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A trip to the local landlord-tenant court is a great way to gain the knowledge needed for landlords and property managers to stay abreast of the do’s and don’ts of landlord-tenant affairs. Short of that dreaded trip to the courthouse, landlords and property managers can take heed of this list of six things not to do to maintain their sanity and a positive relationship with their residents as well as the court.
You are no longer making newbie mistakes like being undercapitalized, failing to screen tenants properly or failing to file evictions immediately, but sophomore landlords and property managers are especially vulnerable to the mistakes outlined in this article. The keys to not becoming a victim of these dreaded mistakes is in continual education, managing properties like a professional at all times and being fair in all dealings with residents.
Failure to Communicate Effectively – Landlords and property managers of course are busy; everyone who works full-time and wants to get ahead through investing is busy, it is no excuse for poor communication with residents. All of your communication with tenants should be in writing, even if you also telephone, text or email. If it is important enough to communicate, it should be in writing and kept in the resident’s file. This is never more apparent than when standing before a judge trying to recall a conversation you had with a resident that the resident cannot recall. When a resident says,“You never told me that,” it is very difficult to prove otherwise when relying solely on memory.
Being a Friend vs. Being Friendly – Landlords, more often than property managers, fall prey to this one and may think that being friends with their residents will ensure things will go smoothly. Not so. This is one of the biggest mistakes landlords make in building relationships with their residents. They often confuse being friendly, which is fine, with being a friend. People typically view a friend as someone who they can count on when they need a shoulder to cry one or when they need a favor. If ever a time should arise where a resident can’t pay his/her rent, the tendency might be to look to their “friend” for some leniency that wouldn’t be expected in a strictly business relationship.
Charging for “Normal Wear and Tear” – Landlords and property managers get themselves in all kinds of trouble by charging tenants for things considered by most courts to be normal wear and tear. This is easily one of the most elusive rules on the books as very few jurisdictions have clearly defined “normal wear and tear”. Some jurisdictions do have written rules on this and landlords/property managers should be sure to check whether or not there are written rules in their jurisdictions on this important topic.
One golden rule for landlords/property managers to remember when it comes to what’s normal or not regarding the condition of property, is the Move-in/Move-out Inspection form. This form should always include the date it was conducted as well as the dates any improvements were made or new appliances were purchased, new carpet or paint applied, for example. It would be very difficult for a tenant living in a home for only one year to claim “normal wear and tear” on a brand new carpet that upon move out has holes and excessive dirt and stains. That said, that same carpet condition might easily be the result of normal wear and tear after a tenant has lived in the home for five years or more. When documentation, including specific dates are not provided, the court is left to make a judgment call on who is being truthful and who is not.
Confusion about Tenant Notices – Landlords and property managers need to be clear on what notice to send to tenants when they are in violation of the lease or HOA rules and regulations. More importantly, there is often confusion about eviction notices and when to send them. Many residents have been alotted even more time after failing to pay rent for months simply because the landlord or property manager failed to serve them with property notice. Each jurisdiction has its’ own timelines regarding when eviction notices are to be served. Landlords and property managers who are not aware of those timelines are doing a disservice to themselves and their owners when they don’t educate themselves on the proper times for serving notices. Some jurisdictions, for example, may require 10-day notice be given to a tenant before filing an eviction while another jurisdiction may require only a 3-day notice.
Photocopying Military IDs – Landlords who don’t routinely rent to military personnel might not be privy to the fact that military ID cards are not allowed to be photocopied. Most landlords and property managers require ID and want to keep copies of that ID for their records. Beware however, of the rules regarding military personnel ID’s and be careful not to photocopy them. Asking for an alternative ID for military personnel is the best practice to keep landlords and property managers out of trouble with this group. While not deadly, this certainly is a no-no.
Late Responses for Security Deposit Refunds – Landlords and property managers might be inclined to forgo this one especially whenever a tenant leaves a property owing money. This is a big mistake and could end up costing the landlord three times what they are owed. The courts take accounting for a tenant’s security deposit very seriously and so should landlords/property managers. All expenses should be accounted for, literally every penny of the security deposit and accurately included in a letter or form to be sent to resident at their last known address. EzLandlordForms has a Security Deposit Accounting form which makes this task easier for landlords. Landlords are advised to check with their local jurisdictions for more specific forms for their areas as some have their own designated forms. Under no circumstances should a landlord forgo this task.
Even when sending a quick text or making that phone call is the best communication method at the time, follow-up with an email or a note in the resident’s file about the communication. Most importantly, be sure to include the date and time of the communication so there will be no misunderstanding about it later when neither of you can or wants to remember.
Knowing what to do and what not to do can make the difference between having a potentially nightmarish landlord/property manager experience or a relatively routine one.
Share your deadly mistakes with us. Do you have one or more to add to this list? How did you learn what to do and what not to do?
Related Reading:
Top 5 New Landlord Mistakes to Avoid
Renting to College Students 101
