Archive for September, 2007

Obligations of a Landlord

Wednesday, September 5th, 2007

From time to time, I get questions from readers of my books, Real Estate Investing for the Utterly Confused or Wise Women, as to what exactly is a landlord’s obligation to a tenant?

I have listed the top 5 questions I get asked in hopes they will help you in your role as a landlord.

1. What type of updating should you do to the property? Improving the property could include adding a deck or fence; updating the appliances; replacing wall paper and paint.

The answer is: it depends. First, this is not an issue if it is a brand new property. If the tenant does not like the color scheme for example, they do not have permission to change anything on a new home since it is all under warranty. If the tenant has been with me a long time, I am apt to meet some of their requests. If the tenant is only with me for a year, then I would wait to do the minimum of updating until after the tenant vacates. No matter how clean and careful people are, places always look “lived in.”

2. What is considered “normal wear and tear”?
One would hope when a tenant vacates a property they would leave it in the condition they found it originally. For the most part, this has not been my experience. I end up having to hire professionals to come in and clean/fix any problems that should have been the tenant’s responsibility. Cleaning out the refrigerator, shampooing the carpets, maintaining the lawn, etc. That is normal wear and tear. Electrical or structural problems are not normal wear and tear.

3. What can the tenant fix or remodel on their own, and what is the responsibility of the landlord?
Most leases address the important defects in the property. My lease indicates the tenant should fix the small stuff (i.e. leaky faucets, caulk tiles, etc.). However, anything over $100 is subject to my approval and anything big, such as a leaky roof, is my responsibility.

4. Who pays for lawn maintenance, exterminators, homeowner’s association fees and any other ongoing expenses?
This, of course, is negotiable and should be addressed in your lease. Since I offer discounted rents to my tenants, some of these expenses are their responsibility. If the rental is a month-to-month, you as the landlord will probably be financially responsible for these expenses.

5. Do you ever accept partial payments if the tenant gets into a financial bind?
NO. And this is specifically addressed in my lease. Once you start accepting partial payments, the tenants will always want to make partial payments. You will find yourself not getting paid at some point.

A good landlord treats their tenants fairly and with respect. That is why their tenants stay with them for the long term. Hopefully, these 5 questions will answer any concerns about your obligations as a landlord.

Happy Labor Day!

Monday, September 3rd, 2007

Quick thought for the day:

Private health insurance makes a difference as to when you retire! Did you know that men who have access to private health insurance are 86% more likely than other workers to retire before the age of 65, and women with access to private insurance are 139% more likely to retire early! Make getting the right insurance a part of your financial planning. As you can see, it could make a difference. Plus, the benefits to private insurance far outweigh Medicare and Social Security!


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