The LPA Newsletter July 2, 2013
Dear Fellow Landlord,
In this newsletter:
- 3 Reasons Move-out Inspections with Tenant Present may be a Bad Idea
- Returning the Security Deposit Do's & Don'ts
- 3 FREE Landlord Forms
- Ask the Attorney, Real Estate Attorney, John Reno
- Free Credit Bureau Reporting for LPA Members
- Landlord Success Quotes
Please e-mail us if you have any questions or would like to add or share any material / information. Have a great month and an even more successful year ahead.
John Nuzzolese
John@theLPA.com
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Why Pre-Move-out Inspections with Tenants are a Bad Idea
Did you know most tenants are more comfortable if you meet with them for a pre-move-out inspection before they move? They prefer to do this in person if possible and have their security money refunded to them on the spot. At the very least, they wish to know in advance of any deductions or charges against their deposit before they move.
Performing a move-out inspection before the tenants vacate is of virtually no benefit to the landlord. It can only create problems, confusion and disagreements between the parties.
Yes, it is usually a mistake to meet with the tenant for a walk through* to check the condition of the property and then hand over the security deposit. Often, there is a disagreement over whether the damages were the tenant's fault or responsibility, right?
*(In California, tenants have a right to a walk through with the owner before move-out. See California Pre-Moveout Inspection
Have you ever been in the awkward position of meeting with your tenant for a walk through in a damaged and dirty rental and the tenants expect the security back? Do you tell them that they will pay for all the damages they caused out of the deposit? Once they they are told of the intended charges against the deposit, do you think they will respond well to that? Will they have any incentive to do a good job returning your rental as clean and undamaged as possible? Of course not! They may even be spiteful and cause further damages just for the fun of it.
3 Reasons to Avoid Pre-Moveout Walk-throughs
- Walk-throughs cause arguments. Remember, tenants don't take kindly to being told they are responsible for and must pay for damages. Sometimes they might even say, "It was like that when I moved in!" (Imagine that!)
- Tenants expect the chance to minimize charges against them by fixing what they damaged. Of ten a tenant's do-it-yourself repair can be worse than the damage itself! (They won't understand that their repair may not be good enough)
- Many damages occur during the move-out process which takes place after the pre-inspection walk-through.
Many landlords are just glad to get their rental back so they can clean up the property and try to get better tenants next time. Have you ever had this experience?
If you're not in California or another state with pre-move-out inspection laws, don't meet with the tenants for a walk through to refund their security and pick up the keys! (Unless you have decided that you want to give a full refund no matter what.) Have a spare set, or have them return the keys to you. Let your tenants know that since many damages occur during move-out, you always have the property inspected after the tenants have moved. Their security will be sent to the forwarding address they gave you on their * Notice to Vacate. They will want to do their best to leave the premises in good enough condition to get their security refund. So when they give notice to vacate, send them a * Move-out Reminder letter. This explains what tasks they can do to have the rental ready for the next tenants.
Whether you Deduct from the Security Deposit or Not
When returning security money to tenants or deducting from it, most states require a Security Deposit Settlement Statement to be sent to the tenant. This gives you the opportunity to professionally itemize deductions and charges you need to make against ...
Click here for the full article
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You're Covered with 3 Great Moveout Forms that Work!
(This article contains 3 FREE form downloads!)
Over the years I have found a radical difference between tenant move-outs when I use the "Triple Play" of forms and move-outs when I don't. Whether it is the tenant's idea to move or if you are requiring the tenant to leave, these forms can save you substantial money in clean up and repairs.
Preparation is key when guiding your tenant though the move-out process. The typical procedure for moving out consists of the tenant first giving the landlord "notice to vacate" (Usually written notice). Sometimes it is the other way around and the landord gives the tenant a Termination of Tenancy Notice (A/K/A 30 day notice or similar). The use of the following forms will mitigate landlord clean up and repair costs and time.
So what is the "Triple Play" of forms that will help you minimize the need for clean up and move-out related repairs?...
click for the full article and 3 Free Move-out Forms...
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Landlord Do's & Don'ts
Returning the Security Deposit
What The LPA says you should do and shouldn't do:
DO wait until the tenant has moved completely out before returning any deposit money.
DON'T have a "walkthrough" with the tenant before moveout to determine the condition of the rental. Tenants like to do this to reassure themselves that they will get all their security deposit back. Instead of calling it a "walk-through", I like to call it the "AMBUSH" because that's really how it is when you are put on the spot. The tenant is still in possession of the rental and is insisting on getting the full deposit back.
DO Obtain the tenant's forwarding address to send any security refunds or bills.
DON'T allow the tenant to leave without first giving you a forwarding address. We usually obtain this with the Tenant's Notice to Vacate form.
DO Prepare a Security Settlement Statement to send to the tenant as soon as you've assessed the condition of the property and charges against the security deposit.
DON'T wait until the tenant calls you demanding the return of the security deposit before sending your prepared settlement package.
DO be prepared with your Security Settlement Challenge Crusher letter in case the tenant wants to try to persue the deposit money.
DON'T feel you have to keep explaining the findings to a tenant who doesn't agree with the written settlement.
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Ask the Attorney
 The Landlord Protection Agency® presents John Reno, Esq., a highly experienced Landlord - Tenant attorney based on Long Island, NY.
John Reno also does Mortgage Loan Modifications (Nationwide).
(Mention The LPA for a 10% discount!)
Dear Mr. Reno:
Illinois tenant moved out June 15 with rent paid to lease end of July 17. Place is vacant .
Am concerned about Insurance may not cover property loss etc. May I enter with my key for security reasons til new tenants become available without their key?
Lou F., IL
A: If the tenant has given you the key, they've given you possession. If they haven't, then they haven't. However, if EVERYTHING is gone- then they've abandoned the premises, (take photos), and you can enter & secure.
If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
Submit a landlord / tenant question for Mr. Reno
Please try to keep your questions as short and to the point as possible.
Read more from John Reno, Eviction Attorney
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If you haven't already, please take the opportunity to sign up for The LPA's Quick Check Credit Reports! Quick Check is a simple, fast way to access online credit reports with an LPA discount!
NO sign-up or set-up fees,
NO membership fees for Quick Check
NO compliance fees
Just lower prices!
24/7 access to reports!
Special Tenant Screening Discounts for LPA members.
See our price list!
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FREE Tenant Credit Reporting
(LPA Membership Bonus Feature)
Have you ever been beaten by a tenant on the rent? Most of us have and unfortunately, it is one of the costs of doing business as a landlord.
On the brighter side, remedies are available for many. If you have documented your tenancy with the proper paperwork including a rental application, lease agreement, late notices, etc., you may have a chance of collecting.
Credit bureau reporting is an option in which many modern landlords are beginning to participate.
The LPA recommends tenant and credit reporting to our members.As landlords ourselves, we do not believe tenants should get away "Scott Free" for leaving their landlord with a mess of unpaid rent, damages and other unpaid responsibilities. The prospect of reporting delinquent rent onto the tenant's credit record creates an incentive for the tenant to preserve his good credit, or to clean it up in order to some day qualify for a loan or mortgage.
A delinquent landlord debt is a serious mark against a consumer tenant's credit report for seven years and will likely:
limit the tenant's ability to find good rental housing in the future
limit their ability to qualify for a mortgage or other financing
require them to pay higher interest rates on any loans they acquire
limit employment opportunities
Notifying the current or former tenant that you intend to report their rental debt or payment history can be done in the following ways:
The LPA's Essential Forms:
Credit Reporting Disclosure Notice , or Credit Reporting Disclosure Notice to Former Tenant
The LPA's National Tenant Raiting Bureau
The LPA's other reporting options
For The LPA's Tenant Reporting, click here
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Wealth Secrets and Success Quotes
"One of my biggest fears is having a tenant with more landlord - tenant knowledge than I have." - John Nuzzolese
"Discipline is the bridge between goals and accomplishment." - Jim Rohn
"It is better to deserve honors and not have them than to have them and not deserve them." - Mark Twain
"I know God won't give me anything I can't handle. I just wish He didn't trust me so much." - Mother Teresa
"How much did your last tenant problem cost you? Your LPA membership will pay for itself by helping you avoid the smallest tenant problem." - John Nuzzolese
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