Common Mistakes by Landlords
Learning from others’ mistakes is a move that we all need to imbibe. Read below for the errors made by landlords so we can avoid them when the time comes.
Security deposits: Security deposit issues are considered as one of the top-5 cause of disputes between landlords and tenants. It has been found out that the source of the problem comes from miscommunications and unspoken expectations. It is in the mind of tenants that they can get back 100% of their deposit. If the landlord did not explain the process fully to their tenants, then it’s not their fault anymore if they don’t understand how it works and what they stand to lose if there are damages to their rented unit after they move in.
Policy review. As soon as a new tenant signify an interest in the rental unit, have them sign a statement that they have reviewed and understand your security deposit policy, move-in and move-out inspection lists, and then follow up with a thorough initial walk-through of the rental unit. The landlord should take photos and make a run down list of the condition of each item and let the tenants initial the condition of each item on the list. When the tenants decide to move out, schedule another walk-through with the tenant, establish damages and take more photos.
Record keeping. Keeping pristine records of documents is a must in this kind of business because you’ll never know when you are going to need them. Landlords should keep on file each tenant’s application, background screening and credit check report, lease documents and correspondence should be kept until three years after the end of the lease. Even notes of emails and notes conversations, too (aside from the “nice day, huh?” conversations) should be properly kept. When records are properly kept, it shows that you’re serious about your business—and someday, if you find yourself in front of a judge over a landlord/tenant dispute, it could work in your favor. This practice will certainly not hurt!
Unintentional discrimination: It is not a planned situation when landlords sometimes can be discriminatory. Even though some landlords may mean well, these questions can be considered legal like when asking a disabled tenant applicant about their wheelchair or asking if a 2 potential tenants plan to have children. Landlords should watch their words and avoid asking personal questions from tenants to avoid letting themselves in legal trouble.
Fair treatment. When you are dealing with your tenants, it is easier to be consistent; and it can also keep you safe legally. It is not fair to allow Tenant A to pay rent four days late when you never allow Tenant B a single day of leeway. Avoid enforcing your “no smoking” rule for one tenant and not for the others. How much more when you fix a water drip immediately in the apartment of the tenant you like to talk to; but make an “unstable” tenant wait a week for a repair? The landlord should be fair and enforce all rules the same way to all tenants. It’s much easier to explain to a tenant that you’re sorry, by applying the rules to them equally because by so doing, this will help you avoid a fair housing complaint, and a call to your lawyer!
Spectrum Enterprises, LLC was created by investors for investors. We recognize the importance of maximizing cash flow and profitability in your real estate endeavors. Spectrum specializes in a myriad of services, which consists of investments, consulting, sales and property management. www.spectrum-ent.net
Security deposits: Security deposit issues are considered as one of the top-5 cause of disputes between landlords and tenants. It has been found out that the source of the problem comes from miscommunications and unspoken expectations. It is in the mind of tenants that they can get back 100% of their deposit. If the landlord did not explain the process fully to their tenants, then it’s not their fault anymore if they don’t understand how it works and what they stand to lose if there are damages to their rented unit after they move in.
Policy review. As soon as a new tenant signify an interest in the rental unit, have them sign a statement that they have reviewed and understand your security deposit policy, move-in and move-out inspection lists, and then follow up with a thorough initial walk-through of the rental unit. The landlord should take photos and make a run down list of the condition of each item and let the tenants initial the condition of each item on the list. When the tenants decide to move out, schedule another walk-through with the tenant, establish damages and take more photos.
Record keeping. Keeping pristine records of documents is a must in this kind of business because you’ll never know when you are going to need them. Landlords should keep on file each tenant’s application, background screening and credit check report, lease documents and correspondence should be kept until three years after the end of the lease. Even notes of emails and notes conversations, too (aside from the “nice day, huh?” conversations) should be properly kept. When records are properly kept, it shows that you’re serious about your business—and someday, if you find yourself in front of a judge over a landlord/tenant dispute, it could work in your favor. This practice will certainly not hurt!
Unintentional discrimination: It is not a planned situation when landlords sometimes can be discriminatory. Even though some landlords may mean well, these questions can be considered legal like when asking a disabled tenant applicant about their wheelchair or asking if a 2 potential tenants plan to have children. Landlords should watch their words and avoid asking personal questions from tenants to avoid letting themselves in legal trouble.
Fair treatment. When you are dealing with your tenants, it is easier to be consistent; and it can also keep you safe legally. It is not fair to allow Tenant A to pay rent four days late when you never allow Tenant B a single day of leeway. Avoid enforcing your “no smoking” rule for one tenant and not for the others. How much more when you fix a water drip immediately in the apartment of the tenant you like to talk to; but make an “unstable” tenant wait a week for a repair? The landlord should be fair and enforce all rules the same way to all tenants. It’s much easier to explain to a tenant that you’re sorry, by applying the rules to them equally because by so doing, this will help you avoid a fair housing complaint, and a call to your lawyer!
Spectrum Enterprises, LLC was created by investors for investors. We recognize the importance of maximizing cash flow and profitability in your real estate endeavors. Spectrum specializes in a myriad of services, which consists of investments, consulting, sales and property management. www.spectrum-ent.net
