SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

Dealing With Tenants

Seven Things Your Tenants Will Try To Hide From You

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If you are a landlord, at some point your tenants are going to break your rules and try to hide it from you.  They are going to think they are smarter than you and that they can get away with it.  The thing is, you cannot let them because these hidden items can cause you big trouble.  So what will they try and hide?   Lots of stuff.   But here are seven things your tenants will try and hide from you that we have found to be most concerning.

1.  My Significant Other Is Moving In – Let’s face it, people shack up. However, shacking up can cause you serious headaches.  The main concern here is you do not know who that significant other is.  You do not know what their background is because they did not go through your screening process and now, they are essentially living in your property.  Sure, if your tenant was screened than all might be OK, but you never know.  That significant other could have a record, a warrant or worse.  If you suspect someone is living in your property that is not on your lease, you need to confront the situation right away.

2.  I’m Getting A Pet – We like pets. They are a money maker, so we allow them.  However, some tenants neglect to tell us they have one or that they are getting one later on.  Why?  They do not want to pay the pet fees, or it may be of a type or breed that we do not allow.  Finding out about unknown pets is one of the reasons that routine inspections are so important.  Your tenants may try to hide the fact they have a pet, but most times the evidence is just too strong to deny.

3.  I’m Posting On Couchsurfing.com – Are you aware of couchsurfing? If you are a landlord you need to be.  Couchsurfing is when someone with a couch allows someone else to crash on their couch for the night.  That someone with a couch could be your tenant.  There are websites dedicated to hooking up people with couches with those looking to crash on them.  Thing is, neither you nor your tenants have any idea who is actually crashing on their couch.  That is way too scary for me.  If you or your other tenants see a lot of strange people coming or going, do a little investigation on the internet.  You may just see your property listed in places you would rather it not be.

4.  I’m Trying To Make A little Money With Air B and B – You have most likely heard of Air B and B by now. Thing is your tenant has as well and some are going to think it is perfectly OK for them to rent out that extra bedroom they have.  Do not allow this.  Again, you do not know who is coming into to your property.  It is too much of a liability.  Have a “no subletting” clause in your lease and explain at your lease signing meeting that it means no Air B and B.

5.  I Found My New Roommate On Craigslist – That person your tenant wants to move in with them, they have no idea who they are. Why?  Because they found them on Craigslist.com.  For some reason they will tell you they know them when they really do not.   I’ve seen this situation work but I have also seen it be a disaster.  Usually, if it is a disaster it starts off with your current tenant trying to “upcharge” the new roommate on “their half” of rent.  The new roommate is often “surprised” that the actual amount of rent is lower.  Again, make sure of who is coming and going in your properties.  Make sure anyone living in your property goes through your screening process.  Once properly screened, your tenant might just be surprised at who she thought she was going to live with.

6.  I Lost My Job – Losing a job is traumatic and stressful, I get that. But sticking your head in the sand and hiding from me is only going to make things worse.  Unfortunately, many tenants think this is the best way to go.  Why?  Perhaps they are embarrassed or perhaps they refuse to face reality.  Who knows?  Thing is, if you work with me, I can work with you.  We can perhaps avoid an eviction and work out a plan.  But, if you don’t talk to me, I will be forced to deal with you the hard way.

7.  I’m Running A Business Out Of Your Property– Running a home based business could mean many things. It could mean selling sheet sets on Amazon.com or cars out of your backyard.  I’ve had both happen and while one is generally not a problem, the other is.  Either way, your tenant is unlikely to tell you about it and you should have a clause in your lease that prevents home based businesses so you can keep a handle on these issues if they arise.  Zoning and code enforcement officers are not going to go after your tenants, they will go after you.

Tenants are human and as humans they will respond to incentives that will make them feel more comfortable.  These comforts  could be money, a pet or a boy friend.  Unfortunately some of those comforts will run counter to your rules and your tenants will try to hide them from you.  As a landlord you need to recognize this and keep on top of your properties.  Conduct regular inspections and listen to your other tenants.  Find these hidden problems before they find you.

What have your tenants hidden from you?  Let me know with your comments.

We Allow Pets, Just Not All Of Them

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I have written before on pets.  Pets to me are a money maker.  Plus, a lot of folks have a pet.  If you do not allow them, you cut out a large part of the market and a decent income stream.  So we allow pets, just not all of them.   There are certain pet types and breeds that are against the rules.

Pets That Are Not Allowed

Certain Dog Breeds – Sorry Pit Bull and Doberman lovers, these and other large dog breeds are not allowed.  They have been shown to have aggressive traits which along with their size make them a no go.  It is not just us, our insurance is the main problem. They require that we not allow them.  Yes, I have met many “nice” large dogs and hate to paint with the broad brush but that is just the way it is.

Large Animals – We do not allow any animals over 20 pounds.  Many of our properties are smaller and not the proper place for a larger animal.  Plus, larger animals are just going to cause more wear and tear and be potentially upsetting to other tenants.  So I’m sorry but if you have a shaggy sheep dog, you cannot rent from us.

More Than Two – Have you ever been in the “cat lady’s” house?  Sure you have.  You have smelled the result of having too many cats.   I do not want that smell coming into my property.  It is simply too hard to get rid of.  The best way to eliminate that concern is to just limit the number of pets a tenant can have.

Odd or “Creepy” Pets – A cat or a small dog is fine, but we do not allow anything else.  That includes reptiles, rodents, insects or other mammals.  We actually say in our lease, “Nothing we deem creepy.”  Sorry folks, you will have to go elsewhere with your snake, rabbit, mice, hissing cock roaches (gross!) or ferret.  I’m sure they make lovely pets, just not in our property.

No Dogs In Our Multi-Family Buildings – Dogs bark.  It is what they do.  They may bark when people are leaving.  They may bark when people are coming home.  They may bark at any type of noise or movement.  That bark and annoys the other tenants.  Barking dogs have caused us so many problems and phone calls in the past that we just no longer allow them in our multi-family units.

Enforcing The Rules

You can also make similar rules for your rental properties.  If you do, you are going to have to work a bit to enforce them.  Tenants will often try to push the limits with you or cover up what type of pet they really have.  How?

They will say they only have two cats when they really have four.

They will say their pit bull is a “mixed breed.”

They will flat out lie and say they have no pets.

We try to catch these issues early on in one of two ways.  First, we will conduct an inspection upon move in or soon thereafter.  It is usually obvious if they have a pet or have more than they said.

Second, we always have to “meet” the dog.   We want to verify the breed and the size.  We “trust but verify.”  Plus, when you state that you are going to have to meet the animal, many of your potential pet problems will suddenly go away.   It is amazing how many people with “mixed breeds” never call back.

Allowing pets can be a great way to improve your potential tenant base and income stream.  But, just allowing all pets can be problematic.  So, you should develop some rules on what you will and will not allow.  Hopefully this post will help guide you towards doing just that.

Potential Tenants Only Remember Two Properties

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At the end of a long day, after looking at perhaps dozens of properties, potential tenants only remember two properties.  One is the dirtiest and the other is the cleanest.  Everything else will fall somewhere in between and be lost in the haze.  The moral of the story is obvious.  Keep it clean!  But what is the best way to do that with limited budgets and resources?

Start With Your Current Tenants

Being clean is not that hard, it just takes a bit of effort and focus.

It starts with the effort you make with your current tenants.  A well maintained property will stand out.  Plus it is often a lot easier to keep something clean that to make it clean.   So you have to repair things as needed.  You also need to conduct regular inspections to make sure trash is not piling up and the walls have not been painted purple.  Staying on top of these issues will make being the cleanest much, much easier.

Get Your Tenant To Help

You also have to get your tenant to help you keep clean when they tell you they are moving out.  You do this by sending them a list of things they need to do before they move out.  A list that notes all of the things that must happen for the tenant to get their security deposit back.  This list includes:

  • Taking every fork, spoon, and Taco Bell sauce packet with them.
  • Taking every wire hanger with them.
  • Removing every piece of furniture, no matter how small.
  • Replacing every burned out light bulb.
  • Leaving the property wiped down and broom swept clean.

All of the above and more, if not followed, will result in a deduction from a tenant’s security deposit.  This is clearly states as our goal is to repossess our property in much the same way we rented it out, minus normal wear and tear.  And by staying on top of repairs, inspections and the move out process, we go a long way towards that goal.

What About Normal Wear And Tear?  What To Focus On

No matter how perfect your tenant was, normal wear and tear happens.  Things will look worn and need updating.  But with limited funds we often cannot fix everything.  So where should you focus your efforts?

  1. The Bathroom – Nothing is going to turn a potential tenant off more than a dirty bathroom. If you absolutely need to rehab or upgrade someplace, do it here.  New tile, caulk, grout and paint will yield your biggest returns.  And for the love of all that is good do not leave a toilet brush or plunger in the corner!  No one wants somebody else’s “stuff” in their bathroom.
  2. The Kitchen – After the bathroom, this room will give you’re the biggest bang for your rehab buck. Get rid of the grease.  Wipe down the insides of the cabinets and drawers. Make sure the stove and fridge are clean.  Spilled spices, grease spots and old ketchup packets make a place look dirty.  Be sure to look everywhere and get everything.
  3. Knobs and Handles – Make sure all of your knobs and handles are tight and in working order. Why?  Because once your tenant moves out, there will not be anything else to see, touch or play with when you are showing the property.  Your potential tenants are therefore going to touch every door knob, drawer and cabinet.  Loose knobs and handles will subliminally impart a junky message so take some time to tighten things up.
  4. The Smell – Smells can create powerful and emotional responses in people. Bad smells will of course elicit a bad response.  Make sure your place smells great.  A few plug in air fresheners, but not too many, go a long way.  Light lavender is perhaps the best.  Also be sure to run all faucets every so often as stagnant water in drains leads to foul orders.
  5. Anything Else Obvious – Hopefully your tenants left your property in great condition. But magic erasers and other tricks can only do so much. It may also just be time for a fresh look.  Use cool neutral colors everywhere.  Grays are in right now, but I like softer, yellow-whites as they seem to appeal to more people and stand the test of time.

If you want to get the best tenants and get them paying top dollar you are going to have to create a lasting first impression in their mind.  As I said, they are going to remember the dirtiest and the cleanest.  You only get one chance to make a good first impression, make sure it is the right one.

Deducting The Costs For Repairs From Security Deposits

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Security deposits are the most common technique used by landlords to try and ensure their tenants do not damage their properties.  They are also, after evictions, the biggest point of contention between landlord and tenants.  Deducting the costs for repairs from security deposits is often filled with aggravation for both sides.   Here is how you can best manage this process to get what you deserve without exacerbating the situation.

Be Honest About Damages

The first thing you have to do is be honest.  You can only charge the tenant’s security deposit for actual damages caused directly by the tenant’s actions.  Many landlords try to use security deposits to repair normal wear and tear.  You cannot do that.  For one it is likely illegal and second it is the point that will create the most contention.

I discussed normal wear and tear in a previous post.   Anything beyond normal wear and tear is damage, and unless that damage was your fault, the tenant is likely responsible for it.  What are some examples of tenant damage?

  • Cigarette burns on the floors.
  • Doors pulled from their jams.
  • Cracked toilet tanks.
  • Crayon markings on the walls.

These items and much more are not normal wear and tear, and you should charge your tenant to have them repaired.  How you charge your tenant however can make your life easier, or much more difficult.  Let’s look at some techniques to make your life easier.

Keep Good Records

The first things you need are good records.  You need records of the condition of the property when the tenant moved in.  These should be in both written and video format and they both should include the tenant’s acknowledgement.

Develop a written checklist on the condition of the property.  Send it to your tenant for their approval soon after they move in.  Ask them to review the conditions on the checklist, note any unlisted damages, sign the form and return it to you.  Explain to them that this checklist will be used when they move out to assess any further damages and charges to their security deposit.  Most will pick up on this checklist’s importance, fill it out and get it back to you.

You should also shoot a video of the property when the tenant moves in, because pictures can speak a thousand words.  Do this while you are moving the tenant in and include them in the video if you can.  It will be very difficult for them to make claims about the property’s condition later on that are different from those depicted in the video, especially if they are in it.

These two forms of record keeping are vital to you.  They can prevent a highly contentious “he said, she said” situation later on.

Upon Move Out

Once your tenant has vacated your property and released possession back to you, go in the property to inspect and assess for damages as soon as possible.  Use your checklist and video records to assist in this inspection.  Create a detailed list of any and all damages including reasonable charges to fix them.

Depending on where you live, your tenant may have a right to be present at this inspection.  Here in Tennessee tenants have that right.  But they have to request to be present at the inspection and they have to make this request within four days of vacating the property.  Your state laws may be different.  Understand your local laws to be sure you do things correctly.

Once you have your list compiled, send a formal copy along with a letter explaining its contents to your former tenant.   This letter could also contain a check for the amount of the security deposit to be returned.   If you are honest and have kept the records mentioned in this post, your former tenant will likely say little if anything about the charges you levy.

Ever get into a fight about a security deposit?  Share your experience with a comment.

Ensuring You Have Legal Possession

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Possession is one of those legal concepts that landlords should understand.  Because legal possession, once granted, is not something that can easily be regained.  To regain possession a landlord must either get a court order through eviction or have their tenant voluntarily return it.  Obviously, having your tenant voluntarily return possession to you is the best way to go, but ensuring you have legal possession requires you to take a little action.

What Is Possession?

First, let me explain what legal possession is.  Landlords grant their tenants possession of their property through their lease, which can be written or unwritten (Yes, a handshake in the eyes of the law is a lease and a granting of possession.).  Possession gives your tenant the exclusive right to occupy your property.  This is often done in exchange for some form of compensation, usually money.  That is why we often substitute the more common term “rent” for the legal term possession.  We say that “I rented to John” rather than “I gave possession to John” for example.  Possession is different from ownership.  You can own and possess a property at the same time.  As the owner you can also grant some of your rights, such as possession, to someone else

Once possession is granted to a tenant, they have legal rights.  Some of those rights will depend on the clauses in your lease.  Others will depend on state and local laws.  It is because of these rights that you cannot disturb your tenant, enter unannounced or just change the locks.  It is because of these rights that you may have to evict if they do not want to leave.

Possession always resides with someone, either you or your tenant.  There is never a time that your property is legally not in someone’s possession.  Usually, tenants intend to return possession to you when they move out.  However, the thing landlords need to understand is that intending to do something and actually doing it are two very different things.   You cannot assume a tenant’s intent or actions actually will return possession to you.  Instead you need to ensure that possession is actually and formally returned to you.

How To Get Possession Back

To ensure you regain possession use a form called the Release of Rights of Possession.  This is a simple and short, one page form that will ensure you get legal possession back.  It contains the address of the property, the date the tenant is releasing possession back to you, a statement that they are abandoning anything left in the property and a place for their signature.  We have every tenant that we do not evict or abandon us sign this form.  No matter what the circumstances are.

Is the tenant simply moving out on the best of terms?  We get a signed form.

Is the tenant moving because we asked them to?  We get a signed form.

Is the tenant moving on a cash for keys deal?  We definitely get a signed form.

Using this form will give you a measure of legal protection.  If you have a completed and singed form, your tenant cannot at a later date say you locked them out.  They cannot later claim that you stole their stuff.  In fact, any claim they may think they have later on will be limited.

I have a copy of our Release Form here in Smarter Resources   Download it and use it.  Protect yourself, every time.

Setting Tenant Expectations: Defining Emergency Versus Repair

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I recently wrote a post about setting tenant expectations.  In this post I want to go into a bit of detail regarding one of those expectations, defining the difference between an emergency and a repair.  Which situations require your immediate attention and which ones do not?

You might think common sense would dictate to everyone the difference between an emergency situation and a repair.  Honestly, in most cases it does.  But like I said in my last post, you cannot assume anything.  You cannot assume that your tenant has any common sense, that they will use it at the right time or that they actually know what a true emergency is.  To some tenants, everything and anything is an emergency.

This is why it is a best practice for landlords to set expectations and a) define what an emergency is, b) define what a repair is, c) discuss how both should be treated by the tenant, d) discuss your response to emergencies and repairs.  By doing this, you can save yourself much confusion, angry phone calls and perhaps even your property.

What Is An Emergency

An emergency is a situation that is life threatening and/or requires immediate attention to prevent massive property damage.  Fire requires immediate attention.  A strong smell of natural gas requires immediate attention.  Sparks shooting out of an outlet requires immediate attention.  Gushing (not dripping) water requires immediate attention.

Emergencies should be dealt with immediately and you need to inform your tenant of what they need to do, including calling 911, in case one occurs.  Yes, you need to tell them to call 911 first and not you in case of a fire.  If a tenant smells gas, you or your staff needs to find out the problem immediately.  It is the same with sparks and gushing water.  These items can lead to serious injury or property damage quickly.  They need your attention.  Immediately!

What About Repairs?

Almost everything else is not an emergency situation.  Rather, it is a repair.  Repairs require attention, but not immediate attention.  Repairs need to be fixed, but they can be fixed in due time.  The heat or air conditioning going out may seem and feel like an emergency, but the tenant will likely survive for 24 hours while calls are made and crews are scheduled to address the problem.  That dripping water may seem like an emergency, but a bucket will catch it and the plumber will get over tomorrow.

Repairs get triaged.  That means they get ranked in order of either severity or when the call came in.  You need to make it clear to your tenants that repairs will be handled as quickly as is possible, but not on an immediate basis.  Communicate with them how repairs will be handled.  Tell them that heating and air will usually be looked at with in 24 hours, but that loose cabinet door may take a couple of days.  Tenants can also help you with some repairs.  We show our tenants how to turn off water valves and breakers.  Many tenants have done their part to prevent further property damage by simply knowing how to turn off a valve or shut off a breaker.

From Day One

Be sure to set this expectation with your tenants on day one.  Do not let them hold on to the erroneous belief that every little repair is an emergency that will be handled immediately.  Explain how repairs will be repaired.  Let them know the timeline and then do your best to keep to it.  Tenants also often have the weird idea in their heads that they should call you first no matter what is going on.  I do not know why as there is little I can do about a fire.  So be sure to inform them what to do and who to call if a true emergency arises.

By setting this expectation on emergencies and repairs you will go a long ways towards making the landlord/tenant relationship a good one.  Plus, you might just save a life and your property.

Setting Tenant Expectations

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Think back to the first day of any class you took while in school.  What did the teacher do?  Most likely he or she went over what the course would cover and what you needed to do to earn a passing grade.  In other words, the teacher set student expectations.  Landlords should do the very same thing with tenants.  Setting tenant expectations on day one is a must.

Setting out tenant expectations is one of the keys to getting the landlord tenant relationship started off on the right foot.  It must be done clearly and it must be done at the very beginning.  If not, you will essentially be leaving things open to interpretation.  Leaving things open top interpretation will lead to confusion and conflict.  Confusion and conflict is not something you want in your business.

What are expectations?  They can be varied and many.   They should be based on your unique management and business style.  At the very least, I would suggest some form of the following:

  • An expectation of when the rent is due
  • An expectation of how your property must be treated.
  • An expectation of how you (and your staff) must be treated.
  • An expectation of how the tenant will be treated.

Tell Them Your Expectations

Setting out your expectations is simple.  You tell your tenants what they are.

You do this during a portion of your lease signing meeting.  It is as important as going over the lease itself.  It is at this time that you can define the landlord/tenant relationship, remove uncertainty and stress how the next year is going to go.   Sit across the table and tell them:

  • That the rent is due on the first of the month.
  • That eviction will be filed if rent is not paid.
  • The difference between normal wear and tear and tenant damage.
  • How an emergency is defined.
  • How repairs will be handled.
  • How tenants can get their security deposit back.
  • That communication is the key to any successful relationship.
  • That they will be left alone if they meet your expectations.

Do Not Assume

How do you tell them these things?  That is of course up to you.  But I would caution you that you should not assume anything.  Do not assume that they know that they cannot call in a repair at 5 PM on Friday afternoon and expect the problem resolved that evening.  Do not assume that they know that no matter what life throws at them, the rent is still due on the first.  Do not assume that they know what clean means.  Do not assume that they will take all of their stuff with them when they move out.

The above may sound a bit silly and you might be thinking that these things should not have to be explained.  While those two statements may be true, I am here to tell you that they do need to be explained.  You cannot assume that your tenant knows or understands anything.

Expectations Work

Setting expectations works.  You passed most of your classes in school right?  You knew what you had to do because your teacher laid it out for you.  Your tenants can have the same experience.  By setting expectations, you can get the majority of your tenants pay their rent in full and on time.  You can get them to communicate with you if there is a problem.  You can get many of your properties back almost in as good of shape as you provided them to the tenant.  You just need to spell everything out on the front end.  You need to tell them how to earn the passing grade.

Setting expectations just makes sense.  Yes, it takes a little time and effort on your part, but it is good business and good for both you and your tenants.  Take some time to put your expectations into words and then share those words with your tenants.  Every time and on day one.

What expectations do you discuss with your tenants, please share with your comments.

Landlords! Use House Rules

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Every landlord, well almost every landlord, knows they need a written lease.  What they may not be aware of is that they need a set of house rules as well.  House rules do just what their title suggests.  They set out the rules for living in my house and every landlord should have a set of their own house rules.

We have our house rules set up so they are an addendum to our lease.  In that way, they have full legal force and effect, just like the lease proper.  Break my house rules and you are breaking the terms of our lease, which could very well result in eviction.

Our house rules are usually about a page long and contain all manner of things.  Some you would think need not be explained, such as taking your trash out every week or paying your rent on time.  Other rules are set by our own design and experiences, like our no smoking inside rule because of that time a tenant caught our house on fire by smoking.  Still others are general “catch alls” such as telling everyone to be quiet after 10 PM.

You can design your house rules however you like them (within legal bounds of course), because after all, it is your house.

Three Reasons To Use A Set Of House Rules

You could of course put everything in your lease, but we like to use a separate set house rules for three main reasons.

First, because the house rules are listed in a separate document, the stand out and can be emphasized.  It is easier to specifically point to the document and say, “These are the rules that you must follow to live here.”  Your prospective tenants will have an easier time focusing on and understanding the rules because they are a separate document.

Second, house rules can be tailored to each house or property.  This aspect is helpful since each property is different and thus has different rules.  Some have balconies (do not grill on them), some do not.  Others have yards to keep up with (cut the grass) while others do not.  Some have common areas (don’t put your stuff here), some have shared parking and on and on and on.  Could you have a lease for each property?  I guess so, but I find that using a tailored house rule document attached to our standard lease is just easier.

Third, a house rules document is easier for everyone to understand.  A lease often has to contain legal words and phrases.  These words and phrases may not always have a clear meaning to someone who is not familiar with them.  House rules however can get right to the point, in clear language.  For example, here are a few rules we use.

  • You will not disconnect the smoke detector and you will replace the batteries in the smoke detector as needed.
  • Do not light candles or fires in the rental unit.
  • Don’t wait until Friday at 6pm to tell us your need a repair, because it won’t be done until the next week.

These rules are simply stated and straightforward.  They are not full of legalese and everyone can understand what they mean.

Make Sure Your Tenant Understands The House Rules

During the lease signing process, we read every word of our lease and house rules to the tenant.  Every word!  Sometimes that goes quickly.  Sometimes it takes a while as questions are raised and stories are told.  I cannot tell you how many times someone will say “You really had a tenant do that?”  Yes, that is why it is in the rules that I am reading to you now.

Then, upon signing, documents are scanned and copies e-mailed to the tenants.  In this way, when they break the rules (and they will), they cannot say they were not aware of the rules or did not have a copy.  You can point towards the lease signing process along with the e-mail and when it was delivered.

Most Tenants Follow The House Rules

Most of your tenants will follow your house rules.  They understand the need for them and why they are there.  Some will push the limits for sure, but you need to decide how much of a cop you want to be.  How much time you want to spend playing cop, judge and jury is up to you and your particular situation.  In any event, having a set of house rules will make your landlording life a bit easier.

What are in your house rules?  Got an interesting story about why that rule is there?  Please share with your comments.

 

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Why Are Landlords So Jaded?

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Landlords are a unique bunch.  The business is like no other.  It gives landlords a perspective, an often jaded perspective that very few others hold.  Why?  Because, we learn to wear many different hats as we strike out on our landlording journey and we see into people’s lives a lot more than most.  These two things, the doing and seeing, are going to mold our perspective.  But I think it is the seeing which affects a landlord more than anything.

Landlords see what humanity is made of.  Not the façade that is put on for the public, but the reality of people’s everyday lives.  How do we do this?  We do it by getting involved in a person’s most private space, their home.  Most of the stuff we see is normal and everyday run of the mill.  Sometimes it is interesting.  Sometimes it is humorous.  Other times though, it is heartbreaking, infuriating and can be downright scary.  It is always however an eye opening experience to witness how people truly live.

Two integral parts of the landlording business are screening tenants and providing homes.  Each part brings its own eye opening experiences.  Screening means background checks.  It means credit reports. It means criminal records. It means talking to bosses and past landlords.  It means asking a lot of questions and investigating past lives.  Thus:

We see the unpaid bills.

We see the bankruptcies.

We see the evictions.

We see the bust because they only had a joint.

We see the DWIs.

We see the jail time because of…well…a lot of different things.

And that is just for starters.  That is only when they apply to live in one of our properties.  If they make it through the screening and decide to move in, that is when we landlords really begin to see things because we now provide a home.

Providing a home means doing maintenance and upkeep.  It means doing property inspections.  It means going inside someone’s personal space every once in a while.  Not unannounced and just to be nosy.  Going in is just part of the landlording business.

By going in:

We see the heaps of dirty clothes and dirty dishes.

We see the neat freaks too (thank you!).

We see the disorder, the chaos, the hoarding.

We see that the shower has not been used in a while.

We see the piled up, empty alcohol containers.

We see the bongs (put that away!).

We see the bondage equipment (put that away too!).

We see the pet snake.

We see that someone we do not know is living there.

We see you broke the house rules and painted the walls purple even though we told you not to.

We also unfortunately see the divorces, the layoffs, the overdoses and the cancer diagnoses.

We see all of this and sometimes wonder why we ever decided to become landlords.  But then we realize that this is humanity.  Everyone, and I mean everyone, has some kind of quirk.  Everyone also has a past.  It is just who we are.  We landlords see a lot and it is no wonder we become a little jaded at times.

Does this mean you should not become one?  Of course not as most tenants are great and the rewards outweigh the negatives.  But becoming a landlord will be an eye opening experience.  You will develop a thicker skin and a different viewpoint on the world than you had before.  Just ask any landlord.

The thing to remember is that landlording is like any other business.  You have to put food on your table and provide for your family.  And while it is not a good idea to kick someone when they are down, you cannot run a social service agency either.  Often the best a landlord can do is to try to keep the worst of it out with thorough tenant screening.  But you still have to rent to someone and everyone has some kind of quirk.  Sometimes these quirks result in an angry letter from us.  Sometimes they lead to eviction.  A lot of times, you have to just let folks live.

What have you seen?  Please share with your comments.

What Does Normal Wear and Tear Mean?

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Most landlords collect security deposits as a part of their lease to ensure that tenants do not harm their property.  When a tenant moves out, deductions can be made from a security deposit to repair harm that is above normal wear and tear.   But what does normal wear and tear mean?  How is it different from damage?

It is important for landlords to be able to distinguish between normal wear and tear and damage because it is often a point of contention.  Tenants and landlords often differ as to the amount of damage that has been caused.  Tenants will assert that damage is just normal wear and tear while landlords assert the opposite.  The line between the two however is not often clear, nor is it easily defined.

Do State Or Local Laws Provide The Answer?

Many landlord/tenant relationships are governed by state or local laws.  Here in Memphis, Tennessee, we use The Uniform Residential Landlord and Tenant Act.  But, this Act does not provide a definition of “normal wear and tear” and I suspect most other state statutes do not either.  It is just too hard to nail down.  The Act does not even use the term “wear and tear” anymore.   Instead it discusses “damage” caused by the tenant.  Does the Act define “damage” then?   Nope.  Again, it is too hard to nail down.   So, how does a landlord know what the difference is?

Getting To A Meaning

Black’s Law Dictionary provides some guidance.   It defines the terms “normal,” “wear and tear” and “damage.”   I use a law dictionary because word meanings in a court of law can be different from their common, everyday meaning.  And a court of law is where landlords have to think things (not just wear and tear cases, but everything they do) may end up someday.

Normal is defined by Black’s as:

According to, constituting, or not deviating from an established norm, rule or principle; conformed to a type, standard or regular form; performing the proper functions; regular, average, natural.

It defines “wear and tear” in part as:

…deterioration or depreciation in value by ordinary and reasonable use of the subject matter.

Damage (as opposed to damages) is defined in part as:

Loss, injury or deterioration, caused by the negligence, design or accident of one person to another, in respect of the latter’s person or property.

So What Is Normal?

With these legal definitions we get closer to an answer.  There are two types of wear and tear,  one type caused by reasonable use and another type above and beyond reasonable use somehow caused by the tenant.

How does this then translate into real life?  What is normal?  Every situation can’t be spelled out, but here are some examples.

  • Paint fading or chipping from furniture being pushed against it. It is normal for people to have their furniture against the walls.
  • Flooring showing a trail from the paths folks use every day. It is normal for carpet to wear out after constant use.
  • Older appliances and fixtures eventually quitting. It is normal for the refrigerator to just stop working one day.
  • Plumbing starting to drip or leak. Fittings and washers wear out.  It is normal for things to leak occasionally.

You cannot charge the tenant for this type of wear and tear.  It is not their fault.  The stuff would have worn out anyway no matter who the tenant was or what they did.  However,

  • Crayon drawings all over the walls are not normal.
  • Painting the walls black is not normal.
  • Wine stains on carpet, iron burns on hardwood and cracked ceramic tiles are not normal.
  • AC coils covered in dog hair and ceiling fans pulled from the receptacle are not normal.
  • Cracked toilet tanks are not normal.
  • Doors pulled from their hinges and broken windows are not normal.

You can charge the tenant for these types of wear and tear because it is above and beyond normal.  It is damage that is the tenant’s fault.

See the difference?

Ultimately a judge or jury can define what normal wear and tear means in your particular case, but you do not want to let it get that far.  It is much easier and better for everyone to understand on the front end what normal wear and tear generally means.  Smarter landlords set the expectation with their tenants on how they expect their property to be returned to them and how tenants can expect to get their security deposit refunded at the very beginning.

Setting up those expectations is a the topic I will discuss in the near future.

Have you ever had a dispute with your tenant (or landlord) over “normal wear and tear?  Please share with your comments below.

 

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