for the Week Ending February 12, 2012
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Last week's tip, in case you missed it. We received the following valuable tip from Joan Falknor: My best "insurance" policy is to have pest control every month. We not only have a bug free apartment building, but I get a chance to get in and check out every apartment every month because the pest control guy won't enter the apartment without me. The tenants brag to other people that they never have to worry about bugs. Total cost is $42 for 14 units each month. We got some great ideas about how to ensure a tenant moves out when he or she promises from two landlords. Both are great ideas we can use right away. I was reading your tip and I had a tenant do this to me, not pay rent for the month and then move out in the middle of the night. I have since changed my lease to include a "Hold-over Tenant Clause" that states if the tenants give a 30 day notice and then does not move, their rent becomes 120%. (Regular rent $1,000/month, new rent $1,200/month). I have not had a tenant do this again!! Also when the tenant sends the 30 day notice, I send an acknowledgement (certified return receipt) acknowledging the move, the security deposit agreement and the hold-over tenant clause. This explicitly makes it clear that the tenant cannot stay without paying.
Jennifer R.
Momoni & Associates LLC
New Jersey
____________________________________ I start 60 days out with a letter requesting a reply as to whether or not the tenant will be renewing their lease. I offer incentives anywhere from a reduced increase to no increase in the rent. I typically will hold back on a rent increase for Year 2 if the tenant has paid on time and maintained the property. I also have built-in an extra amount in the initial rent to cover a 2nd year increase. So when lease renewal time comes around, the tenant is happy and I look like the good guy. The lease does contain all the language for an increase due for the additional year but I use a “lease renewal addendum” to amend that section for the subsequent year. In the 60 day letter, I specify that a reply in writing is due no later than 30 days prior to the lease expiration accepting the new terms. All offers of rent increase adjustments are rescinded and the new monthly amount would increase to the maximum stated on the lease should the tenant reply within the 0 – 30 day period. This way all paperwork is signed and finished at least 15 – 20 day prior to the lease expiration. I have tenants who just decided to go that route after their first year with us. They’re a young couple and want see about purchasing a home. First, the M2M [month-to-month] rent increased to the full amount, as stated on the lease. Second, I gave them a couple of options, a choice of renewing the lease after 3 months of M2M and after 6 months of M2M. Both contained reductions from what they were paying M2M. So if they find that the market is still a bit tight for their budget, they can drop me a line and get back on board with a lease. HL Ranch Properties Landlord Question Can an apartment building owner may legally reject an applicant with a history of mental illness, though he/she is not a danger to others. No. Rejecting an applicant on that basis is a violation of the Fair Housing Act. However, if his or her landlord references indicate that that person has had complaints or has had to be threatened with eviction because of aberrant behavior, that is grounds for rejection.
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