SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

Dealing With Tenants

My Tenant Said What?!?

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Can what your current tenants say to potential tenants cause trouble? You bet it can. In this recent news story from New York one of an apartment owner’s tenants (who was also his son-in-law) answered the door for a prospective tenant. Upon seeing that his potential future neighbor was pregnant he allegedly said “no babies” and shut the door.   That is a big no no as familial status is a protected class. Landlords cannot discriminate against children, even unborn ones.

The landlord was fined $5,000, but appealed. The NY Supreme Court eventually reversed the fine because it stated that the son-in-law was not acting under the authority of the landlord. Apparently he was just stating his own opinion and had no part in the tenant screening and approval process.

If you ask me, this landlord was lucky to get out of the fine, but I’m sure his lawyer was not cheap and the stress was not pleasant either. I hope he gave his son-in-law a slap upside his head.

So, what can you as a landlord do to avoid such a situation? One, do not let tenants act under your authority. Just asking a tenant to “show this apartment” because you do not have time could be asking for trouble. You never know what they might say or do. Two, emphasize in your literature, on your website and to all of your tenants that you do not discriminate against the protected classes. Hopefully the word will sink in.

But what if there is a chance encounter with an existing tenant who says something stupid? What then? Unfortunately it could lead to a lawsuit as anyone can sue anyone else in this country. However, it seems that the courts will side with you if your tenant was acting alone. Proving that however may be a bit expensive and time consuming.

Sure, I’m The Laywer

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Some tenants will go to almost any extreme, and even get very creative, to avoid paying rent.

This one though, is a first for me. Now I have another thing to add to my eviction checklist. Make sure the paperwork is actually filed by my lawyer.

Do You Search Your Applicant’s Social Media?

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Do you check your applicants on social media sites to see what they have been up too?

Perhaps you should.

Remember that one of the most important things you do as a landlord is find tenants who will pay, stay and take care of your property. And sometimes you need just a bit more than a criminal and work history background check to do that. Especially if a potential red flag begins to wave. Searching an applicant’s social media can help determine if those red flags are genuine concerns.

Here is an example. Suppose you have an otherwise decent applicant who claims to have been unfairly treated by a previous landlord that has dinged her rental history. You applicant claims the landlord never made necessary repairs so she moved out. The landlord claims the applicant failed to pay the rent on the last month of her lease and just left in the middle of the night. Who to believe? Both sides to the story have been known to happen.

You decide to Google your applicant’s name. Her Facebook account pops up and you take a look. On her Facebook page are pictures of a beach vacation with comments stating that she was in effect having fun on her landlord’s account. You now know which side is telling the truth.

Here is another example. Perhaps an applicant claims to have only “one small” dog. A quick search however turns up pictures of your applicant with several rather angry looking German shepherds.

The point is you can find out all sorts of things by looking at your applicant’s social media. Just by Googling their name or e-mail address you can get past the “best face façade” and develop an idea of what they are really like. People post all kinds of things. We have seen drug use, criminal activity and just plain sloppiness and stupidity.

On the other hand, not everything posted on social media is bad. Searching social media can reinforce the good things that an applicant states and help you determine that you are likely to have a good tenant. A search can show they have a steady job and steady family life and are just normal folks posting normal things.

If you find searching an applicant’s social media a bit creepy, I honestly have to agree with you a bit. But social media today is a fact of life and everyone has to have the expectation that whatever they post on the interest will not remain private. So, word to the wise, be careful what you post.

Is it legal? Yes, as long as you are not discriminatory and consistent in the way you use it. Just Google everyone and document what you find. There really is no right to privacy when you post something on a public website like Facebook. It is up to the applicant to use the privacy tools found on social media websites to keep things they do not wish to be seen private. Or to simply not post those pics of them doing bong hits at all.

Making a few extra clicks when screening your applicants is definitely worth the effort. Searching social media can really back up or completely destroy what an applicant has told you on your application. You never know what you might find and you just might save yourself from some real headaches.

Do you search social media with your applicants? Let me know with your comments.

After the Fire: Leases and Tenants

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I have been writing about a major fire I recently had at one of my properties. I wrote about the initial shock and finding out the day after that my property was a complete loss and in need of a complete rehab. Most thoughts that next day were focused on getting the property rebuilt and up and running again. But there were tenants that had to be dealt with, and the fire had raised some interesting legal issues.

We had of course signed leases with our tenants. These leases ran for one year. One of the units in the burned tri-plex had just moved out at the end of her lease. There other two were however somewhere in the middle of their leases. They technically still had possession of their units. What where their rights? What where mine? Surly they would move, but what if they did not? Would I have to go through the eviction process to get them out?

Fortunately, the Tennessee Landlord Tenant Act contains a provision for just such an event. Tennessee Code Annotated Section 66-28-517 states in part:

66-28-517.  Termination by landlord for violence or threats to health, safety, or welfare of persons or property.

  (a) A landlord may terminate a rental agreement within three (3) days from the date written notice is received by the tenant if the tenant or any other person on the premises with the tenant’s consent:

(1) Willfully or intentionally commits a violent act;

(2) Behaves in a manner which constitutes or threatens to be a real and present danger to the health, safety or welfare of the life or property of other tenants or persons on the premises; or

(3) Creates a hazardous or unsanitary condition on the property that affects the health, safety or welfare or the life or property of other tenants or persons on the premises.

Since one of my tenants, by throwing a lit cigarette in the trash, had created a “hazardous or unsanitary condition” on the property, I could terminate the leases by posting a written notice, which I did immediately.

That does not mean I went in and started throwing things out. Some tact was required here, after all, some of the tenants were a bit shell shocked and needed to go through and see what they could save. But I was also firm. The place was literally a wreck, dangerous and getting more dangerous every day. They had to move quickly to get what they wanted. Anything they did not want they were free to leave.

Hopefully you will never have to go through such a situation, but if you do be sure you understand your rights and your tenant’s rights. I would bet most state laws have similar provisions to cover similar situations. Check them out and get to know them.

 

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The Day After The Fire, What’s A Landlord To Do?

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I had a major fire at one of my properties back in late 2014. I wrote about the first evening after getting the call here. In this post I want to talk a little about the day after.

The first chance I would have to see the extent of the damage is the day after.   I had been to the property the night before, right after the fire, but it was dark, the utilities had been shut off and there simply was a lot of commotion and confusion. I really could not tell much. From the front, it actually did not look that bad.   I knew it was bad but, as I left that night I remember thinking that perhaps the damage would not be that bad. I was totally wrong.

The property actually did not look so bad from the front.

The fire started in the upstairs apartment in the back of the property after one of the tenants threw what he thought was an unlit cigarette in the trash. That was the fire’s point of origin. When I got to the property on the next day, the roof over this area was completely gone. The fire had burned right through it. From this point of origin you could see where the fire traveled as it sought out more fuel and oxygen. It was really interesting to see actually. It flowed along and burned out most of the rafters in the attic. It traveled along the ceiling from the bedroom into the kitchen and living areas, melting everything plastic on its way. As you got farther and farther away from the point of origin, damage from actual fire was less and less. But the damage still continued on.

The back was where the real damage was.

I never really realized how much damage smoke can cause. There must have been a ton of smoke as the fire was raging and I now understand why smoke is what actually kills you. It had simply been everywhere and must have been overpowering. There was a thick layer of black soot on everything. It was on the ceilings, the walls, the floors, on every piece of furniture and every fixture. And the smell was overpowering. Anything the smoke had touched was ruined.

Then there was the water. I think the fire department pumped a good bit of the Mississippi River on my tri-plex that night to get the fire put out. That water caused as much damage as the fire did. The fire was on the second level and thus that was where most of the water was pumped. And since water responds well to gravity, it naturally rained in on the two units on the ground floor. Loads of soaked sheetrock and plaster had collapsed or were about to. The wood floors were just beginning to bend and buckle. Clothes, furniture and other tenant keepsakes were all ruined.

Water, water everywhere!

Finally, there was the damage the fire department caused as they put out the fire. Doors are kicked in and forced open. Smoldering wood, furniture, mattresses, etc was all tossed out all over the yard and doused with water. The place was a mess.

Suffice it to say the tri-plex was a total loss. It was going to take a major rehab job to get it back in operation.

So what to do now?

First, secure the property. You have to protect yourself from liability and protect what remains of the tenant’s belongings. As I said doors were forced open. Locks and door jams were ripped away. There was no way to simply lock up anymore. Pad locks were bought and installed to keep people out of what was a hazardous building.

Second, salvage what you can. The AC condensers, water heaters and some of the appliances were still in good shape and could be used elsewhere. So I had my crews immediately remove them and place them in storage. If I had left them there, thieves would have been on the scene very quickly.

Third, I called my insurance company and got that ball rolling. This was a major disaster and I was going to need the insurance to help rebuild.

Finally, we got with our tenants and made sure they understood the situation. There are some legal issues here that have to be addressed. But I’ll write more about that in a future post.

 

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Can A Landlord Make A Tenant Move For Any Reason?

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Non-payment of rent is just one of many reasons a landlord may want their tenant to move out. Perhaps they want to upgrade the property.   Perhaps they want to sell the property. Or perhaps they just do not like the tenant and the drama they bring to your business. So, if you fall into one of these categories, can you as a landlord make a tenant to move for any reason at all, whatever it might be? It’s a good question, one that you should know the answer to. However, like with all questions related to being a landlord, the answer is not very simple.

In a nutshell, the answer is “it depends”. It depends on two items.

First and foremost it depends on the lease you signed with your tenant. A lease is a contract and usually has a specified time period as one of its clauses. Many times that time period is for one year but it can be anything, such as a day, a week, a month or a decade. If you have a year lease with a tenant, you cannot make that tenant move out before the end of that year unless they are breaking the terms of the lease. Not paying rent is the best example of breaking terms.

But suppose you want to upgrade the property and would prefer the units be vacant, can you make them move out before their lease is up? No, you cannot. You really cannot make the tenant leave if they are fulfilling the terms of the lease before one year is up. But once that year is over, then you can ask them to move, and they have to.

With a shorter tem lease, say one that is a month to month term, landlords of course have a lot more flexibility. The lease basically expires at the end of every month, so a landlord can choose not to renew, effectively forcing their tenant to move.

The second item to answer the question is your state and local laws. Here in Memphis Tennessee you can pretty much just tell the tenant that you are not renewing the lease at the end of its term. You do not have to give any reason. This is effect in the same thing as asking them to move for any reason at all. But not all state and local laws are as generous as those here in Tennessee. Some states are much more restrictive and some cities, such as New York with rent control, can make things really difficult. So you need to know and understand what your rights as a landlord are in your local jurisdiction.

So, can you make your tenant move? Yes, but it will depend on the term of your lease, where you are in that term and what your local laws are. Can you make your tenant move at anytime you want for whatever reason you want? No. Your tenant will have had to break a major clause of your lease before you can force them out. And then it is generally only with a court order.

Millennials – Our Future Tenants

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Millennials, those born between 1980 and 2000 are coming of age and about to move into your apartment or buy your house. Do you wonder what they are like, how they communicate and what is important to them? You should. For one thing, this group is huge, larger than the baby boomers, and they will soon dominate the market place. Smarterlandlords understand these changing demographics and look for ways to tune their business to be more receptive to this sizable generation. This infographic is a good place to start to learn more about the Millennial generation.

Don’t Yell At Your Tenants – Even If They Deserve It

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Yelling at tenantsEver get really angry with a tenant? I have. I have been so mad that I just want to yell, scream or even worse! However, if I let those emotions get the better of me (and I have), it usually does not end up well. Yelling at your tenants and making them mad at you is never a smart thing to do. Yes it will feel good yelling “Just pay the rent!” or “Why did you paint the walls black!” but you need to stop and think for a minute.

What is going to happen after you leave the property?

You will have someone who is very angry at you and is living in your property. Perhaps they will calm down and do nothing. On the other hand, they might decide to move (which may not be a bad thing) and leave you with an apartment to rehab and a vacancy to fill. Or even worse, they might want to seek revenge, like this guy that caused several thousand dollars in damage when he tried to set a booby trap for his landlord.   At least he was caught, convicted and did a bit of jail time. But that rarely happens.

Almost every landlord has a story or two about a tenant destroying their property after angry words were exchanged. The damage can run from holes punched in walls, to cement being poured in toilets, to fire being set to carpets. It usually only takes one such episode for most landlords to learn that yelling at their tenants is just not worth it. They can simply do too much damage or cause you too much hassle.

That does not mean you cannot be angry at them and take steps to enforce your rules or your rights. An eviction for example is simply going to be an ugly and anger inducing process as far as the tenant is concerned. So there are times that you cannot avoid making your tenant angry at you. But you need to do these things in a non-confrontational and professional manner. If you feel like you are going to lose your cool, leave the area or hang up the phone and return to the issue when you have had time to cool down. Trust me, it may not feel good at the moment, but you and your property will be glad you did.

 

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After The Fire! What Should A Landlord Do?

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I got the call all of us landlords dread. There had been a major fire at one of my properties. In the instant after you get that call your head is filled with a thousand questions. Is everyone OK? What happened? What started it? Whose fault was it? How bad is it? Of course you cannot answer any of those questions until you get to the property. I hopped in my truck and headed right over. I just knew it was bad because as I got close, before I could see all of the fire trucks, I could smell the smoke. This is not going to be good I thought.

When I turned the corner and saw the multitude of fire trucks and police cars my thoughts were confirmed. The second story of my triplex, one of my best performing properties, was simply gone. It was replaced with charred wood. Water from the fire hoses was dripping everywhere and debris from the fire crews was strewn all over the place.

The good news is that everyone, all of the tenants and the neighbors, were ok. The tenants from the unit where the fire started all got out, another had mover out the DAY before (she was lucky) and the other tenant was out to dinner when the fire occurred. So there was only physical damage. How much and how extensive was damage was yet to be determined.

When my wife and I arrived on the scene one of our tenants came running up to us telling us how sorry he was. It seems he was smoking and accidently threw it out in a trash can and before he knew it, poof! Thankfully, he also told the fire crews on the scene the same story. We were both somewhat relieved that the cause had not been building related. After talking with the fire crews there was not much more we could do so we went home and began to figure out what to do next.

If this ever happens to you, you need to be prepared. The first things you say or do can be critical later on.

First, be calm and take a deep breath. You are going to need all of you wits about you.

Second, you should go to the property if you can. Your help may be needed in determining if everybody is safe and accounted for. Be ready to tell the authorities who you are and who you know lived in the property. Make sure everyone is safe as that is the number one concern.

Third, be careful what you say. The authorities may not know what caused the fire at this point and are in the process of conducting an investigation. It is best to keep what you say to a minimum at this point. You never know, lawsuits could be on the horizon. Talk to the fire investigator later, after all of the excitement has calmed down. Get your lawyer involved if you feel you need to.

Fourth, call your insurance company right away and get that process started. This is a catastrophe and this is why you have insurance. Now is the time to use it.

Fifth, get a notebook and start documenting everything. Names, dates, phone numbers, who said what, etc. It will come in handy later.

My triplex is back up and running now but it sure was a long, slow process. I’ll write more about that in the future.

 

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