Situation
How do I know if a repair needs to be done now or if it can wait?
Response
There are certain habitability issues that a Landlord is required to take care of right away. They include:
1. Water service
2. Electrical service
3. Toilets that function
4. Doors that are secure
5. Windows that are secure
6. Heater that functions when temperatures get cold (open for interpretation)
7. AC that functions when temperatures get hot (open for interpretation)
8. Roof that is water tight
The law generally states that if one of these things is not being supplied by the Landlord that they need to rememdy the problem within a "reasonable amount of time". Reasonable is the word that causes the problem. What might be reasonable for the Landlord is not reasonable for the tenant.
My general advice is that numbers 1-7 should be done within a couple of hours of notification by the tenant. If they can't be repaired in that time (need to get parts) then within 24 hours for sure.
It's important to keep the tenant on your side. I suggest that you communicate with tenant about what you are doing and why it might take longer than you would like. Most tenants are understanding.
If you can't make the repair right away, offer something to make them feel good. Ask them what they think would be fair. Most tenants will ask for something reasonable. Give it to them if it is reasonable. Maybe you can supply them with a portable heater or a fan. Maybe you need to put them up in a hotel room for a night.
If you work together with the tenant you will save money in the long run.
Monday, February 28, 2011
How quickly do I have to act on an "emergency" plumbing issue?
Situation
It's Sunday at 10:00pm. The tenant calls up with a plumbing leak in the kitchen. Do I have to call a plumber and get it done right now?
Response
Why is it that these kind of calls always seem to come at the worst times?
The answer is "It depends".
It's important to contact the tenant for more information. How much water is leaking? Where is it coming from? Is it the water feed line or is it the sink drain? The more you know about the problem the better the decision you can make.
You want to protect your investment, maintain a good relationship with the tenant and protect the tenants belongings.
You might be able to talk the tenant through the process of turning off the water under the sink. You might be able to advise them to not use the sink for the evening. Adjust to the situation and see if you can temporarily fix the situation for the night.
If you can, make sure you follow up with a permanent repair in the morning.
It's Sunday at 10:00pm. The tenant calls up with a plumbing leak in the kitchen. Do I have to call a plumber and get it done right now?
Response
Why is it that these kind of calls always seem to come at the worst times?
The answer is "It depends".
It's important to contact the tenant for more information. How much water is leaking? Where is it coming from? Is it the water feed line or is it the sink drain? The more you know about the problem the better the decision you can make.
You want to protect your investment, maintain a good relationship with the tenant and protect the tenants belongings.
You might be able to talk the tenant through the process of turning off the water under the sink. You might be able to advise them to not use the sink for the evening. Adjust to the situation and see if you can temporarily fix the situation for the night.
If you can, make sure you follow up with a permanent repair in the morning.
Do I have to put screens on all of the windows?
Situation
My tenant has requested that I install screens on all of the windows of my house. Do I have to do this?
Response
It is required that you have at least 1 window with a screen on it in each room of the house. I believe this is to allow a tenant to open a window in each room and not risk bugs or a child falling from the unscreened window.
If you have screens on the windows but they are torn or badly worn so they do not protect against bugs or children, I suggest repairing them or replacing them. It's not that expensive.
My tenant has requested that I install screens on all of the windows of my house. Do I have to do this?
Response
It is required that you have at least 1 window with a screen on it in each room of the house. I believe this is to allow a tenant to open a window in each room and not risk bugs or a child falling from the unscreened window.
If you have screens on the windows but they are torn or badly worn so they do not protect against bugs or children, I suggest repairing them or replacing them. It's not that expensive.
Wednesday, February 23, 2011
My Tenant can't pay all of the rent. Should I accept a partial payment?
Situation
My tenant has approached me with half of the rent payment and wants to make an arrangement to catch up. Should I accept the partial payment?
Response
It's great when a tenant communicates, even if it isn't the greatest news!
We all know that the economy is a challenge. Many tenants are still losing jobs and hours are being cut back for others. If you haven't experienced a problem up to now, you are very lucky.
The important thing to do is to keep open lines of communication. The more you communicate the better the decisions you can make.
I would accept their partial payment and work out a payment plan with them. Ask them when they will make the next payment and how much the payment will be. It is important to be specific on both of these points so it is easier to follow up with them. Be sure to write down and give them a copy of the payment arrangement.
Each time you accept a partial payment, serve them with a new 3-Day Notice to Pay Rent or Quit. This reminds them that you can still take action for non-payment and it speeds up the eviction process if it becomes necessary. Advise the tenant that you will not act on the Notice unless the next payment is missed or they have not contacted you.
If they contact you when they are late on one of the payments be glad that they are communicating. Set up a new payment arrangement. It is important to collect some money at each payment date.
Don't let this continue indefinitely. At some point you should realize that they are in a home that is too expensive for them. You may suggest that they move to a less expensive unit. Be willing to let them out of their lease. Remember that it is cheaper to let them out of the lease than it is to evict them.
My tenant has approached me with half of the rent payment and wants to make an arrangement to catch up. Should I accept the partial payment?
Response
It's great when a tenant communicates, even if it isn't the greatest news!
We all know that the economy is a challenge. Many tenants are still losing jobs and hours are being cut back for others. If you haven't experienced a problem up to now, you are very lucky.
The important thing to do is to keep open lines of communication. The more you communicate the better the decisions you can make.
I would accept their partial payment and work out a payment plan with them. Ask them when they will make the next payment and how much the payment will be. It is important to be specific on both of these points so it is easier to follow up with them. Be sure to write down and give them a copy of the payment arrangement.
Each time you accept a partial payment, serve them with a new 3-Day Notice to Pay Rent or Quit. This reminds them that you can still take action for non-payment and it speeds up the eviction process if it becomes necessary. Advise the tenant that you will not act on the Notice unless the next payment is missed or they have not contacted you.
If they contact you when they are late on one of the payments be glad that they are communicating. Set up a new payment arrangement. It is important to collect some money at each payment date.
Don't let this continue indefinitely. At some point you should realize that they are in a home that is too expensive for them. You may suggest that they move to a less expensive unit. Be willing to let them out of their lease. Remember that it is cheaper to let them out of the lease than it is to evict them.
Shoud I accept a tenant with a pet?
Situation
You own a home and you want to rent it out. You have heard horror stories about pets. Should you allow pets in your rental?
Response
There are a lot of horror stories out there about tenants who have pets and have destroyed their rental unit. There are also a lot of great pet owners who are tenants who take better care of their unit than families with kids!
The trick is to find the great pet owners and only rent to them. Here are some suggestions on how to find the really good pet owners.
1. In your advertisements state that the acceptance of pets is negotiable
2. Require a picture of the pet. Suggest that they take an electronic picture and email it to you.
3. Require pictures of their current residence where the have the pet. Make sure you can see an up close view of doors, screens, doorways and furniture.
4. Require copies of security deposit disbursements that detail any charges for pets
5. Request that the tenant get Tenant Insurance that covers pet damage and have you named as a beneficiary of the policy
6. Have a written policy of which dogs you will not accept. Disallowed pets could include:
a. Dogs over 30 pounds
b. Bulldogs, Great Danes, Labrador Retrievers, Collies, etc
7. Prepare a Pet Agreement that includes details about the dog and these requirements
8. Charge a $100 administration fee up front, non-refundable, to gather and review all of these items.
I would suggest that you increase the security deposit for each pet in the amount of $200 - $300 per pet.
This does not guarantee that you will not suffer damages from a pet but there are few guarantees in life. These guidelines will go a long way to insuring that you have a great tenant who has a great pet in your rental property.
You own a home and you want to rent it out. You have heard horror stories about pets. Should you allow pets in your rental?
Response
There are a lot of horror stories out there about tenants who have pets and have destroyed their rental unit. There are also a lot of great pet owners who are tenants who take better care of their unit than families with kids!
The trick is to find the great pet owners and only rent to them. Here are some suggestions on how to find the really good pet owners.
1. In your advertisements state that the acceptance of pets is negotiable
2. Require a picture of the pet. Suggest that they take an electronic picture and email it to you.
3. Require pictures of their current residence where the have the pet. Make sure you can see an up close view of doors, screens, doorways and furniture.
4. Require copies of security deposit disbursements that detail any charges for pets
5. Request that the tenant get Tenant Insurance that covers pet damage and have you named as a beneficiary of the policy
6. Have a written policy of which dogs you will not accept. Disallowed pets could include:
a. Dogs over 30 pounds
b. Bulldogs, Great Danes, Labrador Retrievers, Collies, etc
7. Prepare a Pet Agreement that includes details about the dog and these requirements
8. Charge a $100 administration fee up front, non-refundable, to gather and review all of these items.
I would suggest that you increase the security deposit for each pet in the amount of $200 - $300 per pet.
This does not guarantee that you will not suffer damages from a pet but there are few guarantees in life. These guidelines will go a long way to insuring that you have a great tenant who has a great pet in your rental property.
Tuesday, February 22, 2011
What kind of insurance should I have on my rental house?
Situation
I am not able to sell my house so I have turned it into a rental. What kind of insurance do I need?
Response
When you were living in your home you had Home Owner's Insurance. This covered you for liability issues like personal injury to guests, the physical replacement or repair of your home and it covered your possessions.
Now that you are not living in this home you should still carry liability and repair or replacement coverage but you do not need to cover your physical possessions. You do not need to cover the physical possessions of your tenant either. Their possessions are their responsibility.
You should talk to your insurance agent about a Landlord Policy. It is usually cheaper than a Homeowners policy. I would recommend that you get at least $500,000 in coverage and maybe even an umbrella policy for all of your real estate that is for up to $5M. It is not very expensive and gives you a broad range of coverage.
It might even be possible to extend coverage from your current residence to your rental property in an umbrella policy and not have to purchase a separate policy for your rental property.
Shop around. There are a lot of programs out there.
I am not able to sell my house so I have turned it into a rental. What kind of insurance do I need?
Response
When you were living in your home you had Home Owner's Insurance. This covered you for liability issues like personal injury to guests, the physical replacement or repair of your home and it covered your possessions.
Now that you are not living in this home you should still carry liability and repair or replacement coverage but you do not need to cover your physical possessions. You do not need to cover the physical possessions of your tenant either. Their possessions are their responsibility.
You should talk to your insurance agent about a Landlord Policy. It is usually cheaper than a Homeowners policy. I would recommend that you get at least $500,000 in coverage and maybe even an umbrella policy for all of your real estate that is for up to $5M. It is not very expensive and gives you a broad range of coverage.
It might even be possible to extend coverage from your current residence to your rental property in an umbrella policy and not have to purchase a separate policy for your rental property.
Shop around. There are a lot of programs out there.
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