All Forum Posts by: Account Closed

Unfortunately, many new investors don't even know there are certain laws that apply to landlords and how we screen our tenants and how our lease agreements and applications forms should be written.  How often I have heard, "I think I'll become a landlord", because most people believe that all it takes is buying a house. 

How many investors know what a C of A is?  (Certificate of Acceptance - in order to rent the house out) or a C of O is? (Certificate of Occupancy) up to code for inhabitability. 

There are words you can't even say in an ad when advertising your home.  Or words placed in your application forms or criteria. 

And...there are TESTERS to make sure you are adhering to the laws.

Here is a piece I copied online regarding Michigan Fair Housing Law. But to the left of this document it pertains to everyone.

Even though I retired as a Landlord in 2009, I still am a Licensed Realtor.  I take a Continuing Education course every year and study everything under the sun about Real Estate and landlord/tenant Laws.  I even take more courses than I am required because I want to know what I don't know, and you can do that too.  

Attend a Landlord Association to be kept in the loop of the new laws going on.  Many Realtors are Landlords too, so what better place to be than with your fellow colleagues. 

Thanks James for another good topic!

One more thing.  Our mission is to rent out our homes.  All I'm interested in is whether or not that applicant qualifies and is COLLECTIBLE!  (Someone I can sue)  

If they qualify then they meet all the Fair Housing Laws and I have nothing to worry about, and because of that, they generally are respectable people as a rule.  Why would I want to discriminate against anyone when my business is all about renting out my homes?  

Nancy Neville

So that is $108.00 per year for Starter

$360.00 per year for Standard

$840.00 a year for Premium 

$155.40 per year for Simple Start

$323.40 per year for Essentials

$479.40 per year for Plus

QuickBooks Pro Desktop 

From $188.00 to $229.00 one time payment and you have it a life time. 

Nancy Neville

So let's continue on.

4. Other damage to walls

Generally, minor marks or nicks in walls are the landlord's responsibility as normal wear and tear (for example, worn paint caused by a sofa against the wall). Therefore, the tenant should not be charged for such marks or nicks. However, a large number of holes in the walls or ceiling that require filling with plaster, or that otherwise require patching and repainting, could justify withholding the cost of repainting from the tenant's security deposit. In this situation, deducting for painting would be more likely to be proper if the rental unit had been painted recently, and less likely to be proper if the rental unit needed repainting anyway. Generally, large marks or paint gouges are the tenant's responsibility.245

5. Common sense and good faith

Remember: These suggestions are not hard and fast rules. Rather, they are offered to help tenants and landlords avoid, understand, and resolve security deposit disputes.

Security deposit disputes often can be resolved, or avoided in the first place, if the parties exercise common sense and good judgment, and deal with each other fairly and in good faith (see Landlord's and tenant's duty of good faith and fair dealing). For example, a landlord should not deduct from the tenant's security deposit for normal wear and tear, and a tenant should not try to avoid responsibility for damages that the tenant has caused.

Once again the above are guidelines, but when you go to court everything is based on the Judges opinion of what normal wear and tear is.   Court is a reality.  The words you read above are just guidelines.  

But, it won't hurt you to try.  See if you will be granted a judgment, but don't be surprised if you are denied.  Once again, depends on the Judge, but most Judges are pro-tenant. 

Nancy

Painting after a tenant moves out is considered normal wear and tear, especially after 8 months.  A Judge will not make your tenant pay for painting your rental unit. 

Just sayin!

Nancy Neville

Is the rent month to month or annual?  If month to month I would write the following letter.  

Dear......

Please accept this letter as my apology for our home not meeting your rental needs.  Even though I have taken care of every issue you called about immediately, there are still more issues about the home that doesn't make you happy.  And when I can't make a tenant happy, then it leaves me with no choice but to not renew their lease.  Therefore, please be advised that I will not be renewing your lease, making your last day with us ____________.  Thank you for choosing us.    (signed your name)

If they are on a years lease I would write the same letter but use their expiration lease date as their last day date.

9 times out of 10, the tenant will find all these little nit pickin things, okay after all.

Nancy Neville

Stick your your lease agreement.  If you compromise with him on this matter, what else will he want you to do?  This is YOUR business, your rules, your policies.  

Too bad so sad.  Tenant must pay your way!  End of Story!

Nancy Neville

Painting walls and cleaning the carpet (unless stained with grease and beach) is normal wear and tear and is a landlord's responsibility when tenants move out.  

Most states will only allow you to charge $75 for attorney's fees.  It could be a little higher now.  Check your state laws regarding the amount your can charge.

You can claim the Lawyers Fees as an Expense Account for your business for having to evict a tenant.  But making the tenant pay for your lawyer, won't happen.  That's part of your job to handle the cases yourself or hire an attorney.  If you are anything other than a "sole proprietor" you need to hire an attorney.  

Once again check your state laws.

Nancy Neville

The Tenant who took our stairs

Rented a 3 bedroom house to a gal who worked in the office of the local school.  She rented from us for about 6 months.  When she moved out and my husband & I went in to access the house we found the stairs leading up to the bedrooms missing.  Completely removed.  Called the Police they said most likely they stored their stash (drugs) under the stairs and is why they are missing.  Came back to the house the next day and the stairs were there.  So they must have had an extra key to get into the place.  We hadn't changed the locks yet. 

Dear Martin

See my blog:

Shoot out on Auburn Street

Domestic violence issue.  Wife left, husband refused to leave.  Even after a Judgment served on him to move, he was still there.  (Husband and I carry a weapon because our properties were in Detroit.)  Husband goes over to the house to see if tenant moved.  House is empty, but husband sees all the bedroom doors removed and nailed crosswise  on the walls leading into the Kitchen to seal it off from the rest of the house.  Husband starts yanking off the doors nailed to the wall and in comes the husband.  Husband wants to know why he's still there.  Tenant says, because I'm not moving.  Husband says, the "heck" your not and the tenant starts to charge at him.  Husband opens his vest, pulls out his weapon and the tenant stops in his tracks, turns around and runs out of the house.  Husband follows him outside, the tenant  slips on the snow running to the car and can't get to it fast enough.  Gets inside and speeds away.  Later that night, the garage was shot up, but at least the tenant didn't shoot the house.

The Squatter

Did an eviction on a tenant for using drugs.  She was a single gal.  She moved and the place was empty when we first checked it out.   Went back to clean and fix it up and we were about to open the door when we hear a noise inside.  Husband knocks on door and says, "Whose in there".  I go around to the back door, to head whoever is in there off.  Husband pulls his weapon, I pull mine.  Husband walks into the apartment, and here is the guy standing in his underwear, one leg in his pant leg, when I come in through the back door.  His eyes were so big, I almost laughed.  Turned out he was the girlfriends boyfriend.  We told him to finish dressing and get out.  He did. He apologized and hubby and I cleaned the apartment, changed the locks and went out to dinner afterwards.  

SPEAK INTO THE MICROPHONE

We rented an upstairs unit in our 4plex.  It was winter.  Tenant complained about the apartment being drafty and cold.  (We just spent 100,000 to fix this 4 plex up, so everything is new).  I told the tenant that how could this be, everything is bran new, from walls to windows to lights and carpeting.  EVERYTHING. He said it was drafty.  I told him we would be out tomorrow to take a look. 

When we got there he and his wife were standing on the porch waiting for us.  They said, they called the building inspector out.  I asked him why, when we said we would be here today to check it out.  He said, because it's always cold in there and began arguing with us over everything.  

Now this guy is pretty tall.  I am only 5'2" . So he's reading us the riot act (close to rent being due) and of course we can't get a word in edgewise.  So I run to the car, grab my voice recorder, run back the porch, shoved the microphone under his nose and said, "now since you have so much to say, say it in the microphone".  The wife ran upstairs crying and he STOPPED TALKING.  

Just at that moment, I stepped back from him and notice the window to his apartment.  I said, this is why your cold.  THE WINDOWS ARE OPEN!!!    He didn't know what to say.  I sent him a Termination of Tenancy due to the breakdown of our tenant landlord relationship. 

OVERNIGHT GARBAGE DUMP

Tenant evicted from our 3 bedroom home.  Lots of damage.  Lots of yard clean up.  Just the yard alone cost us $1,000.00 to have the trash removed, grass cut, and shrubs groomed.  Everything freshly painted, curb appeal and ready to show.  Scheduled the open house for the next day.

Hubby and I pull up to the house and I couldn't believe my eyes!!!!  There were couches, TV's, washers and dryers, kids toys, and a ton of garbage bags all over our front yard and in less than 15 minutes we were going to show this house.  How embarrassing.  When a house is vacant in Detroit, the neighborhood dumps all their stuff on your lawn.  Police can't do anything about it because who did it?  We called the police and they were very sympathetic to us.  So they didn't give us a ticket.  But I had to dish out another $1,000 to have the trash removed.

Well, I'd better let others have a chance to tell their stories.

Nancy Neville

Christopher:  Attend some Landlord/Tenant court cases in your state, in the City where your properties will be located.  

You see there aren't many laws regarding landlording.  Most decision our based on the Judge's opinion.  

A Judge must adhere to the 4 corners of the Lease Agreement (The Contract) as long as it has legal wording, which you should really hire a REAL ESTATE ATTORNEY, not a regular attorney to draw one up for you.  OR attend a landlord association (highly recommend this) and many members will be more than happy to share their applications and lease agreements with you. 

But when it comes to things outside the 4 corners of the Lease Agreement Contract, the Judges need to use their own opinion, because new things are always being done to us, to where there is no law to decide.  So the Judges use their opinion.

You will see one Judge say these damages are normal wear and tear, and then another say, no these damages are damages.  I have had that happened many times.  

I had a case where a tenants kids threw crayons in the heating ducts of the home.  Of course the crayons melted inside the heating ducts.  They also threw crayons in the ceiling lights, all melted from the hot light bulbs.  Plus there was crayons and magic marker picture drawings all over the walls, and the Judge ruled in my favor as damages and lectured the tenant.   However, the tenant appealed and that Judge said it was normal wear and tear and reversed the Judgment in the Tenant's favor.

You will know what Judge is pro tenant and what Judge is fair and balanced when you attend some landlord court cases and be a member of your local landlord association.  

Your friends and family and others don't understand our business.  We need to associate with  people who understand what we go through, how we are treated.  Sometimes we need that build up.

BP is here for you.  But we are not tangible for you to sit down and talk with in person.  You need that fellowship.

So hope this helps

Nancy Neville

Great advice from the above.   You need to get to know people.  This is a job of people management.  After awhile you will be able to Judge a person during an interview on whether or not they will qualify for your rentals.  For instance.

• If they drive up to the open house and a bunch of people get out of the car with food and drink and want to tour your home, chances are they will not qualify.  
• If an applicant fills out a rental application and wants to tell you a sob story about why they are moving, chances are they will not qualify.
• If they drive up to the open house and park in the neighbors driveway, because your driveway is full, chances are they will not qualify.
• If they want to know why you charge so much rent, chances are they won't qualify.

One tip I've used that is sort of funny, is that I entertain the children at the signing table.  I bring little toys, for them to play with, or coloring books.  They sit at my table and they tell me all about Aunt Betty and Uncle Joe moving in with them and will be living down stairs.  Or they have a pit bull.  I just smile and say oh they do!  

I have rented to ministers, police officers, sons of doctors, some Section 8 er's, and thought they would be great tenants and they were the worst.  I had one Section 8 tenant , however, that I would have loved to keep forever, but as a rule they did lots of damages to my homes. 

You should never love your rental homes to the point you view them as YOUR HOME.  They are a tool of the trade, just like  a hammer is a tool to a construction worker, although a home costs more than a hammer.  

The moment you LOVE YOUR RENTAL HOME, the more you will hate landlording, because you will cringe at every nail hole, ever speck of dirt on the carpeting, every dish that is in the sink, and be upset more times than not. 

People live in a home to live in a home.  Some are as neat as a pin, and some live like a Bachelor.  Well you know what I mean....LOL   clothes all over the place,  The floor is the closet.  Some (not all) Bachelors live that way.  

I like your idea's and your plan.  You should always have a plan and an exit plan.  You look like you will do well, but follow these tips we are giving you.  

Nancy Neville