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5 Common Landlord Challenges and How to Fix Them

April 29, 2015 by TenantScreening.biz

Being a landlord has many rewards, but there are also some pitfalls. When things go smoothly, the process is enjoyable and profitable; however, landlord challenges can cause stress and the loss of revenues.

Landlord Challenges

The following are five of the most common landlord challenges and problems that landlords face — along with some tips for fixing (or avoiding) them:

1. Late Rent Payments

Late or missed rent payments are perhaps the biggest obstacle that landlords face. One way to avoid this challenge is by including a penalty system for late rent payments in the lease and enforcing it. Be aware, however, that each state has limits on how much late rent fees can be — usually no more than 5 to 10 percent of the monthly rent. Also, the tenant must have agreed to the terms when signing the lease. Another way to reduce the odds of delinquent renters is by verifying income and screening all renters using a tenant screening service that includes a credit check.

2. Irresponsible Renters

Renters that don’t clean or maintain a property while renting it are another major concern for landlords. These landlord challenges are best addressed by having clear terms in the lease regarding what infractions will result in deductions from the security deposit. A specific fee system regarding damages and cleaning fees that the tenant agrees to when signing the lease will leave no room for argument if money must be deducted from it.

3. Disruptive Tenants

Tenants who play loud music, don’t control their kids or host large gatherings on a regular basis can be very disruptive to the other tenants in a property. Being clear about what is expected of tenants when interviewing candidates is crucial to finding tenants that are a fit. Ask for references from past landlords and consider using a reputable tenant screening service to find red flags such as a past criminal record.

4. Property Damage

Being negligent about cleaning is one thing, but property damage is entirely another. Again, this is what security deposit monies are for. Landlords can avoid “he-said, she-said” arguments down the road by documenting the condition of the unit with photos and a signed agreement with the renter before they move in. That way, any damage costs can be rightfully deducted.

5. High Turnover

Another major hurdle landlords face is renters that simply don’t stay around. A vacant unit means lost revenues, so landlords should do all they can to attract quality long-term tenants. Maintaining the units regularly inside and out is crucial, as is being a fair and responsive landlord.

While these five landlord challenges are all too common, landlords who address them will enjoy a more lucrative and lower-stress owner experience.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

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Filed Under: Landlords

The Ins and Outs of Security Deposits: 5 Key Points for Landlords

March 30, 2015 by TenantScreening.biz

The collection of security deposits and their eventual return, in whole or in part, has been the source of countless landlord-tenant disputes. However, there are ways that landlords can cover themselves and also reduce the chances of conflicts down the road. Here are five things landlords should know about security deposits:

Landlord Security Deposits1. Playing by the Rules

Every state has specific laws governing the collection of security deposits; for example, most do not allow the total to be more than two months of rent. Landlords typically have 21 to 45 days to return the security deposit minus any damages, but this timeframe can vary from state to state. Overall, repayment rules tend to favor tenants, and late repayment could result in having to pay the tenant triple the cost of the original security deposit in some states.

2. Interest on Security Deposits Go to Tenants

Security deposit money may also have to be deposited into a separate bank account from the landlord’s personal money; exact rules vary by state. Also, the tenant is entitled to interest monies accrued on any refunded security deposit at the current savings account rate; many landlords are surprised to learn this, and tenants are often not aware that they have this right.

3. Get it in Writing

Best practices for landlords require that both landlords and tenants formally agree to the condition of a unit before the tenant takes possession. Ideally, a formal walk-through with both the landlord or manager and the new tenant plus documentation of any existing issues with the unit should take place before move-in. The document should then be signed and dated by the tenant, with copies made and one given to the tenant for their records.

4. Capture it in Photos

Landlords should also take photos of the unit between tenants so that there is documentation of the actual condition it was in before a new tenant moved in. Most cell phones have a time/date function that can be switched on to ensure that the actual date the photo was taken can be verified in the event of a dispute later.

5. Screen First

While all of these steps can help to protect landlords from losing disputes over a security deposit down the road, one of the best ways to minimize headaches is by doing tenant screening during the application process. This can help to keep irresponsible tenants out of the property in the first place.

Security deposits have engendered more “he said, she said” arguments than perhaps any other landlord-tenant issue, but landlords can use these five tips to protect themselves throughout the process.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

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Top Five Things The Best Landlords Do For Their Tenants

September 29, 2014 by TenantScreening.biz

Best Landlords And TenantsWhile owning property and having tenants can be a great revenue stream, it can also be a nightmare if the tenants aren’t properly screened or handled. The most successful and best landlords tend to do these five things:

1. The Best Landlords Offer a Great “Product”

It’s just a fact that better tenants tend to gravitate toward better properties. While not a guarantee, the clientele a property attracts tends to align with the level of the neighborhood and quality of the property itself. The best landlords will invest in good properties and maintaining them well increases the odds of consistently drawing in good tenants.

2. The Best Landlords Use Tenant Screening Background Checks

Professional tenant screening services can help to make new tenant selection much easier. With websites like TenantScreening.biz, landlords can quickly check applicant backgrounds for an eviction and criminal history as well as a credit score. Other tenant screening services include a previous address history check, multi-state sex offender, terrorist alert, and a tenant score.

3. The Best Landlords Create a Policy – and Enforce It

Renter policies must be clearly stated as well as enforced, or tenants won’t take them seriously. One of the best techniques to ensure the rent is paid on time is by enacting and enforcing a late fee. Detailed rules about the property as well as the forms of payment accepted should be clearly determined before renting it out.

4. The Best Landlords Are Organized

The best landlords keep all paperwork and forms neatly organized. They have a folder for each tenant and maintenance service, and they file all contracts and receipts. Maintenance service phone numbers should be organized and accessible, along with stated in-house procedures for common issues.

5. The Best Landlords Have Set Hours

While a landlord is technically on call 24/7, the best landlords set boundaries; they set reasonable office hours such as Monday through Friday 9 am – 5 pm during which they answer their phone or return calls as promptly as possible. Of course, tenants can call after-hours and leave a message, but the landlord can choose to only respond to dire emergencies after-hours. The rest can wait for the next workday.

Bad tenants can make a landlord or property owner’s life miserable and can be costly in the long run, but so can an inept landlord. Follow these five landlord tips and you will increase your odds of keeping your good tenants for years to come.

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Welcome to the Tenant Screening Website by TenantScreening.biz

April 24, 2014 by TenantScreening.biz

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Filed Under: Landlords

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