Sunday, September 16, 2012

Getting Problem Tenants to Leave Without Trashing Your Rentals

by Jim Watkins


Consult your attorney to find out the legality of this technique in your state

Getting a tenant to move peacefully and without causing physical damage is hard to do.
Tenants being evicted tend to feel victimized and when they get upset they are a risk to do physical damage to the house and leave behind mountains of trash.

It will take a minimum of three weeks to legally evict a tenant and can cost in excess of $500 (Texas Law).
Owners tend to reason that they will keep the security deposit to offset losses but a tenant can cause thousands of dollars in damage in minutes.

Here is a plan that has yet to fail:

Let the tenant know that you have filed to evict them and give them a copy of the eviction papers. (Making sure to follow the courts procedures)
Tell the tenant you will only talk to them 30-minutes before the court hearing and there will be no contact until then. When they laugh at you, tell them you will refund their full security deposit, in cash, the date they move out.

(30 minutes before the hearing) Offer to issue their FULL deposit back to them the day they move out as long as all belongings and trash are removed.

Set a date for them to be out (date needs to be before a date the court will set), add the requirement that they agree to leave the property completely free of belongings and trash which includes small things such as a candy wrapper
Have them sign your prepared agreement and proceed to your court hearing.

Tell the judge that you have reached an agreement and you would like him/her to endorse it (This is the only time I remember telling the Judge how I want them to rule and they agree).

The judge should (and has) accept the agreement and inform the tenant that if they break this agreement, he/she will authorize an immediate eviction.

Finally, once the tenant is officially out, then withdraw the eviction.

It is hard to justify giving the tenant cash to leave after losing money with them already. I can only point out that in a situation such as eviction, there is NO winning! There are only degrees of LOSING!
Evicting a problem tenant only to face a damaged property is bad enough. Give the tenant the one thing that is of use to them…. cash. And offer it when it will be needed…. upon move out! This is also known as a “Cash for Keys” settlement.

Sunday, September 9, 2012

Question 3 : Medical Use of Marijuana

Question 3 on the November Ballot is a proposed law that would eliminate the criminal and civil penalty for the medical use of Marijuana to qualifying patients. This question has me thinking on if passed how will it effect my rental properties. Currently most of my buildings are smoke free. Should tenants and or their guest choose to smoke then they need to do so outside. If not then they are in violation of the lease agreement and it is grounds for eviction. The dilemma I have with Question 3 if passed is: If my buildings have a smoke free policy then does than where does that leave me with the 71 tenant that has a prescription for medical marijuana for her glaucoma. Do I really want granny smoking a dubbie outside during the cold months of January where she can catch a death of a cold or does she have to resort to making batches of hash baked brownies to relieve her symptoms? Can I actually enforce the no smoking policy with a perscription for MJ or is the Massachusetts Commission Against Discrimination going to sue me for discrimination? I have no idea how I'm going to vote. Right now I'm exploring the pro's and con's. What's your take on it?

LETTER: Prevey Responds to 'Salem News' CPA Editorial

The following letter to the editor courtesy of Councillor Paul Prevey is in response to an editorial published by the Salem News on Aug. 29. This letter was published at SalemPatch.com on August 31, 2012. Myself and five of my other colleagues recently voted against putting the Community Preservation Act (CPA) on the ballot this November. As noted in the editorial, this initiative was affirmatively voted on by the City Council in 2007, however it was ultimately rejected by the voters at the ballot box. It’s now being put forward again by the Administration, however many of us on the Council that supported its placement on the 2007 ballot believe that this initiative had its opportunity in 2007 but the proponents are back for round two. What the editorial alleges is that somehow the Council denied the voters the right to vote on this. Quite the contrary. The proponents of this initiative did not like the answer the voters of Salem gave in 2007 so they decided that they will put it forward again in the hopes that their coordinated efforts to turn out a more sympathetic electorate will ultimately prevail. Interestingly, when the Council held its special meeting to take up this matter, several proponents who addressed the Council advised that they did not want this effort on the ballot via voter petition. Instead, the proponents urged the Council to "show leadership" on this issue, and so we did. The majority of the Council decided that it was not in the best interest of the taxpaying residents of Salem to have this on the ballot for a second time. Unlike 2007, we are in a much worse financial situation in Salem, the Commonwealth and throughout the U.S. People’s homes are being foreclosed on, they continue to lose their jobs or have been unable to find a new one, and in general, are desperately struggling to maintain their financial obligations and make ends meet. As city councilors, we constantly hear stories throughout the City of residents trying to stay afloat in a sea of financial turmoil. To suggest that the average increase in the surcharge tax would be "only $30" annually is to belittle those who are struggling to stay on top of all of the fees, taxes, fines, charges, surcharges, surfines and rate increases which have consistently ballooned over the years. Thirty dollars a year, in and of its self, is very minimal, but when you add it to every other increase, it becomes a crushing financial burden for so many people. The cumulative effect is truly a death by a thousand paper cuts; some people have the blood to withstand it, while other are quickly being bled dry. The editorial asserts that the Council’s stated objection to the tax increase is "not credible" given that it’s a small tax increase. If trying to stem the increase in taxes is not a credible argument to stand on its own, then I know of no other argument which is worthwhile to be made. Taxes do not appear overnight. They grow ever so slowly over time and sprout new roots which slowly entangle the taxpayer. The steady increase in taxes and the creation of new ones has far out paced people’s income levels to the point that they cannot keep up. And to what end? So that we in government can say we accomplished a large list of items which will serve only the people who can continue to afford to live here in Salem. It is true that there are many items and projects throughout the City that would benefit from the enactment of the CPA. On its face, the benefits offered through the adoption of the CPA seem attractive and are designed to target specific needs each individual community has with respect to historical preservation, open space/park & recreation and affordable housing. Unfortunately, enough is never enough when it comes to the insatiable thirst of government bent on extracting more tax payer money on the backs of the already tax-strapped homeowner. At some point, we have to look at the cold economic reality that we find ourselves in and exercise restraint in wanting more at a cost which will ultimately far exceed an additional $2.50 per month, because we know it will not stop there. Paul C Prevey Councillor Ward 6

Saturday, September 8, 2012

Salem Puts CPA on the Ballot

Salem Puts CPA On The Ballot Salem CPA is on the ballot for this November, thanks to supporters who collected nearly 1,700 signatures in record time, just before the final certification deadline. A question to adopt CPA can be placed on the ballot either by a vote of the legislative body, or by obtaining the signatures of 5% of the registered voters on a petition. The petition effort in Salem was launched in hopes of reversing the Salem City Council's The morning after the decision, the group began their ambitious effort to gather the required 1,350 signatures, despite the fact that the deadline was just seven days away. Encouraged by Salem Mayor Kim Driscoll, dozens of volunteers solicited signatures at homes and downtown businesses. Despite the tight deadline, the group collected more than enough signatures certified by the city clerk. The CPA proposal in Salem is for a 1% property tax surcharge, with exemptions for low-income homeowners, the first $100,000 of residential property value, and the first $100,000 of commercial/industrial property value. Like Somerville, the city will be voting to adopt "Blended CPA," a provision of the recently passed CPA legislation which allows communities to add a limited amount of municipal revenues to their local CPA fund. With this ballot question petition success, Salem joins three cities and five towns considering adoption during the upcoming November elections.

Sunday, June 10, 2012

Neighborhood Improvement Relies on Landlords.


Monday June 11, 2012 the Greater Salem Landlord Association (GSLA) will be hosting the monthly meeting. The initial topic to be discussed is "How to Be Your Own Locksmith. Also, the Salem Police will be in attendance asking for landlord support within the community. Thanks to your contributions the GSLA generously supports the Salem Police Department by way of the Teen Resource Center located on Levitt Street in Point Neighborhood. I hope members continue to see the value in supporting local neighborhoods and want to continue to do so.

If you doubt that as a landlord you can make a positive difference in your community please read the below article written that discusses the reasons why neighborhood improvement relies on landlords.

The article is below is by Al Williamson

A rental community is dramatically affected by the Landlord Lid, often times without owners knowing it. What is the Landlord Lid?

1. A phenomenon that seems to limit a tenant’s civic involvement, which is essential to preventing neighborhood decline.

2. A weight that caps a property’s appraisal value.

3. The most influential mechanism for creating positive change in a rental community.

4. All of the above.

As you’ve probably guessed, the answer is 4. The Landlord Lid is a term inspired from Dr. John Maxwell’s Law of the Lid. It describes how, in communities where renters outnumber home owners, a neighborhood gets better when its landlords get better. In other words, the landlords act as a thermostat that can heat up or cool down the area’s desirability.

Answer 1 suggests neighborhood decline is closely associated with resident apathy. Residents, who happen to be tenants, typically follow their landlord’s cues. It may be obvious, but civically uninvolved landlords set the stage for neighborhood decline. The goal is to grow wealth, not stunt it. So take action.

Answer 2 points out that you could do a remodel to top all remodels, but an appraiser won’t give you all the credit you deserve if there’s blight and crime outside your door. I’d argue that working with neighbors to fix up you block may be the most cost effective and equity-boosting move you can make. Blight stunts wealth growth, but it’s easily repaired.

Answer 3 gets at the heart the matter. If a community is mostly comprised of rentals, which is typical in lower income neighborhoods, then the effect of the Landlord Lid is dominant. Tenants may engage when crime become intolerable, but their fear-driven efforts aren’t sustainable.

Driving improvements from a self-interest (profit) standpoint is sustainable and that’s why owners should lead neighborhood revivals. It just takes one fanatic landlord to appeal to the self interest of other landlords and insist on higher standards. This sets a trajectory where more residents, including tenants, get involved and demand a clean and safe neighborhood for themselves.

Simple Steps Lift the Lid

Celebrate National Night Out on your block. On the first Tuesday in August, your group will join hundreds of thousands of neighbors meeting neighbors nationwide.

Keep your property relentlessly litter free, then pick up in front of the neighbor’s place as well. Make neighbors-caring-for-neighbors fashionable.

Collect the emails and phone numbers of neighboring landlords and property owners. Find something positive to collaborate on like a block party or landscape project.

Donate cash to events that lift the lid. If you’re short on time, find someone who’s doing the work, but short on money.

Don’t limit your equity growth. Lift the lid!

Tuesday, June 5, 2012

Do It Right from Day 1

If You’re Going To Be A Landlord . . . Do It Right From Day 1!
by Chris Clothier

I had an amusing conversation while in New Orleans in September with a fantastic couple from Mississippi. They have been investing in real estate for the past 15 years and have amassed a portfolio of over 40 properties that provide a nice income for their retirement. They had come to me for advice on managing their properties and the conversation that followed, while being serious, had all of us laughing at how backwards we can sometimes get when managing our own properties. I was once a landlord managing my own properties so I laugh from experience!

Never Close At The Local Burger King

One of the first pieces of advice I gave them was about the tone they set from the beginning. If you want the tenant to respect your property and your authority as the owner and landlord, then you must set the right tone from the time you meet them. A few ways to set the right tone are:

1. Pre-qualify the tenant on the phone BEFORE showing the property. Help them to understand that you are very busy and that you cannot simply drop everything and show a property to everyone. They are either serious about wanting to rent the property or they are not. If they are, set an appointment and show the property. I would never advocate putting lock boxes on rental properties.

2. Never be late… ALWAYS arrive early. It lets your future tenant know that when you set a time or a due date, that you expect it to be met!

3. Close your lease like a professional. Never close the lease at a local coffee shop, or fast food restaurant, or the counter in the kitchen of the home and never close the lease on the hood of the trunk of your car. I have been shocked the number of times I have heard do-it-yourself landlords talk about the problems they have with tenants respecting their process only to hear they started out on the wrong foot by whipping out a contract and signing it on the hood of the car!

When I was talking with the couple from Mississippi, I mentioned that you should never close a lease at the local Burger King. The wife began to laugh and put her head on her husband’s shoulder and he laughed as he told me that their favorite fast food restaurant in town is Burger King and they happen to close all their leases there. We all started laughing and I told them it was purely coincidental that I chose that restaurant, but I wanted to know if they understood the message that sent their tenants. One of their major problems was that tenants took advantage of their kindness and seemingly low-key, relaxed operation. They constantly asked to pay late, asked for additional work to be done to the property and they felt that, at times, they were being pushed into a corner of “do this for us or we are leaving”. That constant threat left them feeling like the tenants were in control of their investment property and not the other way around.

As we continued to talk, I asked them if they had a real estate attorney with a conference room and they said that they did. My advice to them was to use that conference room for all of their lease signings. It would help them to set the proper tone from the beginning and assert their position as providing a professional service to their tenant and not simply a rental property. They had been using a two page lease and when I told them we had a 5 page lease with 9 addendum pages their jaws fell open. They were just as likely to sit and have a burger with the tenant as they were to actually discuss the terms of the lease and what they expected as managers of that property. It was my turn to be shocked when they said they even pay for the burgers!

Presents Are Nice, But Earning A Profit is Always Nicer

The paying for the burgers story brought us to a completely different set of circumstances that was undermining the performance of their investment properties and ultimately costing them more money. They were being too nice! I can honestly say this from experience, because I too have been way too nice to tenants in the past. It completely undermines my ability to hold them accountable.

The couple told me that the wife often gave the tenants flowers at closing to decorate their new house with. She often sent them a card at Thanksgiving and a card at Christmas with a small token gift card. I understood exactly where they were coming from and had often done the same thing. The problem is not with the giving. The problem occurs when you need the something from the tenant…like rent! When tenants are behind on rental payments, they not only owe you rent, but they also should owe a penalty for paying late. It is almost impossible to hold a tenant to a timetable and a late payment penalty if you are constantly providing all the niceties that fit your personality. I can say this because I was way too nice when I managed my own properties!! Receiving rent on time and collecting a penalty when they are late are two essentials for not only earning a profit, but also for keeping the relationship with your tenants balanced. They must know that you are fair both in applying the rules and working with them as a tenant without thinking that they can take advantage of your personality to pay late, pay less or pay late without a penalty. If you allow this even one time…it will become the norm. The couple told me that my story hit the nail on the head and that they now had tenants who expected grace periods for rent, waived late fees and even withheld rent if they had even a minor repair to the property.

Be Consistent

My last piece of advice for them on property management is arguably the hardest. It is difficult to always apply the rules in a consistent manner when each tenant, each property and each situation are different. This is one of the big reasons why so many people turn over their properties to management companies. It is not the toilets that cause the real frustration. It is the constant need to apply the rules as a property manager consistently to multiple different scenarios. It is hard to hear of the hardship that legitimately can fall on a family and yet hold them accountable to a consistent application of your rules. I explained to the couple that being brutally honest on day one about the rules and how they are applied will go a long way. Having an addendum to your contract that spells out clearly the rules for everything from rental payments to reporting damage and requesting maintenance gives you a very sturdy hold to balance on when you have to be stern and strong. If you simply make the rules up as you go and allow some tenants leeway and not others then you will have a real problem not only staying profitable, but navigating the mental stress of managing your properties.

When our conversation was over and they were moving on to the next presentation, they turned back to add one more thing. The husband walked over and shook my hand. He told me that one 30 minute conversation on the business may have been the best conversation they had in years. They had simply been resigned to their fate of going up and down on the landlord roller coaster. He let me know that upon returning to their home on the following Monday they were starting with a brand new Day 1! I made him make me one promise before he left. If he and his wife turned things around and truly became great landlords by regaining control of their business…he had to be the one net year passing on what he learned to others.

Monday, June 4, 2012

The Mini Blind Dilem: Clean or Replace


Sadly this is a recurring issue with rental property – should fully functional but very dirty mini blinds be cleaned after a tenant vacates or just replaced?
I have several cleaning vendors who nearly all say the same thing: “We will clean the blinds for you, but it will cost you more to clean them than it will to replace them.”
I understand that disposing of perfectly good items to save a buck is one of the reasons people in far lands despise our great Country… but try telling that to a property owner trying to maximize their annual yield while holding onto a rental property they are upside down in on their mortgage.

If anybody wants to weigh in on this issue I am happy to hear it.

Here are some additional thoughts from fellow professional property managers:

Dirty mini-blinds is no different than dirty carpets, counter tops and pottys… they should all be left in “Rent Ready” condition. We provide cleaning instructions both as an attachment to the Lease, as well as a copy upon move-out notice. Simply put – blinds (and windows) are expected to be clean. If not, our make-ready crew will clean them and the Tenant is then back-charged. J.S.

Replacing is cheaper for the clients so they should do that and then donate the blinds to the local GoodWill or some other charity who could use, clean and give to someone else. It would help the owner and someone else. L.A.

Thursday, May 31, 2012

A Hip and Healthy Management Style


These day's it seems like more and more people are using Acronym's in the working place. Subsequently I would like to share one that's I have been using for years called PMBWA. Not only is PMBWA effective and powerful, but it is also good for your health! Here are variations on its commonly known names:

The Acronym: PMBWA
Property Management by Walking Around
Property Management by Wandering Around
Property Management by Walking About

Property Management by Walking Around compels you to really get out and just start walking around. Do nothing but walk and observe. That is all you have to do. Start at the top, the bottom, the outside, the inside, or any part you would like. Get into the thick of things. Walk around the parking lots, mechanical rooms, corridors, vacant spaces, but just walk.

While you are walking ask questions, talk to people, make inquiries, and introduce yourself the neighbors. Do not have a plan or carry anything with you but your smartphone. If you must take a note, just use the camera feature, call yourself and leave a voicemail, or a record a message. Do not carry notepads or anything else at all, because the notepad might make you think you need to find things to write down. It can also be a intimidating if you’re taking notes during a conversation with a tenant. Let your mind be free and just walk. Wherever you go, information will be gleaned. There is insight to be had from the properties you own, manage and maintain.

It is not easy, but consider doing PMBWA regularly. Nobody expects a property owner\manager to just walk around with no plan, direction, or destination! Remember, this is NOT a building inspection. You are managing your property just by walking around. It sounds unbelievable, but I bet you that you will learn so much and find out so many things that it will spark enthusiasm, excitement, or bring resolution to a matter you have contemplated or been challenged by.

Try it and let us know how it works for you!

Sunday, May 27, 2012

So, do you rent to sex offenders?

By Barbara Barnes Getty

Here’s a new one … I got a call about a rental property the other day and the guy asked some appropriate questions about the unit. He sounded like a good candidate. Toward the end of the conversation he asked, “So, do you rent to sex offenders?” Whaaaat?

I hesitated just a moment and said, “Um, I’d have to check with the owner … may I ask, what was the specific violation?”

Silence, then “Deviant behavior.” Hmmm … did he have sex with a goat? Did he expose himself in public? What? I decided to let it be …

“Well, I can check with the owner and you can give me a call maybe some time tomorrow …” He said thanks, and hung up.

First of all, I AM the owner, but I was taken aback and I use this little ploy all the time with my tenants. Most of them don’t know I’m the owner. (It protects me.) Secondly, I’d never been asked that question.

So, do you have to rent to sex offenders? Is it discrimination if you refuse?

The answer is “No” and “No.” You can’t discriminate against anyone regarding race, religion, sexual orientation, age or disability. But you CAN discriminate against people you feel will affect your ability to do business in a profitable manner. Sex offenders might fall into this category, right? Others who would?

People with really loud cars or motorcycles
People who are dirty
People who exhibit a nasty attitude toward you
People who’ve lied on their application or have prior evictions
People who want to squeeze six people into your two-bedroom house
People who smoke, do drugs or have pets of any type
People who have been at their job for a short time
Mr. Sex Offender didn’t call me back. If he had, I would’ve politely told him no and wished him luck as he moved on. Sexual abuse is a huge issue in this country. There’s a Sex Offender Registry that many people check out before they move into a neighborhood and renting to a sex offender would negatively affect my ability to do business. And beyond that, it just wouldn’t feel right.

Onward and upward ………

Saturday, May 26, 2012

Strange but True: Tenant Assaults Landlord



A Salem, Massachusetts woman is being summonsed to court by her landlord after she wiped her itch- mite infected arm on him.

The bizarre attack happened Saturday after an argument with the 60-plus year-old man. According to the Salem Police Department log earlier this week, the elder property owner brought over an exterminator to deal with complaints of bugs and mice in her apartment.

The exterminator refused to go in the apartment.

The police report says the infested woman was upset with her landlord and stated that he was treating her “like a leper and she went into the hallway toward him, wiping her arms on him.”

This caused the landlord to defend himself, by slapping her across the face.

Police have advised the woman that she could bring charges against her landlord for the assault. The landlord, in turn said he is applying for a summons for the tenant for assault and battery with scabies on a victim over 60.

Police did note that the tenant had many red scab marks on her arms. In addition, the woman admitted having a severe case of scabies.

Apparently, this is not the first conflict the two have been involved. A few weeks ago, then as now, the argument was about the poor condition of the apartment. The Board of Health has been notified of the property.

Thursday, May 24, 2012

CALL TO ACTION: Support Bill Support for HB2273 Modification of late fees for rent from 30 days to 10 day

Dear Joint Committee on Judiciary Chairs, Vice Chairs and Members,

I would like to see Chris Walsh’s bill HB2273 passed out of committee
and voted into law.

At this time, landlords are not allowed to charge a late fee unless
the rent is 30 days late. This change would allow landlords to
charge a late fee when the rent is 10 days late. Please see attached
study done by the MA Realtors showing how all other states in the
nation have a more equitable position on this matter.

Businesses such as mortgage companies, credit card companies etc are
able to charge late fees. It is unclear why landlords are not able to
do this. Most landlords have mortgage payments to make. If the rent
is not delivered on time, then the mortgage payment is not made and
the landlord is charged a late fee. It is unfair for the landlord to
not be able to charge a late fee to, at minimum, cover this cost.

The late fee can also be a motivator for some tenants to pay the rent.
It is another tool the landlord has to make sure payment is made.
Currently, the only tool the landlord has is the 14 day notice to
quit. This creates an adversarial relationship with the tenant which
is not in the best interest of anyone.

I would appreciate it if you would report this bill favorably and support it though passage into law.


Bill Text for HB2273 (HD2135) of 2011-2012 Session
An Act relative to the modification of late fees
Prime sponsor: Representative Chris Walsh (D)
04/30/2012 - H Extension order filed until 06/08/2012

Section 15B-1C of Chapter 186 of the General Laws, as apprearing in
the 2008 Official Edition, is hereby amended by deleting the word
"thirty"; and inserting the word "ten" in line 26.

Tuesday, May 22, 2012

Getting Rid of Bad Tenants, Finding and Keeping Good Ones

by Brendan O'Brien

When you're a landlord, most of your time is spent dealing with maintenance and tenant issues. If you're lucky (and you've done your homework), your tenants don't cause too many problems - and the problems that do crop up are minor.

However, despite your best intentions, the person who looked like a great tenant on paper can become the tenant from hell. Bad tenants cause real headaches, for a number of reasons: Evicting and replacing them is aggravating, costly, and time consuming Their disruptive and noisy behaviors can drive out your good tenants
They can cost you big money if they damage your property

Before I give you my hard-earned advice about how to find and keep good tenants, let me first describe the four types of bad tenants.

Deadbeats - Simple - these are the people who don't pay their rent.

Demanders - These types of tenants drive you crazy with their incessant demands. On the other hand, demanders are usually the best bad tenants to have because they have high expectations for themselves as well and are usually well-behaved and neat.

Disrupters - The worst kind of tenant: These people drive everyone else in the building crazy by playing loud music, arguing, or exhibiting other disruptive behaviors.

Destroyers - Not to be confused with a renter who accidentally breaks something, destroyers are the type that repair their motorcycles on your new carpeting or get drunk and break your windows.

So how do you weed out the deadbeats and destroyers? In addition, how do you work with the demanders and disrupters so they don't drive you and everyone else insane? What follows are my six tips for finding and keeping good tenants:

Check all references


As with job references, a prospective tenant's previous landlord won't give honest feedback because they're afraid of being sued. When conducting your reference checks, instead of asking questions regarding a prospective tenant's character (e.g.: "Was this person a good tenant?"), ask questions based on facts that can be documented.

You can ask, for example, if the tenant paid his rent on time each and every month and whether he had any late payments. You can also ask for any incidents of property damage or disruptive behaviors.

It also pays to verify job and income history to ensure your potential tenant can pay the rent each month.

While still useful, a credit check is less important. Due to divorce or medical issues, people find themselves having to sell the family home and become renters. Such events can kill someone's credit in the short-term - which is why it's much more important to verify job and income history. A person who is working and making good money will often be grateful for the opportunity to help put his life back together by being a good renter.

Set clear expectations from the get-go

Many tenant problems can be traced back to the landlord's failure to set clear rules and consistently stick to them. In addition to stating when the rent is due, the lease should also state any rules about modifying the property, acceptable noise levels, any building-wide rules (e.g. no on-property vehicle repairs, no pets, etc.), and contacting the landlord. During the lease signing, you should go over these rules and expectations in detail to be sure your tenant understands them.

Learn how to "read" potential tenants

As with anything, you cannot pre-judge people based on appearance. One of my best tenants has long hair, biker boots, and tattoos. One of my worst tenants was a gentleman in immaculately pressed slacks, tassel loafers, and a designer polo shirt. When meeting potential tenants, watch for the following:

Over-eagerness - Your landlord "antennae" should be humming if someone wants the place right away - like now. This could mean that they need to get out of their current situation fast.

Lateness - If a potential renter shows up to the appointment late, doesn't return calls, or seems unreliable, pay attention. Usually this type of person will be unreliable in terms of paying the rent, too.

General weirdness - Always pay attention if someone makes the hairs on the back of your neck stand up or if he or she just seems "off" in any way. Often times we dismiss our suspicions, only to find out later that we were right about our instincts.
Turn "bad" tenants into good tenants

As I said, demanders are the best type of bad tenant to have - they demand things because they have such high expectations, which means they want to keep a property looking nice and well-maintained.

To keep demanding tenants at bay, especially those who expect you to rush out at midnight to fix a broken light switch, give all your tenants a cell phone number they can call to report any problems, rather than your home phone or business number. Let them know what hours they can expect to reach you, then be sure to check for messages regularly.

Give disrupters the benefit of the doubt at first. People used to living in detached homes forget how noise travels through the walls of apartment buildings, so they may not be aware that their loud music or late night guitar playing is bothering others. Often, just asking them to turn down the volume is enough, but if the problem persists, they've got to go.

Enlist the help of tenants you can trust


As a landlord, you want to know immediately if there's a real emergency with your building - for example, if it's on fire or a water main is busted. However, you don't want to give out your home or business numbers on the lease - because then you have those pesky demanders calling you night and day.

In this case, you'll want to find the most reliable and trustworthy tenant you have and give him or her your personal phone numbers - with instructions they're to be used for emergency purposes only.

Be a great landlord

The best way to minimize bad tenant problems is to be a good landlord to begin with. This means staying on top of things and keeping your promises. Be proactive about maintaining your property, promptly fix things when they're broken, and ensure contractors and repair people arrive when promised.

In short, treat your tenants they way you would want to be treated. You wouldn't want to sleep in a bedroom with a broken storm window in the middle of winter - and neither do your tenants.

Finding and keeping great tenants takes some time and due diligence, but your efforts will pay off. State your expectations and rules up front, conduct full reference and job/income checks, and maintain your rental properties as if you lived in them. Your tenants will thank you.

Wednesday, May 16, 2012

How Cut Your Utility Bills in Half


During this the Greater Salem Landlord's May meeting Matthius Bohler of Next Step Living provided some great information on how to access the FREE programs that National Grid is offers consumers. You may already be familiar with program the MASS SAVES Program. But by using an agent such as Next Step Living it just got easier to navigate the energy savings.

Did you know:
The program offers a NO INTEREST 7 year loan for up to 25,000 in building upgrades

You qualify every year for the program?

You do not need to convert from oil to gas to qualify. If you have outdated gas furnaces you can upgrade

It all starts with an initial energy assessment. So make that appointment today with Next Step Living

Should you decide to particpate in the Mass Saves program using Next Step Living as an authorized agent for the energy assessment. Next Step Living will gladly contribute $10 for every assessment that is completed through the Greater Salem Landlord Association partnership.


All assessments completed through this link will drive a $10 contribution to GSLA. Just click on the link below and let the savings begin: http://nextsteplivinginc.com/gsla

Tuesday, May 15, 2012

Right of Entry: PART 2


Previously, I wrote about the specific Massachusetts law that does not allow a landlord to enter the leased premises without the tenant's permission. However, you should be aware that the same law lists specific situations in which landlord may enter the property legally.

The first circumstance
is if you have a tenant with a fixed term lease and the term is coming to an end, you may enter the premises in the last thirty days of the tenancy to inspect for property damage. The same holds true in the case of a tenancy-at-will if either party has given proper notice to terminate the tenancy (which is commonly 30 days notice).

The reason the law allows landlord access to the premises in this thirty day period is to assess damages to the unit before the tenant moves out. In case damage is discovered, the cost to repair would be deducted from the tenant's security deposit. (Security deposits will be discussed in a later blog.)

But even if the landlord has a right to enter and inspect, it is prudent that the landlord talk to the tenant and agree on a time for the inspection to occur, if possible. Remember, a tenant's feelings towards their privacy should be handled carefully.

A word of caution for all instances of landlord entry: Even with the tenant's consent, it's generally not advisable for the landlord to enter the premises without the tenant being present. In doing so, the possibility arises for the unscrupulous tenant to make allegations that valuables disappeared while the landlord was inspecting the apartment when the tenant wasn't home. Better to be safe than sorry.

The second circumstance
allowed by Massachusetts law is if the landlord has a court order enforcing his right to enter. For example: A troublesome tenant may block your path and simply not let you in. If this occurs, do not force your way in or you may be facing assault charges from the tenant. In that case, the only way to gain access to the property is to go to Housing Court and get a court order that affirms your right to inspect.

And to answer an often asked related question: In Massachusetts, never, ever change the locks or remove the tenant's property under any circumstances, unless you have an Execution issued by the court giving you the right to repossess the property

Sunday, May 13, 2012

Do you have the Right of Entry?



There are some mistakes that can snare even some of the most savey landlords. A fairly typical example is the question regarding a landlord's right to enter the leased premises:

Landlord:
"I want to go into the apartment to look around at what the tenant is doing. I think he has a cat when the lease has a no pet policy. From the street I can see that he painted one of the rooms blue, which the lease does not permit. I also want to make sure the fire exit isn't blocked. I'm going over there tomorrow to let myself in to inspect the property."

The landlord has legitimate concerns. There may be lease violations to address. She is also concerned about an important safety issue. Her assumption is that because she owns the property, she has a right to enter if she wants to. She couldn't be more wrong.

In Massachusetts, when a landlord rents an apartment to a tenant, she gives up her right to enter. The law forbids her from entering the property - even to inspect for defects or make repairs - without the express permission of the tenant.*

The lawful course of action to take here is to contact the tenant and obtain consent to enter the property for an inspection. The landlord and tenant should agree on a mutually convenient time for the inspection to take place. It's always a good idea to contact the tenants well in advance of an inspection; seven days or so.

Landlords are often dismayed by this news, but the spirit of the law might be better understood from the point of view of the tenant's right to privacy. When a tenant leases an apartment, it becomes their home in which the tenant has a reasonable expectation of privacy from the government and - as inferred by the Massachusetts law - the landlord as well. In effect, the law balances the tenant's right to privacy with the landlord's interest in the property.

*** Please note there are specific instances in which a landlord may enter the leased premises that I will discus in a future post.

Sunday, May 6, 2012

How to Lose Money and Get Your Rental Property Trashed by Your Tenants



Want to be lose your hard-earned money? Follow these 5 Rules as provided by Andrew Stefanczyk:

Rule 1
Choose the worst possible area. It is a fact that the location of your investment property will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Rule 2
Put the very best of everything in when fixing up an investment property. Luxury bathrooms, thick pile carpets, plasma TVs. Spare no expense.

Rule 3
Make sure you have absolutely no experience in making basic repairs. Not knowing how to fix electrical wiring, repair drains, and replace windows will cost you quite a bit of money down the road.

Rule 4
Do not screen your tenants. This may be the most important step to making sure you lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, Did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbors with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.

Rule 5
Make sure you have not learned about your rights as a landlord. Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Most countries provide online information about tenant and landlord rights so avoid reading these.

I recommend that you not follow any of these rule since they will ensure complete failure as a landlord.

Saturday, May 5, 2012

GREATER SALEM LANDLORD MEETING: MAY 14


THE GREATER SALEM LANDLORD ASSOCIATION next meeting is May 14, 201, enter the Federal street "jury entrance. A Guest Speaker from Next Step Living, an outreach partner for National Grid will discuss access to the benefits offered by the state's MassSave Program, which provides no cost whole house energy assessments. Landlords are encouraged to bring tenant information and sign up your units for a no cost MassSave energy assessment right at the workshop!

Participants will learn:

· How hundreds of MA families have cut their heating bills by as much as 40% in 2011 by accessing MassSave funding

· How to use less energy and be more comfortable in your home - yes, it's possible!

· The health benefits of a properly weatherized home.

How to gain access to a Zero Percent Interest Loan to finance new windows, a heating system upgrade, additional insulation

Why tenants and landlords benefit greatly from this program

· Why National Grid wants us to use less energy.

· Building Science 101 - How your home loses energy today.

Friday, May 4, 2012

Ask An Attorney: Lease Question


It’S THE LAW by attorney Mark Burrell

Q. The lease I have with my tenant has expired but my tenant won’t move out. Do I have to give my tenant a notice to quit before beginning the eviction

A. No. If you have a written lease with your tenant for a fixed period of time, usually one year, and the tenant refuses to vacate the premises after the term of the lease expires, you can have the tenant served with a summary process summons and complaint without having first given the tenant a notice to quit.
If the tenant remains after the lease expires, the tenant is called a “tenant-at-sufferance”. But do not accept rent from the tenant after the lease expires. If you do, you will have converted the tenant-at-sufferance into a “tenant-at- will”, and a notice to quit must be given to a tenant-at-will before that tenant can be served with a summary process complaint. And remember, if you decide to accept rent from a tenant after you have begun the eviction process, endorse the rent check with the words “accepted for use and occupancy only” and give the tenant a receipt for the rent with those words included.This will preserve your right to move forward with the eviction.

Tuesday, May 1, 2012

Springing into Action with Spring Chores by Viktor Zimmer


Spring is finally upon us. Time to check out what the winter has done to the exterior of your investment -- roofing, gutters, exterior paint, caulking and the grounds should be all items on your checklist.

Your first priority should be your roof. Snow and ice can damage shingles and rubber roofing and should be inspected. If you have no experience in roofing it would be advised to hire a roofer to inspect and fix your roof. Don't wait too long because it will be harder to find a roofer to come out early summer for items like this because they will be busy with roofing jobs. If you plan to do this yourself, inspect for missing or broken shingles and tears in rubber roofing and nails sticking up. Preventive maintenance might save you from having to replace underlayment when your next roof job comes up.

Working down your checklist should be cleaning out your gutters. If you're inspecting your roof yourself this is a step you can do at the same time. Clogged gutters will not keep water away from your foundation and facia boards. Cleaning these will help keep your basement dry. Overflowing water will also get between your gutter and facia boards; prematurely deteriorating the facia boards. To eliminate this chore twice a year, you might look into installing gutter guards between now and fall.

If your house is painted you want to patch up flaking paint. Any spots you find should be scraped and painted to keep these flakes from growing and rotting the siding. If you don't have any of your original paint, take a few of the larger chips to a paint store and they can color match it with a paint scanner. If the paint is old take caution to have it tested for lead paint. If you wish to still do it yourself, the state requires you to take a class to learn hazards and what the homeowner can do and can't do.

While you're inspecting your paint look for brittle and missing caulking around Windows, corner boards and door trim. Take a putty knife and scrape out any brittle or cracked caulking and re-caulk. Keep your house sealed from the summer rains and keep down your cooling costs. Electricity like everything else is getting very expensive.

Have your grounds cleared of built-up leaves and branches. This lets new growth be protected from damage or disease. Dethatching your lawn will help uncover bare spots which you can fill with some grass seed. Simple maintenance will keep right your property looking good and will help retain tenants.

Friday, April 27, 2012

When your Tenant Wants a Roommate


by BRENDAN O'BRIEN

Your tenant calls. He’s having some money troubles, and he needs a favor. You think “Oh no.” But this request isn’t what you expected. He wants to… bring in a roommate.
Of course, your tenant had to ask your permission to do this because your lease specified that only those people named in the lease could occupy the unit. (If your lease didn’t specify this, you screwed up, and you don’t have any control over his selection of a roommate. All of your future leases should have this provision.)
How are you going to handle this so that a) you have some control over the new tenant, b) you are financially protected, and c) you don’t have a lot of extra trouble?

You have four options. The first is to simply allow the additional tenant with no written agreement. Obviously, this is a big mistake. The second is to create a new lease that adds the second tenant (so that both sign the same document). I don’t recommend this because there it adds a lot of complications – who is responsible for which damages, are both equally liable for the rent, and so on.

The third is to put the roommate on an entirely separate lease, and create a new one for the original tenant – charging each (almost always) half of the total rent required. Now you have two completely separate tenants in one unit. The danger with that approach is that if one tenant bails, the first one is still a tenant in good standing, yet you’re only getting half the rent you need from your unit.

Here’s a fourth approach that I think is actually the best. Why not have the existing tenant create a separate arrangement with the new roommate? This is not a sub-lease, although it is similar. The new roommate has to follow your rules (as would any guest staying at the apartment). The legal arrangement is essentially an agreement between three parties; the new tenant, the original tenant and yourself. Key points:

The new tenant owes rent and security deposit to the existing tenant, not you
The initial term of the arrangement must end at or before the initial term of your lease arrangement with the original tenant. The arrangement is null and void and the new tenant has no right to the apartment if the original tenant moves out for any reason. The new tenant must follow all the “behavioral” rules established by you in the original arrangement. The new tenant must pass whatever background checks you applied to the first tenant.

There is one legal problem with an arrangement like this. Since the new tenant owes rent to the original tenant, and nothing to you, any agreement between you and this new tenant may not be binding. Generally contracts require consideration to be valid and there is no consideration in your arrangement with the new tenant. Therefore, it makes more sense to create two separate arrangements. The first is between you and the existing tenant, and specifies his obligations in consideration of being able to bring in a roommate. He has to enforce certain rules (the same rules you enforce for him). He can’t sign an agreement with the roommate unless you have approved it (in reality, you will draft it). He can’t bring in a specific roommate without your approval.

Having made such an arrangement with the existing tenant, you can now let him and the new roommate make their own arrangement, previously reviewed by you. The advantage to this system? You get all the rent you are owed without responsibility for a second tenant, and the original tenant gets to keep his place. It’s a win-win.

What if one of the roommates does not meet his obligations?
The new roommate’s obligations are entirely to the original tenant. So if the new guy screws up, it’s up to your original tenant to fix it. He has an obligation to you to do so. For example, suppose the new roommate doesn’t pay the rent owed to the original tenant. It is up to the original tenant to evict him.

It gets more painful if the original tenant doesn’t meet his obligations. Suppose the rent on the apartment is $800. The new roommate faithfully pays his share – say $400 – and the original tenant goes out and blows it all at the track. Now the new tenant is in trouble, because he doesn’t have an arrangement with you, and the original tenant is about to get evicted. That will trigger an eviction of the new roommate according to your arrangement.

That stinks for the roommate, but it’s not your problem. It is up to the original tenant and the roommate to work out.

I’ll be curious to read any comments and suggestions on this idea.

Monday, April 23, 2012

RePost: Outrageous Things Tenants Say as Excuses



Most landlords are quick to say that they have many good, reliable tenants. If not, they’d find another business; tenants are their livelihood. But then there are the rest, that tiny percentage of renters who can’t seem to get it together and aren’t quick to fess up.

And what kinds of things do these tenants say? Below are some favorites from landlords. Tenants take note: If you hear these lines start to come out of your mouth, stop and think a moment. Another strategy — the truth, perhaps — might prove more effective.

It’s not a dog; it’s a barking cat.
Hmmm … are you sure you want to make that your final answer?

This was Barry Maher several years ago in Santa Barbara, Calif., where he owned a small apartment building. Dogs were not allowed, as outlined in the rental agreement. Cats were.

However, shortly after a young woman moved in, her neighbors complained about barking in the apartment. Maher called the tenant.

“She said, ‘Oh I would never have a dog. But what I have is a special breed. It’s a very rare thing; it’s a dog cat ... a mix of a cat and a dog.’

“It was so blatant and so crazy that I actually spent a moment thinking, ‘Is there really such a thing as a dog cat?’ ” Maher recalled. “And I’m really not an idiot.”

‘But you said I could paint it.
Did you not know that it’s usually just walls that get painted? And in a color that’s possible to paint over? The entire apartment was purple. The ceiling, the walls, the whole entire apartment was painted lavender,


‘My grandmother died ... again.’
That’s strange: According to our files, your grandmother has died six times recently. At least according to the reasons you’ve provided each time you couldn’t pay the rent.

The sudden need to pay for a funeral is a common claim for a tenants inability to pay.

‘I have to move out. I’m allergic to pet dander.’
How is it, then, that you work as a groomer in a veterinary clinic?

The problem is that once people sign a 12-month lease, there are very few ways to break it. So tenants must come up with their own — at times creative — reasons about why they must leave.

‘The check may have bounced, but at least I paid.’
Actually, mailing a check that isn’t backed by real money isn’t quite the same thing as paying the bill. In fact, it’s not the same thing at all.

‘I was the victim of identity theft.’
OK, that would seem valid, given your bad credit. Except for this catch: Your credit was just as bad before the date your identity was allegedly stolen.

This is a reason frequently given by prospective tenants to explain their poor credit, as well as by existing tenants unable to pay the rent.

You can’t come in. There’s too much cash in my bedroom.’
Um, could you put it somewhere safe before we arrive for the inspection?

This tenant apparently didn’t want to an annual walk-through. But this isn’t the best way to keep visitors out. Perhaps the tenant put valuables out of view and entered as scheduled.

Someone threw a brick through my window.
But something’s missing — namely, the glass. Oh, look, it’s on the outside.

“Unless the laws of physics don’t apply here, the window was broken from the inside out, not the outside in,”

‘The ceiling is dripping and we don’t know why!’

Well, do you think the drip might have something to do with the fact that you turned the roof into a swimming pool?

The tenant left clear evidence that it was they who had caused the very leak about which they were complaining. The roof was intentionally flooded and the tenants’ names spray-painted on the tiling next to the words, “Welcome to Silver Beach.”

The roof had a silver-oxide coating and a thigh-high shoulder wall along all the edges. The culprits had plugged the drain with a candle and flooded the entire roof, about the size of a standard swimming pool.

‘The electricity is out and I don’t know why!’
So you say that the power flipped off right after you turned on the microwave, the hair dryer and the toaster at the same time? Do you know anything about circuit loads?

‘See, the walls are almost the same color.’

Gee, I’m sorry that you ran out of paint, but I’m going to have to finish each wall before re-renting the apartment.

My dog ate it
Really?!

Always keep in mind you need to have a sense of humor when dealing with tenant. Especially if you’re going to have more than a couple rental units. You can’t take this stuff personally.”

Sunday, April 22, 2012

Funny but True, Messages Tenants Leave.


The toilet is blocked and we cannot bathe the children until it is cleared.

This is to let you know that there is a smell coming from the man next door.

The toilet seat is cracked: where do I stand?

I am writing on behalf of my sink, which is running away from the wall.

I request your permission to remove my drawers in the kitchen.

Our lavatory seat is broken in half and is now in three pieces.

Will you please send someone to mend our cracked sidewalk? Yesterday my wife tripped on it and is now pregnant.

Our kitchen floor is very damp, we have two children and would like a third, so will you please send someone to do something about it.

Would you please send a man to repair my downspout? I am an old-age pensioner and need it straight away.

Could you please send someone to fix our bath tap? My wife got her toe stuck in it and it is very uncomfortable for us.

When the workmen were here, they put their tools in my wife's new drawers and made a mess. Please send men with clean tools to finish the job and keep my wife happy.

Friday, April 20, 2012

How to Prorate Rent


Many newcomers to property management as well as many tenants do not understand how to prorate a rent payment.

This comes up when a new tenant moves in mid month. Most property managers want all rents due on the first of each month, so the question becomes, how do we figure out what amount of rent is due to accomplish that.

On move in, most income property owners have each new tenant pay a full months rent and the entire security deposit. If the rent is $1200.00 and the deposit is $1200.00 then the tenant must pay $2400.00 to get the keys. If the tenant moves in on the first day of the month, there is no figuring to do. Each month thereafter the tenant will pay $1200.00.

But if the tenant moves in on the 20th of the month, the question is, what does the tenant owe on upon moving in? It is quite easy to figure out as long as you stick to the formula and thought process.

Figure it this way: Every month is considered a 30 Day month, which is what we call a bankers month. If the tenant moves in on the 20th, they were not in the property for 19 days. 30-19 = 11 Days they were in the property. Now take the rent rate $1200 and divide it by 30 days (one month) = $40.00 per day. $40 x 11 days the tenant had possession = $440.00. That is what they owe prior to moving in thereafter the tenant would pay the original amount of 1,200 on the first of every month
.

Wednesday, April 18, 2012

FREE rental application available

I received several inquires from landlords about updating there rental application.
As a Members of the Greater Salem Landlord Association (GSLA) you have free access to a rental application as well as many other forms. Just log onto the members only page of www.salemlandlords.org . If your not a member of the GSLA, you can still obtain these forms for a small fee by logging onto the resource page of www.salemlandlords.org

Tuesday, April 17, 2012

How to Reject A Rental Application



To protect yourself from potential discrimination complaints filed by applicants you've turned down you need make sure you base your decision based on the information you've collected from your rental application. Please refer to "Does Your Rental Application Ask Enough in a post this past February.

Additionally, you can protect yourself further if you have a standard set of guidelines for evaluating that you apply to every applicant. Decide ahead of time what criteria are most important to you. Give this set of criteria a numerical order. What will you look at first — what reasonable standard do you require? For those who passed the first test, what will come second? Third?

If you check each application and credit history according to that pre-established order as you weed out candidates, you're all set. And you won't have to worry about whether you made a sound decision or have broken any fair housing rules. The following criteria are all valid reasons to turn down an applicant when used as part of a standard set of guidelines.

Poor Credit Record or Insufficient Income: If your applicant's credit history indicates frequent nonpayment of rent or if, based on information submitted, the rent is too high for the reported income, you can turn down an applicant.

Poor Prior-Landlord References: If previous landlords say the applicant's rent payment often came in late or that the apartment was left in poor shape, you can refuse to rent to that person.

Evictions and Civil Lawsuits: If an eviction is noted on the credit report and the landlord won the lawsuit, you can turn that person away. (If, however, the tenant prevailed, you should make your decision using other criteria.) If you have any doubt about whether your decision would be considered valid, consult a lawyer before notifying the applicant.

Criminal Records: You can refuse to rent to anyone who has been convicted of a criminal offense (with the exception of a drug-use conviction). In some locations you may find convictions listed on an applicant's credit report. (An applicant with a prior drug-use conviction is protected by the Fair Housing Amendments Act because the use of drugs is considered a disability. You cannot reject an applicant for previously using drugs, but you can legally refuse to rent to anyone who has been convicted of manufacturing or selling drugs.)

Incomplete or Inaccurate Rental Application: You can reject anyone who has not answered all the questions on your rental application. Likewise if you discover that someone gave you false or inaccurate information, you can reject that person, too.

Unable to Meet Terms of Lease: You don't have to consider anyone who is unable to pay the required security deposit or to rent the apartment for the length of the lease. If you have a one-year lease and they only want the apartment for nine months, it's legal to say “No.”

Pets or Smokers: You can refuse to rent to smokers or people with pets if your space for rent is designated “nonsmoking” or “no pets.” However, if an animal is trained to assist someone who is blind, deaf, or mentally or physically disabled, it must be allowed.

If a couple, married or not, wants to rent an apartment, you must use both of their incomes in determining whether they can afford your rent. If you don't, you risk a discrimination complaint about marital status or sex.
Always Write Down Why

When you reject an applicant, note the reasons for your decision. Put them on the back of the rental application. Then file it and other appropriate documentation. Don't throw any of this information away. You may need it later if a discrimination complaint is filed. The application also might come in handy later if that person tries to rent another apartment from you.

Sunday, April 15, 2012

TO RENT or To NOT, a tenant with a past eviction?

Most Landlords will give a resounding "NO". There is no way you should ever rent to a tenant who has been evicted. And those landlords have a legitimate case and point.However, if you rent to low-income or marginal tenants, you may run into applicants who have been evicted. It’s just a fact of life. Low-income and marginal tenants have a higher incidence of evictions than do renters who earn $100,000 a year.
There can be numerous reasons for those evictions, some that will absolutely disqualify them from renting from you, and some that just mean they had some hard luck and probably will not be evicted again. In a slow rental market (one where it’s hard to find tenants), you might want to consider renting to applicants who have been evicted. If you make it clear that an eviction will not absolutely disqualify them from renting from you, you may find out that they were in a situation that simply made it impossible to pay the rent or that they had a roommate or spouse who created the problem that precipitated the eviction.

Ask on the screening form or rental application for the reason for a past eviction and you may get an explanation that will satisfy you that you will not have to evict them. Of course, you will verify the information they give you.
Be extremely careful, though. You need to satisfy yourself that the applicant is telling you the truth without embellishment and without forgetting to tell you part of the story. Sometimes people really do learn lessons. Other times they haven’t changed a bit, but have gotten really good at telling sob stories to make a landlord’s heart bleed.What follows are some possibly legitimate reasons why a tenant would not have been able to pay his or her rent and was evicted. You decide how much credence to give them. Bad tenants always have an excuse, it is our job to decide if the excuse is legitimate.
Loss of job, layoff
Rent increases Loss of housing subsidy (look at this one carefully, people don’t lose them for no reason)
Loss of other income subsidy, such as child support
Medical, transportation or other crisis
High winter utility bills (then they would have to satisfy you that that would not be a problem now)
Money stolen
Budgeting difficulties (how have they improved now?)
Loss of social service support
Substance addiction
Domestic violence (has the situation that caused it changed?)
Loss of roommate
Poor communication with landlord, case manager, etc.

Here are some reasons for eviction that would make you never, ever want to rent to an applicant:
Damage to unit
Violent crimes
Drug dealing
Prostitution
Child molestation
Domestic violence
Disturbance of neighbors
Drug addicts not in a rehab program
Keeping a filthy unit
Gang members
Left children unsupervised

A rule of thumb is that you want a satisfactory landlord reference between their eviction and their renting from you to show with actual, concrete evidence, rather than just their word for it, that they just may know how to and be ready to be good tenants.

Saturday, April 14, 2012

Gender Rights adopted in Massachusetts

Gender Identity Added to Massachusetts Non-Discrimination Laws Effective July 1, 2012


Massachusetts has taken another step toward equality and respect for all citizens by adding “gender identity” to the state’s legally protected classes of citizens. The federal government has prohibited other categories of discrimination, for example, race, religion, color, national origin, gender, disability status, and familial status. Massachusetts also prohibits such discrimination and has in the past added marital status, sexual orientation, genetic information, veteran status, and receipt of public assistance. Some cities and towns have additional protected groups, most typically student status. The reason, of course, for such legally protected status is the history of past discrimination against members of these groups simply because they were members of such groups.

To quote from the new statute, “Gender identity shall mean a person’s gender-related identity, appearance or behavior, whether or not that gender-related identity, appearance or behavior is different from that traditionally associated with the person’s physiology or assigned sex at birth. Gender- related identity may be shown by providing evidence including, but not limited to, medical history, care or treatment of the gender-related identity, consistent and uniform assertion of the gender-related identity or any other evidence that the gender-related identity is incerely held, as part of a person’s core identity; provided however, gender-related identity shall not be asserted for any improper purpose”.

Under the new state law, an employer or housing provider may not discriminate against a person on the basis of their gender identity, namely refusing to hire, promote or admit to housing someone simply because of their gender identity. By July 1, 2012, “gender identity” should be added to all lists of protected classes in such documents and policies as Tenant Selection Plans, non-discrimination policies and postings, employment applications or anywhere else such listings occur. All staff should be informed of this new state law.

Housing providers may reject or take lease enforcement action against members of such groups who do not meet eligibility or tenancy standards as they may also take adverse employment decisions against members of protected classes who fail to meet legitimate employment standards. That is the point, after all, to hold everyone to the same objective standards.

Sunday, April 8, 2012

This is Why you CANT SAY it: Family Unfriendly Policies get Landlords into BIG Trouble

April 6, 2012 I posted an Article on What you CAN'T SAY on Craigslist. This is a follow up on the reason why you can't say "not deleaded" or any variation of. The Massachusetts Lead Laws have very strict mandates. If you choose to insert statements such as lead paint or not deleaded you may find yourself answering to the Massachusetts Commission Against Discrimination (MCAD) The case involving Mary Gardner vs A-Team Realty Docket No. 09-SPR-02817 is just one example.

Massachusetts Lead Paint Law Advisory: Family Unfriendly Policies Get Landlords into Big Trouble
This article is written by Attorney Rich Vetstein of the Massachusetts Real Estate Law Blog

Two Local Real Estate Firms Fined By Mass. Attorney General For Lead Paint Housing Discrimination

My Boston.com fellow blogger, buyer’s agent Rona Fischman, has fielded several questions recently regarding the Massachusetts Lead Paint Law. Prospective renters have called apartment listings only to be hung up on abruptly with a “It’s not deleaded!” if they hear a child in the background or if they answer truthfully about having children. Mothers have received termination notices when the landlord discovers they are pregnant – usually of course for tenancies at will. Finally, there is a listing this week in a local paper for an owner occupied 2 family rental which states “Unit Not Deleaded” right in the ad.

The short answer is these are all likely violations of the Massachusetts Lead Paint Law, and could expose the offending landlords to stiff penalties and damages.

Under the Massachusetts Lead Paint Law, whenever a child under six years of age comes to live in a rental property, the property owner has a responsibility to discover whether there is any lead paint on the property and to de-lead to protect the young children living there. A property owner or real estate agent cannot get around the legal requirements to disclose information about known lead hazards simply by refusing to rent to families with young children. They also cannot refuse to renew the lease of a pregnant woman or a family with young children just because a property may contain lead hazards. And property owners cannot refuse to rent simply because they do not want to spend the money to de-lead the property. Any of these acts is a violation of the Lead Law, the Consumer Protection Act, and various Massachusetts anti-discrimination statutes that can have serious penalties for a property owner or real estate agent.

As the stories above show, landlords routinely flaunt, or are just plain ignorant of, the law. The issue becomes what to do about it and is it worth the time and aggravation? I guess that depends on your situation. Certainly, if you are being threatened with a discriminatory eviction, your first step should be to contact the Massachusetts Commission Against Discrimination (MCAD) and your local Fair Housing Commission. In a recent case, the MCAD hit a property owner with $25,000 in damages and fines for evicting a young family to avoid de-leading. Next consider hiring a housing discrimination attorney. If you are low on funds, the attorney may agree to take the case on a contingency because violations of the lead paint law and discrimination laws provide for the reimbursement of attorneys’ fees and enhanced damages.

As for the “Unit Not Deleaded” ad, while may be truthful, it might as well read “Children Under 6 Not Wanted.” I would advise a landlord to avoid this sort of indirect discriminatory preference.

Lastly, the law is conflicting regarding owner occupied two family homes. Chapter 151B, the state anti-discrimination law, exempts owner occupied two family homes from the prohibition of discrimination against children. However, there is no such exemption written into the lead paint law. So if a child is born into a owner occupied 2 family, it must be de-leaded. Vacation/recreational rents and short term (31 days or less) rentals are also exempt from the lead paint law.

Saturday, April 7, 2012

The Most Common Way a Landlord Looses an Eviction


By far the most common way is through bad form or bad service. Almost every state has strict requirements about what a notice to a tenant is to say, how it is to be served, and how much notice the landlord needs to provide. Violating any of those requirements will mean a bad tenant will not only win the eviction but will likely get to stay RENT FREE for up to three months. Always use the proper form, add nothing to it, and serve it with at least the minimum number of days notice.

More Questions about managing rental property? Attend the Greater Salem Landlord Associations monthly meeting. The GSLA meets the 2nd Monday of every month from September- June at a local building in Salem Massachusetts

Friday, April 6, 2012

What you CAN"T SAY on Craigslist


Massachusetts Attorney General Martha Coakley announced a settlement between her office and a Revere, Massachusetts landlord over allegations that his rental ad in Craigslist violated state discrimination statutes. This judgment is the result of a continuing statewide investigation by the Attorney General’s Office into reports of widespread discriminatory housing advertisements on the Internet.

“As more families face tough financial times and have no choice but to rent, landlords and real estate professionals must recognize that the rental market is a regulated industry,” said Attorney General Coakley. “While we hope that this enforcement initiative will have a deterrent effect, our office will continue to monitor Craigslist.”

The Attorney General’s Office has settled 20 similar cases and filed six other complaints against landlords and real estate agents across the Commonwealth accused of violating state anti-discrimination laws on Craigslist.
In this case, the landlord used Craiglist to advertise a unit for rent in Revere, stating “no Section 8.” The Massachusetts Anti-Discrimination Act prohibits landlords and others involved in property rentals from discriminating against people who use state or federal housing subsidies to pay for all or a portion of their rent.
The settlement requires the landlord attend trainings on state and federal fair housing laws. He has also agreed to place “Equal Housing Opportunity” in any future rental property ads. And, in an effort to increase awareness of this important issue, the landlord is required to place postings on Craigslist informing other Craigslist users that the Attorney General monitors Craigslist for discriminatory advertising and that it is against Massachusetts law to state a discriminatory preference against recipients of housing assistance subsidies. He will also pay $750 to a local charity that provides legal services to poor and low-income persons in housing and a variety of areas.

Monday, April 2, 2012

Fair Housing "Zero Tolerance Policy" Netting HUGE Awards Against Landlords




If your own or manage rental properties we can all learn from these mistakes.

The Department of Justice (DOJ) has just announced settling a rental housing discrimination suit that it is touting as the second largest monetary payment ever obtained in a fair housing case.
A Kansas City, Kansas landlord will pay a $2.13 million settlement over allegations it engaged in a pattern of discrimination on the basis of race in violation of the Fair Housing Act. The lawsuit also alleged that the defendants retaliated against an employee for cooperating with HUD investigators.
DOJ presented evidence that the landlord openly displayed racially hostile materials such as hangman’s nooses, frequently referred to African Americans with racial epithets and generally treated white residents more favorably than African American residents.
According to Thomas E. Perez, Assistant Attorney General for the Civil Rights Division, “This settlement is designed to send a message to housing providers across the country that we have a zero-tolerance policy for this type of egregious behavior.”
The settlement includes $145,000 paid to settle DOJ’s claim against the former owners last summer.

Actors Posed As Tenants
The Justice Department filed a lawsuit last week against the owner and property manager of a 48-unit apartment complex in Ann Arbor, Mich., for race discrimination.
In this case, “testers” posed as applicants for housing and reported to HUD on their interactions with landlords and leasing agents regarding compliance with fair housing laws.
$100,000 in Orange City
In another settlement, an Orange City, Florida landlord has agreed to pay $415,000 in monetary damages and civil penalties to settle a Fair Housing Act lawsuit alleging that they discriminated against African Americans and families with children.
Under the terms of the settlement, the landlord must retain an independent manager to manage the property.
The case began when an African American woman visited the rental property with her grandson and inquired about the availability of apartments. The landlord told her that there were no vacancies, and later refused to accept an application from her.
The application contained the notation “ADULTS ONLY” in the space designated for the number of children.
Later the same day, this applicant’s friend called the complex to ask about availability, and a leasing agent informed her that apartments were available.
A local television station subsequently conducted a series of “fair housing tests” – simulated transactions to compare responses given by housing providers to different types of apartment-seekers to determine whether illegal discrimination is occurring – and found that the defendants were providing more information and better treatment to white persons than to African American persons.
Prior to settlement, the DOJ was prepared to show evidence that this landlord had, among other things, told white applicants that a selling point of the apartment complex is that it does not have any black residents; denied the availability of apartments to African American persons while at the same time telling white persons about available apartments; refused to show apartments to African American persons while at the same time showing apartments to white persons; discouraged African American persons from applying for an apartment while encouraging white persons to apply; refused to negotiate with African American prospective tenants for rental; threatened to evict one or more tenants who were known or believed to have African American friends and associates.
Developer Sued for Disability-Based Housing Discrimination in Tennessee
The owners and developers involved in the design and construction of 21 multifamily housing complexes in Tennessee agreed to a settlement of allegations that they discriminated on the basis of disability.
The complexes, which were built with the assistance of federal low-income housing tax credits, contain more than 800 units covered by the Fair Housing Act’s accessibility provisions along with areas of public accommodation covered by the Americans with Disabilities Act.
Under the settlement, defendants will pay all costs related to making the complexes for which they were responsible accessible to persons with disabilities, pay up to $350,000 to compensate individuals harmed by the inaccessible housing, and pay $75,000 to the United States.
The settlement requires all the defendants to be trained about the requirements of the Fair Housing Act and to provide periodic reports to the government that they are following the law.
This case began when the Tennessee Fair Housing Council, a private, nonprofit advocacy organization whose mission is to eliminate housing discrimination throughout Tennessee, provided the department with information several apartment complexes that were inaccessible to people with disabilities.
The department conducted an independent investigation and filed a lawsuit.
The retrofitting includes modifying walkways to eliminate steps, excess slopes and level changes, providing accessible curb ramps, and providing accessible parking and routes to site amenities, such as clubhouses, pools, mailboxes and trash facilities. The settlement also provides for the replacement of inaccessible knob hardware on doors, the widening of inaccessible narrow doorways, and the reconfiguration of bathrooms and kitchens to accommodate persons who use wheelchairs.