The Fair Housing Act of 1968, as amended, prohibits discrimination on the basis of race, color, religion, nationality, familial status, age, and gender. Many state and local laws also forbid discrimination on the basis of sexuality or source of income, and the Americans with Disabilities Act makes it illegal to discriminate against the disabled. If you harbor any such prejudices and would allow them to come into play when renting a housing unit, then you’re probably not cut out to be a landlord. However, many sincere real estate investors make honest mistakes that result in discrimination lawsuits. The best way to avoid them is to be informed.

Watch the Wording of Your Ads

The Fair Housing Act (FHA) may appear to be common sense, and most people would never think of discriminating against people of different races or religions, or on the basis of gender. However, it is important to note that the FHA extends beyond the screening process, and into advertising as well. This is where many landlords and property managers make fatal mistakes. After all, there are people who scour the classifieds looking for inappropriately worded ads so that they can pounce on them and threaten a lawsuit. While someone must have standing to bring suit, these scoundrels often work in coalitions to ensure that all of their bases are covered.

For example, if you own a rental property in a predominantly Jewish community, its proximity to the local synagogue could be a major feature. But if your ad says “within walking distance from the synagogue,” you could be sending the message “gentiles need not apply” – even though this wasn’t your intent. And keep in mind that you may not discriminate on the basis of whether a couple is married, whether or not children are to live in the unit, or on the basis of age. Novice landlords may not be aware of these areas of concern, and while it’s a good thing that citizens are more aware of their rights today, it can be a very bad thing for well-meaning landlords who are out of step with the times.

Be Aware of Your Local Laws – And Use Good Business Sense

State law and local ordinances can extend similar protections granted under the FHA to other groups. For example, California, Minnesota, and North Dakota prohibit discrimination based on source of income – in other words, a landlord cannot discriminate against would-be tenants who rely on public assistance. Putting the political perspective of the landlord aside, such discrimination makes very little business sense, since people on welfare or social security are virtually assured of a fixed income.

Some cities make it a crime for a landlord to discriminate against lesbians and gay men. If you are uncomfortable renting to same-sex couples and you live in a community progressive enough to pass ordinances protecting their rights, then you are either in the wrong line of work or the wrong town. There can be little rational argument in favor of discriminating against same-sex couples in an accepting locale.

The Americans with Disabilities Act

The Americans with Disabilities Act (ADA) prohibits discrimination against the disabled, and also requires landlords to make “reasonable accommodations” to disabled tenants. Who decides what’s reasonable? Typically, judges, if it comes to that. But while most landlords are aware of the ADA and would never stoop so low as to discriminate against a person in a wheelchair, many are unaware that the ADA also protects mentally disabled tenants. A mental disability could also include recovering alcoholics and drug addicts. The downside of this is that these types of people are prone to relapse and if they do, can cause serious problems for you and other tenants. Everyone deserves a second chance, and many recovering addicts go on to be productive members of society. The ones who are unable to recover typically have other problems, and thus it is vitally important that you document additional reasons for rejecting their rental applications if you decide to do so.

The Name of the Game is “Wealth Protection”

If you own rental properties in your own name, you are asking for a world of pain – it’s the equivalent of wearing a giant “kick me” sign on your back. Instead, own your properties in corporate, limited partnership, LLC, or trust form. That way, even if you are the victim of a discrimination suit, or any other type of judgment, your personal assets may be protected against the liens of creditors.

For more information on setting up a proper business entity, check out the Wealth Protection Boot Camp

William Bronchick, CEO of Legalwiz Publications (http://www.legalwiz.com), is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990, having been involved in over 1,000 transactions. He has trained countless people all over the Country to become financially successful, speaking to audiences of as many as 16,000 at “Get Motivated” events sharing the stage with names like Rudy Guliani, Steve Forbes, and Colin Powell.

His best-selling book, “Flipping Properties,’ was named one of the ten best real estate books of the year by the Chicago Tribune. William Bronchick is also the author of the highly acclaimed books, “Financing Secrets of a Millionaire Real Estate Investor”,”Wealth Protection Secrets of a Millionaire Real Estate Investor”, and his latest work, “Defensive Real Estate Investing”.

William Bronchick is the co-founder and President of the Colorado Association of Real Estate Investors (http://www.carei.com). He is admitted to practice law before the bars of New York and Colorado.

THE TENANT MOVES OUT

When filing an eviction because the tenant has failed to pay rent you’re seeking a number of things, first you’re asking the court to terminate the lease and return possession of the property back to you. Second, you ask the court to grant a judgment for all of the past due rent, as well as any rent accruing during the time the court case is pending. If you dismiss the case after the tenant voluntarily moves you take away the court’s ability to grant you a judgment for the past due rent! While a judgment is not a guarantee that you will ever receive the money, not receiving a judgment virtually guarantees that you will never receive the money! The courts in metro-Atlanta, in my experience, will generally grant you all of the past due rent, late fees up to 10% of the monthly rent, and court costs without hesitation. While no one can guarantee you’ll ever receive any or all of that money, getting the judgment is a necessary first step.

Another problem is claims of unlawful, or illegal eviction. Should the tenant move out, taking most (but not all) of his belongings you might be tempted to assume he is gone for good. You’re likely to enter the property, remove the few things left behind, change the locks and put up a for rent sign. Unfortunately, should the tenant later return, you would be guilty of an unlawful eviction, liable for the cost of any items you discarded, and potentially liable to the tenant for punitive damages. Unless the tenant has removed ALL of his personal property and returned the keys, you CANNOT assume he doesn’t intend to return!

THE TENANT OFFERS TO PAY

The second issue is what to do if the tenant offers to pay? First, you should know that Georgia law requires that you accept the rent if the tenant offers to pay all of the past due rent AND court costs within 7 days of the sheriff serving him the eviction papers. The landlord is only required, however, to do this once in any 12 month period from any one tenant. If the tenant offers to pay AFTER the answer is due or filed, you are not required to accept it, but you can if you choose to.

If you choose to accept that rent I advise that you do so under the terms of a CONSENT JUDGMENT, which puts in writing that you’re accepting the rent, and that the tenant agrees to pay all future rent on or before the first of each month and that any violation of this agreement entitles the landlord to seek an immediate writ without need for further court action. This will allow you to skip the lengthy eviction process, and the cost of another filing fee, should the tenant fail to pay the rent on time during the remaining term of his tenancy.

Each case will be different and you should always consult with a qualified attorney in each case! Feel free to post questions here, or email me at trey@treyphillipslaw.com You can also call toll-free at 1-888-500-EVICT.

Trey Phillips is an experienced eviction attorney having represented clients, investors, and realtors in eviction dispossessory proceedings in most of the metro-Atlanta counties, including Gwinnett, Dekalb, Fulton, Forsyth, Hall, Rockdale, Clayton, and others. Trey establised the website http://www.GeorgiaEvictionAttorney.com to assist the public in understanding the legal issues surrounding evictions and dispossessories in Georgia. If you’re interested in hiring an attorney to assist you with your landlord/tenant legal issues you can call Trey’s office for a free consult at 888-500-EVICT (3842).

Rule #1: Never allow another Realtor to write a lease if they’re representing the tenant. It’s your responsibility to protect the client you represent.

Rule #2: Don’t depend on others to do all the work for you!

The tenants are moved in, they paid the 1st months rent and gave the security. Yesterday the agent came to our office to naturally pick up her commission check.

She’s upset that the lease doesn’t show 1st, Last and security. She seems like a “Deer in the heads lights” as she explains what’s wrong!

The Conversation is as follows:

Dazed and Confused Agent: Where is the last months rent?

Me: There was no last months rent, the lease was for 1st and security only. Our commission is split with you 50/50 which has been paid.

Dazed and Confused Agent: Yes, but my client wants the last months rent now!

Me: Do you have an executed lease that`’ signed?

Dazed and Confused Agent: Why does that matter, my client is an attorney, he’s upset with me that I don’t have everything! Why don`t we collect the commission from the tenant instead? That way my client is satisfied!

Me: Collect the commission from the tenant, isn’t possible, it’s a done deal, we’re finished here. If the client is an attorney why did he sign the lease? Better yet, why didn’t you do the job that you were paid to do! Making up the rules as you go by isn’t an option, you should have paid attention to what was happening! The fault is all yours!

With that the “Dazed and Confused Agent leaves our office, she’s upset, that nobody is listening to her. The client signed the lease and deposited the check, he’s mad because the agent fumbled, she’s mad, because, well, she’s just sloppy in her responsibilities!

Lesson learned I guess.

Scott Daniels
Florida list for less realty, inc.
954-275-0200

http://www.floridalistforlessrealty.com

The reason you may ignore good tenants is that you spend so much time working on your not-so-good ones; cajoling them to clean up their acts or planning to evict them. When you are always on the phone with Average or Bad tenants A, B, and C, you quickly start thinking of Good tenant D as simply a check that comes in the mail, on time every month, like clockwork. But your good tenants are much more than that. They are human beings who:

• Understand that they are paying good money, and expect good service in return
• Notice when their building seems to be going downhill
• Recognize when they are being B.S.ed or treated disrespectfully or dismissively

On the other hand, YOU may not recognize these feelings in your good tenants, simply because they may be reluctant to share them. The complaints are more likely to come from your poorer tenants, and you may be more likely to dismiss them as a result. The good tenants are more likely to suffer in silence, before deciding to move on.It’s vitally important that you retain your good tenants, not only because they make your landlording more pleasant, but because they are so hard to replace. Once that unit is vacant, you may not re-rent it for months, and you have no idea how the next tenant will turn out. He could be just bad enough to make your life really difficult, or so bad that he only lasts for a month or two before eviction. Since your good tenants are less likely to contact you, you have to stay in touch with them. Try to get a read on their feelings by calling or emailing at least once a month. Here’s a short checklist of questions:

• Does anything need repairs in the unit?
• Are you noticing any maintenance issues in common areas?
• Do you have any suggestions for me?
• How are your neighbors?

Not only have you learned how satisfied your good tenants feel, you’ve made them feel important and wanted. Now you need to follow up by addressing their concerns, if any, sincerely and quickly. Bear in mind as you do so that you can’t get into trouble for being nicer to your good tenants than your bad ones. If a good tenant’s got a maintenance issue, generally make it your first priority – the only more important issues will relate to safety or potential for very serious problems, such as fire or water damage hazards. If a good tenant’s got a beef with a neighbor, get all the facts and deal with it right away – making sure you get the neighbor’s side of the story before making a judgment. If a good and bad tenant are having a dispute, and neither is clearly in the right, it’s okay to side with the good tenant. While you’re at it, ask your good tenants if they’re thinking about moving. Yes, that’s shockingly blunt. But it’s the only way you’ll ever find out if a tenant is planning to move before he or she actually signs a lease for another unit. Once they sign that lease, they’re gone – and no amount of cajoling is going to get them back.

If a tenant IS planning to move, ask why and press (nicely!) until you get an answer. Hopefully their decision will be based on a problem you can fix. The unit feels kind of old and grimy? Offer to repaint it. It’s too hot in the summer? Get them an air conditioner. It’s too small? Maybe you have a larger unit vacant, even if it’s in another building – and you’ll help them move for free. Some of these fixes run into some serious money. You need to compare them to the cost of finding a new tenant. That is a certain amount of lost income, plus the cost of marketing the unit, plus any necessary renovations to make it re-rentable. If the unit needs paint anyway, then painting it to motivate a good tenant to stay is much better than painting to get a new tenant. If the money looks REALLY serious, ask them to sign a new lease. Point out that they would have to if they moved to a different building anyway.

You should also make sure your tenant recognizes the cost and aggravation of moving. They’ll have to rent a truck, buy or steal boxes, pack everything, arrange for new utilities, physically transport the stuff, and change addresses for all of their mail. Why should they do all that when you can offer them what they want with much less hassle?

On the other hand, they might be moving for reasons you can’t control, maybe because they’re getting married or taking a new job in a different city or buying a house. Thank the tenant for being a great tenant, and ask if they know anyone else who might be interested in renting the unit.

You have to be committed to keeping your good tenants happy. That doesn’t include letting them break rules or pay rent late. Instead, look for little things you can do to be helpful. For example, when tenants move out, they often leave behind one or two objects of some value; bookshelves, portable fans, and so on. I offer these to my remaining good tenants. I also send Christmas cards each year with a gift card to a local coffee shop in each. It’s definitely worth $5 to make a good tenant happy.While you’re at it, invest in a few emergency items you can have available for tenants if they need them. Get a couple of electric space heaters (for use if the heating system breaks) and big coolers (if there’s a power failure). Now if you get a call about a heating problem or power failure, you can offer some quick relief until the issue is resolved.

Brendan O’Brien is the founder and president of Property Master Web™ Software. He is a contributing writer to REIP The Rewards® Magazine and is an active landlord and real estate investor. O’Brien designed Property Master Web™ with a team of 26 real estate investors and professionals to create the most comprehensive property management software solution for everyone, from first time investors to multiple property mangers. In addition to software, the advisory board has written 162 Landlording Tips that are a great resource for any property manager. For more information about Property Master Web™ visit http://www.PCPropertyMaster.com or email Brendan.obrien@pcpropertymaster.com

I thought I had checked everything with this prospective tenant. He had a good report from his previous landlord. He had worked at the same company for five years. His credit was fine. And he seemed like a responsible person.

But he would turn out to be the worst tenant I ever had. He drank heavily, insulted and threatened other tenants, tried to start fights, damaged their property, and even got arrested in my parking lot for being drunk and disorderly and resisting arrest.

There are many different ways to be a bad tenant, but among the worst are disruptive people. Disruptive people, in a multifamily property, can drive all of your good tenants out and permanently damage the reputation of your building. Even in a single family or commercial building, their bad behavior can cost you a fortune in legal and other costs.

Many real estate investors start with some naïve assumptions about other people. We follow the rules and treat others with respect, so we think everybody else does as well. But if you’re going to be a successful landlord, you must prepare to deal with the worst of human nature. That means using all the screening tools at your disposal; consistently enforcing a clear set of rules; and knowing what you will do for any type of tenant infraction, as well as the steps you must follow for a legal, trouble-free eviction.

The best solution to disruptive tenants is to keep them out of your properties. I believe the first step should be to check with your local landlords’ association or REIA, which may keep a tenant database. After that you can check credit, employment, previous tenancy, and criminal behavior.

For each step in the process, there’s a right way and a wrong way. With the tenant database (and indeed all background checking steps) make sure that you’ve got the right person. Many good people have suffered because someone else with the same name misbehaved. Also remember that tenant databases often include both good and bad tenants. Check with the previous landlord, who submitted your prospect’s name, to find out what he really thought about the tenant.

Credit and employment are two areas where you may decide to be flexible. Many otherwise fine people have poor credit. If the tenant has only worked at his job for a short time, talk to his employers from before that change. In employment checking, make sure you find out the employer’s phone number on your own – don’t trust the rental application. In both employment and previous tenancy checking, watch out. Former supervisors and landlords often give overly positive reports.

Make sure you check the same things, document your process, and keep a detailed record for each prospect you check out. This system will help if a rejected prospect ever sues for discrimination.

The only downside to all this checking is that you will reject more prospects than most of the other landlords in your area, and your units may stay vacant longer. But, considering the hassle and expense that a bad tenant can cause, losing a month’s rent doesn’t seem that terrible.

Once you’ve approved a rental application and the tenant has moved in, the next step is to get them started with good habits. Make clear what you will not tolerate and give the tenant a detailed list of fines and rules that are the same for everybody. Make the list reasonable. An overly detailed and nitpicky list will turn off tenants you want to have. In the first few weeks or months after the new tenants move in, stop by both their apartment and their neighbors’ or call from time to time to make sure everything is going well.

Fortunately, most of your tenant disruptions won’t be that serious. Most are minor – loud noises, improper trash disposal, or parking violations. Where the complaints are along these lines, let the tenant know he’s getting complaints and back them up with the fines you have set. Some tenants don’t even know they’re causing a problem. In any case, your response must be firm and fast. If you don’t, the tenants’ behavior will get worse.

You also must make sure not to overreact. You may have two tenants who are both perfectly responsible, but simply do not like each other. They might show their dislike by nitpicking about each others’ behavior. Or you may have a very demanding tenant who calls you with trivial complaints about his neighbors. Maybe the neighbor parked her car a little too close to his. Another couple walks around their apartment late at night. The woman downstairs has a baby who cries a lot.

To evaluate these situations, talk to both tenants, and also talk to anyone else you have living in the building. Suppose Tenant #1 is constantly complaining about Tenant #2. But when you talk to Tenants #3, #4, and #5, they all think Tenant #2 is a fine neighbor. And you know that #3, #4, and #5 are also responsible people. That makes it fairly clear that the problem is very high expectations, not bad behavior. It’s time to talk to the complainer about lowering her expectations. You don’t want a reputation as a ridiculously nitpicky landlord.

But there are three classes of tenant behaviors that you absolutely cannot tolerate. The tenant does NOT get a second chance if he fights or threatens other tenants, or engages in any illegal activity (most likely drug abuse or public drinking). You should immediately begin the eviction process, and make sure you have documentation. There’s a standard clause in most leases that requires tenants to not interfere with others’ enjoyment of the premises. That ought to cover most disruptive behavior. However, your lease should make it clear that any of the Big Three disruptive behaviors will result in immediate eviction (as always, checking with your local real estate attorney so that the language is correct).

No matter how carefully you screen prospects and set and enforce rules, you may still occasionally run into a nightmare tenant. However, these steps will make disruptive tenants much rarer, and your landlording experience both happier and more profitable.

Brendan O’Brien is the founder and president of Property Master™ Software. He is a contributing writer to REIP The Rewards® Magazine and is an active landlord and real estate investor. O’Brien designed Property Master™ with a team of 26 real estate investors and professionals to create the most comprehensive property management software solution for everyone, from first time investors to multiple property mangers. In addition to software, the advisory board has written 162 Landlording Tips that are a great resource for any property manager. For more information about Property Master™ visit http://www.PCPropertyMaster.com or email Brendan.obrien@pcpropertymaster.com

However, I also have had a few really troublesome tenants every once in a while. For instance, the last tenant was really a trouble maker. I was forced to give him a 3 day eviction because he would not leave, no matter what I tried.

Normally, I do not want to give eviction notices, but I had no other choice. I had a feeling that he was going to cause trouble almost from the moment that he moved in. He seemed nice when I first met him, but he turned out to be a terrible manipulator. He was a thorn in my side for so long before the 3 day eviction.

That guy would have a story about why he could not get his rent in on time each month. It even got to a point where I would threaten him with a three day eviction every month just to get him to pay me. I gave him a lot of chances but I finally decided that enough is enough.

To tell you the truth, I heard about the 3 day eviction for the first time when his actions forced me to contact my attorney. I have to take some actions because the neighbors were complaining about a bad smell coming from the house. He was evasive at first when I asked him about it, but finally admitted that his cat had died and he had not gotten around to burying it.

I was amazed that he just left that dead animal sitting in his living room for weeks. The house was so filthy that I could not breathe when I went in. You can be sure that I was back with the 3 day eviction the very next morning. I thought that there would be a long court battle because I did not expect him to abide by the 3 day eviction. I was relieved when the 3 day eviction worked and he left without a fuss.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning 3 Day Eviction. Visit our site for more helpful information about 3 Day Eviction and other similar topics.

The procedures for evicting a tenant should be clearly spelled out in the rental agreement that the tenant signed. Once they have missed X amount of rent payments, they have X amount of time to move out before you can enter their space, throw their belongings into the garbage and change the locks. But the rules are very, very different from state to state, and in some places, you need a court order to enter a tenant’s apartment or living space and remove their belongings, even if they have gone months without paying a dime in rent. If you are buying a new rental property in a state other than the one you currently live in, you will need to completely research the laws of that state and how they govern these types of situations.

Another good tip is to make out a list of “What To Do’s” when it comes to dealing with tenants who haven’t paid rent. The worst thing you can do is to treat tenant a one way and treat tenant b another way. If you have to take a tenant to court to get them thrown out, you don’t want any discrepancies on how you’ve treated the people who live in your building. Also, make sure you document everything you can so if the situation does result in a court date, you’ll be able to show the judge exactly what happened.

While it can be tempting to try to do things to make the tenant who isn’t paying rent uncomfortable, ie, turning off their heat, their water or their cable, harassment is illegal and violates tenant rights in just about every state. You also don’t want your tenant going to court and saying that they were harassed. Most judges don’t look too kindly on that. Simply go by the letter of your lease and serve the proper notices when the time comes. There really isn’t much more you can do (legally) than that.

One possible solution is to simply talk to the tenant who has stopped paying rent and find out why. This can work, but it can also be dangerous because you don’t want to get emotionally involved the lives of your tenants, especially the ones that aren’t paying rent. But if they withholding rent due to a problem in the unit they live in, it might be worth your while to give in and start collecting rent again than to go through the expensive process of eviction. Of course, take this on a case-by-case basis. You don’t want every tenant in your building withholding rent until they get a Jacuzzi installed.

Brock Hamilton owns and operates an Australian Rental Property Website:http://www.rentalproperty.com.au

Effective monitoring system

The first thing that landlords should ensure is that they have an effective monitoring system in place so that missed payments are picked up early. Early detection is vital so that the landlord can take proactive steps to safeguard their residential investment property. With the advent of internet banking, landlords can monitor their account on a daily if not hourly basis for rental payments received. Hourly monitoring is probably excessive but certainly a weekly glance will ensure that late payments are spotted within days rather than weeks or months.

Immediate action

Once a landlord has spotted that there is a problem. They should act immediately. The landlord should either speak to the tenant or go round to their residential investment property and discuss the problem. The landlord should ascertain the tenant’s situation and the reasons for non payment and if the tenant can make a payment to bring their account up to date. By visiting the residential investment property this gives the landlord the opportunity to give the investment property a quick inspection and ensure that their residential investment property is still in good repair and nothing untoward is going on.

Reasons for non-payment

What are their reasons for non-payment? Do they seem genuine? Has there been a change in the tenant’s personal circumstances such as change of job, or unemployment? The landlord should try and find out as much as possible. Then it is a case of agreeing with the tenant a course of action. This could be bringing the tenant’s rental account up to date by a series of small additional rental payments; or arranging for the tenant to make a single payment to pay off the tenants entire rental arrears. Try and get all this in writing & then get the tenant to sign it. This written evidence will be useful as part of any audit trail should the case go to court. You never know, the landlord may be lucky and their sheer presence is enough to encourage the tenant to pay up the full balance there and then.

Incisive action

A landlord shouldn’t spend lots of time negotiating with the tenant. This will only give the tenant more time to rack up large debts. The landlord needs to act incisively even if they are strongly convinced of the tenants’ promises to pay.

Landlords should seek possession by either issuing a section 21 possession notice (accelerated) in the case where a fixed term tenancy has ended or will come to an end after the expiry of the 2 month notice period or a section 8 notice (fault based).

If the tenant is more than 2 months in arrears then using a section 8 notice is preferable as this constitutes not only a mandatory ground for possession, it also means that the landlord can also include a claim for unpaid rent.

Landlords should be aware that in both cases, that possession wont be granted by the courts until 6 months after the commencement of an assured shorthold tenancy.

By acting in this incisive way the landlord wont have lost valuable time if the tenant’s promises of payment turn out to be just that.

The act of serving the notices correctly by the landlord will often cause the tenant to disappear.

Good relationship

The landlord should always try and maintain a courteous relationship with the tenant during this difficult time. Advise the tenant to obtain assistance if appropriate. The local authority Social Services Department will give advice on Housing Benefit payments, there are also the Housing Advice Centre, and the Citizens’ Advice Bureaux (CAB).

Landlords should endeavour even during legal proceedings to keep in contact with the tenant and use any opportunity to glean as much up to date information on the tenants as possible. This information will be vital should the tenants decide to do a ‘flit’ and disappear and then the landlord has to issue legal proceedings to recover their losses. The information is particularly useful when trying to trace a tenant that has disappeared or when trying to reclaim rent arrears are:

* National insurance number

* Work details

* Correct name

* Residential address

* Date of birth

Realism

When tenants stop paying the rent particularly where there has been a significant change in their financial circumstances, landlords need to be realistic about their chance of recovering all of their monies. It is unlikely that landlords will ever recover all outstanding losses. In many rent arrears cases the best solution is often re-possession and for a landlord to re-let quickly to minimise their loss.

This is not to say that the task is impossible however, frequently landlords may feel that the law, the council, the tenant and the world is against them. This is where careful preparation & dogged determination by the landlord to see that justice is done will often be the defining features for a successful action to recover the landlords’ money.

Property Hawk is a site aimed directly at UK Landlords. The site incorporates free property management software that enables landlords to track all their financial data relating to their portfolio. It allows users to print tenancy agreements and other forms FREE FOREVER. The site generates a real time rent book for each property as well as calculating a landlords tax liabilty. The service is totally free to use at www.propertyhawk.co.uk

We have all experienced it. Rent is due on the first; here we are on the third and still no check. You call the tenant who tells you that “the car has broken down and needs to be fixed so I can work” or “my check doesn’t clear until Monday, I’ll have it for you then”. Monday comes and you hear “I’ll have the money on Wednesday for sure”.

As soon as you let the tenant start calling the shots, they won’t stop. Next month they will remember the power that you have relinquished and will stretch rent collection out all over again.

How should you deal with this tenant? There are several steps you can take to help them get the rent to you on time, every month.

The first step you can take is to be firm is from the start. When you sign the lease with a new tenant inform them that the rent is due on the first of the month and they will be paying late fees for every day the rent is late. Tell them that communication is key and to call you if the are going to be late with the rent. It’s up to you if you are going to give them a grace period or waive late fees the first time rent is late if it’s not habitual. This way you are the one calling the shots, not the tenant.

The second step is to enforce late fees every month. Tenants hate to pay extra rent and when they know you are going to charge them $5 every day the rent is late they will make every effort to get that rent to you on time. Charging late fees and more importantly enforcing late fees also takes some of the stress out of not having that rent in hand. You know you are making $5 extra per day and if they don’t pay the fee immediately you can deduct it from their deposit at any time. Be sure to inform them you made this deduction and don’t let the security deposit go to low using this method.

The third step is, when the rent is 2-3 days late, issue a 10 day notice to pay rent or quit. It doesn’t matter how nice this tenant is, or how great your report is with this tenant. This gives you the OPTION to file for repossession. Chances are they will pay you before you have to repossess the apartment but incase they don’t pay you, you can file after 10 days. A lot of landlords wait too long to issue this 10 day notice. By the time they want to start the legal path, the tenant will have 10 additional days before the landlord can file to repossess the apartment because of the requirement to deliver the 10 day notice.

The fourth step is to leverage the power you have over the tenant’s rental history by reporting them to any or all of the different credit bureaus and tenant databases. To report to the credit bureau you need to pay for membership to a service that can submit this for you. To report them to the Deadbeat Database you need to join their website which costs about $70.

Finally, the free option is to join the FreeLandlordSoftware.com which gives you access to a database for landlords to post and browse tenant rental histories for free. Whichever option you choose, you should inform the tenant of your intention and this may encourage the tenant to pay what they owe you.

Remember, you are the one with the control. It is your property and it’s up to you to protect your investment. When you apply the pressure to pay the rent early in the process, you can always ease up after you are paid. When you wait for the tenant to string you along, you give up the control and you are the one that will lose.

Corey Bornmann is a Real Estate Investor, Landlord and Web Designer. He manages many properties in Pennsylvania and is the developer of www.FreeLandlordSoftware.com

I encourage you to check out the free services available to landlords at www.FreeLandlordSoftware.com Membership is always free. Remember, be firm, fair and consistent with your tenants and you will always keep your losses at a minimum.

For the purposes of tenant improvement requests we see three different kinds of tenants.

The New Tenant: Often the requests come during the approval process or at the move in inspection. All requests having to do with a clean and functional place should be done by the move in. You want to start of your new business relationship on a good note. Nothing worse than starting an argument you know you will lose…and all those bad feelings wont help when you make a reasonable request.

Things we always say yes to:

Generally, electrical improvements are fixed and add value and marketability to the unit.
a. DSL
b. Cable
c. Hard wired outlets – Electrical needs have skyrocketed and we would rather hard wire than see too many appliances on one outlet
d. Smoke detectors – even if we are fully compliant. Cosmetic Requests to alter the unit

If the rental depends on some cosmetic changes such as paint or verticals, then its your call. We like to say yes to all reasonable changes but require that the unit be returned to its original condition on the move out. We also are careful to mention that it must be a professional job and that we provide no insurance coverage for any accidents “on the job”.

The Existing Tenant: Much of the above applies. The difference is there is less incentive to pay for cosmetics unless you want that tenant to stay.

The Disabled Tenant: Here you are bound by law and should be aware of the rules and avoid law suits you can only lose. As always, with ownership its local and the rules will be different for your area.

Federal Fair Housing Law: The federal Fair Housing Act and local fair housing laws prohibit discrimination against people because of their disability or the disability of anyone associated with them.

Require owners and managers “to make reasonable accommodations or modifications in rules, policies, Practices, or services, when such accommodations may be necessary afford such person(s) equal opportunity to use and enjoy a dwelling. If an applicant has a physical or mental disability (including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex and mental retardation) that substantially limits a major life activity or a record of such a disability or is regarded as having such a disability”.

Who Pays for the Improvements: Its important to be clear here so we are quoting form the HUD web site.

Reasonable Accommodations: The housing provider is responsible for ensuring general access to the facility and meeting minimum accessibility standards. This may include an adaptation or modification to a policy or a service, which will allow a person with a disability to use and enjoy a dwelling and the common use area.

Generally, the applicant or tenant must make a request for an accommodation. Your tenant will describe the need and it is a good idea to have any requests to accommodate in writing and kept for your records in case of any misunderstanding later on.

You can ask the tenant to provide proof of a disability (some disabilities are hidden). Medications and other specifics are a private matter and may not be breached by the housing provider.

A definition: Acceptable accommodation or modification cannot cause undue administrative or financial burden for the owner/manager, and cannot fundamentally alter the housing and services the owner/manager offers.

Reasonable Modifications: Landlords must allow disabled tenants access and enjoyment of the building. Disabled tenants can make the modifications and accommodations that will provide them with reasonable safety and enjoyment. The owner/manager may condition permission for a modification on the tenant providing a reasonable description of the modifications and assurances that the work will be done in a professional manner with required building permits. All modifications must be reasonable and require prior approval. You may also require an additional deposit to assure restoration to its prior condition.

Examples: Ramps for wheelchair access. Modifying locks, cabinets or appliances. Special faucets or handles on sinks tub or showers and more. When you are in a situation you think may be a Fair Housing issue, always talk to a professional property manager or your local apartment association, yourpropertypath.com has an extensive list of apartment associations in the Resource Center.

Howard Bell for yourpropertypath.com

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