With the new year already upon us, I encourage all property owners and managers to review their current rental documents so they can make any needed changes before accepting new applicants. Below are some questions and ideas to help with your review.
Is the rent you charge your current tenants in line with what other similar properties rent for in the same neighborhood? If your monthly rental price is "under market," consider increasing your rent. Have your business costs increased over the past year? If so, you have another reason to increase your rent, as long as the rental market where your property is located can accommodate it.
Does your residential lease include an automatic renewal clause that renews at the end of the term, or reverts to a month-to-month tenancy? If so, make sure you want an automatic renewal or reversion. Many landlords now opt for lease agreements to end at the end of the term. By doing so, the owner or manager can review the tenant's behavior and payment history over the past year and decide whether to keep the tenant for the next year. Owners using automatic renewal provisions in their leases must also provide written notice of that renewal to the tenant for the provision to be enforceable.
In light of your interactions (both good and bad) with your tenants this past year, do you need to add any additional restrictions to your Rules and Regulations? If you have encountered any problem behaviors from your tenants this past year, then consider amending your Rules & Regulations to include a new provision addressing the unwanted behavior.
Has your written screening criteria changed during the preceding year? If so, you will need to update your screening criteria, note the changes made, and do so in writing. Be sure to save your old screening criteria and also record the date when you stopped using it. Remember, having written screening criteria and applying them consistently is the #1 defense against any discrimination/Fair Housing complaints.
Have you incurred any additional costs or fees this past year (other than "normal wear and tear" to your property) that you would like to pass on to your tenants? If so, consider adding these costs to your Nonstandard Rental Provisions. By adding the new charges or fees to your NSRP, reviewing them with your tenants, and obtaining their signatures on the NSRP, you can legally deduct these charges from your tenant's security deposit if needed.
Are you utilizing the Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards form? Did you provide a copy of this important document along with a copy of the E.P.A.'s free pamphlet entitled "Protect Your Family From Lead In Your Home" to all of your new tenants this past year? If you are not providing these two documents to all tenants in any of your pre-1978 properties, you are violating federal law and may be subject to large fines, regardless of whether anyone develops lead poisoning.
