Clever Ways to Navigate around Tenant Friendly Laws in your state?
Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes
Clever Ways to Navigate around Tenant Friendly Laws in your state?
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesthere's really no 'navigating around' them... you want to
have quality properties
hire strong PMs
perform lawful and thorough screening
proactively manage issues as they arise
18 Replies
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
there's really no 'navigating around' them... you want to
have quality properties
hire strong PMs
perform lawful and thorough screening
proactively manage issues as they arise
- 2yJaryn PiersonPro MemberInvestor · Pittsfield, MA · Member since 2019 · 88 posts · 49 votes
Hey James
I have to agree with the above comment. If potential tenants have been properly screened, properly onboarded, and properly communicated with then people are almost always going to return the favor in the same manner. I always say to myself 'kind and professional' before having any conversation with residents and its paid off in spades. Golden rule goes a long way here. If you're desperate to skate around certain laws of the land that just don't work for you, go to a different state. And for clarity, I'm in Massachusetts, where some of the landlord / tenant laws can be the trickiest.
Happy investing !
Jaryn - Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes2y
How about just obeying the laws?
District Invest Group545 Reviews - 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
How about moving to a LL friendly state?
- Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes2y
I'm not I'm CT but your neighbor a bit south in NJ. The "clever" ways I've learned is to know the LL/tenant laws inside and out, screen tenants heavily, be diligent on 6 month unit inspections, and the biggest one IMO, I do M2M leases.
Knowing the confusing LL/ tenant laws and reading the guide my state puts out allows me to try not to get myself into bad situations. My realtor and I screen tenants really well as I'd rather take a vacancy for a few weeks than get desperate and let someone who will be a crap tenant into my unit. Diligent on 6 month inspections gives me an idea on how they're going to be as tenants when I do that first one, and allows me to nip any issues in the bud (or is it butt?).
The last one, month to month leases, some people disagree on. For us in tenant friendly states, I like them as they enable me to be nimble. If a tenant wants out, I don't want to stop them. Why would I want someone in a unit they don't want to be in? Conversely, if there's an issue, I may be able to use legal ways to entice them to leave, mainly rent increases.
Last thing is verbal judo. Seriously, talk to your tenants like human beings. You'd be surprised what they are willing to do when you see how you can accomplish a win win instead of this mentality a lot of LLs have which is "its my property, I own it, get the hell out". Are they right? Sure but there's a lot of old sayings about getting people to do stuff thinking it's their decision and not yours.
Don't listen to those who don't or haven't invested in tenant friendly states. They just want to take the easy road ;) - Investor · MD · Member since 2023 · 71 posts · 45 votes2y
Hey James,
I currently have a property in NY so I feel you’re pain.
1) Make sure you’re familiar with the laws. Have a good lawyer on standby for any questions. Have them either write or review your lease.
2) High quality properties attract high quality tenants. Have a property that people want to stay in.
3) Tenant screening is key. If they seem even a little bit problematic during the screening process they will be 10x worse once they’re in.
4) Look at their rental history and employment history (to the extent that you’re allowed to). You probably wouldn’t hire someone who has had 4 jobs in 4 years, so don’t take on a tenant who moves every year. The credit check I run verifies income for the last 3 years. If they’re having to call 3+ employers that tells me a person may be problematic/ can’t hold a job long. I’m not renting to them.
5) I had my rental inspected twice and had the fire department come out to make sure everything was up to code. I had a problematic tenant who was late on rent threaten to call code enforcement on me, to which I was able to say “please do if you have any concerns”. You want to be able to be confident that you’re in compliance with local laws, codes, regulations, etc.6) Be proactive about tenant issues. If tenants feel heard and well taken care of, they’re going to return the favor and be good tenants by taking care of your property and not starting problems for you. (hopefully, there is always the exception)
- 2yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@James McGovern Aside from know the laws and screen well if you make a mistake and get a tenant who is very problematic let them out of the lease as soon a possible. Better out now amicably then constant complaining.
When showing, be careful what you say but let them talk as much as they want. Alot of bad tenants will overshare.
Check the facebook page. (Tenant says "I have no animals", Facebook page says most important thing in my life is my fur babies). application denied.
Know what you can put in your lease and update as needed.
Network to get tenants. Good tenants may know other good tenants.
I think these work anywhere but help more in tenant friendly states.
- Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes2y
In all seriousness, phrasing the question that way on a public forum is not a great start.
Screen well, treat people fairly, fix problems quickly, keep records.
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes2y
The best way is to not dance with the devil.
Do not operate in unfriendly territory.
Operate only in friendly territory. That matches your business goals.
There's this concept called letter of the law/ spirit of the law.
And while you may be able to make an argument regarding a letter of the law, and possibly get away with it- you might get nailed on spirit of the law without being told so. Thinking the judge is just out to get you or something. Which might actually be true you rich evil landlord you [which you may be considered in some areas].
Good Luck!
- Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes2y
Id push back on the “operate elsewhere”. Places with lots of regulations usually have them when people are making a lot of money!
A few practical tips beyond the good ones mentioned:
1) use a real attorney vetted lease. Don’t add crazy stuff to it you know wouldn’t fly.
2) you can use qualitative juudgement about prospective tenants; having written criteria that takes into account demeanor and actions during the application process or before is fine, but keep to objective things, not things like “I didn’t like the cut of their jib” For instance:
Were they on time for the appointment? If not did they call? Is the application truthful? that kind of stuff?
3)do not cut corners on safety stuff and its appearance…loose floorboards…flaking paint…etc
4) take your vacancy reserve seriously in your analysis. You want to be able to use them getting out while as a leverage point if there is a problem
5) most tenants are fine if you are fine, for the problematic ones 89% of problems go away with good records and evidence of willingness to deal. I definitely didn’t make that number up.
6) FYI We operate in both MA (tenant friendly) and NH (landlord friendly) and we haven’t had to change the way we operate at all.
7) professional tenants are criminals and problems everywhere, so that’s an area where things can likely be harder though we have not been directly involved in that situation. A good attorney is helpful. Don’t be cheap up front or accept excuses to delay, it will bite you.
- Port Chester, NY · Member since 2016 · 210 posts · 157 votes2y
Quote from @Mark F.:
I'm not I'm CT but your neighbor a bit south in NJ. The "clever" ways I've learned is to know the LL/tenant laws inside and out, screen tenants heavily, be diligent on 6 month unit inspections, and the biggest one IMO, I do M2M leases.
Knowing the confusing LL/ tenant laws and reading the guide my state puts out allows me to try not to get myself into bad situations. My realtor and I screen tenants really well as I'd rather take a vacancy for a few weeks than get desperate and let someone who will be a crap tenant into my unit. Diligent on 6 month inspections gives me an idea on how they're going to be as tenants when I do that first one, and allows me to nip any issues in the bud (or is it butt?).
The last one, month to month leases, some people disagree on. For us in tenant friendly states, I like them as they enable me to be nimble. If a tenant wants out, I don't want to stop them. Why would I want someone in a unit they don't want to be in? Conversely, if there's an issue, I may be able to use legal ways to entice them to leave, mainly rent increases.
Last thing is verbal judo. Seriously, talk to your tenants like human beings. You'd be surprised what they are willing to do when you see how you can accomplish a win win instead of this mentality a lot of LLs have which is "its my property, I own it, get the hell out". Are they right? Sure but there's a lot of old sayings about getting people to do stuff thinking it's their decision and not yours.
Don't listen to those who don't or haven't invested in tenant friendly states. They just want to take the easy road ;)Since NJ is automatic renewal State; what advantage do you have from a M2M over annual? You cannot just throw them out on a M2M lease.
- Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes2y
Quote from @Mike A.:
Quote from @Mark F.:
Since NJ is automatic renewal State; what advantage do you have from a M2M over annual? You cannot just throw them out on a M2M lease.
If you lock in a tenant in a year lease, you must wait until the lease is up to raise rents or literally do anything. Like changing their lease or adding rules they could be violating such as pets or behavior. If you buy a place with m2m tenants (I've found most NJ tenants are on m2m leases with old landlords) or set your tenants up that way, you are able to raise rents before that time period. In my experience, this entices tenants to leave sooner.
I don't see one advantage to doing a yearly lease. What if the tenant sucks? You're stuck for the year. At least with m2m I can have conversations about raising rents within 60 days. Again, my big thing is I don't want any tenants living in a unit where they don't want to be there.
- Port Chester, NY · Member since 2016 · 210 posts · 157 votes2y
Quote from @Mark F.:
Quote from @Mike A.:
Quote from @Mark F.:
Since NJ is automatic renewal State; what advantage do you have from a M2M over annual? You cannot just throw them out on a M2M lease.
If you lock in a tenant in a year lease, you must wait until the lease is up to raise rents or literally do anything. Like changing their lease or adding rules they could be violating such as pets or behavior. If you buy a place with m2m tenants (I've found most NJ tenants are on m2m leases with old landlords) or set your tenants up that way, you are able to raise rents before that time period. In my experience, this entices tenants to leave sooner.
I don't see one advantage to doing a yearly lease. What if the tenant sucks? You're stuck for the year. At least with m2m I can have conversations about raising rents within 60 days. Again, my big thing is I don't want any tenants living in a unit where they don't want to be there.
If their rent is so under priced, the 3%-5% the muni will allow you to raise them wouldn't push them to leave. I'm dealing with this in West Caldwell. One of the tenants hadn't been raised in 12 years. 3 bedroom at 950 a month. The other three are new tenants; paying 1900-2100 a month. Seems they will never be leaving. The big increase of roughly $40 bucks a year isn't going to get them to move.
Been doing this for over 18 years with my own properties and then managing others with my broker's license. There's no judge in North or Central New Jersey that will evict a tenant due to a pet violation. As for behavior, unless there's a threat and a police report; you ain't getting rid of them either.
- Rental Property Investor · Member since 2019 · 411 posts · 148 votes2y
@James McGovern not really any way to get around. Just need to be prepared and act fast when you need to. Have 1-2 eviction attorneys at your finger tips in each county. Don't be patient with late or back rent. If it's due by the 5th and it's not in, enforce the late fee, document and continued lateness is cause for eviction.
- Rental Property Investor · Member since 2019 · 411 posts · 148 votes2y
@Mike Adams you can begin to charge utility fees for water/sewer to reduce your expenses. Can also state repairs under a certain AMT are tenant responsibility or repeated repairs is tenant responsibility on lease renewal. Not a huge difference but can help if only able to increase the income in small amounts.
- Investor · Richmond, VA · Member since 2023 · 459 posts · 474 votes2y
Quote from @Mark F.:
Last thing is verbal judo. Seriously, talk to your tenants like human beings. You'd be surprised what they are willing to do when you see how you can accomplish a win win instead of this mentality a lot of LLs have which is "its my property, I own it, get the hell out". Are they right? Sure but there's a lot of old sayings about getting people to do stuff thinking it's their decision and not yours.This advice is gold for LL friendly states too. I have found that if I expect the best (without being naive) , trust but verify and be a good human to my tenants they mostly reciprocate,
- Rental Property Investor · Northern NJ · Member since 2019 · 672 posts · 677 votes2yYou still haven't given a good reason why anyone in NJ should go with a year lease over M2M.
Quote from @Mike A.:
Quote from @Mark F.:
Quote from @Mike A.:
Quote from @Mark F.:
Since NJ is automatic renewal State; what advantage do you have from a M2M over annual? You cannot just throw them out on a M2M lease.
If you lock in a tenant in a year lease, you must wait until the lease is up to raise rents or literally do anything. Like changing their lease or adding rules they could be violating such as pets or behavior. If you buy a place with m2m tenants (I've found most NJ tenants are on m2m leases with old landlords) or set your tenants up that way, you are able to raise rents before that time period. In my experience, this entices tenants to leave sooner.
I don't see one advantage to doing a yearly lease. What if the tenant sucks? You're stuck for the year. At least with m2m I can have conversations about raising rents within 60 days. Again, my big thing is I don't want any tenants living in a unit where they don't want to be there.
If their rent is so under priced, the 3%-5% the muni will allow you to raise them wouldn't push them to leave. I'm dealing with this in West Caldwell. One of the tenants hadn't been raised in 12 years. 3 bedroom at 950 a month. The other three are new tenants; paying 1900-2100 a month. Seems they will never be leaving. The big increase of roughly $40 bucks a year isn't going to get them to move.
Been doing this for over 18 years with my own properties and then managing others with my broker's license. There's no judge in North or Central New Jersey that will evict a tenant due to a pet violation. As for behavior, unless there's a threat and a police report; you ain't getting rid of them either.
Not all towns have rent control or capping raising rents at 3% to 5%.My eviction attorney disagrees with you on no judge in nothern NJ evicting a tenant over a lease violation. Behavior can be lease a violation, as long as it's reasonable, as described in letter E of eviction reasons in NJ Truth in Renting PDF.
- Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes2y
I agree with others, proper screening of tenants, doing what you are supposed to do, don't be a slumlord, respect your tenants and treat them nice. Those are the main things to do. Also know the rules and laws so that you don't step on a landmine.
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