Landlord Newsletter Move-out & Security

Dear Fellow Landlord,

How is your move-out and security settlement system? Most of us have our own way of handling it, but I know many others need some help. Like I always, say, "Just one good idea, can be priceless!"

In this newsletter:

• Security is NOT Rent!
  
• The Security Settlement Statement
• Free Move-out Form
• Ask the Attorney, Real Estate Attorney, John Reno
  
• Successful Landlord 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

So your tenant asked to use the security deposit as rent? This happens to landlords everywhere every day. The rent isn't paid, you ask for the rent and the tenant says, "We don't have the rent. Take it from our security deposit." ... or ... "We are moving - you'll just have to use our security."

Most landlords are caught off guard and are dumbfounded when this happens. Beware, you'll find this is a common tenant tactic in the landlord business.

How can you be prepared to deal with this situation? First, it is very important that your rental agreement contains a good security deposit clause, like the LPA Lease does. I believe it is very important to read the lease to the tenant before the tenant signs it. The Security Deposit clause explains how security money may not be allowed to be used as rent. That's when I warn the tenant against trying to use the security deposit as rent.
These are the key points on this issue I try to make very clear to the tenant:

• Security is to be kept in a special escrow account for the entire term of the tenancy.
• Security legally may not be used by the landlord for any reason other than physical or financial damages as a result of the tenant's failing to comply with the lease contract AFTER the tenant has vactaed the property.
• Failure to pay rent is cause for eviction which will result in the destruction of your credit rating.
• Your lease agreement states that security deposits are not to be used as rent, so if you ask me to do that, you would be breaking your contract and your word.
• If your word and signature are no longer good, then I may not believe anything you say about when you want to leave, so I'll be forced to begin legal action.
• In the event you default on your rent, you are responsible for my late fees, collection costs and attorney fees.
• I also remind them about The Credit Reporting Disclosure Notice I just had them sign that says I intend to report positive and negative payment history to the credit and tenant reporting bureaus.

I've been able to counter this particular type of "tenant attack" by being ready with the right comeback...

click for John's full article...

FREE DOWNLOAD Move Out Instructions Reminder Letter This is one of my favorite forms because it saves me time and money when tenants move out according to our instructions. It is one of the LPA Forms that is often overlooked, probably because it is not listed on the LPA Essential Landlord Forms page. It is one of our Free Forms, but I consider it an "essential form" just the same. We send this form to the tenants about a week or two before they vacate. It reminds them specifically of certain tasks and cleaning they should perform in order to get a full security refund. This letter instructs the tenants how to lock up and secure the rental until it can be inspected by the landlord/management, and also where and how the tenants should return all keys. We have found this form to be very effective in helping tenants to be more cooperative when they are moving out.

The Security Deposit Settlement Statement may be used with or without a Move-In/Out Property Condition Inspection Report.

One of the most essential forms for a landlord today is the Security Settlement Statement. It is required by almost all states to settle the security deposit after a tenancy has ended. This form alone has enabled us to make valid deductions (saving us tens of thousands of dollars in damages over the years) from security deposits while minimizing objections from tenants.

Don't get me wrong, we are not out to unjustly take security money from tenants! But when deductions need to be made, this form can be a miracle worker. Why? Because it itemizes valid deductions on paper in black and white and now becomes much more difficult for your former tenant to argue with the facts.

No more arguing with tenants about their security refund!

In the past we've all made some real bloopers of mistakes. How about one of the most common mistakes that many landlords still do all the time and haven't yet found a better way? ...

Click to read the full article

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:
Can I have an attorney's fee clause for my lease in Florida? Can an attorney's fee clause ever be altered by a judge. The clause I use states, "In any legal action to enforce the terms hereof or relating to the premises, regardless of the outcome, the Owner or agent shall be entitled to all costs incurred in connection with such action, including a reasonable attorney's fee. Tenant acknowledges all attorneys’ fees shall be classified and billed to tenant as "added rent." This is the same clause I received when I bought the lease from the LPA for Connecticut. I have read about these types of clauses backfiring, is this true?
Thanks,
Ken

A: Never "backfiring", no, but not enforced, at times. Usually if its worded like that, it'll work. Some judges will cut it down (reduce it.) Some judges say if all the rent is paid, case dismissed, don't care about legal. Hell, they're judges- they do what they want!

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.

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 bright side, remedies are available. 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....

Click here for the full article

"You think you know someone? You don't really know them until they've rented from you." - John Nuzzolese

"One of my biggest fears is having a tenant with more landlord - tenant knowledge and expertise than I have." - John Nuzzolese

"I learned that the easiest and cheapest eviction is the one when the tenants never get possession of your property!" - John Nuzzolese

"The best way to avoid tenant problems is to avoid problem tenants." - John Nuzzolese

How to Check your LPA Membership Expiration Date:

1. Be logged in with your LPA username & password
   
2. On the "Main Menu" (top right), click on "Your Orders" (right below your name)
   
3. The beginning date of your membership will be listed to the left of your membership order # in this format: YYYYMMDD
   

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