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Landlord Newsletter - 6 Legal Issues Landlords Need to Know |
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Dear Fellow Landlord,
In this newsletter:
Please e-mail us if you have any questions or would like to add or share any material / information. Have a great month and an even more successful year ahead. PS: Today, the articles are in a large font. Please let me know if you prefer the large font or the normal font. Thanks!
Landlord Legal Issues by Attorney William Bronchick, Legalwiz.com As a landlord, you should be aware of some of the legal issues related to leasing properties. Here are a few of them: LEAD-BASED PAINT DISCLOSURE Federal law requires that the lessor (landlord) of any rental property constructed before 1978 disclose the presence of any lead-based paint or hazards known by the lessor and provide the lessee with all reports in his possession. In addition, the lessee must be provided with an EPA pamphlet entitled Protect Your Family From Lead in Your Home, and be given a ten- day period to conduct an inspection for lead-based hazards. This ten-day period of inspection may be waived in writing by the lessee. It is advisable that you have your tenant sign an acknowledgment that you have complied with these requirements. STATE DISCLOSURES State law may also require additional lead-based paint disclosures. Massachusetts, for example, is one such state. California requires the disclosure of sex offenders in the area (called Megan’s Law). Before exhausting yourself with state disclosure requirements, find out whether any of the regulations apply to single-family homes. DISCLOSURE OF LATENT DEFECTS Although not specifically addressed under state or federal law, you should disclose any defects or dangerous conditions on the property that are latent (not readily apparent by inspection). A failure to disclose such a condition could result in liability against you. For example, outside stairs that become slippery in the winter may not be obvious to a tenant that moves into the property in the summer months. LOCAL ORDINANCES & RENTAL REGISTRATION In addition to federal and state regulations, you should be familiar with local ordinances within your county, city or village. A growing trend across the country is the requirement that landlords register and obtain a license for each rental property. Along with an annual fee, the county or municipality may insist on inspecting the property for compliance with building codes and health department regulations. Obtain a copy of these regulations to determine whether you are subject to the registration requirements as a non- owner. Find any loophole you can to avoid having to comply with these burdensome laws. KNOW THE FAIR HOUSING RULES! Make certain that you understand the fair housing laws. Under federal law (42 United States Code Secs. 3601-3619, 3631), you cannot discriminate based on race, color, religion, national origin, familial status, age or sex. The rules apply not only to the screening process but to the words you use in advertising the property. Most landlords don’t intentionally discriminate, and when they do so, it is in a more subtle manner: Example: If you take two applications from an unmarried couple and one from a married couple, this may be considered discrimination based on marital status. Example: If a family of six is applying to rent a two-bedroom condominium, you cannot turn them away because this would be discrimination based on familial status. Example: If you only ask Hispanic people for proof of citizenship, you are discriminating based on national origin. Most states, and even some localities, have additional restrictions on discrimination. For example, California, Minnesota and North Dakota prohibit discrimination based on source of income. Thus, you cannot deny an applicant because he is receiving public assistance. In these cases, it may be better to discourage the tenant from renting because of the fact that he may not be able to qualify for a loan and will lose his option money. AMERICANS WITH DISABILITIES ACT The Americans with Disabilities Act ("ADA") also prohibits you from discriminating against people with a disability. Of course, no decent human being would turn someone down because he was in a wheelchair. However, the definition of the word disability goes way beyond a physical disability. A person with a mental disability is covered by the ADA, as is an alcoholic undergoing treatment or a person convicted of prior drug use. The ADA does, however, exclude drug dealers. This is just scratching the surface. Make it a point to learn the laws that are applicable to your business at the federal, state and local levels. No Smoking Notice and Reminder
REALLY?? A smoker smokes and you will find it very hard to control where your smoking tenant will light up. So, if you prefer No Smoking in your rental, make sure you are very clear on that in your lease agreement. (The LPA Lease has a No Smoking clause that can be left in place or stricken if you want to accept a smoking tenant.) The No Smoking Notice and Reminder form can be used to inform tenants that they are in violation of their No Smoking clause in the lease agreement. It can also be used a new Notice to initiate a new No Smoking rule for your rental. As with any official written notice, just remember to give the proper notice period of time as your lease or state requires for making changes in the rental agreement. The notice can make your smoking rules and requirements a part of your existing lease or a handy reminder of your "No Smoking" clause in your The LPA Lease.
John Reno also does Mortgage Loan Modifications (Nationwide). Dear Mr. Reno: A: It can be done. The problem is enforcement. What if the tenant continues to smoke? Will the condo board be able to evict him? That's the problem. It's difficult to prove and whose going to pay for it? It's a 4 to 6 month endeavor, all while the building's being lost to foreclosure. I don't see it happening. If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
Have you ever been beaten by a tenant on the rent? Credit bureau reporting is an option in which many modern landlords are beginning to participate.... Click here for the full article
If you haven't already, please take the opportunity to sign up for The LPA's Quick Check Credit Reports! Quick Check is a simple, fast way to access online credit reports while saving you money! Wealth Secrets and Quotes"Act The Way You Want To Be And Soon You'll Be The Way You Act" - Les Brown "You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself." - Sam Levenson "Routine brings results. A disorganized genius is no match for the average person with a daily routine." - Robert Allen "How much did your last tenant problem cost you?" - John Nuzzolese
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It happens all the time. People say they don't smoke when they really do. How often have you heard, "Yes, I smoke a little, but not inside the house."
No Smoking Notice and Reminder