How Landlords Can Avoid Harassment Issues

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Landlords need to remember that just because they own the property does not mean that they can do what they want, when they want. This is because under the law tenants have certain rights which must be respected. It is not uncommon for a landlord to find themselves on the wrong side of a judgment because they overstepped their bounds in trying to force a tenant to break their lease and leave the property.

It is certainly understandable that the discovery of a “bad” tenant who may cause trouble or other issues will entice a landlord to do what they can in encouraging them to leave. However, a landlord must resist the urge to take actions where they might find themselves losing a judgment in court and developing a bad reputation that drives the good tenants away as well.

What follows are a few tips to follow to avoid demonstrating harassment tactics and helping you to maintain your reputation and properly get rid of “bad” tenants.

Do Not Try to Intimidate the Tenant

The worst thing a landlord can do is try physical or verbal intimidation tactics on a tenant. These are strictly against the law and will be used against a landlord in any situation that leads to a court appearance. This is especially true of any tactic that can be documented and presented in court. The result is not only losing money, but developing a bad reputation that can drive away potentially good tenants.

Do Not Withhold Obligations

First and foremost, you’ll want to ensure that you fulfill all of your obligations as a landlord in terms of taking proper care of the property. This means making sure the garbage is picked up, repairs are made and the landscaping is completed. Remember that how you treat one tenant may be viewed by all tenants, so don’t single anyone out.

Do Not Hassle Through Verbal or Written Complaints

Verbal or written complaints should be few and far between if the tenant’s behavior is borderline in terms of breaking any established rules or regulations. However, if the tenant does violate a policy, then they should be given some type of notice and warning.

Do Not Enter the Tenant’s Rented Space Without Due Cause

This is one of the most common forms of landlords overstepping their boundaries. Under the law, landlords can only enter the property for scheduled inspections or emergency situations. Otherwise, entering the property without due cause can be used by the tenant in court with the landlord winding up on the wrong side of the judgment.

Know the Law

The landlord must know the law, rules and regulations that apply to any activities they may or may not do towards a particular tenant. While getting rid of bad tenants in certainly desirable, it has to be done legally and ethically. This means following the lease agreement and evicting them at the first legal opportunity and not trying to create one through intimidation tactics.

Remember to follow and respect the law by not engaging in any tactics that could put you on the wrong side of a court decision.

The Basics of Rent Payments

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For those who may be going out on their own for the first time, renting an apartment or home is certainly a big first step. Renting offers many advantages for those who are just starting out as they have a well maintained place to live. However, renting is considered an interim step towards eventually getting your own home.

For those who are new to renting a property, understanding the principles will help you navigate all the responsibilities that you will face.

What is Rent?

This is the money that you pay so you can fulfill the obligations of your lease. Rent is paid monthly, bi-weekly or weekly depending on the agreement that is made. The rent is paid either directly to the landlord, the owner or the managing company of the property. There are a number of ways that rent might be paid which includes direct deposit or debit, credit card, check or in person. If a direct debit method is to be used, the landlord must explain this before any rental agreement is signed.

Responsibilities in Paying the Rent

You are obligated to pay the rent under the terms of your lease agreement even when facing the following situations;

  • You have given notice about leaving the property.
  • You are in the last month of your rental agreement.
  • The landlord will not repair or maintain the property.
  • You have been given an eviction notice.

You are still obligated to pay the rent you owe under these circumstances. However, if the landlord does violate the terms of the lease agreement, then you have the grounds by which not to pay. Consult with an attorney however before you decide not to pay the rent. Otherwise, you could open yourself up to having your credit score reduced.

How Rent Payment in Advance Works

The rent you pay is really paying for the month ahead of your stay. Basically, if you are paying rent on a monthly basis, then when you pay at the first of the month it covers the rest of the month. However, if you are paying rent on a weekly basis, the landlord cannot ask for more than 14 days rent at the beginning of the lease agreement.

There are also rules about how much rent you pay and when it is to be paid that is covered by your local and state laws. Tenants do have certain rights while under a lease agreement which have to be respected. For example, if the rent is below a certain amount each week, the landlord cannot ask for more than one month in advance, otherwise they might be fined by the courts.

Overall, it pays to know your rights under the law as a tenant in terms of what laws, rules and regulations you have to follow under a lease agreement. You will want to discuss any lease agreement with parties that understand how renting properties work so that you are fully protected under the law. This does not mean you have to consult with an attorney, but you will want to check out the landlord and the property to understand its reputation and past behavior towards tenants.

Take Advantage of Online Rent Collection

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Whether you are a landlord with a few homes to rent, or a property manager for hundreds of units, online rent collection solutions are available to you now. The process is convenient, easy to set up, and affordable. Eliminate manual rent collection and bookkeeping with customized websites and seamless integration to your landlord/property management software.

More than ever, people are turning to the convenience of online shopping, banking, and bill payment. Now your tenants can add paying their rent to the list. And, it isn’t only tenants that reap the benefits of online rent payments. Landlords and property managers will no longer have to spend their time on manual data entry or managing late rent payments.

Collecting rent payments, providing receipts, manually entering payment information, updating tenant files, preparing checks for deposit, and the trip to the bank takes, on average, two days each and every month. As landlords and property managers, your time could be better spent. With online rent payment collection, all these tasks are handled automatically and the number of late payments can be significantly reduced. It’s easy to get started. With online rent collection solutions and customized options:

  • Rent payments are deposited automatically.
  • Tenants receive email receipts.
  • Tenant payment information is updated immediately and available for review.
  • Landlords and property managers can monitor rent collection through real-time status reports.
  • Landlords and property managers can set up email notification to tenants regarding updates to rent payments, upcoming policy changes, rent and late fee schedules, and late payment status notification.
  • Vacancy lists and property information is readily available.
  • Application fees and security deposits can be collected electronically.

More and more, people prefer to shop, bank, and pay bills online. It’s a fast, easy, and time-saving method for managing their finances. Your tenants will appreciate the added convenience of online rent payment. The process is easy, secure, and private. Tenants can:

  • Eliminate monthly check writing.
  • Pay by debit card, credit card, or e-check.
  • Make one-time monthly payments or set up automatic payments.
  • Review their payment history.
  • Receive email receipts and other notifications from their landlord or property management company.
  • Update personal information such as name changes and phone number changes.
  • Send maintenance requests via email.

Getting started is easy. With the seamless integration of information to your landlord/property management software, you have instant access to tenant information and payment history. With the answers to a few simple questions, your website can be customized for online rent payment collection. Your merchant account allows you to accept electronic rent payments and have the funds deposited directly into the bank account of your choice. For landlords and property managers with separate accounts for each property, you have the option to select multiple accounts for deposit. Security and privacy are of the highest priority and strict measures are in place to provide peace of mind that all information stored or transmitted is protected at all times. Online rent payment solutions are affordable and available now.

The Benefits of a Month to Month Lease

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Although the most popular type of lease is one that lasts a year or longer, there are many who prefer a month to month lease because it offers greater flexibility. While long, fixed term lease agreements do bring a measure of security to the landlord in having a consistent source of rental payments and the tenant in terms of not having their rent go up for a period of time, a month to month agreement can be beneficial to those who are more interested in flexibility and not security.

Of course, the month to month lease agreement will need to be in the best interests of the landlord and the tenant, but given the circumstances there are usually many people who are in need of such terms. While obtaining a month to month lease will generally require a good rental background, they can offer quite a few benefits especially for the tenants who need more flexibility in their lease agreements.

The Advantages for Tenants

On the Move: If your job requires you to change locations frequently, then a month-to-month lease is in your best interests. This means that you can give relatively short notice to your landlord and move out without incurring any additional penalties or breaking your lease.

The Sale of the Home: Quite often, people who are in the process of moving will have their home sold before they can find a new one. Such circumstances mean that they are without a residence for a short period of time. Therefore, having a short term month to month lease can be in their best interests since they plan on purchasing their new home as soon as possible.

Test the Waters: For tenants who may be unfamiliar with the neighborhood in which they are moving or want to know the landlord better before making a long term commitment, then having a month to month lease will be in their best interests. This way, you can test the waters without being stuck in a long term agreement, allowing you to find another place to live in a short period of time.

The Advantages for Landlords

Poor Tenants: If the tenants turn out to be less than desirable, the landlord can simple end the lease with 30 days notice. For many landlords, this is highly desirable because they can rid themselves of bad tenants quickly and without incident.

Rent Increases: If the property is in high demand, it will be easier for a landlord to increase their rent. Of course, if the property is not renting well, then they may offer discounts or other incentives that a month to month lease can provide. In either case, a landlord can react more quickly to changing situations with a month to month lease.

Vacation Property & College Communities: This is a natural for month to month leases as tenants will tend to only stay a short period of time. For landlords who notice this trend or have good vacation property, then a month to month lease system can work wonders for them.

While the needs of both the landlord and tenant will have to be met, the month to month lease is one that certainly offers many advantages.

How Landlords Should Conduct Background Checks

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For owners of rental property, one of the most overlooked tasked is conducting a proper background check of prospective tenants. Most landlords do not go far enough when it comes to doing a complete check, which means that a tenant with potential issues may get through. While no amount of background checking will prevent troubling tenants from renting your property, you can certainly cut the odds considerably by conducting a proper check.

What follows are the steps you need to take when conducting a proper background check. Remember to do this will all of your tenant to establish a healthy routine.

Initial Information

Most prospective tenants will call first in answer to any rental advertisement, so provide them with the information they need and then ask them for the following;

  • Name
  • Date of Birth
  • Contact Information
  • Date of Renting
  • Landlord References

The landlord references are very important as you can ascertain their previous behavior. This is why previous renters should be given priority over first time renters. Also ask the standard questions about smoking, pets, why they want to move into your property and then inform them about the security deposit, rent and any other fees.

If you feel comfortable with the answers that you received during the initial check, then line up the prospective tenant for an interview.

Face-to-Face Interview

Look at their appearance for anything out of the ordinary, such as being unkempt or disheveled. The same applies to the vehicle that they drive as well. Also, their behavior should be noted as well, if they are respectful and courteous. If they look good, then have them fill out an application.

Background Check

Start with their personal references, although they will probably check out as few people give out poor references. The next step is contacting the landlords that they have listed on their application as well. Be sure that you find out if they paid their rent on time and if they left the apartment in good shape. Note any behavior that the former landlords provide as well.

Next, contact their current or previous employers on the list. While for the most part they’ll only give you basic information, you can find out how long they have worked there or if they left what was the reason. Finally, use your online background services to check for criminal record and credit history.

What to Look For in Your Background Check

Few tenants have a perfect background, but the first thing you are looking for is consistency. Is what the prospective tenant told you check out in your research? If not, then you have some issues which, depending on their severity will eliminate them from consideration. If the answer is yes, then you will have to go with your instincts as to what you have seen when talking to them.

As with most cases, you will arguably have more “clean and honest” prospective tenants that not, so that is the problem to have. So when it comes down to that, it will be your judgment call that decides what action you should take.

Electronic Rent Collection: Direct Deposit

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The prevalence of online rent payment services should continue to explode in the coming years, due to a number of factors affecting the market.  Continued economic uncertainty means that young adults and families regard renting as a safer option when compared to purchasing a home.  In addition, the ongoing transition to digital commerce means that his generation views online rent payment services as the obvious alternative. Landlords also gain benefits from instituting online rent payment services for their tenants.

Once thought to be a logistic nightmare, online rent payment services have firmly entered the mainstream.  While many industry watchers believe the transition was inevitable, a number of factors have played a role in quickening the pace of this change.  A prime cause in the move to online rent payment services has to do with the country’s changing demographics, as survey after survey shows increased interest in renting as a preferred way of life.

For example, online rent payment services are tailor made to suit members of the Millennial Generation, who are now firmly ensconced in their renting years.  Whether they are entering college, seeking to enter the workforce for the first time, or settling into marriage, this group of Americans lives a mobile life – both geographically and digitally. They expect to rent for years, perhaps decades, to come, and they expect to be able to handle their entire social, business, and bill-paying tasks from their mobile devices.

In fact, a survey by the National Apartment Association found that online rent payment services topped a list factors that influence this generation’s decision regarding whether or not to rent a particular unit. One a five-point scale, with 1 representing no impact and 5 signaling a significant impact, the availability of online rent payment services scored a 4.44.  The one caveat was that renters wanted this transaction to go through without a convenience fee.

Given this ongoing trend, increasing numbers of landlords and property management companies are adding online rent payment services to their business procedures. One easy method is simply to implement an automatic withdrawal method. From the point of view of the landlords this system offers a number of benefits over the traditional method of collecting rent via a check sent in the mail.

First, under normal circumstances, when no payment problems are occurring, the automatic withdrawal method of online rent payment services requires no effort on the part of the landlord to collect rent.  In addition, the system is easy to set up with the majority of banks and other financial institutions.

At the same time, using automatic withdrawal for online rent payment services is not perfect. Monthly fees can eat into profit margins or turn prospective renters away.  It also requires monitoring to ensure that the rent was actually transferred to the account.

Credit cards also provide a method of instituting online rent payment services.  To take advantage of this option, landlords usually need to have a merchant account that accepts major credit cards.  This is usually easy to set up, but some landlords may not want to set up a merchant account.  In lieu of a merchant account, PayPal can be used to create a system of online rent payment services.  In some cases, landlords can build the online rent payment services into their main website, which is also provides terrific convenience for everyone involved.

Accepting credit cards as part of a property’s online rent payment services does carry some risk. Allowing a tenant to pay by credit card by unwittingly result in the tenant over-extending themselves to the point where they no longer have the means to pay rent.  At that point, the situation can deteriorate into an eviction battle. Transactions fees also represent a necessary part of this type of service, something both tenants and landlords will have to come to terms with sooner rather than later.

These concerns are minor, however, when compared to the overall convenience and efficiency of online rent payment services. The technology surrounding them will steadily improve in the years to come, to the point where sending a check to pay for rent will most likely go the way of the eight-track tape and rotary phone.