How to bullet-proof lease during pandemic?

Question

As soon as my county lifted the rent moratorium, I filed for eviction for my non-paying tenant. The writ was signed by the judge and next week, she’s out.

How do you add a stipulation on the lease about rent payment during covid in order to avoid tenant riding the eviction ban ? How do i make my screening process more rigid? There is low inventory in my area but using turbotenant screening was not as reliable as I expected. Any advise?

Alex Deacon · Answer

@Joy James i am from the Pittsburgh PA Market. We manage around 700 units. I dont think there is any lease thats going to help you. Doing more research on the tenants that you place will be the most important item to focus on. Tighten up your criteria. Higher credit scores, lower debt to income ratios, more thorough back ground checks, more than one landlord references etc... Once the tenant is in your apartment it becomes your problem and they have way more leverage.

Judy Parker · Answer

@Joy James How about not less than a 650 credit score (550 credit score is awfully low)?

Elise Bickel Tauber · Answer

First, there is no lease that will supersede a local, state, or federal order such as the moratorium. I see private landlords write all types of stuff into leases that aren't legal or is superseded by laws and the judge will through the lease out. A few things I suggest that has been working really well for us is 1. Write your leases month-to-month. I've been doing this a decade and a half and hate short term leases, however, in this climate, if a tenant is not paying I will choose not to renew the lease the following month and tenant is now a holdover tenant versus just a non paying tenant. Judges have been finding in our favor in these situations. 2. Tighten your criteria. It stinks because there are a lot of good well qualified tenants that have been hit hard by COVID but at the end of the day it's business 3. Stay on top of any and all rent help you can find for your tenants. CARES, Action housing, etc. Anything you find that will help tenants pay rent, give those resources to your tenants. I know it isn't your responsibility but not only does it help if they decide to use those resources, but when you do end up in front of a judge, they will side with a landlord who can show they have done everything they can to help their tenants.

Best of luck. These are crazy times were in.

Dennis Wayne · Answer

Go to Month to month leases and have plenty of rules and regulations so you can evict over about anything not payment related

Joy James · Answer

@Judy Parker thanks, i will increase credit score requirement to 650. That should help weed out financially irresponsible applicants.

Joy James · Answer

@Alex Deacon

Thank you, i will tighten my screening process. My usual requirements include monthly income of at least 3 times the rent backed by 3 months paychecks, 550 credit score, no evictions, background check, and at least 2 landlord references.I would include higher deposit this time around. Wonder if 6 months will be better term than 12 so i can opt to not renew....

How to bullet-proof lease during pandemic?

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