SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

Landlord Law

Landlords – They Are Changing The Laws

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Where the landlord laws are made.

I have written about this topic before but it is important so I will say it again.

Landlords need to keep up with what their state legislatures are doing. 

Most landlord/tenant laws are written at the state level.  So it is important to keep up with what is going on in your state capital. Every year they try to change the state laws that outline how you run your business.  For example, many state laws dictate:

  • If you can charge a late fee
  • How much that late fee can be
  • If and how much of a security deposit you can take
  • What clauses should be in your lease
  • When you can evict
  • When you cannot evict
  • How difficult it will be for you to evict if you have to
  • What to do if a tenant abandons your property.

The list goes on and on.

As a landlord, would you not want to know if someone is proposing a law to make it more difficult to evict someone? How about if a law is being proposed to restrict how much a security deposit can be?  Would you not want to know about any law that will make you job as a landlord more difficult, like this one proposed here in Tennessee (Does a tenant who has been legally evicted really need another 48 hours)?

Of course you would.  These laws directly affect your business and you would likely want to voice your opinion on those proposed laws.

On the flip side, perhaps a law is being proposed that will make your job as a landlord easier.  Sometimes laws are proposed that might actually help us out, such as this one here in Tennessee which shortens the eviction appeal process.  Would you not want to know about and perhaps voice your opinion on those as well?  Of course you would.

As landlords, part of our job is to watch what those folks in our state capitols are doing, because what they do or do not do can really have an impact on our business.  Of course I would much rather focus on my business but every year I have to devote a little bit of time to watching what is going on in Nashville because my business could depend on it.

Where can you find out about these proposed laws?  I think the best place is your local REIA.  Most of the time someone there is focused on the state legislature and will report what is going on.  Plus, as far as lawmakers are concerned, numbers matter.  So get informed and watch what those legislators are doing. Your business may depend on it.

Do Not Enter – Respect Your Tenant’s Home

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It can be difficult to find good tenants.  It takes time to show your property, take applications and screen out the bad guys.  Then there is the lease signing and move in processes.  After going through all of that, you want to keep the good tenants for a while right?  Of course you do. So don’t do things that will drive them away such as not respecting their privacy.

Once you find a good tenant, sign a lease and let them move in to your property you have given certain legal rights of possession to your tenant.  You have provided them with a home and as they say “a person’s home is their castle.”  You as the landlord have to respect that, even though you own the building you cannot just go into to a tenant’s apartment any time you fell like it.  If you do, not only are you a sloppy landlord (and kind of a jerk) you could be charged with a crime.

Check out this recent news story headline.

Tenants claim landlord broke into apartment overnight, heat still not on

The story continues:

Sievert rents an apartment for her daughter at a complex in Muskego near Woods Road and Racine Avenue.  She says Wednesday morning the landlord came by unannounced…

“He broke into my apartment.”

Sievert locked the doors to her apartment Tuesday night when she left.  When she came by to get her car this morning, she saw locks were broken.

“We noticed that doorknobs and locks were removed. The screw that we had screwed the door shut with was broken in half. The chains ripped off. The door was broken.

Muskego Police are involved and might give the landlord a municpal citation for criminal trespassing. But they want his side of the story.

“He’s sneaking around. He’s hiding his car in the garage.”

Certainly there is a lot going on in this story such as non working heat, code violations and a hiding landlord.  Plus why did he not have keys to his own property?  Who knows? But the story demonstrates my point.  A landlord can get themselves in trouble by “just going in” a tenant’s apartment.

But, what if there is an emergency such as busted pipes?  If there truly is an emergency, then yes, you are going to be permitted to go in unannounced to protect your property and fix the problem.

Otherwise, your local laws are likely going to dictate when you can and cannot enter a tenant’s home.  Here in Tennessee, the Uniform Landlord Tenant Act does just that.  Section 66-28-403 specifically addresses access by the landlord.  It states in part:

 (e) The landlord has no right of access to the premises except:

   (1) By court order;

   (2) As permitted by this section, § 66-28-506 and § 66-28-507(b);

   (3) If the tenant has abandoned or surrendered the premises;

   (4) If the tenant is deceased, incapacitated or incarcerated; or

   (5) Within the final thirty (30) days of the termination of the rental agreement for the purpose of showing the premises to prospective tenants; provided, that such right of access is set forth in the rental agreement and notice is given to the tenant at least twenty-four (24) hours prior to entry.

Your local rules may be completely different.  Local differences such as these are one reason it is so important to find a local REIA and understand your local laws.

Sure, there are other times when a landlord can have access to the property, such as to do a quarterly inspection, for a property appraisal, for insurance purposes, or if the tenant has requested maintenance.  But a good rule of thumb is to provide at least 24 hours notice and spell out when, where and why you may come into the property in your lease.

So be a smarter landlord and respect your tenant’s privacy.  After all, would you want someone barging into your home unannounced?

The One Clause Every Lease in Tennessee Should Have

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If you invest in the great State of Tennessee like I do, there is a clause that you should be sure that you have in your lease.  I say “should have” because it is not required.  But if you put this one clause in your lease, you will save yourself some time and hassle down the road.

Tennessee Code Annotated (T.C.A.) 66-28-201(c) states in part that:

Rent shall be payable without demand at the time and place agreed upon by the parties. Notice is specifically waived upon the nonpayment of rent by the tenant only if such a waiver is provided for in a written rental agreement.

What that law says is that you the landlord have to provide your tenant notice that he/she is late on their rental payments before you can take them to court, unless your lease specifically contains a clause stating that the tenant waives the right of notice.

When you go to eviction court here in Tennessee, one of the first things the judge is going to want to see is your lease.  The judge will ask if you have the notice clause in your lease.  If you do not, the judge will then ask if you served notice that rent was due.  If you have not served notice, guess where your case goes.  Yep, right out the door.  Ignorance of the law is no excuse.

I know it sounds silly.  The tenant knows they have not paid the rent, why do I need to notify them of it?  Plus, it takes time, effort and money to serve notice, time you do not have because they are not paying you!  You want them out so you can get it re-rented.  So put a simple clause in your lease like the following:

Rent is due without demand or notice from Manager/Landlord.

And be sure to have your tenant initial beside this clause when you are going over the lease with them.

Remember I’m not a lawyer and can’t provide legal advice.  I am only a landlord with several years experience.  So check with your own legal counsel.

Those of you in other states, I bet there are quirky laws like this for your state, so be sure to know and follow the laws in your state.  One good place to find out about local laws is at your local REIA group.  Find one and join up today.

 

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Why I Dread January

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I dread January.  Not just because it is cold but also because I have to start thinking about income taxes and our state legislature comes back into session.  Every year you can be guaranteed that someone in the legislature will propose a bill that will make it harder for me to be a landlord.  A bill I will have to oppose.  This year is no different.

 

This year it is HB 2227.  If you are an investor in Tennessee, you should be concerned about this bill.  This bill will create a registry of all rental properties and their owners, charge me for the privilege of registering and then threaten me with fines and eventual jail time if I fail to register.  It would also require me to create a registry of all of my tenants by keeping a copy of an “appropriate ID.”

 

A registry is unnecessary as the county property assessors have that data anyway and why do they care who I rent my properties to?  I suspect there is more to this bill that will come out in the coming years.  This bill will do nothing but create a further burden on an already burdened industry.  It is all about gaining more control over the real estate investing industry.

 

I guess they think I don’t have enough to do in my business.  I now have to shift time and resources towards fighting this bill.  Time and resources that could be used much more productively growing my business.

 

I do not know who said it but I tend to agree more and more with this quote every year, “Our legislature meets once a year for 99 days.  But I wish they met for only one day every 99 years.”

 

I’ll have more to come on this issue as it develops.