Residential Landlord-Tenant Rules

Posted on | July 14, 2009 | 1 Comment

QUESTION FROM ONE OF MATT’S READERS-

“I just came across your website and found it very helpful. I have a question concerning a landlord issue. We recently just moved out of a home we were leasing. We did everything the landlord asked for and followed the lease perfectly. During the time we stayed there the landlord would visit almost everyday unannounced. He would use the driveway and work in the shed behind the house. Many of his friends would just wander the yard also. He also used our water hose almost everyday. We did talk to him about this and he told us we had to get use to it. We decided we would just stick it out and not renew our lease.

Upon moving out the landlord said we had left a small spot on the back of his 32 year old pink countertop. He rented the property out right after we moved and is still using the countertop. He charged us $540 for the small spot saying it had 3 years left his loss. So he was charging us $180 a year. I read up on Indiana law and I thought it said he can only charge fair market value. I also read we were entitled to have reasonable notice when he came on the property. That we were entitled to peaceful living which we definally did not have ( I did take many pics/videos of him coming and going all the time) Do we have any rights? The 45 day deposit letter he sent us just said he was charging us $180 a year his loss. Is it vaild? He has no intention on fixing or replacing the counter plus he is still using it. Do we have any rights? He also asked us to lie for him if the county assesor came by. He is saying his wife lives in the rental under her maiden name so he can claim the homestead exemption. Is the lease vaild if he does not even own the home? The home is under his wifes maiden name only. Any input would be greatly appreciated! Thank you for your time.

Maria”

Matt’s Answer-

Landlords are not always right.  Tenants are not always wrong.  If your facts are correct, you might have a very good case.  Indiana has a security deposit statute that poses a “Zero Sum Game” for landlords.  If a landlord wrongfully holds a security deposit after the lease ends, the landlord loses.  If a landlord fails timely to provide the “45-Day Letter” and any security deposit balance owed to the tenant, the landlord loses.  So, landlords should be careful to follow the “45-Day Letter” Rule very carefully.

Sounds like this landlord is trying to cheat you,  Fight it.  Don’t let him charge you for a new countertop, when you did not even damage the old one.  Right is right, and this landlord is wrong.  You should consider going to small claims court.  I would need to see your evidence and the lease to be certain about your best options.

You might want to read this post-  Indiana’s Security Deposit Law

Good luck.

Matthew A. Griffith is an attorney, business performance coach, mentor and entrepreneur.  He coaches, advises and guides business owners, entrepreneurs, inventors, property managers, investors and real estate professionals.  Matt has nearly two decades of experience helping businesses grow.

REAL ESTATE QUESTION- Tenant Screening

Posted on | March 17, 2009 | 2 Comments

Question from one of Matt’s readers-

“How should I screen tenants?”

Matt’s Answer-

That is a great question and more important today than ever. As the foreclosure wave pushes more and more people out of their production homes and into the rental market, landlording is seeing a rebirth. Once again, it is not so bad to hold rental properties. Generally, the number of vacancies is dropping. And, more and more investors are moving away from the more creative real estate investing techniques and back to buying and holding rental properties.

Landlording is back!  (I never thought it went away, actually.)

For both the seasoned landlord and the newest of real estate investors, it is important to screen tenants and have a command of the tenant screening process. There are a number of factors to consider, such as:

· What forms do I use?

· Do I require an application fee?

· How do I screen?

· What is my screening criteria? What makes a good tenant?

· How do I avoid discrimination claims? What are my duties and rights?

· How do my rental application and lease agreement work together?

· Was does it really mean to “pre-screen” tenants?

· Should I use a tenant screening service?

These are great questions, and the answers are relatively simple. It does, however, take some time to learn about your rights, responsibilities and opportunities, as they relate to tenant screening. I cannot address all these topics here, but let me take the last question- “Should I use a tenant screening service?”

The answer is: Yes, you better. Using tenant screening services is the most cost- and time-effective way to improve your chances of a successful landlord-tenant relationship. Good tenant screening services are a bargain. I have written for more than a decade on the subject, and believe in them more today than ever.

Do “bad” tenants slip through, even with a tenant screening company helping you? Yes, it happens. But, for the most part, professional tenant screening greatly improves your odds of finding the best tenant in your pool of tenant applicants. I believe in tenant screening services so much that I agreed to teach a class on landlording, called “Landlording 101,” for the local office of the National Tenant Network, last year. WE WILL PROBABLY OFFER THE CLASS AGAIN THIS SPRING!  IF YOU ARE INTERESTED IN ATTENDING, EMAIL ME.

Also, once each month, I host the “Landlording Subgroup” of the CENTRAL INDIANA REAL ESTATE INVESTORS ASSOCIATION.  The next meeting will be held in my law office building- 151 N. Delaware Street, downtown Indianapolis at 6:00 p.m. on March 23.  If you’re a CIREIA member, register to attend the meeting at www.cireia.org.

At these classes, I answer the questions listed above. If you are a landlord and have not attended one of my classes, please do so soon.  If you haven’t established a relationship with National Tenant Network or another such service, do so this week. That is one of the first and certainly most important steps in the tenant screening process.

Matt to host another “Landlording” Group Meeting

Posted on | March 14, 2009 | 1 Comment

Once each month, I host the “Landlording Subgroup” of the CENTRAL INDIANA REAL ESTATE INVESTORS ASSOCIATION.  The next meeting will be held in my law office building- 151 North Delaware Street, downtown Indianapolis at 6:00 p.m. on Monday, March 23.  If you’re a CIREIA member, register to attend the meeting at www.cireia.org.

At these classes, I can answer any landlording question you can think of, because I’ve seen it all at this point in my law career.  If you are a landlord and have not attended one of my classes, please do so soon.  If you are not a member of CIREIA and are serious about real estate investing, GO TO WWW.CIREIA.ORG AND JOIN ASAP!