EZ Landlord Forms: Anything & Everything Investing!

LOOKING for WEBSITE TESTER: FREE 1 yr ACCESS to OVER 80 LANDLORD FORMS

2010-06-25T06:54:00.001-05:00

WILL YOU HELP US ENHANCE OUR WEBSITE?!?!

In an effort to improve our services, we are looking for landlords, property managers and/or anyone involved in Real Estate to provide feedback while viewing and navigating our website; which offers State Specific Leases and Landlord Forms. This simple test can be done in the comfort of your home/office/or where ever the Internet takes you and usually takes 25-35 minutes. Basically we will be on the phone with you as you navigate the site and you will provide us feedback while using the site.

All participants will receive a free one year premium account. This is a $76.00 value. You will receive access to “the paramount Lease” and well over 80 other property management documents. There are so many fantastic features that you will have access to, including our state specific, auto-fill documents.

Simply email me with whatever time is good for you, your phone number and any questions that you may have.

Thank You

Please Contact:
Brian Davis @ gbdavis@ezlandlordforms.com

Renewing a Lease?!?

2010-06-08T11:43:00.004-05:00

Have you decided to renew your existing tenant’s lease? Thinking you need to create a WHOLE NEW LEASE... think again!

Use this form to legally extend all of the terms of the existing contract for an additional lease period. The document offers several options for the terms of the lease renewal, as well as a convenient signature field that tenants are asked to return in order to indicate approval of the extension. It is also noted that the lease will be extended automatically if no reply is received.

Who: Existing tenants whose lease has been approved for renewal.

What: Notice that the lease has been renewed.

When: 45 or more days before the end of the current lease period.

Rental Vacancies

2010-05-20T11:21:00.003-05:00

Vacant rental properties can certainly be compared to a migraine headache, a pounding headache that will only be cured by one remedy- a paying tenant. Hazard insurance, mortgage payments, property taxes, utilities, break-ins, vandalism, maintenance, and landscaping are many of the costs associated with vacant rental properties. Reducing your vacancy rates to a bare minimum is extremely important, as paying the above mentioned bills will not help you lead a successful real estate career.

We hope the following eight steps will help you avoid or reduce your rental property vacancies!

Step 1: Before You Invest… Research
Obviously certain areas are better for investing then others for a variety of reasons. Research the neighborhoods you are considering investing in. Speak with local Realtors, fellow investors, property managers and really anyone knowledgeable about the area. You must find out if the neighborhood has a high or low vacancy rate, if there are currently other rentals in the area and how much the rent is going for.

Step 2: Location, Location, Location and Visibility
Rental properties located in areas where there happens to be a lot of foot traffic are often easier to rent then that of a hidden property. A crucial element in keeping your rental occupied is that of visibility and location. If your tenant plans to move, and your property is located in an area where it's highly noticeable prospective tenants will see the For Rent sign and call to inquire. Additionally, your chances of filling the vacancy is high, as these such applicants are familiar with the area and find it currently desirable.

Step 3: Freshen Up Your Rental, Don't Let it Sit
The day your tenants vacate, is the very same day your handyman/contractors should asses repairs and then begin refreshing your rental property. The days that pass while your contractor "gets around to it" will cost you money, the clock is ticking on your vacant investment.

Step 4: Step 4: Price Right
Pricing your rental property is key, estimating what you "think" is correct is not advised. You must know exactly how to price your investment so that you are maximizing on both your return and maintaining a competitive price. We suggest touring other rental properties in your direct area and speaking with local property experts.

Step 5: Advertising for your Rental Area
When advertising your rental property you must think outside the box, and outside of the advertising that reaches you. You must consider where your rental is located and what types of editorials/media outlets your possible tenants may read. For example, the Internet- you use it, but lower end tenants may not have a personal computer. If your rental property is located in an area where English may not be the first language, consider using another.

Step 6: On Site Management
Larger, multi unit properties statistically fill vacancies quicker with on site property management. This is something you should certainly consider, as you may even be able to compensate the property manager with subsidized rent.

Step 7: Long Term Lease Agreements
Longer term rentals obviously have a lower turn around rate and will be vacant less often. Additionally, the longer tenants reside in a property, the deeper their roots grow. However, we live in a commitment phobic society so providing incentives is suggested. For example, offering a reduced rate for a two year rental or lowered utility bills, possibly free cable. Remember, maintaining occupied rentals is key and more often than not- incentives work!

Step 8: Rent-to-Own
There are many advantages to marketing your rental property as rent- to -own. As home ownership is ideal for many, and offering this option will most likely attract a higher caliber tenant. Additionally, your rent-to-own tenants will have a very high incentive to paying on time- maintaining their credit score and the eligibility to purchase. Rent-to-own tenants are more invested in the rental and will treat the property with respect. And last but not least, another benefit is selling the property without paying a Realtor commission!

Hopefully these 8 tips will help you refine your abilities to avoid owning vacant rental properties! Start advertising and print out your rental applications because you are well on your way towards scoring a paying tenant!

Reduce Vacancies

2010-05-13T13:07:00.003-05:00

Take a moment and consider the costs associated with vacant rental properties: mortgage payments, property taxes, hazard insurance, utilities, break-ins, vandalism, maintenance, landscaping. Not a lot of fun to be paying every month, which means you need to cut your rental vacancy rates to a bare minimum.
How does one go about doing this? By following these eight steps to chopping rental vacancies, and staying on the ball.

Step 1: Research BEFORE Investing
Some neighborhoods make for better rental investing than others do, for a variety of reasons. Look into a neighborhood's vacancy rates before investing, and put your finger on the neighborhood's pulse by finding out WHY a neighborhood has a high or low vacancy rate. Talk to appraisers, fellow landlords, realtors, property managers, and anyone else who's knowledgeable about that neighborhood, and find out the vacancy rate.

Step 2: Location and Visibility
Location, location, location, right? Well, kind of. A crucial element of a rental property's location is its visibility, as passersby will see the For Rent sign and call you up to inquire after it. In some ways, these rental applicants are higher quality, as they're already familiar with the neighborhood and exterior of the property, and already feel comfortable with it. The bottom line: areas with a lot of foot traffic are easier to rent than hidden properties.

Step 3: Quick Repairs Turnaround
If your rental property sits around vacant for several months while your contractor or handyman "gets around to it," it will cost you real money. Get the workers in there the day the prior tenants move out, get any repairs done quickly, and get new tenants signing rental application and rental agreement forms. With that being said, it may be worth an extra week or so of vacancy to catch up on any updates you've been putting off, to help attract a higher caliber tenant.

Step 4: Pricing is Key
Deciding on a rent amount should not be estimated; you need to know exactly how to price your rental property so that it's competitive while still maximizing the return on your investment. Walk through some other properties for rent on your block or street, talk to some area landlords or property managers, and make sure you price the rent EXACTLY right.

Step 5: Market to the Right Clientele
Landlords tend to think in terms of the advertising that reaches THEM, but not necessarily the kind of advertising that reaches their pool of potential rental applicants. An extreme example might be advertising in the English-language, yuppie local magazine you read, instead of the local Spanish newspaper, when your rental property is in a largely Hispanic area. Another example is the internet: you use it, but lower end tenants probably don't. Consider what media outlets will actually reach the kind of tenant you're looking for, and pursue those.

Step 6: On Site = On Task
If you own a larger, multi-unit property, you should definitely consider on-site property management. Statistically, on-site property management fills rental vacancies faster than off-site, so consider whether it might make sense to hire someone specifically for that building, and you may even be able to compensate them with nothing more than subsidized rent.

Step 7: Rental Agreement Term
Consider for a moment: if you have two rental properties, but one has a one year rental agreement, and the other has a two year rental agreement, which will be vacant more often? Aside from the term itself, the longer people reside in one place, the deeper their roots in that property sink, and they will be more inclined to remain as a long term tenant. You may have to offer incentives for tenants to commit to two years at first, as our society is more commitment-phobic than ever, but offering a $40 rebate on rent each month, or perhaps subsidizing their utilities or other incentive structure might make sense to ensure that lower vacancy rate.

Step 8: The Rental Agreement with Purchase Option
Advertising your rental properties as rent-to-own, you can accomplish several strategic goals. First, you can attract a higher caliber tenant to submit a rental application, by offering them a chance to advance to home ownership. Second, your tenants will have a greater incentive to pay their rent on time, to maintain their eligibility to purchase the rental property. Third, they'll be far more invested in the property, and will treat it better, as they hope to own it one day. Fourth, you can sell at retail prices, without paying a realtor commission.
Start printing out those rental application forms, get advertising, and revise your approach to scoring a signature on the dotted line of that rental agreement.

Improve YOUR Credit Score!

2010-05-11T14:13:00.000-05:00

As a real estate investor, I realize how important credit is to my career… do you? Understanding the limitations bad credit may have, or the wonderful benefits of excellent credit are highly important. Have you pulled your credit lately? Are you limited by your score and forced to borrow from high-interest lenders, or use hard money loans when you purchase an investment property? Here’s a brief over view of how credit scores are calculated, and how you can increase your scores.

Credit scores are determined by tabulating a wide range of financial information, including some important basics that add up to create your credit rating. First and foremost, the incidence of paying late. Not all bills are reported to the credit bureaus; bills where you’ve borrowed money such as mortgages, car loans, credit cards, personal loans, are more often reported. For this simple fact, these such bills should take first priority. If you must choose between paying your mortgage or your utility bill, always always always pay your mortgage first.

There are some aspects of credit scoring that are less understood, such as the average age of your credit account. Credit bureaus prefer to see older accounts with low balances, opposed to a series of short term accounts with revolving credit balances. We suggest keeping your oldest credit card accounts active with low balances. Certainly consider what constantly refinancing real estate may do to your credit score. Regardless of what the loan officer insists, older credit accounts reflect more positively.

Maintaining a low balance, regardless of your limit will increase your credit score. For instance, credit bureaus like to see that your older credit card deems you worthy of a $50,000 limit, regardless of your balance hovering around $3,000. In the eyes of the credit bureaus, with the same principle applying to your car loans, mortgage, etc, the low balance to credit allowed ratio reflects positively on your score.

We suggest obtaining a copy of your credit score every 4-5 months. Why, you ask? Unfortunately, mistakes on credit reports are quite common due to misreporting or credit bureau errors. In order for you to become aware of such errors, you must view your credit report. Correcting these mistakes is extremely important and a fast way to improve your score.

However, having your credit report pulled too often will have a negative effect on your credit score. Too much credit report activity paints the picture that you are searching for credit in as many places as you can.

Improving your credit score should be a top priority. The amount of house you can afford, along with your car, interest rates, and loan approval all rides on your score. This should be all the motivation needed… buy more and pay less!

2010-05-07T10:01:00.001-05:00

As the cost of an investment property increases (insurance premiums, property taxes, mortgage rates, etc.) landlords may need to raise a tenants rental payments. Conversations such as this may be slightly uncomfortable. Here are a few suggestions to help make this discussion a successful one.

Tip 1: Spring into Summer
We highly suggest NOT raising a tenants rent in the colder months! It's much harder to fill rental properties in the Winter versus the Spring, as your current tenant may choose not to re-new the tenancy due to the increase.

Tip 2: Planning Ahead
Many state require advance notice of at least 30-90 days when raising rent. This is something you will need to research for your state. Having the conversation sooner rather than later gives you an opportunity to find a new tenant, creating a smooth transition if the rental increase is not accepted.

Tip 3: Face to Face
Why should you have the conversation regarding rent increases in person? Bottom line… people feel less comfortable saying no in person, and the tenant will see that you're a reasonable person with your own bills and expenses.

Tip 4: Optional Longer Rental Agreement
Doesn’t this sound ideal.. higher rental income and an extended term, securing a rented property for the next two years! 100% Possible! When a tenant expresses their unhappiness regarding a rental increase tell them you understand that they have their own bills and their own concerns, and that you're willing to extend their rental agreement from 12 months to 18 or 24 months. Thi will offer written assurance that you will not raise their rent again for a year and a half or two.

Tip 5: Market Rent
Relocating is costly, mentally exhausting, and time consuming… use this to your benefit. We suggest raising your rent if it's below the local going rate to just under the local average, so that it doesn't fiscally make sense for your tenant to move. For instance, if you currently charge $900 monthly, and comparable rental homes rent for $1,000, raise the rent to $975. When your tenants complain, express that they are more than welcome to check out the house across the street available for $1,000, or the house a few blocks over available for $1,200. This way your rent is still slightly below average, but close enough to where you will be earning money while owning a tenant occupied property.

Implementing rental increases may not be an easy task, however, necessary if you intend on actually earning a positive cash flow on your investments. Always remember to be fair and honest, and sometimes securing a longer-term tenant may be more valuable than an extra $25 a month.

5 Tips: Great Tenants

2010-05-04T09:34:00.005-05:00

Can you imagine tenants consistently paying on time and even possibly EARLY? Amazing concept, isn't it. While many tenants initially perform well, over time many become lax with their rental payments, and their adherence to the rental agreement. Check out these five great tips that will help ensure your tenants (and your rental investments) stay in great condition.

Tip 1: Bonus Offer for early rental payments
Who doesn't love a bargain, or a great sale? Offering an incentive for advance rental payments will encourage your tenants to pay their rent early. It could be a $50 break on rent, a discount on the following month's rent, a credit towards their utility bill, or a gift card to Best Buy! Incentives are the way to go and more often than not ensure landlords timely payments.

Tip 2: Late Payment Penalties
Positive reinforcement works, right? Well, so does negative reinforcement! We strongly encourage your rental agreement to include a late payment penalty. Ultimately, enforcing the importance of timely payments. Filing for eviction over a $40 late fee may seem extreme, but it will send a strong message, and you probably will not have the same problem again.

Tip 3: Rental agreement violations are NOT acceptable
You are in the business of being a landlord correct? For example, your rental agreement doesn't allow for pets, but you discover the tenant has a mastiff. If you send them a notice informing them that they must cure or vacate, followed by an eviction complaint, you put yourself in an excellent negotiating position. From there, you may decide to let them keep the pet, but only if they pay an additional monthly fee, etc. However, you must express that you will not tolerate any violation of your rental agreement.

Tip 4: Rental Inspections are essential
We suggest checking on your rental properties as often as you can, keeping an eye on how your tenants are treating your investment and verifying there are no rental violations. Once again, this paints the picture that you are a serious landlord, and when it comes to your rental property, a very serious landlord. This may also encourage your tenants to keep the property clean.

Tip 5: Report payment history to credit bureaus
Credit is a big deal, and many tenants appreciate this, going to great lengths to protect their credit ratings. If tenants are aware that their rental payments are being reported, they'll have a strong incentive to actually make those payments on time, or even early.

Bottom line, be proactive, be responsive, and enforce the rules of your rental agreement!

Top 5 Mistakes Landlord's Make...

2010-04-30T12:43:00.004-05:00

What could be better than earning money each month while someone else pays your mortgage? Being a landlord can be a dream come true for new real estate investors and with some work and expertise your reality. We can help with the expertise, but the work you'll have to put in yourself! Check out our top five rookie landlord mistakes, and by avoiding these you will be on your way towards a successful career in real estate.

New Landlord Mistake 1: Over-Leveraging your Rental Properties
Borrowing as much money as you can when refinancing or buying rental properties may seem like a great idea. However, the problem is, you will then leverage yourself out of any monthly cash flow. This means you will be in the red as soon as you have a vacancy, or unexpected property maintenance. At the end of the year, you should show a profit if you keep your predictable monthly expenses (mortgage, taxes, and insurance) at no more than 50% of your month rent.

New Landlord Mistake 2: Using a Generic Rental Agreement
Using a generic rental agreement from the local office supply store is really a disaster waiting to happen. Why you ask? Each state has special language that must be included within the lease, many states have special disclosures that must be attached to the lease, and national lead paint pamphlets. Additionally, states place limits on how much a landlord may charge for security deposits, how many days late the rent must be before a late fee can be charged, etc. We suggest using an online landlord forms service that helps you through the process of creating a rental agreement for your state, or hiring an attorney.

New Landlord Mistake 3: Failing to Properly Screen Tenants
When it comes to locating tenants, there can be a lot of bad apples out there- especially with regards to lower income rental properties. People tend to be fundamentally responsible or fundamentally irresponsible with money; making tenant screening incredibly important. Remember to verify employment, obtain current and past rental history and provide a thorough background/credit check.

New Landlord Mistake 4: Ignoring your Rental Properties
The roof is leaking, the washer is not working, and there are ants in my apartment… easy to procrastinate but harder to ignore long term. Addressing tenant concerns and potential problems with your rental properties quickly and effectively, will save you financially and prevent any possibly law suits. Send a handyman you trust out to the property to take a look, and more often than not, the tenant was merely overreacting… but you still have to check.

New Landlord Mistake 5: Failing to Serve Tenant Violations
While your heartstrings will tug, falling behind on rent is not an option. Patience is a virtue but investment real estate is a business. Serve the tenants quickly when their rent is not paid, and it will send a strong message.

Follow these steps, and you'll find that your rental business sails smoothly.

A Landlord’s Guide to Service Animals

2010-02-18T13:49:00.000-06:00

Many people with disabilities and/or health-care problems often rely on service animals for assistance with their daily lives. Service animals enhance the quality of life for many people with disabilities.

Landlords who maintain a “no pet” policy may not refuse to rent or prohibit a disabled person from having a service animal within the rental property. Federal law does not require the animal that provides the assistance to be a dog; although most service animals seem to be. There are three important points to consider when renting to a disabled individual with a service animal.

(1) Service animals, therapy animals, or animal aides all fall into the same category under federal law.

(2) Service animals are NOT pets and therefore may not be considered as such. Landlords who have strict no-pet policies may not enforce them with regards to service animal.

(3) Assistance animals are covered under the Fair Housing Amendments Act, Americans with Disabilities Act and the Rehab Act Section 504. Be familiar with these laws!

Under the Fair Housing Act, persons with disabilities who are accompanied by a service animal are a protected group. To be an individual protected under the Fair Housing Act; that person must have a disability as defined by the act; the service animal must have a direct function related to the individual’s disability and the request to have the service animal must be reasonable.

According to 42 U.S.C. § 3604(f)(3)(B), a landlord must make “reasonable accommodations” for a disabled tenant to be able to use and enjoy a rental property on an equal basis with tenants who are not disabled. For instance, if a tenant requests to have safety bars installed in the bath-tub, a landlord may not refuse to make such accommodations.

What can a landlord to do...

The Tax Man Cometh...

2010-02-08T13:21:00.004-06:00

The phrase "the Tax Man cometh" has instilled worldwide dread since the days of the Roman Empire. Fortunately so, for real estate investors, there are many tax deductions to help alleviate the rising burden of taxes. Every penny saved, is a penny earned (a tax-free penny, at that)!

Real Estate Tax Deduction 1: Settlement Charges
Many real estate investment critics cite high up-front investments, due to settlement charges(origination points, appraisal costs, home owner insurance premiums) and a myriad of additional costs that somehow find their way onto the HUD-1 forms. Mercifully, some of the settlement charges may be deducted from your taxes, so please remember to bring your HUD-1 forms with you to your accountant's office.

Real Estate Tax Deduction 2: Mortgage Interest
The majority of your mortgage payment is comprised of interest, not principal. However, the great news is that the interest portion of your payment is tax-deductible. This tax deduction is more often than not a substantial sum, so always remember this deduction.

Real Estate Tax Deduction 3: Private Mortgage Insurance & Real Estate Taxes
Don't pay taxes twice! Your real estate taxes may be deducted from your income taxes, so be sure to save your tax statements for each rental property. Additionally, high LTV loans generally include private mortgage insurance (PMI), which is also tax deductible.

Real Estate Tax Deduction 4: Repairs/Maintenance & Car Mileage
More often than not, landlords are obligated to perform necessary maintenance/repairs on their investment property, which may result in substantial costs to the landlord. Most repairs are tax-deductible, so be sure to check with your accountant regarding every penny invested within your properties.
Driving expenses add up, especially if you are driving from one rental property to the next performing maintenance. Keep track of your miles and add this to the list of deductions permitted.

Real Estate Tax Deduction 5: Landlord Forms & Legal Advice
Landlord forms, supplies, legal advice/services are all related to your investment business, and are expenses that should be deducted. Be sure to keep excellent records/receipts, so that these deductions are justified.

Real Estate Tax Deduction 6: Property Management Fees
Property management companies often charge 5-10% of your monthly rent, not to mention fees for locating new tenants. Be sure to write off these costs as deductible expenses.

Real Estate Tax Deduction 7: Depreciation
One of the greatest tax advantages of real estate investing is depreciation, as you may deduct the theoretical "depreciation" of your investment property's value. Do keep in mind that the rules are somewhat complex. We advise consulting an experienced real estate accountant.

Real Estate Tax Deduction 8: Accounting Costs & Home Office Expenses
Not only does the government take a third of your paycheck, but you have to pay someone to figure out exactly how much you owe them! The good news is that you can deduct last year's accounting bill from this year's taxes, and at least you won't pay taxes on that money! Fantastic right?
Additionally, be sure to consider expenses associated with your home office, i.e. square footage, electric, internet, and phone bills. Again, be sure to keep updated records of all associated home office expenses.

We advise landlords to hire an excellent accountant as Real estate tax laws may be very complex. Take advantage of the many tax advantages, and improve your return on investing!

Landlords: BEWARE of Rent Check Scam

2009-12-15T10:03:00.002-06:00

I am sure you are well aware of the recent increase in fraudulent claims and Internet scams. It was only a matter of time before landlords would be affected. The United States Postal Inspector recently warned property owners to be cautious when answering prospective tenants who respond to online rental advertisements from overseas. These scam artists will ask to pay the deposit with a cashier’s check, money order or some other form of paper tender; in many cases asking to pay several months in advance plus administrative fees. The scammer will then ask the landlord to wire back part of the money, usually the “administrative fee or costs” or ask that the entire amount be returned by giving a reason that they may not take possession of the unit. After the landlord returns some or all of the money, the check is then found to be fraudulent. These con-artists are most often from foreign countries and very hard to track down. This scam has also taken place via the telephone.

Here are some tips to steer clear of these scammers:

1. Always request a face to face meeting with any prospective tenant.
2. Upon accepting any tender, unless cash; make sure that you wait for the check to clear and allow an extra 10 days.
3. Conduct thorough background checks.
4. "If it seems too good to be true, it is!

If you happen to become a victim of one of these scams, report it to the Post Office Inspector General http://www.uspsoig.gov/ and The FBI-Internet Fraud Unit: http://www.fbi.gov/majcases/fraud/internetschemes.htm

The Property Management Dilemma

2009-12-07T13:43:00.004-06:00

Deciding to use a property manager is a major step, which means you need to consider all of the ramifications of your decision. They can provide many important services, relieving you of the burden of the day-to-day management of your properties. But just as in any service industry, the cost for this kind of individualized attention is high. Standard pricing for the industry is generally between 4-12% of gross rents, usually tending towards the higher end for single-family dwellings and lower for large apartment buildings.

The property manager can offer a wide range of services depending on the company and your individualized needs. The major areas in which they can be most helpful are:

• Marketing your rental property to minimize the number of vacancies.
• Maintenance and repair, including emergency repairs.
• Analysis of income and expenses to be sure the property remains profitable.
• Administrative duties such as negotiating rental agreements, collecting rent, and responding to tenant requests.

In addition to these basic services, some property managers can provide solutions to more specialized needs. Rick Kinnaird, President of Half Vast Enterprises, has two rental properties and he uses property managers for both. One is a single vacation rental unit, and the other is a number of vacation rental units at one location. He says property managers can “provide cleaning and linen service during turnover for guests. They can also maintain the yard and lawn, replace light bulbs and do handy man work even construction.”

So how do you find a property manager to suit your needs?

READ FURTHER

Mold Remediation: Mold Laws & What to Do if ...

2009-12-03T11:56:00.003-06:00

The reason mold causes such concern is because of the health risks associated with it, such as allergic reactions, asthma attacks, sinus infections, memory loss and lung problems in the very young and the elderly. The best way to protect yourself is to get as much information as possible as to what mold is and how it can be removed.

According to Bill Begal, President of Begal Enterprises Inc, a company that does disaster mitigation and restoration, mold is a natural, growing object that can never be completely removed. That’s because once an area is cleaned and you open it up to the rest of the environment, mold will be brought in from the environment and start living there again.

He cautioned landlords to remember that not all mold is bad, and not all black mold is toxic. The strain of black mold that carries toxicity is known as stachybotrys chartarum. It is this type of mold that produces byproducts called mycotoxins, which cause health problems.

Bill says there are six conditions that are necessary for mold to grow:
• Lack of light
• Lack of air
• The right temperature
• The proper humidity
• A mold spore (the reproductive system of the mold)
• A host (place for the mold to grow)

Mold can grow anywhere these six conditions exist, especially in areas where there is water intrusion like a basement or a roof.

Once a landlord finds mold present on their property, the legal time frame allowed to remove it varies from state-to-state. However, Bill says that despite the legal requirements, landlords should resolve any leaking water problem as soon as possible because when building materials get wet, mold begins to develop within 48 to 72 hours. READ FURTHER...

Smoke FREE Rental?

2009-12-01T13:18:00.002-06:00

A Smoke-Free Rental Property: Is It Possible to Prohibit Smoking in Your Rental Property?

According to the Environmental Protection Agency (EPA), Environmental Tobacco Smoke (ETS), or secondhand smoke as it is commonly called, is a carcinogen that causes approximately 3,000 lung cancer deaths each year in U.S. nonsmokers. Children are even more susceptible to the effects of secondhand smoke because they are still developing. Those that are exposed to high levels of the carcinogen have the greatest chance of developing asthma, pneumonia, bronchitis and middle ear infections.

These discoveries have prompted a growing number of renters to seek out smoke free housing, so as to prevent the health risks of secondhand smoke. But is the increasing demand profitable enough for landlords to turn their rental properties into non-smoking zones, and is the conversion so difficult as to not be worth the profit? These are questions that need to be considered before taking any such action. Read Further...

The Holidays and UNEXPECTED Gifts...

2009-12-01T13:06:00.004-06:00

As landlords we hope tenants will follow rules- however, now and then we get some "rule breakers". The holidays are right around the corner and who doesn't love a sweet snuggly puppy? UMMMM Me, as a landlord who doesn't allow pets!!!

According to the Humane Society of the United States, almost 50 percent of renters in this country have pets. While this can be a lucrative market that many landlords would want to tap into, not every pet is appropriate for apartment living.

Read further...
Tenant Pet Policies: How Should Landlords Handle Pets in their Rental Properties?

Exciting News at ezLandlordForms...

2009-11-04T13:49:00.007-06:00

TLC's popular real estate show Designing Spaces, recently invited EZ Landlord Forms' CEO Kevin Kiene and legal counsel Paul Cohen to be guests on their hit series! Going from landlord extraordinaire- web-site developer to television star, who could resist this great opportunity? RSVP- Yes!

With more people electing to rent rather than sell in today's real estate market, new opportunities have surfaced, creating a need for this very show! So on August 31st, both Kevin and Paul headed to Florida to meet with directors and a film crew to shoot the segment for Designing Spaces.

Check out the full story and our behind the scenes pictures!

New! Features Growing & Changing
Our site is better than ever, offering top notch documents and customer service. We now offer over 175 professional legal documents. Take advantage of all we have to offer, including our property management system, database of utilities, and library filled with useful articles and information.

More, More, More: Continual Improvements
We are currently adding more state specific documents!
There are actually tons of improvements, way too many to mention here, so check the site regularly and take advantage of our new, exciting features!

Surviving the 2009-10 Rental Market!

2009-10-19T12:35:00.005-05:00

We are thrown numbers, statistics, and trends from how many people are unemployed to the ever increasing flood of foreclosures. Hearing all this negative news makes being a landlord of one property, let alone a vast portfolio- very scary!

Bottom line... unemployment is on the rise, foreclosures are in every neighborhood, and many are struggling to keep their heads above water. So, what can you do to avoid struggling in this very market? Check out some of our simple tips below!

First things first,know your rental market! Become an expert in the trends of your neighborhoods, cities and towns. Study apartment and rental advertising to see what rents are going for. Respond to ads and go as far as making appointments and looking at comparable properties to the one you are renting out. You need to know how much is too much- pricing right will attract tenants.

Secondly, look at your property from every angle. For instance, having a 4 bedroom property may be tough to rent. Perhaps you can rent it out by the room or attract multi-generational occupants. Do you have a small efficiency apartment to rent? Consider turning it into a short-term executive rental. You may even get MORE MONEY!

Advertise EVERYWHERE! Competition is at an all time high, so get your property noticed. Use popular free web-sites such as Craigslist. Post the availability on social networks such as Facebook and MySpace. Contact local Universities and ask if they have housing posts. Find and call senior centers; Tweet your property...get it out there. Put a sign on it!

Can you say CURB APPEAL? Make it pretty. Simple things like clean and sleek landscaping, freshly painted or washed siding, good lighting, and a welcoming front door can all make a big difference to the prospective tenant. Don't forget about the inside, neutral colors and decor will also help future tenants envision themselves within your very property!

All in all, its a rough market- with lots of competition. Hopefully, these tips will help you keep your head above water!

"SHOW ME THE MONEY"

2009-10-08T14:01:00.004-05:00

Don't Let "THIS" Real Estate Market Slow You're Roll! There are deals to be had, money to be made- BUT HOW YOU SAY...H.O.W??? Read On!

One of the best ways to make real money in THIS market is to buy and fix distressed properties, or "rescue" foreclosed properties from auction. Buying houses at such a discounted price means that you can fix & sell under the market average, AND still make a profit.

OHHH great Idea you say, or hmmmm.... heard that before- WELL, you have, because IT WORKS!

If you are looking for more than a quick fix of income, consider keeping the property on as a rental. A residential rental agreement can keep the cash flowing your way for years to come. If you play your cards right, one property becomes two or three, and soon you will be able to live on your real estate income alone.

Ahhh living the good life...

The question is... if you can make money in a hot market, wouldn't you be able to make money in a cold market????

Lots of Money for WINE!

2009-10-06T11:29:00.005-05:00

SOOOOO if you read my most recent post regarding renting your pad for mula... then you will understand this blogs title! I realize its a bit off kilter... but ya gotta make money to live in Italy and buy nice wine!!!! Oh and by living in Italy, I mean L.I.V.I.N.G!

BIG DREAMS+Positive CASH Flow= SUCCESS!

Hey, no one said its easy... thats for sure! But... if your smart, savvy, and follow your dreams- ANYTHING.....IS POSSIBLE!

So I figured I would post some super advice- Straight from the EXPERTS mouth to help all you big dream landlords out there! By Expert, I don't mean myself- but rather Kevin Kiene... landlord aficionado!

When investing in Real Estate, you may choose to buy and rent a property, or you may choose to "flip it" (buy and sell quickly). The safest way to invest is to buy wholesale properties that are in the "sweet spot" of the rental market i.e. they are not in the best or worst neighborhoods. The goal is to find an investment property with a good (or great) positive cash flow. This is how you will create wealth.

With a positive cash flow coming in from your investment property, you can use this to help you acquire more investment properties. One way to do this is to refinance your current investment property, using the money you get to help you acquire another investment property and so on. In this sense, you are creating positive cash flow from several properties and you haven’t had to pay the capital gains tax on the original property as you did not sell it, but instead, refinanced it to help you purchase more properties.

The most important thing to remember is that if you want to create wealth by investing in real estate, you must maintain a positive cash flow on your properties. By making certain your mortgage payment is as low as it could be, keeping the operating expenses at a minimum, and pricing the rent amounts correctly, you will find that you will not only create a positive cash flow, you will be able to create the wealth you want for yourself.

THANKS KEVIN!

Ohhh and if you do have any questions... feel free to post them HERE!

P.S.- Please feel free to share any grea tips you have on maintaining a positive cash flow!
P.P.S.- Come visit me at my villa!!! :)

Have you recently considered looking for a roommate...

2009-10-06T10:41:00.006-05:00

Imagining how cost effective it could be? Visualizing your growing bank account, trips to europe, a shiny new car!!!!

Well...Prior to making such a big decision you need to plan ahead, clarifing terms with your "new" roomate, hopefully avoiding any possible legal complications.

I KNOW-I know... it's impossible to address every issue that might occur. However, if you are thinking about renting I suggest envisioning what could possinbly go wrong, terms you feel need to be followed, and including such terms in your rental contact.

CoNtRaCt you say..... YES! USE A LEASE!

Most states do not require the lease agreement to be in writing. However, regardless of what the state requires for a lease agreement to be valid, landlords should have a written lease agreement signed and dated by both the landlord and tenant to make certain all rights and responsibilities are agreed upon.

If I haven't said it enough....The most important document a landlord can ever give to a tenant is the lease agreement and the more detailed the lease is, the better protection it will provide. Detailing the payment system for rents, late fees, and other pertinent information will only provide more protection for both the landlords and tenants.

Happy Renting!

PS- How fantastic is the mini cooper! Maybe I should rent out every room in my house... then I will have a mini, a vacation home in italy, and lots of money for wine!

Security Deposits: Defining Normal Wear and Tear & How to Handle Security Deposit Disputes

2009-07-03T14:16:00.006-05:00

No matter how well you screen your tenants, chances are that every now and then you will rent to one that won’t treat your property with the proper respect. That’s why security deposits were developed; to give some measure of protection to landlords from the expense of repairing and cleaning a unit after one of those types of tenants has vacated.

“The security deposit ensures that when the tenant leaves, he leaves the premises in a clean, rentable condition just as he received it,” says Priscilla Nieto McDonald, Associate Broker with RE/MAX Action Realty. Priscilla went on to add that any expenses incurred to bring the property back to a rentable condition can be deducted from a security deposit as long as those repairs are more than what is necessary because of normal wear and tear.

The phrase “normal wear and tear” can itself be subject to a certain amount of subjectivity. However, Priscilla explained that there are instances that are clearly indicative of tenant abuse: “If a ten-year-old door is falling off the hinges, that’s normal wear and tear. But, if the door has a great big hole in it because a tenant put their foot through it, that’s not. If the wall has children’s finger prints on it where the kids held on as they climbed the stairs, that’s wear and tear. But, if the wall has a big hole in it because the tenant brought the sofa down the stairs and it didn’t fit, that isn’t.”

The other important thing to remember about security deposits is that they may be regulated in your state. Many states limit the amount of security deposit landlords can charge. Some states, however, have no statutory limit, meaning that landlords can use their own discretion when setting the amount.

Residential security deposits may also have a state-imposed limit on the amount of time a landlord has after the tenant leaves to return the security deposit. In most states, this time frame is between one to three months.

Because as Priscilla noted, “One person’s idea of damage is different from another person’s,” she recommends that landlords take pictures of the apartment after the tenant leaves. The landlord has to make a claim for the security deposit, so it‘s a good idea to have documentation to back up that claim. She added that it is the tenant’s responsibility to mitigate damages by calling the landlord as soon as a repair becomes necessary.

The biggest mistake many landlords make is thinking that the security deposit belongs to them. The security deposit is the tenant’s money, which means it cannot be comingled with the landlord’s money. Priscilla creates a special bank account with the tenant as the owner of the account, and with herself as the escrow agent. By establishing the account in this manner, she not only maintains separation, but the interest on any monies in it are mailed directly to the tenant, freeing her from the legal obligation to do so.

She also recommends that if it is permitted, a landlord should charge a month’s security deposit and the last month’s rent. The last month’s rent can immediately be put into the landlord’s checking account to help pay expenses. Of course, when the tenant gives notice, you have to remember that they already paid in full.

And speaking of that last month’s rent, Priscilla said that if the tenant leaves without paying it, you can subtract it from the security deposit. The same goes for any late fees and any interest on the unpaid amount.

Although the security deposit is there to protect you from tenant abuse, if you abuse it by not returning it, or by not returning it on time, there are consequences. The tenant can sue you for the money, and as Pricilla explained, “The law would be on the tenant’s side.” That’s why it is imperative that you maintain the separation between your money and the security deposit, and that you have documentation in the form of receipts, pictures, etc. to prove that any money subtracted from the security deposit was legitimately done so.

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Move In/Out Condition - Security Deposit Statement

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Renting to Immigrants: The Laws Affecting Landlords and Illegal Immigrants

2009-06-27T19:11:00.005-05:00

According to the Department of Homeland Security, in 2008, there were 1,107,126 documented aliens in the U.S. The agency also estimated that the number of unauthorized immigrants residing here totaled 11.6 million. On the surface this would seem to represent a burgeoning housing market of which landlords would want to take advantage. However, tapping into this market is not without its difficulties.

The problems associated with renting to non-U.S. citizens are compounded by the dichotomy between federal and state law, says Professor Michael Seng, Director of the Fair Housing Legal Clinic at the John Marshall Law School. The federal government makes no distinction between a legal or illegal alien, so renting to an immigrant is subject to the same standards as renting to a U.S. citizen. The difficulty arises on the state level if you live in a municipality that has made it an offense to rent to an undocumented alien. In some of these jurisdictions renting to an illegal alien is punishable by the imposition of a fine, but in others renting to unauthorized immigrants is a criminal offense.

If you do live in a state that allows you to rent to immigrants regardless of their legal status, keep in mind that the provisions of the Fair Housing Act apply even though non-U.S. citizens are not a protected class under the law.

There is also the question of what additional steps the state may require if you rent to a non-U.S. citizen. Some states may call for the tenant to produce verification of their legal status. There may also be a specific form that the landlord must file with the state that indicates that a documented alien is renting from you.In general, the landlord doesn’t have the duty to inquire about status, explains Professor Seng. That means that since most criminal standards require that the offender know that they are committing the offense, renting to an illegal alien is typically not prosecuted as a criminal offense even in the states that consider it to be one.

You may decide, however, that even though it is sanctioned, you will follow a general policy against renting to non-citizens. This isn’t necessarily a violation of fair housing legislation. Where you can get caught is if your policy can be shown to have a greater impact on one particular immigrant group, meaning that by not renting to aliens it is causing people with the same national origin to have the least chance of any immigrants to get an apartment in that neighborhood. Then it becomes a matter of discrimination based on national origin, which is a violation of the Fair Housing Act. Professor Seng was quick to note that this is a difficult case to prove.

Professor Seng added that credit checks could be performed on tenants that are non-U.S. citizens provided that you run credit checks on all of your tenants. If you only check the credit of alien tenants because you believe they are slow to pay their bills, or they can’t hold down a job for any length of time, then you’re violating the Fair Housing Act because you’re discriminating based on national origin.

The eviction process doesn’t change if the tenant you’re evicting is a non-U.S. citizen. The only difficulty that Professor Seng anticipated was if local law required all evictions to be tracked. This could lead to problems if the state has a no renting to undocumented aliens policy, and you rented to one.

Finally, all of this boils down to one big question – Should you rent to non-U.S. citizens? “Yes”, says Professor Seng. “Legal aliens have the same rights under the law as anyone else. Besides, if you don’t rent to them, you could be opening yourself up to a charge of discrimination based on national origin.”

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FREE Rental Application
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Renters Insurance: Worthwhile Landlord Requirement or Unnecessary Tenant Burden?

2009-06-26T17:06:00.007-05:00

When tenants rent apartments, there are so many things that they need to consider. If you were to make a list of the top ten things they should be thinking about, the question of how they would replace their personal property if it were stolen from or damaged inside the unit would certainly have a place on that list. Another item that would be included is where would they get the money to compensate you if their negligence caused loss to the structure itself?

These are the very issues insurance is designed to address. The problem is that most of your tenants will not be aware that they aren’t addressed by your homeowners insurance. These types of policies only cover non-negligent damage to the building, and to the loss of your own personal property.

To safeguard their personal belongings and to have liability protection, the tenant needs to purchase renter’s insurance. Kip Diggs of the Corporate Public Affairs Department at State Farm Insurance says that, “In addition to contents coverage, renters insurance also provides liability coverage for the policyholder and medical payments coverage which provides immediate medical expenses coverage without regard to fault.”

The liability insurance not only covers liability for damage to their apartment or the general structure because of negligence, but it also provides coverage if a guest is injured while in their apartment. If another person’s property is stolen or destroyed while it is in the tenant’s unit, renter’s insurance will cover that, too.

Included within the liability portion of the policy are medical payments if the tenant’s guest is injured and requires medical help. This coverage extends to persons who are hurt while in the tenant’s apartment on business-related matters as well.

The amount the tenant will receive if a claim is made depends upon whether or not it is an "actual cash value" policy or "replacement cost coverage" policy. Actual cash value coverage will pay only what the property is worth at the time it is damaged or stolen minus the policy deductible.

Replacement cost coverage is the better alternative of the two, because it pays the insured what it really costs to replace the lost or stolen items minus the deductible. Needless to say, this option is also the more expensive of the two. Keep in mind that state law determines the kind of payout on a policy, so an insurance company can offer replacement cost coverage in one state while at the same time being limited to offering actual cash value in another.

In addition to the coverage provided by the basic policy, tenants with high-tickets items like home entertainment equipment, or pricey pieces of jewelry should have the additional protection of a rider. This provides coverage for the full loss of these items even if it is beyond the limits of the policy.

Although it’s easy to see why tenants need renter’s insurance, it isn’t as obvious what the benefits are for the landlord. According to Kip, the fact that your tenant has insurance coverage doesn’t affect the amount of homeowners insurance you need to carry to be sure your property is fully protected.

In fact, even if the tenant has renter’s insurance, it doesn’t remove landlord liability in all instances, Kip explained. “The landlord is going to be responsible for maintenance and liability of common areas, like parking lots, stairwells and sidewalks. The renter is generally responsible for the areas under their control.”

So why would consider making renter’s insurance a provision in the lease agreement? The answer is quite clear. Paying for property damage resulting from your tenant’s negligent behavior can get pretty expensive. If your tenant doesn’t have coverage, you have two alternatives to defray the cost. You can either raise the rents of other tenants (if you have them), and risk losing them; or you can put in a claim against your homeowner’s insurance, and get hit with higher premiums.

However, if your tenant has renter’s insurance, it provides a third and clearly the most preferable option because it takes the onus off of you to find repair money. And as every landlord knows, maintenance is a large part of your job regardless of what it costs.

Visit the Landlord Forms Library for a list of documents offered by EZ Landlord Forms.

Rent Collection: Quick Response, Debt Collection & Techniques to Collect Rent

2009-06-23T17:56:00.002-05:00

While no landlord enjoys being put in the position of having to collect unpaid rent, it does sometimes happen. In order to keep the situation from becoming a black hole from which you’ll never recover any money, attorney Phil A. Taylor says you should always remember the following points:

“Be sure to have good information about the tenant from the beginning of the tenancy and do not let the back rent get to be too much. Act quickly to keep arrears low. This does not mean you have to evict the tenant right away, just limit your exposure.”

Phil, in private practice in Massachusetts, has a long history with collections, both in his current practice and as a member of a corporate legal team. He says that the first month a tenant falls behind in the rent, you need to bring it to their attention.

Of course, how you approach the tenant is an integral part of the resolution. Phil says that unless you are on site and have a cordial relationship with the tenant, you want to avoid face-to-face contact because it could become a confrontation.

Instead, he recommends you send a letter to the tenant. It’s important to note that you don’t have to send the letter by certified mail. Legally, any letter that is properly addressed and has the correct postage is considered to have been received once it is mailed. Therefore, a politely worded letter asking the tenant to call you so that the matter can be resolved, and mailed by normal means is sufficient at this stage of the collections process.

Oftentimes, when the tenant does make contact they will tell you that due to their financial situation, they can only make a partial payment. Phil recommends that you accept it, and that you give them a receipt noting it’s a partial payment, and that accepting it doesn’t mean you’re relinquishing any of your rights to collect the remainder of the debt. You also need to ask the tenant what their intentions are regarding paying the rest of the overdue rent.

You may also feel that you should investigate in how serious a financial jam they are be checking to see if they’re still employed, and how much other debt they’re carrying. You can legally make these inquiries, says Phil. If your original rental agreement doesn’t contain any verbiage barring you from calling the employer listed, you can certainly do so now to verify your tenant is still working there. In addition, as long as the landlord-tenant relationship remains a debtor-creditor relationship, under the Fair Credit Reporting Act you can get a copy of the tenant’s credit report. Most rental applications have a release allowing the landlord to obtain it.

Although you do have access to this information, Phil says you need to ask yourself what you expect to gain from knowing this? It’s actually a question of diminishing returns, because even if the tenant is unemployed and is carrying crushing debt, as long as they pay the rent they cannot be evicted. The only value that information might have is if you weight it against the tenant’s payment history to see how far you are willing to work with them to resolve the issue.

The real problems arise when you’ve put off trying to collect back rent, and the tenant now owes you several months. The only course of action, notes Phil, is to start the eviction process.

The first step is to send your tenant a Notice To Quit. This is a warning letter before you actually start the eviction. In the notice, your tenant must be given a fixed period of time to pay the back rent. In most cases, this ranges from 3 to 14 days according to state law. If the tenant makes good on the debt, their tenancy is reinstated, but if they fail to pay what they owe, they must vacate the rental property.

It’s crucial that you’re aware that even though your notice specifically states that the tenant either pays the money or moves out, you cannot force them out by changing the locks or taking any action to prevent them from gaining access to the apartment if they refuse to leave. Your only course of action is to follow through with the eviction.

If, however, as a result of your sending the Notice To Quit, your tenant skips owing you back money, you’re forced to attempt to collect the debt through other means.

The first problem is to find a valid address/telephone number. Phil says there are subscription services that can help you do this. He recommended Accurint, a division of LexisNexis (see Resource Box below for link).

Once you have that information, and start to make collection efforts, are you subject to the Fair Debt Collections Practices Act (FDCPA), which protects consumers from abusive debt collection actions? As a landlord acting on your own behalf, you aren’t subject to the law because you aren’t considered a debt collector. However, your attempts to collect the money owed cannot include any of the prohibited actions specified in Section 806 of the Fair Debt Collections Practice Act (see Resource Box below for link).

Even property managers aren’t considered debt collectors under the FDCPA. In a letter ruling dated November 16, 1995 written on behalf of the Division of Credit Practices, Bureau of Consumer Protection of the Federal Trade Commission, Thomas E. Kane offered this explanation:

“If the property manager is an agent of the property owner, the property manager probably is a "creditor" and not a "debt collector" because the debt (the rental payments) would not be owed to "another."

Moreover, even property managers who are not agents of the property owner probably are not "debt collectors" for the following reason. It is my understanding that rental payments being collected by property managers are current when the property managers begin sending bills to renters. Because the debts (the rental payments) owed to another (the property owner) are not in default at the time the property managers obtain them, the property managers do not appear to be debt collectors for purposes of the FDCPA, even when they collect rental payments that were current when obtained but subsequently become delinquent.”

Keep in mind that even if you are a landlord/property manager, if at any time during the attempt to collect you mention any name other than your own, you indicate that a third person is collecting the debt, and you become a debt collector subject to the provisions of the FDCPA.

If all of your efforts fail, then the next logical step would be to sue for the amount owed under breech of contract. An attorney familiar with your state’s collection laws will be able to help you. Phil noted that most attorneys involved in collections work on a contingency basis.

____________
Resource Box
Accurint - http://risk.lexisnexis.com/locate-right-party-contacts

Fair Debt Collections Practice Act - http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
_________________
Related Document
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Visit the Landlord Forms Library for a list of other documents offered by EZ Landlord Forms.

The Eviction Procedure: When & How to File Eviction

2009-06-22T14:58:00.003-05:00

Evictions can be a traumatic event for tenants, because they are being ordered to leave their home. But no one stops to realize that an eviction can be equally as traumatic for landlords because it is a costly, convoluted process that is different in each state. When a landlord decides to evict, it is generally not a decision made lightly.

So, what circumstances could cause a landlord to start the eviction process? According to Mike Hill, owner of Mike Hill Real Estate, “Eviction can be initiated for any violation of any provision of the lease.” Even if the landlord fails to renew, if there’s a clause in the lease that says that if it rolls over into a month-to-month rental, all other terms and conditions continue to apply, then the landlord retains the right to evict if a tenant violates one of the provisions of the original lease.

If the landlord does decide that the tenant has broken one of the provisions, and there is a need to begin an eviction, then the landlord must start the process by giving the tenant a Notice To Quit. This is a written notice requiring the tenant to move out by a certain deadline unless the problem is resolved. Your state’s property laws determine this deadline, and it depends on the reason you’re asking your tenants to leave, and the type of tenants you have.

There are three types of Notice To Quit:
1. For nonpayment of rent - Mike says that in many states, landlords are “required to make a final demand for rent and warn of the consequences of not paying it, before initiating the usual legal action to remove the tenant. If the tenant immediately pays rent, no problem, as long as the late charge is included. At this point, before the landlord starts the eviction process, the landlord must accept the rent, even if late.”
2. For violation of a term or condition of the lease other than non-payment of rent - These are commonly known as Cure or Quit Notices, and refer to situations such as keeping a pet if the lease prohibits it, or making excessive noise.
3. For termination of tenancy – This is used to end a periodic tenancy. In general, this type of notice requires the landlord to give the tenant a 30-day advance warning that the tenancy is being ended. Some states require that a 60-day notice be given to tenants who have been in residence for over a year.

Care should be given as to the way the Notice To Quit is delivered. In some cases, if it is determined that the letter was improperly delivered, it can prevent the landlord from filing for eviction.

The best approach is for landlords or their representatives to hand deliver the Notice directly to the tenant. If the tenant is unavailable to receive it, then it can be left with a family member other than a young child. It can also be tacked on the front door. However, it must be readily visible. The last alternative is to send it by certified mail, but you should also send a copy by first class mail, too. Finally, it's important to note that each state has different laws about the delivery of eviction notices, so be sure to double check your state's laws.

Once the Notice is served, the tenant must respond within the specified period stated. Failure to do so, results in the landlord being able to file a complaint for eviction. This has a variety of names depending upon the state. For example, in Mike’s home state of Georgia, it is called Dispossessory Warrant, and it is filed through Lowndes County Magistrate Court, formerly known as Small Claims Court. However, in some states the complaint is filed in Superior Court.

Mike explained that the complaint gives the tenant the option to move or solve the problem. He added that even though “non-payment of rent is an absolute reason for eviction, it’s still possible for the tenant to answer the warrant in two ways: The tenant can claim to be withholding the rent due to something like repairs not being made, or the tenant can kill the warrant by an “answer” in the form of rent, late charges and court costs, which the landlord must accept the first time. If the landlord takes out another non-payment warrant [against the same tenant] within the same 12-month period, the landlord has the option of taking or not taking the money, thus forcing the tenant out, if the landlord has had enough of him/her.”

If the tenant refuses to file an answer with the court, the court will enter a default judgment for eviction provided the landlord proves that the court papers were served properly. Default judgments can be set aside if the tenant can provide a valid explanation as to why they didn’t respond.

If the tenant can show cause, the case will be scheduled for a hearing. If the court rules that the landlord can evict, the landlord must take the court order to the sheriff and the sheriff will post a notice on the tenant’s door, telling the tenant that if they don’t vacate by the date and time given, the sheriff will remove the tenant and their property from the apartment.

In this very long process, there are plenty of opportunities for error. However, Mike notes that, “The biggest and most costly mistake is not beginning the eviction process soon enough, which is within the same month in which rent isn’t paid. They [landlords] make the huge mistake of accepting whatever excuse the tenant has for not making the payment. For those landlords, it’s not that the eviction process itself gets more costly, it’s the lack of the eviction process that gets expensive.”

Finally, Mike cautions landlords not to personalize the relationship between themselves and their tenants. “It’s a business transaction that needs to be made every month and on time, according to the agreement both tenant and landlord signed.”

For eviction notices and forms, and State Assist help with your state's eviction laws, visit the Eviction Notices page over at ezLandlordForms.com

EZ Landlord Forms New Photos and Videos

2009-06-20T16:33:00.004-05:00

http://www.youtube.com/watch?v=TPkONbN98Pk

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Tenant Screening, Rental Advertising, & The Fair Housing Act

2009-06-20T14:37:00.010-05:00

Whether you’re a homeowner with a single apartment to rent, or whether you’re a property manager who oversees large numbers of apartments, your primary objective is making sure your rental units are occupied. But in the quest to find tenants, oftentimes people develop tunnel vision, losing sight of the fact that the methods they’re using to find and screen renters could be in violation of federal law.

The specific law that established guidelines for these processes is the Fair Housing Act. Adopted in 1968 as part of a larger piece of legislation known as The Civil Rights Act, it was the federal government’s attempt to mandate fair housing throughout the country within the limitations created by the Constitution.

The section of the law that covers advertising is 804(c), which states that it’s unlawful to publish any advertisement for the sale or rental of a dwelling that indicates any preference, limitation, or discrimination against people who are covered by, what attorney Nadeen Green calls, “the seven protected classes:” race, color, national heritage, religion, gender, disability, and familial status (whether or not you have a child under 18 living with you).

Nadeen, who is Senior Legal Counsel with For Rent Media Solutions, a blogger for the National Apartment Association, and author of countless articles concerning fair housing, has delivered 900 presentations educating landlords/property managers on the complexities of the law. She explains that, “The law applies to every landlord and every place. While no state or local government can take away the [federal] law, they can add their own provisions regarding things like age, source of income, and sexual orientation.” Nadeen cautions landlords to become familiar with both federal and state fair housing laws before they attempt to advertise for tenants.

While the federal law is generally considered universally applicable to all landlords throughout the U.S., its full force is reserved for those with a substantial number of apartments to rent. Any person with less than four rental units under their control isn’t subject to the provisions of the Fair Housing Law. However, even though a landlord may be considered exempt from the law, they are still bound by the necessity to create an advertisement that is in compliance with it, meaning they too, are forbidden from saying anything that indicates preference, limitation, or discrimination against people within the protected classes.

Although a lot of what the law has to say about advertising focuses on not showing preference, Nadeen was quick to point out that there are preferences a landlord can include that are legally acceptable. You can indicate partiality for people with children, or people with disabilities. That’s because people without children and people without disabilities aren’t protected classes, so they aren’t being discriminated against by the request.

But the biggest problem with most ads is what many landlords include along with the description of the apartment, says Nadeen. Instead of simply giving an account of the physical features, they offer an opinion as to what sort of renter would be best suited for the place. If you want your ad to be in compliance, you can describe the number of bedrooms, bathrooms, and whether or not it has an eat-in kitchen, but you can’t say something like, ”This one bedroom apartment would be ideal for a single person.” So stick to a description of the features and amenities, and stay away from expressing your thoughts as to the type of tenant you anticipate living there.

When it comes to placing the ad, there are no real requirements regarding the types of publications you can use, unless if publishing it in a particular periodical will result in “geographic discrimination”. A classic example of this kind of situation is if a devout practitioner of a particular religious sect wants to be sure that they only receive responses to their ad from like-minded individuals, so they advertise the apartment exclusively in their church bulletin. Limiting your advertising in this way results in geographic discrimination because you’re not reaching enough people who might be interested in renting the unit.

Nadeen advises landlords to avoid developing a profile of the perfect tenant because, “It is almost impossible to create a profile without stepping on the toes of the protected classes. There are only three things you should be concerned with, that the tenants will pay the rent, maintain the premises, and follow the rules.” That doesn’t mean you shouldn’t be consistent when you screen applicants. Nadeen says that landlords should decide what information they need to know about a perspective tenant, and then take that information and devise a set of question that will be used to screen anyone who inquires about the unit. Just be sure that the questions are neutral, and in no way discriminate against the protected classes.

Finally on the issue of using tenant applications, Nadeen says they are a good idea. However, she cautions landlords against writing their own unless they can have it vetted, meaning examined by someone conversant with fair housing law who can determine that it is in compliance.

In addition to the question of compliance, you also want to be sure the rental application you’re using is comprehensive enough to provide you with critical information such as employment history, income, housing history, social security numbers, and landlord contact information. EZ Landlord Forms provides a free rental application that includes an authorization for landlords to perform background and credit checks on rental applicants; download the free rental application from there.

Overview of Lease Agreement (State Specific) on ezLandlordForms.com

2009-06-01T20:33:00.006-05:00

DOCUMENT DESCRIPTION
This state specific residential lease agreement is the single most important form in the field of property management. Our state-of-the-art lease builder wizard makes this crucial step in the rental process easier than ever before. This simple program walks you through every step of building your lease. With a few clicks of the mouse, all of the line items, clauses, and addenda are combined into one complete and comprehensive lease package.

Our exclusive State Assist technology helps to ensure that your lease will meet or exceed your state's requirements. This user-friendly program has been refined by a team of legal experts to provide you the highest-quality lease available online.

Once all of the jurisdictional requirements have been met, the lease builder wizard allows you to further customize your lease package with up to 47 optional features covering virtually every imaginable rental situation. Now the protection of a complete and comprehensive lease agreement is at your fingertips with this powerful online tool.

DOCUMENT FEATURES
• State-Specific - Specifically designed for use in each of the 50 states in the US
• Create your lease with our state-of-the-art lease builder wizard
• State Assist - Provides important legal information for your state
• Written in simple, plain language, so it's ez to read and understand
• Customizable
• 27 Selectable Rules and Regulations (see below)
• Lease Package - Combines all of your lease documents together (see below)
• Complete and Comprehensive

LEASE PACKAGE DOCUMENTS
These are just some of the 26 documents you can select to include with your lease...
• Lead-Based Paint EPA Pamphlet
• Lead-Based Paint EPA Disclosure
• Pet Agreement
• Zero Tolerance for Criminal Activity
• Co-Signer Agreement
• Welcome Letter
• Emergency Shut-Off Instructions for Electric, Water and Gas
• All Addendums, Disclosures, and Information Documents
• Include a lease cover page and a dynamically created table of contents

RULES AND REGULATIONS
This is an example of some of the selectable rules and regulations in the lease...
_ Late fees are strictly enforced and any unpaid fees will not be waived
_ The Tenant must notify Landlord of any changes in employment
_ The Tenant will be responsible for any fine and/or violation that is imposed on the Landlord due to the Tenant’s negligence
_ The Tenant agrees to test smoke detectors periodically as well as maintain operational batteries at all times.

DOCUMENT DEFINITION
A rental agreement is a contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term.

Who: The parties involved in the contract, the lessor (sometimes called the owner or landlord) and the lessee (sometimes called the renter or tenant) are identified in the contract. A housing lease may specify whether the renter is living alone, with family, children, room-mate, visitors. A rental may delineate the rights and obligations of each of these. For example, a "sub-let" to a stranger might not be permitted without permission of the landlord. This also applies to whether or not pets may be kept by the renter. On the other hand, the renter may also have specific rights against intrusions by the landlord (or other tenants), except under emergency circumstances. A renter is in possession of the property, and a landlord would be trespassing upon the renter's rights if entry is made without proper notice and authority (e.g., 24 hours' notice, daytime, knock first, except for emergency repairs, in case of fire, flood, etc).

What: Rented real estate may include all or part of almost any real property, such as an apartment, house, building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things. The premises rented may include not only specific rooms, but also access to other common areas such as off-street parking, basement or attic storage, laundry facility, pool, roof-deck, balconies, etc. The agreement may specify how and when these places may be used, and by whom. There may be detailed description of the current condition of the premises, for comparison with the condition at the time the premises are surrendered.

When: the term of the rental may be for a night (e.g., a hotel room), weeks, months, or years. There may be statutory provisions requiring registration of any rental that could extend for more than a specified number of years (e.g., seven) in order to be enforceable against a new landlord.

How To Handle Bad Tenants

2009-06-01T17:12:00.002-05:00

What Makes a Strong Lease Agreement, Eviction Procedures and the Right Landlord Forms

Bad tenants are a landlord's worst nightmare. Between not paying their rent, trashing your rental property, allowing pest infestations, committing criminal acts in the property and a hundred other miserable acts, bad tenants can make a landlord's life miserable. Fortunately, there are tactics you can employ to minimize the damage caused by bad tenants.

First Line of Defense: An Airtight Lease Agreement

Before you allow a tenant to move into your property, you can lay the groundwork for addressing future problems by using an airtight lease agreement. Every state has different landlord-tenant laws governing what your lease agreement can contain, so be sure to use a state-specific lease agreement. These can be sometimes be obtained through your state's website, but more likely you'll have to buy one online (EZ Landlord Forms offers a custom lease agreement for each state).

Among other provisions, a strong lease agreement states clearly the landlord's policies on cleanliness, property maintenance, criminal activity, late rental payment penalties and all other common problems that can arise.

Second Line of Defense: Adhere to All Disclosure Laws

Bad tenants will often run crying to sleazebag attorneys or Legal Aid, claiming that the "Big Bad Landlord wants to evict me! I didn't do anything wrong, oh protect me protect me!" And the first thing lawyers will do will check to make sure that your lease agreement is valid and that you complied with all applicable landlord-tenant laws, including delivering all of the necessary disclosures. You have several options for complying with these laws:

1. You read your state's landlord-tenant code directly
2. You hire a real estate attorney to tell you what to do, or
3. You use an online landlord forms system that automatically fills in all of the required forms for your state.

Third Line of Defense: Offer a Deal to the Tenant to Vacate

It always pays to offer a carrot before a stick, so when your tenants go bad, sit down with them, preferably in person and make them an offer. If they can be out of the property within the week, with all of their belongings, you won't take them to court and get a judgment against them. If they want to fight and drag it out, then tell them that you're going to file the eviction, which shows up on their credit report, and obtain a hefty judgment against them for back rent, court costs, legal fees and damages to the property.

Fourth Line of Defense: Comply with All Local Eviction Laws

Every state outlines different eviction procedures in their landlord-tenant laws, and all landlords need to comply closely with them if they want to clear the bad tenant out of their rental property this decade. As with every other step in this process, as a landlord you have several options:

1. You can hire a real estate attorney who specializes in evictions, which is effective but pricey;
2. You can hire an eviction specialist, which is less expensive and often effective; or
3. You can do it yourself, by mailing the appropriate notices to the tenant and filing an eviction form with the local landlord—tenant court (see the above landlord forms link for state-specific eviction instructions).

As a final note, it helps to have all of the tenants' asset information on record, for collection purposes, and the cheapest and easiest way to learn this information is to simply have the tenant fill it in on their rental application.

Which brings us back to the initial point of prevention: Through being diligent from the beginning, when they first fill out the rental application and you first sign the lease agreement, you can lay the groundwork for dealing with future problems. Hopefully, you'll never have to do any of these actions, and your tenants will all be clean, make their rental payments on time and take good care of the rental property—but don't count on it.

How To Screen Tenants: A Landlord's Guide to Finding the Best Tenant for Your Property

2009-05-31T16:00:00.000-05:00

So it's time to find a tenant for your property and you're wondering how to go about finding the right tenant. Or perhaps, like many others, you're hoping that the right one just falls into place. Letting chance decide whether you find a reliable tenant is a risky proposition. This article will explain how to screen prospective tenants to ensure consistent cash flow and avoid losing money on lost rent and eviction fees.

Find good prospects

Begin by advertising to create a pool of applicants from which you can choose the best. Advertising doesn't have to be extravagant; start with Craigslist (the price is right) or Roommates.com if you're just renting out part of a property. Remember that some listing sites are often skewed toward a tech-savvy, younger demographic. You may need to list the property in a classified ad in a publication which is read by your target clientele.

The Rental Application

The phone's ringing! Now what? Find a rental application form online. You will need to get all of the tenants' full names, social security numbers, dates of birth and current addresses to pull credit reports. Also, record their employment information, including position, supervisor (and his/her phone number) and income. Tell interested applicants when you will hold an open house and make sure that the time is convenient for conventionally employed applicants. Finally, tell them how much the application fee is. This is critical: always charge an application fee ($20 is typical) for two reasons:

1. It weeds out many, but not all bad apples.
2. It will cover your expense for when you pull the applicants' credit reports.

Interview prospects

But wait! Fifteen people say they were coming to the open house and only four showed up! What happened? Well, either I could rant about the shortcomings of human nature, or I could simply tell you to expect a low turnout rate. It is what it is; expect between a quarter and half of applicants who say they'd be there to actually come to your open house. The lower-end the property is, the lower the fraction will be. When you meet the applicants in person, ask them some questions about their jobs, their lives, their families and their lifestyles in general. You'll learn a lot, and what you don't pick up consciously will still form a gut feeling, which is what you want to follow more than all of the other screening techniques combined.

Perform Due Diligence

After you've shown the house, collected the application fees, and developed a sense about the applicants, start with the most promising applications and pull their credit reports (go directly to the bureaus, like Experian). Call their supervisors, verify their employment history, income and likelihood of continued employment. Call their current landlord and ask about their payment history. Finally, if everything looks good, inspect their current residence, and see firsthand how they live.

Get a Solid Lease Agreement

You're almost done! Once you and the tenant have agreed on a price, a security deposit, a term and have settled the details, make sure that you have a good lease agreement that complies with local laws and any legally-required disclosures in your state. This can't be overstated: You really need a good lease, as it will be the first piece of evidence if there's ever a disagreement between you and the tenant later on.

Congratulations! You're finished, and with any luck, you won't hear from the tenants again until it's time to renew their lease. Good luck, and remember that you are not alone; there are thousands of resources out there for landlords and real estate investors.

Lease Agreements 101: What you Need to Know to Succeed

2009-05-29T20:02:00.000-05:00

Whether you’re a new landlord or property manager just getting your feet wet in the business for the first time, or a seasoned pro who has been dealing with renters for decades, it’s vitally important that you have an in-depth understanding of the lease agreement. Your level of familiarity with the basic lease agreement and its components is a factor that can make or break your career.

If you’re considering breaking into the property management business, learning about leases is the single most important thing you can do. If you have years of experience in the field, but you’ve always used basic, informal, or verbal rental agreements, there’s no better time than the present to upgrade to a written, comprehensive lease agreement that will help protect your property, your investment, and your livelihood.

Let’s start with the basics. What is a lease? Generally speaking, it’s a specialized form of the standard contract. Rather than spelling out the terms of a sale or a service agreement, the lease documents an agreement to allow the renter (or “lessee”) inhabit the property for a specified period of time.

Most leases spell out the terms of the relationship between the owner/manager of the property and the tenants. Common elements included in lease agreements are the duration of the lease (month-to-month, six months, a year, etc.), the lease renewal process, rules for the rental property, payment terms, whether pets, smoking, businesses, and other activities are allowed in the property, late-payment and non-payment penalties and procedures, and guidelines for vacating the property and returning the property to move-in condition at the end of the lease.

Based on the needs of both the landlord and the tenant, the terms of a lease can vary considerably. However, it’s important to make sure that the lease agreement you are using is in compliance with all of the local, state, and federal jurisdictions that apply in your area. Otherwise, you may be opening yourself up to legal liability if the lease is ever challenged in court.

As a landlord, you pledge to uphold your end of the responsibilities and duties set forth in the lease, as well as to adhere to the policies and practices you have set forth in the agreement. You also are agreeing not to change the terms of the lease until the current agreement has expired.

Your tenant’s signature on the lease confirms that your tenant will comply with all of the rules and guidelines specified in the document, keep current with rent payments, and leave the property in the manner described in the lease.

A legally-binding lease can be as simple as a basic contract handwritten and signed by both parties, or it can be as comprehensive as a multi-page package covering all aspects of life in the rental property. Some landlords may have gotten into the habit of using simple leases, perhaps believing that it’s just not worth the time and effort needed to create a comprehensive lease package.

However, most legal experts agree that a more comprehensive lease package is your best bet. If your lease agreement does not spell out your exact expectations, you are leaving a lot to chance, and chances are, problems and misunderstandings will inevitably arise. On the other hand, if you rely on a comprehensive lease package that clearly spells out all of your policies and expectations, it is less likely that you’ll end up in court over a dispute. Furthermore, you’ll be less legally vulnerable with a comprehensive lease agreement.

For beginners, leases may be a bit intimidating, but at root, they’re nothing more than specialized contracts. Even more importantly, they’re your best defense against bad tenants. Every minute you invest in the process of building an airtight, comprehensive, legally-binding lease will pay significant dividends down the road.

ezLandlordForms Social Media Links

2009-05-29T19:21:00.000-05:00

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Yes, You Really Can Invest In Real Estate Without Extra Money In The Bank

2009-05-29T15:28:00.000-05:00

Do you want to get involved in investing in real estate but don't seem to have any extra money in the bank? This is a common problem, but what you may not realize, is that you can start investing with little or nothing in your bank account. Basically, if you own your own home, you can leverage this asset and find yourself investing in no time flat.

As long as you own your own home, pay your mortgage and have fairly descent credit, it will actually be easy to get started in real estate investing. There is most likely a pretty good amount of equality in your house. Even if you have only owned your house for a short time, you have been paying it off and it is most likely has been increasing in value. Just take a look at the balance of your mortgage and subtract it from its current value. Of course you may need to include a second mortgage or and other liens that may be on your property, but you should still have equality to work with. This is your green light to move forward into investing.

Here three ways to use the equity in your home to raise the capital for real estate investing.

1. Refinancing Your Home - You can refinance your house, get a better interest rate and also get some cash out from a refinance mortgage. You can use the cash to purchase an investment property outright, or you should at least have least enough money for a down payment of a property. Be sure to check with your lender or mortgage broker for any of the rules about cash-out refinancing. Keep in mind, a cash-out refinance mortgage may have higher interest rates than other types of mortgages.

2. Using a Home Equity Loan - A home equity loan uses the equity in your home as collateral, this would be a second mortgage to the one you already have. The mortgage amount is based on a percentage of the equity in your house. You may be able to borrow up to 100% of your homes value, but if you are getting a home equity loan on a second property, you may not be able to borrow as much. This type of loan allows you the option to pay the loan back early without penalty, just a nice little bonus.

3. Open a Home Equity Line of Credit - A home equity line of credit has a credit limit similar to a credit card. This is not much different from a home equity loan, the amount that you can borrow is based on your credit score and the amount of equity in your home. You can transfer funds from your home equity line of credit, or even write checks directly from the account. Interest rates are generally lower than cash-out refinance mortgages, and there are tax advantages as well. Another advantage is that you are only paying interest and making payments on the amount you owe at the time, not the entire amount of the loan. In the future, you may also be able to renegotiate for a higher credit line when the equity in your house increases, especially if you have made improvements to your house.

Real Estate Investing is not only for the rich. The average homeowner can get started in real estate investing even if you don't have a lot of money in the bank. You can use cash-out refinance mortgages, home equity loans, and home equity lines of credit to begin your journey as a real estate investor, and continue to build more investments into the future.

Why a Good Rental Agreement is Your Best Defense Against a Bad Tenant

2009-05-29T13:52:00.000-05:00

If you've been in the property management business for more than a few years, you've probably been hit with every landlord's worst nightmare: the bad tenant. No matter how rigorously you screen applicants and check references, one is bound to squeak through sooner or later. Even the most experienced, well-prepared landlords are likely to be faced with this kind of nightmare at some time during their property management career.

There are as many circumstances that can cause a landlord-tenant relationship to sour as there are tenants. A lost job, a divorce, problems with the rental property, disputes with neighbors -- any of these situations tend to bring out the worst in tenants. The point is, you can never be sure exactly how that well-spoken tenant with impeccable references will be acting six months or a year down the road.

It's impossible to predict exactly how each rental relationship will turn out. But smart landlords know that a good lease is the best protection against a bad tenant. You've poured a lot of time, money, care, and attention into readying and maintaining your rental property. An up-to-date, legal, comprehensive lease is like a layer of insurance that guards against potential problems and legal challenges.

Over the last several decades, more courts in the United States have begun to side with tenants in legal disputes. Legal experts have noted that this trend toward "renter-friendly" court decisions is especially pronounced in cases in which a verbal, informal, or incomplete lease agreement has been used.

On the other hand, if you make sure that the ,lease agreement you're using is airtight, comprehensive, and fully in compliance with all applicable regulations in your jurisdiction, you stand a much greater chance of receiving a favorable judgment in court.

If you use a comprehensive lease agreement that details all of your expectations, rules, and policies from the get-go, there's little chance that the proverbial "bad tenant" will be victorious in a claim against you. In fact, as long as your policies and practices have consistently matched guidelines that are clearly set forth in the lease, it's very likely that the outcome will be in your favor.

Likewise, an airtight lease agreement will expedite the eviction process if the situation with your "bad tenant" has deteriorated to that level. If you can prove that the tenant was informed of and agreed to the terms of the agreement, the delays involved in an eviction will be significantly diminished.

Don't just throw away all of the time, money, and effort you've poured into your property management venture. Don't trust your rental property to a generic, vague, and possibly illegal lease. Instead, help protect your investment with a comprehensive, professionally-prepared lease agreement package that will limit your liability and legal vulnerability.

Picking Up The Pieces Of A Broken Lease: Consider Your Options....And Choose The Right Lease

2009-05-29T11:39:00.000-05:00

There are many different situations that can result in the violation of the terms of a lease. Tenants can breach a lease by breaking rules, missing rent payments, abusing the rental property, or otherwise failing to hold up their end of the lease agreement. Alternately, tenants may elect to deliberately break a lease by moving out of the rental property before the conclusion of the lease period has arrived.

So, as a landlord, how should you choose to respond to a tenant who has violated the terms of the lease? Clearly, your best course of action will always depend on the exact circumstances of the situation you are dealing with. However, here are a few general guidelines that will help you make the right decision for addressing a breach of the lease agreement.

If Your Tenant Has Broken the Rules:

* First, assess the level of seriousness of the violation. Is the problem in question a major violation of the rules or a repeat offense? If so, a more severe penalty may be justified. If not, a written warning and a signed form promising future compliance may be the best option.

* Has the property been damaged? If so, you can bill the tenant directly, include the repair costs on the next rent invoice, work out a payment plan to allow them to reimburse you for the repairs over several months' time, or deduct the amount directly from their security deposit. If you have any reason to believe that the tenant may be considering a premature departure, it may be best to deduct the repair costs directly from the security deposit to protect your own interests.

* What is your legal vulnerability? If the tenant's actions are in direct violation of the terms of the lease, you will be more likely to receive a favorable judgment if the matter winds up in court. However, if the rule that has been broken is only implied, vaguely worded, or missing altogether from the lease, it may be best to hold off on eviction until you have amassed a paper trail of documented warnings to the tenant.

* Is your property or your investment at serious risk? If your tenant has been engaging in activities or behaviors that could imperil the property, the neighborhood, your cash flow, or your reputation, an eviction could be warranted. If repeated warnings have been issued and the situation has not been resolved, consider your options, double-check your documentation trail, and begin the process.

If Your Tenant Has Moved Out Before the End of the Lease Period:

* Again, consider the circumstances of the lease violation. Does the tenant have a compelling reason for moving out early, such as a family emergency, a financial crisis, or a divorce? Has the lease just begun, or is it close to completion? Have they tried to talk to you and work out an arrangement? If so, it may be best to try to compromise and find a mutually beneficial solution to the problem, rather than pursuing a legal course of action.

* On the other hand, if a tenant moving out before the conclusion of the lease period has failed to communicate with you, left the property in disrepair, appeared to be deliberately trying to evade paying you, or has otherwise acted in bad faith, it may be best to hold them to the terms of the lease and demand rent payment for the remainder of the stated lease period.

Technically, there is no such thing as breaking a lease by moving out early from a contract law point of view. By signing the lease agreement, they have obligated themselves to honor the contract for the duration of the lease period specified, so you are perfectly justified to attempt to collect rent due by any legal means necessary.

As always, each situation that arises must be carefully considered in context. Take a rational, measured approach, calmly identify pros and cons, and select the course of action that best reflects a balance between ethical property management practices and a respect for the legal rights granted in your jurisdiction. If you think things through carefully rather than responding rashly, you will always make the right decision.

A Guide For Preparing Yourself For Eviction

2009-05-27T20:22:00.000-05:00

During this time of recession, "bank owned" signs and eviction notices seem to be everywhere you look. If you are a property manager or landlord, it is especially important to take extra provisions to protect your rental properties so that you don't lose money in the long run. One preventative measure is to find an attorney
that specializes in the eviction process prior to ever requiring his services.

When seeking out an eviction attorney, plan to meet and interview a few on the phone, or in person, so that you can get some foresight into the way you interact with them and the way they conduct their business. It is important to find an eviction attorney that shares your views and ideas on when it is appropriate to serve an eviction notice, and the involvement level expected of you as the property manager or landlord, and them as the attorney. Additionally, you want to make sure that they are available to answer questions or concerns on an as-needed basis. Be sure, as well, to check each attorney's credentials and case record. You want to be sure that the attorney you select has a reputation for winning cases for the property managers and landlords he has represented.

After selecting an eviction attorney with whom you feel comfortable, you should map out the eviction process, so that you can be sure you know the materials and forms you will need to file for an eviction. Eviction laws vary by state, and sometimes by city or county, so be sure to question your attorney on these differences so that you have the appropriate related documentation prepared and available.

Furthermore, you should prepare the legal forms necessary for eviction so that should a situation present itself, you are prepared, and do not have to go scavenging around for the appropriate forms. This can waste time and money.

Finally, you should create an outline based on your meeting with your attorney of the eviction process. Then you should use this outline as a model should an eviction situation arise. That being said, if you are close with the affected tenant, or a special situation is causing their lack of payments, you can use best judgment to decide clemency. Otherwise, you must stick to your outline, especially if there is a lack of communication between you and the tenant. Do not be too lax or a pushover in serious situations such as these.

For help formulating and sticking to your outline, the Internet is a great resource. Find a website that has all the necessary forms, such as late notices, for you to use. You should send your tenant a late notice every time their rent is late, and keep a copy of each notice in a file. You will be able to refer back to these notices in the event of an eviction.

Remember, do not wait until the last minute to evict a delinquent tenant. Readily having an evictions attorney available for the process, or simply for advisement, will greatly aid you in such a situation.

Long-Term Real Estate Investing: Tips, Ideas, and Supply & Demand

2009-05-24T17:06:00.000-05:00

With worldwide confidence in real estate markets down, it's no surprise that investors are looking for safe, long term investments at the moment. But what makes for a "safe" real estate investment? Do they exist at all?

There is risk involved in any investment, from stocks to commodities to real estate to bonds. But, there are certain trends that can be observed among long term real estate investments, that can help you identify strong investment opportunities. Here are a few of those trends to keep an eye out for, and why they make sense.

Population Growth and Real Estate

Population Growth

It's not cerebellum surgery to figure out that growing populations create growing demand for housing, which will in turn increase real estate values. Start looking at long term population projections for a particular town or neighborhood, and look particularly at desirable locations with no further room for development (fixed supply). And here's a BIG hint: the fastest vector for population growth isn't breeding, especially in America. Immigration accounts for the fastest growth, so consider investing in neighborhoods with strong roots for a specific immigrant group, and one that's still arriving in droves.

Urban Planning & Sprawl

It's shocking how little attention we in this country pay to urban planning, and the price we pay as a result. Consider for a moment what happens to a town without organized and well-conceived urban planning: developers build further and further outward, wherever they feel they can sell for the highest price, and continue to sprawl outward until they can no longer earn their minimal return. Aside from heinously unattractive stretches of strip malls and cloned two-story housing developments, this creates a virtually limitless supply of real estate, which means (duh!) that values will stagnate or decline in the face of limited demand and unlimited supply.

Long Term Real Estate Investing

Water

The whole world wants to be near water, whether it's a bay, a river, an ocean, a strait, a sound, or an alligator-infested bayou. But guess what? There's a finite supply of water-access property in the world, and an ever-growing population desperate to fish, boat, and swim, which means rapidly increasing values due to the growing demand and fixed supply. Beware, however, of certain pitfalls of owning property near water, including flooding, hurricanes, and difficulty to insure.

Stable Institutions and Employment Providers

There are certain employers who are so large, and so stable over time, that they create their own economic center of gravity. Housing, along with all the commercial and support industries that accompany human habitation, will pop into orbit around these behemoths, but certain neighborhoods will always be more attractive to these institutional employees than others. First, identify some of these institutions near you that might make strong candidates; examples may be large government complexes, university campuses, long term military bases, or large medical campuses. Second, research that institution's long term plans regarding relocation or expansion, and third, find out where the employees there prefer to live. These neighborhoods can become increasingly desirable real estate, as that institution expands, and the alternative housing becomes farther and with fewer commercial resources.

This list is by no means exhaustive, but should help grease the gears and offer a few ideas. The bottom line is to evaluate long term changes in supply and demand, and to think in terms of a neighborhood's long term demographic changes. Good luck, and happy investing!

What Every First Time Investor Should Know about Creating a Lease Agreement

2009-05-24T16:31:00.000-05:00

While real estate sales have recently been in a slump, the rental market is flourishing. Many homeowners are now becoming landlords, and renting out their unsold properties. This has led to an increased number of first time real estate investors.

First time investors must educate themselves on the importance of the lease agreement, as it is the most critical form that a landlord uses. There are a variety of lease agreements available to landlords via the Internet, and there are many benefits of using the Internet as a resource to create a lease agreement.

It is critical for the website selected to provide assistance throughout the lease writing process. The tools providing this assistance should be easy to follow and understand, and the site should, as well, have available, a customer service line or chat to answer any questions that come up along the way. The information provided during the lease writing process, and within the lease agreement must be accurate, so it is imperative to choose a website that has a proven track record .

A great feature to look for is a lease wizard , which assists the customer in writing the lease and filling out the necessary information, such as where and when to fill in the rental location, or rental terms.
The additional benefits of writing your lease agreement online are numerous. There is the accessibility factor, as it is critical to find a site that allows you to store and save your information and lease documents. Then, there is the cost effectiveness, customer service, and legality.

With specific regard to the legality, first time investors should be sure to find a site that has compiled its lease agreements with attorney assistance and review. Furthermore, it is important to utilize a website that guides the first time investor through state specific laws and legislation, as theses differ from place to place, sometimes even city to city.

Real estate investors must always remember that the real estate market, while at times is volatile, is also rewarding. Having a lease agreement that is legal and complete in its content can help in heading off many issues that may arise, such as bickering over late payments, or how a tenant should give move-out notice. Make sure that the online lease agreement used includes the discussed features in order to have the most effective lease and lease writing experience.

How to Slash Your Rental Vacancy Rates

2009-05-23T14:28:00.000-05:00

There are the obvious costs to vacant rental properties: paying for the mortgage, insurance, taxes and utilities out of pocket. But the costs don't end there. Break-ins, vandalism, landscaping, and upkeep are all additional risks and expenses, which all aggregate to a message that you already know — rental vacancies need to be slashed to an absolute minimum.

How is this accomplished? Here are eight things you can do to chop your rental vacancy rate, and keep each property performing well with a solid rental agreement.

Tip 1: Do Your Homework
Here's something else you already know: not all neighborhoods are created equal. Some have higher vacancy rates than others, for reasons ranging from overdevelopment to urban decay, and you need to know a neighborhood's trends BEFORE investing tens of thousands of your dollars in it. Talk to property management companies, appraisers, realtors and anyone else you can find who has their finger on the pulse of the neighborhood you're considering.

Tip 2: Visibility & Location
All real estate investors — and the rest of the world, for that matter — know that location is by far the most important aspect of a property. But you need to consider visibility as part of the location equation, because properties that get more foot traffic and other visibility will get word out faster, and thus bring in the rental application signatures faster. Sure, internet advertising is great — for certain demographics — and newspaper advertising can be effective, but putting up a "For Rent" sign will reach people who already know the area and what the property looks like, from the outside anyway.

Tip 3: Quick Turnaround on Repairs
Every day between when a rental property is vacated and a new rental agreement is signed is money lost for the landlord, so get your handyman or contractor in the property on Day 1 to touch up paint, do any overdue repairs and generally put the property in a fit shape to show. This means maintaining relationships with contractors, and staying in communication with them. This is also a great time to get an edge on your competition by improving your property, as your tenants will only be as good as your rental property.

Tip 4: Price Right
Don't guess what you should charge for rent, because an inappropriate rental amount will either shortchange you or the property will never rent. Look up what other landlords are charging in the area, and maybe even go walk through a few of these properties to see how they compare to yours. Price it right — get it rented — and you'll save yourself a lot of headaches.

Tip 5: Market Your House Appropriately
Who are you trying to reach? If it's an Hispanic neighborhood, maybe you need to advertise in Spanish in the local Spanish newspaper. Many landlords use computers every day — and assume the rest of the world does too — but many lower-end rental applicants don't use the internet at all, so remember that the internet may not reach your target audience. The bottom line is to make sure you reach the right people, so think in terms of what will reach into their lives — not what's effective in yours.

Tip 6: On Site = On Task
Sure, your little townhouse for rent isn't going to have on-site property management — but if you own an apartment building — it may make sense to hire an on-site property management company. On-site property managers statistically have shorter rental vacancies — so if reasonable to do so — hire on-site property management to get that rental agreement signed faster.

Tip 7: Rental Agreement Term
Obviously, a longer term on your rental agreement means fewer vacancies (theoretically, anyway), which means you want the longest term possible. Yes, we live in a world perpetually afraid of commitment — so you'll have to offer something in return to draw quality rental applications. Consider offering your prospective tenants a choice between a one-year rental agreement at one price, and a two-year rental agreement with a $50 discount every month — or maybe you'll kick in paying for the water bill. The point is that it can be worthwhile to bribe tenants to commit to a longer rental agreement term.

Tip 8: The Rental Agreement with Purchase Option
There are several advantages to advertising rent-to-own — including tenants who are more invested in taking care of the property. In addition they have more incentive to pay rent on time, and then there is the possibility of attracting higher-quality homeowner-material tenants. It also saves you the cost of a realtor fees.

So start printing rental application forms — start advertising — and take a smarter approach to scoring a signature at the bottom of that rental agreement.