Landlord Newsletter July 15, 2014

Dear Fellow Landlord,

Have you ever returned a security deposit to departing tenants only to find that they did in fact owe you money for damages, lost rent, unpaid services and more? We talk about this a little in today's newsletter.

In this newsletter:

• Don't Be Too Quick to Return that Security Deposit!
• Credit Reporting Disclosure to Former Tenant
  
• Ask the Attorney, Real Estate Attorney, John Reno
  
• Wealth Secrets & Success Quotes
  

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

It is quite common for tenants to ask for an early return of their deposit (Yes, before they even move out) or an immediate return of the deposit money the day they move out following a walk through of the rental. This kind of security deposit return is often the practice of amateur landlords who feel forced to do it this way because they either don't want a confrontation with the tenant or they just don't know any better. There is a better way. As the LPA Lease says, "all deposit refunds shall be refunded within 30 days from the date possession is delivered to Owner" (The number of days may vary depending on state limitations.)

This gives you an opportunity to inspect the rental property more carefully without the pressure of someone rushing you to give them money on the spot.
Here is an excerpt from a NY LPA Lease that covers security return:

DEPOSIT REFUNDS The balance of all deposit refunds shall be refunded within 60 days from the date possession is delivered to Owner or his authorized agent together with a statement showing any changes made against such deposit by owner. Tenant agrees to provide Owner/Agent with the address of his new residence and include it in the Notice of Intention to Vacate form. Tenant also agrees that endorsement of a security refund settlement check shall constitute full acceptance of settlement, agreement and waiver of any claims against owner/agent.
(State return times may vary. See Security Deposit Return Time Chart State by State to check your state's requirement.)

This enables you to keep control of the situation and protect yourself with a Security Deposit Settlement Statement.

The Security Deposit Settlement Statement gives you the opportunity to professionally itemize deductions and charges you need to make against a security deposit. It has a section that lets the tenant know the property was video taped prior to move-in and immediately following move-out. That evidence is very difficult for the tenant to argue with. The tenants rarely question the form because they know that you've covered yourself well. Repairs, cleaning, lease violations, past due charges are all legitimate deductions you should make. Sometimes, the Security Deposit Settlement Statement turns out to be a bill to the tenants for a balance due...

Click for the full article

Sometimes the impending derogatory information on a former tenant's credit report can be enough to make them cooperate in paying you what they owe.

We have found that when a former tenant values their good or clean credit and they are warned that the landlord will report negative information affecting their credit report, their debt is taken more seriously and they will try to pay.

I hope this form helps you get paid from former tenants who still owe you money!

The Landlord Protection Agency® presents 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!)

Dear Mr. Reno:
My question is this..I screened a tenant and they gave me 675.00 for rent and said kids Oneida was helping them with security. They then signed a years lease starting july 1st. I told them they would receive the keys when I received confirmation or guarantee of security. I have just been informed 12 days into the month that they have changed their mind. What are my options can I keep the 675.00...Or put some of it towards the rent until it gets rented?
Michelle, NY.

A: What you are asking me, without even knowing it, is who's going to win when they sue you in small claims court. The answer: There are so many factors and particulars (not to mention that I have no idea what was signed) that I'd only be guessing.

Solution: Give'em back half; that will make everyone equally unhappy, (& probably keep you out of court.)

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.

"A dream doesn't become reality through magic; it takes sweat, determination and hard work." - Colin Powell

"Adversity has the effect of eliciting talents, which, in properous circumstances would have lain dormant." - Horace

"How much did your last tenant problem cost you? Was it less than $89.99?" - John Nuzzolese

How to Check your LPA Membership Expiration Date:

1. Be logged in with your LPA username & password
   
2. On the "Main Menu" (top right), click on "Your Orders" (right below your name)
   
3. The beginning date of your membership will be listed to the left of your membership order # in this format: YYYYMMDD
   

Have you ever been beaten by a tenant on the rent?
Most of us have and unfortunately, it is one of the costs of doing business as a landlord.
On the bright side, remedies are available. If you have documented your tenancy with the proper paperwork including a rental application, lease agreement, late notices, etc., you may have a chance of collecting.

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!