apartment owners can use to lower landlord stress levels and be more successful:

1. Hire a Property Manager

Having someone else rent, oversee and manage rental properties is one of the best ways to lower the landlord stress levels of owning and renting property. Whether a company or an individual is hired, care should be taken to select someone with experience and a proven track record. This person may also be selected from among existing tenants in exchange for free rent. With the right property manager, landlords can rest easier, avoid the hassles of renting out properties and just collect profits.

2. Outsource Maintenance

Some landlords are fairly handy and choose to maintain their properties themselves. While the DIY tenant screening and property management route can save money, it can also amplify the landlord’s stress levels and workload. Hiring professionals to take care of maintenance is always the less stressful route. Hiring a property manager who will take care of basic maintenance duties can reduce costs as well as landlord stress.

3. Collect Rent Digitally

The Internet makes money and fee collection easier than ever. Consider offering incentives to tenants who will allow their rent to be deducted from their bank account each month. PayPal is another option for collecting digital rent payments, and fees are minimal. A digital record of all payments and fees makes bookkeeping easier and more organized as well.

4. Create an Emergency Fund

When accidents happen, landlords require access to cash quickly. While emergency plumbing or electrical jobs can be put on a credit card, eventually these bills will have to be paid. Having at least a few thousand dollars set aside as a buffer can soften the blow of tenant emergencies and keep properties in top shape all through the year. Knowing this money is there in the case of emergencies will lower landlord stress and result in added peace of mind.

5. Use Professional Tenant Screening

One of the most stressful elements of being a landlord is getting stuck with poor quality tenants. A problem tenant is often late with the rent, misses payments or in some cases creates a bad debt of thousands of dollars that is never repaid. By contrast, quality tenants are responsible, financially viable, respectful and stick around for a while.

One of the best ways to ensure high quality tenants is by using tenant screening. A professional tenant screening service can check criminal history, credit report, eviction history and much more. This can help to ensure landlords make the best choice when selecting the tenants who will rent their properties. This step can also be outsourced to the property manager to reduce landlord stress even more. However, make sure to choose a high-quality service that’s experienced in all the types of screening you will require.

Being a landlord can be financially rewarding, but it is not without its hassles, stresses and challenges. For a less stressful experience as a landlord, implementing these five tips to reduce landlord stress can make a big difference.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

The Top 5 Tenant Disasters And How Landlords Can Avoid Them

by

Landlords take a risk every time they rent to a new tenant. While the payoff in terms of income can be very rewarding if all goes well, there is always the possibility of having tenant disasters where things go very wrong. How can landlords avoid tenant disasters?

Tenant Disasters

The following is an overview of five of the top tenant disasters that a resident can bring – along with tips on how to avoid these scenarios.

1. The Tenant Gets Behind On Rent Payments

This is a major worry for all landlords. The main reason for renting out property is to make income from it. When a tenant doesn’t pay, the landlord loses money each month. Whether the tenant is chronically late with the rent or goes into default, the net effect is a nightmare tenant. The best way to avoid renting to a tenant who is a financial disaster is to use professional background screening for credit checks and get a sense of their history. Current income should be verified and a late fee enforced on all late rent payments.

2. The Property is Extensively Damaged

This is perhaps the biggest fear of landlords regarding entrusting their properties to strangers. There is no guarantee that a tenant will be respectful of the property. However, landlords can look into the history and track record of potential renters. Calling previous landlords and checking eviction records can yield valuable insights about their potential future behavior.

3. The Property is Left Filthy

Tenants who do not keep the unit clean during their stay and do not clean it after they empty it of their belongings create another nightmare scenario for landlords. It is disappointing to see a property in total disarray. However, these tenant disasters can be remedied with a professional cleaning service. Collecting an adequate security deposit will help to cover any necessary cleaning costs.

4. A Tenant Commits a Crime

Renting to dishonest or violent people will most likely result in tenant disasters. Whether the crime is a domestic incident, illegal activity or violence against another tenant in the building, a crime will bring unwanted energy to the rental property. It can also raise landlord risks and liabilities. Tenant screening of all potential renters can help to identify those with a criminal history so that landlords can determine if an individual is prone to undesirable behavior.

5. A Property Remains Vacant For Months

Vacancies are another way that landlords can lose a substantial amount of income. Having a tenant break a lease is one way this can occur. Including a penalty within the lease such as loss of the security deposit can discourage broken leases. On a one-year lease, landlords should require one to two months advance notice from tenants who will be moving out. This will allow time for advertising the property and screening new tenants so that the vacancy can be filled efficiently.

Having rental properties always involves a degree of risk. Landlords can never be sure how a tenant will treat their property and lease terms. However, professional tenant screening can eliminate a lot of the guesswork. Landlords should strongly consider screening each and every candidate to help them avoid these and other tenant disasters.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

7 Valuable Lessons And Key Tips From Former Landlords

by

Not everyone is cut out to be a landlord. Those who aren’t often find this out the hard way. However, most former landlords learn valuable lessons along the way. New landlords can use insights from these experiences to become better landlords themselves.

Former Landlords

The following are seven key lessons and tips from former landlords:

1. ALWAYS Have a Lease, and Make Sure It’s Detailed and Comprehensive

It can be tempting when renting to friends or family to forego the formality of a lease. Former landlords advise strongly against this. The lease offers the opportunity to spell out important rules in writing and obtain a signature so that everyone is on the same page. Whether the tenant is a stranger or someone familiar, a detailed, comprehensive lease is a must.

2. Enact a Late Fee – And Enforce It

Former landlords also strongly advised toward having a late fee policy and always enforcing it. Not doing so sends the message that it’s OK to let rental payments slide, and some tenants abuse this and keep paying later and later. The late fee must be reasonable and in compliance with state laws.

3. Think Twice About Renting to Friends and Family

Some former landlords report that renting to people they knew was one of the worst mistakes they made. Even with a lease, these people can sometimes take advantage of the situation and push the envelope in terms of what’s allowed. From late rent to a lack of cleanliness to causing property damage, former landlords often reported bad experiences with renting to people they knew. The relationship suffered, and they were often impacted financially. Tax laws may be different and more costly in these situations as well.

4. Use Tenant Screening

While some landlords attempted DIY tenant screening, many found that the results they received were not as accurate and comprehensive as they were hoping for. A professional tenant screening service eliminates the guesswork and can ensure that all relevant areas will be thoroughly checked.

5. Double Your Estimated Cash Reserve Amount

Landlords often have a basic idea of how much cash they think they should set aside for repair and upgrade costs in rental units. However, former landlords attest that they always tended to estimate too low – to the tune of half of what’s really required. To make sure essential repairs will be covered, it’s best to double this estimated amount.

6. Create a List of Go-To Helpers

When something breaks down in a unit, it can be a real emergency for tenants. The best way to handle this is by being prepared. Former landlords recommend compiling a list of go-to electricians, plumbers, exterminators and handymen so that they can be called at a moment’s notice. Ensure that these service people are reputable and will charge fair prices even in emergency situations.

7. Prepare For Some Stress

Former landlords also reported that the ability to handle stressful situations was a must. The best landlords have patience, tolerance and a higher-than-average threshold for handling difficult situations. Occasional challenges are inevitable and part of the territory. That said, proper tenant screening can help to forego many issues and headaches so that fewer problems arise down the road.

Being a landlord isn’t for everyone, but there are steps that can be taken to increase the odds of success. Take a page from former landlords by learning from their experiences in these seven key areas.

Sources:

http://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter3-6.html
http://www.cbsnews.com/news/when-renting-property-to-relatives-know-the-tax-rules/

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

RECENT POSTS

Stay In Touch With Us
Search Public Records
Site Map

Follow EvictionRecords.com