Legislation News: John Keenan replied back

Many thanks for taking the time and writing to me regarding HB 518 an act to require verified complaints in the summary process and HB 521 an act regarding discovery in the summary process. Tenant issues can be extremely difficult and your insights and a small landlord are much appreciated. Your thoughtful comments will be helpful should the bill come before the full House for a vote.

Again, many thanks for writing – I look forward to hearing from you again on matters of mutual interest.

Best Regards,
John Keenan


John D. Keenan
State Representative
7th Essex District - Salem
Boston, MA 02133
617-722-2263

Showing your rental and interviewing Applicants

In a previous post I emphasized the importance of providing a written application to prospective tenants. Several suggestion were made on what to include in a rental application and a FREE sample was available to current members of the Greater Salem Landlord Association www.salemlandords.org

Whether or not they decide to fill out the application there and now of take it with them and get back to you don't miss the opportunity to informally interview the prospective tenant before they leave your rental. This is a great opportunity to get a better know the prospective tenant
As a landlord, you have every right to ask a prospective tenant certain things. For example, you're entitled to know whether a prospective tenant is able to pay the rent you're asking, and to pay it on time every month. Keep in mind however there are also some things you should not ask. Learn the difference between appropriate and inappropriate questions before you speak with anyone who is interested in renting your space.

You can ask prospective tenants what they're looking for in an apartment, when they need it, and why they want to move. You can ask whether anything is wrong with their current apartment, what they do for a living, and whether they are of legal age to sign a lease.

You can ask if they've ever declared bankruptcy or been evicted. You can ask if they've ever been convicted of a crime. (Phrase this carefully — you may not ask if they've been arrested.) It's alright to check their credit and work history, and talk to previous employers to find out how much they made. You can even ask about outstanding debts — money they owe on a car loan or for credit cards.

Never ask prospective tenants if they've ever been arrested. An arrest is not the same thing as having been convicted of a crime. In the United States, people are presumed innocent until a judge or jury decides otherwise. Therefore, it is illegal to deny housing to anyone because they have been arrested.
What You Can't Ask

To avoid discrimination complaints, don't refer to anyone's sex, race, color, national origin, religion, or — even if they are obvious — disabilities. Don't ask about an applicant's age, sexual orientation, or family status (single, divorced, children). Never say you “prefer” mature tenants.

Treat all prospects equally — even if you should decide to take on a former homeowner with a less than sterling credit record. If you don't, that could imply discrimination and disgruntled applicants could file a complaint under local ordinances or state laws. Likewise, never arbitrarily raise the amount of rent you're charging or the security deposit you require for some prospects and not others. And don't make rent concessions for one person because you feel sorry for him. Everyone who comes to see the apartment is entitled to the same terms. Never tell someone that the unit has been rented when that's not true. Be honest and consistent with everyone who walks through your door.

Support these Bills & Write to Your Legislator

Dear________________

I urge you to report favorably on HB518 and HB521 filed by Rep Turner which will bring more equity to summary process actions.


As a lifelong resident of Salem and a second generation Landlord with strong ties in the community I am also the founder and President of the Greater Salem Landlord Association and Board Member of the Massachusetts Rental Housing Association which consist primarily of small "mom and pop" landlords. ,

Too often tenants are raising claims of housing conditions only after the landlord has started summary for nonpayment of rent. These tenants most often don't have the rent and use claims of condition to delay the eviction process.

I believe by making it a law that the tenant’s summary process answer and counter claims subject to verification along with the help of tenant advocates educating the tenants on the pains and penalties of perjury would reduce the case load on the already strained courts. Tenants would think twice before stating things that may not exist or were caused by them.

The small landlord is too often put on the defensive responding to the mere utterance of a pest infestation or broken screen when there is no other evidence regarding their claims

HB521 would reduce delays in the landlord’s summary process case by not allowing any continuances merely by asking for discovery unless an answer was filed as well. It is only fair that the landlord have knowledge of any counterclaims being brought at the same time they are responding to the burden of discovery and not at a trial.

Under summary process timeframes in the best case scenario a landlord will lose 2 months’ rent due to lengthy court process and significant tenant rights already in place.

Most cases that do go to a physical eviction leaves the landlord a judgment that is never collected and in many agreements made have the landlord forgiving back rent to get possession.

There are ample services available in the courts advising tenants of their rights. Pro se tenants have many advocates as were pro se landlords have few.

I urge you to provide your support for these bills.

Respectfully,

Mary Chalifour Woodcock

President of Greater Salem Landlord Association www.salemlandlords.org

Does your Rental Application Ask Enough

Compare yours to this checklist to see if you are leaving anything out:

Personal Information, including the full legal name (see What’s in a Name ), phone numbers, Date of Birth, Social Security Number, and Driver’s License Number is critical for screening. While the SSN is not required to obtain a credit report (see How to Screen a Tenant Who Does Not Have a Social Security Number ), it is a crucial identifier in the screening process. Likewise, the Date of Birth is critical to criminal background checks, and Driver’s License info is invaluable for uncovering fraud, and for collection efforts.

Previous Address history gives you the basis for deciding which criminal databases to search, allows you to cross-check against the PATH report and other information provided to avoid fraud, and gives you current and previous landlord information for references.
Employment information helps you judge financial ability, allows you to cross-check against the credit report to avoid fraud, and is a necessary step to satisfying a judgment should you go to collection.

Banking information is provided primarily to show financial ability, to screen for fraud, and is also used for garnishments in collection.
Credit references help you determine this prospect’s attitude toward financial responsibility, and provides important references.

Personal references, if verified, can help you decide if the tenant is responsible, and confirms other information, such as previous address history. If personal references are not from the tenant’s purported geographic location, this could be a red flag.
Emergency contacts are a must-have in case of an injury or when a tenant disappears, and also provide valuable clues for the skip-trace or investigation when collecting against a tenant who skips.

A list of other proposed occupants. GET AN APPLICATION FROM EACH ADULT, and record each child’s full legal name (see What’s in a Name ).
List detailed information about each car tenant owns (another way to find him if he skips), each pet, and inquire about possible nuisances like musical instruments, and heavy or dangerous furniture like water beds.

An Authorization Statement MUST APPEAR ABOVE THE SIGNATURE LINE to allow credit checks, references, criminal and other background checks. You can also include a statement that confirms the prospect’s understanding the application fee will be used to cover the costs of the background check, and is not refundable. Some landlords include a statement verifying that the information provided is true and complete.

The Signature serves as verification of the information, and validates the authorization for the tenant background check. Make sure the signature and the name match.
Do NOT accept the application unless every item of the application is COMPLETE.

What do you add to your application? Share with other landlords by leaving your comment below.

Tip: to avoid slip and fall claims

One of the ways landlords encounter premise liability–”slip and fall” and related personal injury claims, is while showing properties to prospective tenants.

One reason for this is the property tends to be in transition, whether it’s a simple paint job or more serious repair work. It may have been some time since the landlord visited the existing tenant.

To play it safe, anticipate any hazards, and if possible, schedule tours during safer times.

For instance:

Schedule showings late enough in the morning that sidewalks are shoveled and slippery hazards removed.

Check in with the existing tenant to be sure pets are away from the unit and and there are no boxes or furniture blocking exits or stacked precariously.

Stay in close contact with any contractors or maintenance workers who may be working on the property, and make certain items like stair railings are in place and property functioning.

Watch for construction materials, debris, and equipment that may be located in the rental unit.

Don’t show the property if it has just been treated for pests or has other fumes.

New Way to Advertise your Rentals

Sometimes it's not always easy to find the perfect rental or find the perfect renter for your home.
Salem.Patch.com is here to help. Each week they'll display a few options rental options from AOL Real Estate in their section, Rent It.
But they are also looking for Landlords to help build a reliable online for rent list. So
So if you have a rental you'd like to share, let the Salem Patch know by emailing Editor Aubry Braccowith information, and they'd be happy to share it in listings.

link: ttp://salem.patch.com/articles/rental-options-in-the-witch-city#photo-8865468

Moving up the property ladder

Recently, a current landlord asked advise about purchasing another income property and whether or not it was the way to go. I have always been of the opinion that property is a good investment. Moreover, profitable and reliable property investments are rarely based on just one property, and aren’t usually achieved by buying and holding just one property. Instead, investors should aim to move up the property ladder, whether to diversify investment, increase profit or increase the size of properties to accommodate pets, children, aging parents or all of the above.

If you have already bought your first property, you’ll still vividly remember how difficult it was to get up onto that first rung, however, the hard part isn’t over. It can often be just as difficult to move up to the next rung on the property ladder as it was to get up onto the first one, which is why you need to keep these tips in mind.

Buying and Selling at the Same Time in the Same Price Bracket

Property prices are fluid across time and across different sectors of the market – where the first home market may be experiencing a boom and properties in this price bracket are in high demand (and therefore highly priced) premium properties may be getting heavily discounted. Therefore, if you are looking to move up the property ladder, you have to keep in mind that if you are buying and selling at the same time, in the same price bracket that you are going to be experiencing both the good and the bad of the market at the same time too.

For example, if you are looking to sell your property which has gone up in price 10% in the last 12 months, that is great news as a seller. However, all the other properties in your price range have likely gone up 10% in the last 12 months too, so if you are looking to buy in the same bracket, your equity will have evened out. Luckily, when you are looking at moving up the property ladder, you are also usually looking to move up in the price bracket too so those differences and movements can work in your favour if you look for them.

Value Versus Costs

The value you would get from moving up the property ladder also has to outweigh the costs of that move, either now or in the future. Therefore, start by having your current property valued so you know the exact amount you have to work with in equity, and whether you can find the next property on the ladder which will truly increase your net worth. Unfortunately you may be unpleasantly surprised by the valuation of your current property as some areas of the market are still experiencing a downturn, so you may find a better path up the ladder if you wait out the downturn in your market.

When adding a new property to your portfolio there are also a number of fees and charges to consider, such as:

Stamp duty. Can be a percentage of the purchase price or a set amount depending on your state or territory and your price range.

Mortgage fees. When you buy a new property you’ll need a new mortgage which will come with new valuation fees, application fees, administration fees, legal fees and probably even some ongoing fees.

Deposit. Whether you use your own cash or the equity in another property, your deposit is going to cost you around 10% of the purchase price of the property. Remember that the larger your deposit, the lower your loan to value ratio and if you are able to drop your LVR to 80% or less, you can usually avoid paying lender’s mortgage insurance.

Repayments. Your move to a bigger and better property to move you up the ladder will likely also mean bigger repayments so make sure that your budget allows you to maintain your new position on the ladder, and that you don’t come crashing back down.

Interest. You also need to make sure that your new loan is affordable now and into the future because while interest rates are low while the economy recovers, you need to stress test your loan too, so see whether you’ll still be able to afford your new repayments if interest rates were to go up one to two percent.

Long Term Goals

Moving up the property ladder is not something you should try and do too fast, and you should set long term milestones to achieve in your path to the top. Therefore, remember that if you are already on the first rung of the ladder, you are well on your way, so be patient and don’t worry if your valuation hasn’t come back as high as you would have liked.

In the meantime keep saving and maintaining your current loan. This means keeping current on your repayments and paying more than the minimum where you can to increase the equity in your property. A great way to save when you have a home loan is an offset account, as you’re unlikely to earn more interest in a traditional savings account than you are paying on your home loan, but the funds in an offset account directly reduce the amount of interest you pay on your home loan at the same time.