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Landlord Newsletter March 2011 |Tenant Red Flags










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The LPA Newsletter
March 1, 2011

Dear Fellow Landlord,

In this issue:

  • 10 Tenant Red Flag Questions or Statements
  • Ask the Attorney, Real Estate Attorney, John Reno
  • The LPA Denial Letter and Adverse Action Letter
  • "Successful Landlord Wealth Quotes"

Please e-mail us if you have any questions or would like to add or share any material / information.
John Nuzzolese
John@theLPA.com


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After a while in the landlord business, showing rental properties to many tenants, you tend to hear some of the same questions and statements again and again. The screening process is alive from the moment you first speak with your new prospects until the leases are signed and the money is paid, so you must keep your eyes and ears open for clues and telltale signs of whether your prospect is the right tenant for your rental.

10 Red Flag Questions or Statements
that Should Worry You about a Tenant Prospect

  1. "We can have my wife sign the lease. Her credit is OK."

  2. "Why do you need our credit reports? That doesn't tell you what good people we are."

  3. "Has the home been inspected for lead or mold?"

  4. "We're moving because our landlord is a jerk."

  5. "You won't need a security deposit with us. We'll take good care of your home."

    Read more Red Flag Question or Statements to Run From when Screening Tenants


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    The LPA Denial Letter and Adverse Action Letter

    Ever rent to a tenant because he was pushy, and you couldn't say NO?

    Ever have a hard time turning down applicants because they think it's their right to have your property because they need or want it?

    Well, sometimes people take it personally and find it difficult to understand that they may not be qualified enough to rent your property. As long as your reasons are legal for not approving their application, (By not breaking any laws regarding discrimination, etc.) you should not feel obligated to accept a tenant you determine who is not qualified. For example, your decision to reject an applicant may be based on income, credit, stable employment, etc., while it may not be based on a person's race, sex, religion, etc.

    So, protect yourself with a denial letter to inform the applicant that their application was not approved. Check off the appropriate reason(s).

    In certain cases, a deposit may be forfeit. Often an applicant will hold a rental with a deposit for an extended period of time and then change his mind about it. He always expects his deposit back, even if you are losing rent as a result of his failure to rent as agreed in the application. A copy of the signed Application to Rent along with the Denial Letter tell it like it is.

    No applicant is happy to be rejected, but the Denial Letter when needed, helps you manage your time more efficiently, rather than being bothered by complaining rejected applicants. It also gives the applicant a courteous, detailed explanation of why he was declined.

    If you reject an applicant because of negative information on his credit report, an Adverse Action Letter is needed to comply with FCRA (Fair Credit Reporting Act) regulations. We decided to make sure you are prepared both scenarios.

    All Essential Forms are Free with LPA Membership


    Need to Reject a Tenant for Credit Reasons?

    Free Download
    Adverse Action Notice

    RejectionAdverse Action Letter
    If you reject an applicant because of negative information on his credit report, an Adverse Action Letter is needed to comply with FCRA (Fair Credit Reporting Act) regulations. The Adverse Action Letter includes the contact information for the consumer credit reporting agencies that played a role in the decision of rejecting the applicant based on the contents of his or her credit report. This contact information allows the rejected party to obtain a free copy of his or her credit report from the credit bureau(s) used to make the negative decision.

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    Ask the Attorney

    The Landlord Protection AgencyThe Landlord Protection Agency® is proud to introduce John Reno, Esq., a highly experienced Landlord - Tenant attorney based on Long Island, NY.

    John Reno also does Mortgage Loan Modifications (Nationwide).
    (Mention The LPA for a 10% discount!)

    If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
    Submit a landlord / tenant question for Mr. Reno
    Please try to keep your questions as short and to the point as possible.

    Dear Mr. Reno:
    I am about to close on a two family home in Glen Cove which is already tenant occupied. My plan is to keep the tenants since it is an investment property for me. Once I close, what do you recommend with regarding to obtaining information on the tenants? For example, would you ask them to fill out an application as if they're brand new? What if they refuse? Under the current owners there is no lease and they are month-to-month. It's a divorce situation and I'm not sure how much info the sellers will be giving me. Thanks in advance. Andy B., NY

    A: Welcome aboard! I would offer them a one year or six months lease, as an inducment and incentive to sign up, provide whatever info you need- and make them liable for late charges and legal fees upon default.

    Dear Mr. Reno:
    I own a house next door to my house, that I allow my son to live in rent-free. The utilities are in my son's name. My son allowed his girlfriend & her 3 children to move in. They are "guests" as far as I am concerned. My son was arrested & his girlfriend was also taken away by police. (she yielded a knife on him & he hit her... there are drugs involved) The children did not come home. -- I locked the house down so NO ONE could enter, as I am fed up with this whole mess & no longer want my son (or his guests) to live there. -- What are my legal rights with regard to the girlfriend? I have no problem with her removing any belongings, with supervision. However, I will not allow either to live there. She showed up today with police who said she would break in if I did not open the house. I did not open it. Thanks. - R. Clarkson

    A: You're on very thin ice. You can't put someone on the street without due process - even lowlife drug addicts like her. Sorry. They're going to let hr back in - if she wants to.

    Read more from John Reno, Eviction Attorney



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    Successful Landlord Wealth Quotes

    "Without knowledge and a workable plan, you are gambling, with little or no chance of success." - Robert G. Allen

    "Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude." - Thomas Jefferson

    "In two days from now, tomorrow will be yesterday. So, value every day and make it count." - John Nuzzolese

    "Action is the foundational key to all success." - Tony Robbins

    "How much did your last tenant problem cost you?" - John@TheLPA

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    Quick Check Credit Reports, Inc.

    Quick Check Credit Reports, Inc. is proud to announce its affiliation and partnership with The LPA in helping landlords protect their interests by better screening tenants at lower costs!!

  6. NO sign-up or set-up fees,
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  9. Just lower prices!

    Special Tenant Screening Discounts for LPA members. See our price list!



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    FREE LPA Gift with Book Purchase!

    Click here to order Dani Babb's Book,The Accidental Landlord Fellow LPA Member, Dr. Danielle Babb is a national real estate expert and author of the new Landlording Book, "The Accidental Landlord".

    Get your copy now... with a FREE BONUS! from theLPA.com

    Not only is Danielle Babb one of our county's most knowledgable real estate anylists, she also shares excellent landlord information and advice in her book, "The Accidental Landlord". Plus she's a super nice person! - John Nuzzolese



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    Having all the forms all on disk is a handy time saving convenience.


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    The LPA's Rental Advertising division,"Landlord's Corner" allows you to include up to 6 pictures (thumbnails and full size pictures) in each rental ad.

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    Electronic Rent Collection

    LPA members have been asking me for a while now about how to set up automated rent payments with their tenants. I’d like to bring your attention to “ClearNow, the leader in electronic rent collection.” ClearNow enables you to have your rent automatically withdrawn from your tenant’s bank accounts and directly deposited into your bank account.

    If you haven’t done so already, please check out …



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