TIME TO REVIEW YOUR RENTAL DOCUMENTS
With the new year already upon us, I encourage all property owners and managers to spend some time reviewing their current rental documents so that any needed changes can be made before accepting new applicants. Below are some questions and ideas that may assist you in your review.
Is the rent amount that you are charging your current tenants in line with the what other similar properties are being rented for in the same neighborhood? If your monthly rental price is "under market" then you should consider increasing your rent. Have your costs of doing business increased over the past year? If so, then you have yet another reason to increase your rent amount as long as the rental market in which your rental property is located can accomodate such an increase.
Does your residential lease contain an automatic renewal clause whereby at the end of the lease term it automatically renews for another lease term or even reverts to a month-to-month tenancy? If the answer is yes, then insure that an automatic renewal or reversion is what you actually want. Many landlords are now opting to have their lease agreements cease at the end of the term. By doing so, the owner or manager now has the inclination and reason to review his/her tenant's behavior and payment history over the past year and determine whether or not they want that tenant to remain in their property for the next year. It should also be noted that owners using automatic renewal provisions in their leases must also provide written notice of that renewal to the tenant in order for the provision to be enforceable.
In light of your interactions (both good and bad) with your tenants this past year is there a 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, then you will need to update your screening criteria, specifically noting the changes made, and do this is writing. Be sure and save your old screening criteria and also record the date when you stopped using it. Remember, having written screening criteria and applying it consistently is the #1 best defense to 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 those charge with your tenants, and obtaining your tenantss signatures on the NSRP, you will be able to 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 that reside in any of your pre-1978 properties then you are in violation of federal laws and subject to large fines, regardless of whether anyone incurs lead poisoning or not.
