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Equal Opportunity Housing Primer

April 12th, 2010

Juggling and staying on top of the frequently changing federal, state, and local laws that apply to rental housing is one of the trickiest tasks you’ll have to master as a property manager. At the top of the list of housing regulations you must abide by are equal housing rules and regulations as determined and enforced by the Office of Fair Housing and Equal Opportunity (FHEO). As always with rules and regulations, it’s imperative you stay on top of regulations as they’re subject to change. With that in mind, following are some basic equal opportunity housing rules and regulations that every landlord should be aware of.

The Civil Rights and Fair Housing Act mandate that landlords may not discriminate against potential tenants based on their race, color, familial status, or handicap. It’s important to note that, under the Fair Housing Act, it is illegal to refuse rent to families with small children, based on that fact. (For more information and tips for renting to families with kids, check out our previous blog post.)

The Equal Credit Opportunity Act also applies to landlords, as it makes discrimination unlawful “with respect to any aspects of a credit application on the basis of race, color, religion, national origin, sex, marital status, age, or because all or part of the applicant’s income derives from any public assistance program.”

Additional anti-discrimination rules apply to those properties that have received federal funding. For instance, under Title II of the Americans with Disabilities Act of 1990, HUD enforces anti-discrimination based on disabilities as it relates to “state and local public housing, housing assistance and housing referrals.”

Essentially, these laws all mean that you must offer people of all legal ages, races, creeds, nationalities, family types, and physical capabilities an equal shot at renting your units. This includes not establishing discriminatory terms or conditions for your rental units, denying that housing is available, or advertising that your property is only available for rent to certain types of people (for example, you cannot specify that you rent only to individuals 25 years or older). These laws also apply to third parties; for example, you may not instruct a rental agent to screen out tenants based on any of the above factors.  Also remember to check your state and local laws as they may have additional rules and regulations that must be adhered to when it comes to equal opportunity housing.

Being as clear as possible about what does and does not constitute discrimination is extremely important. It’s essential that all landlords are well versed on equal opportunity housing regulations to avoid making any sort of mistake that, despite the best of intentions, may actually constitute discriminatory behavior. Landlords that are suspected of discriminatory behavior are subject to investigation by the United States Department of Housing and Development (HUD). Should you be unclear on equal housing laws and how they apply to your situation, be sure to contact HUD for clarification.

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Dealing with Problem Tenants

July 20th, 2009

Chances are every landlord will encounter a problem tenant at one point or another in his career. Whether issues arise based on noiseresidential tenancy agreement levels, delinquent rent payments, illegal roommates, or any number of other violations, dealing with problem tenants can be tricky. Following are some tried and true suggestions for dealing with issues as effectively as possible and—better yet—avoiding renting to problem tenants in the first place.

Prevent problem tenants from getting a foot in the door.

The importance of carefully screening tenants before locking yourself into a lease cannot be overstated. No matter how eager you are to occupy a unit, renting to an unqualified tenant is never worth it in the long run. In addition to checking credit and criminal records, be sure to call former landlords for applicant references.

Remember, some landlords may be unwilling to explicitly state that they do not recommend renting to a potential tenant for fear of litigation. Bear this in mind when speaking with references, and be sure to read between the lines when necessary. Sometimes what a reference doesn’t say is just as important as what she does say. Ask the applicant’s former landlord if she would rent to the tenant again. If the answer is “no,” think long and hard before handing over that lease.

Have a system in place.
Many leases neglect to cover behavioral expectations. Be meticulous and specific when it comes to setting forth your expectations, whether it be in your lease or as part of a lease addendum. Also, make sure you have a clear system for issuing warnings in place and that all tenants know how this system will work from the offset. For example, let tenants know that should problems arise, they will receive two written warnings for lease violations. On the third violation, they will be asked to vacate their unit. Finally, be sure that all tenants sign off on these guidelines before handing over the unit keys. This will ensure there is no room for dispute further down the line.

Follow through with your system.
Just as important as tenants abiding by your guidelines is that you abide by your guidelines. After all, if you don’t take your rules and regulations seriously, why should your tenants? In other words, if a tenant violates a building rule or regulation, make sure you follow up with the appropriate prescribed action as set forth in the lease agreement. Also be aware that an inconsistent system could cause problems down the line. It’s important that all tenants are treated equally. For example, if you neglect to write one tenant up for a noise violation, you can hardly write up another tenant for a similar violation.

Keep the lines of communication open with all tenants all the time.

When it comes to problem tenants, communication is critical. In cases where a landlord has developed a friendly relationship with tenants, it can be uncomfortable to put on the disciplinarian hat and issue a formal written warning. You have to maintain your role as the resident authority, but you don’t have to do so at the sacrifice of your relationships with tenants. Should such a case arise, keep the channels of communication open. Follow through with the prescribed warning, but take the time to talk openly with your tenant—listen to his side of the story and explain where you’re coming from. Also in terms of communication, if a tenant complains about a fellow resident, be sure to follow up and let the tenant know you’ve addressed the problem.

If tenant problems are serious and consistent enough that eviction is warranted, carefully check your state and local laws and take the steps necessary to begin the eviction process. Eviction is never ideal, but if you don’t address the problem tenant, you may inadvertently lose some of your good ones. And no landlord wants that to happen.

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Condo & HOA Management Links

July 9th, 2009

Managing a condo or homeowners’ association (HOA) differs slightly from managing multi-family housing or an apartment. Now that you know the 5 keys to association management, check out these links for more association management resources.

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Summer Safety Measures

June 15th, 2009

Summertime means it’s time to head outside and enjoy all the activities the season has to offer. And if your property provides amenities like a pool or grills, chances are your tenants are particularly happy at this time of theGrilling at summer weekend year. However, with these amenities come additional risks and hazards, many of which can be easily prevented with clear policies and a little bit of enforcement. Read on to find out about some simple measures that will help keep your tenants happy and safe during the summer months.

Pool Policies
Chances are at one point or another in our childhood, all of us were sternly told to “slow down” or “don’t run” by the pool. And, sure, it may have cramped our style a little bit but it also kept us safe. As a landlord, it’s your job to remind tenants about smart poolside practices—and to protect yourself from litigation that may result from pool-related injuries.

Make sure that rules and regulations for pool use are highly visible and that all your tenants know what is expected of them. Along with posting pool rules around the swimming area, you can also include the policy as a lease addendum to ensure that all tenants sign off on your property’s rules and regulations from day one. This addendum can include everything from basic rules to (if applicable) expectations on how tenants are expected to maintain the pool and surrounding area. A sample of this addendum can be downloaded here. In terms of pool signage, you can either make your own or visit a local hardwood store, most of which carry standard pool rule signage, particularly in the summer months. Common rules include:

•    Shower before entering pool
•    No food, drink, or glass in pool or on pool deck
•    No animals in pool or on pool deck
•    Pool capacity: _____ persons
•    Pool hours : ________ – ________
•    No running near pool
•    No diving or jumping
•    No children under ______ years of age without parent
•    No diapers allowed in pool

It’s not your job to play full-time lifeguard, but if you do see tenants violating rules and regulations by running or behaving recklessly in any sort of way, take it upon yourself to bring an end to the behavior. Pools can be a lot of fun, but they also present many potential hazards that no landlord wants to be held liable for.

Grill Guidelines
Aside from swimming, nothing else says summer quite like grilling.  Unfortunately for landlords, grilling brings with it a significant fire hazard. As with pools, it’s imperative that tenants know—and abide by—a strict set of grilling policies.

You will want to ensure that the grill is not within a certain distance of your property’s building in order to prevent potential catastrophe at the hands of flying sparks or an out of control flame. It should also be made clear that only adults are allowed to operate a grill. If you see any questionable behavior, don’t hesitate to take grilling privileges away from tenants. Clearly, a fire hazard is nothing to mess around with.

Noise Notice
With the days lasting longer and lots of outdoor fun to be had, more than any other time of year, it’s easy for tenants to get carried away during the summer, inadvertently disturbing other building occupants. Again, setting forth expectations or a noise policy in the lease is a good way to ensure that all tenants understand your rules and regulations. The early summer months are the perfect time to send tenants a reminder about building noise policies and expectations in terms of quiet times and noise levels.

Offering summertime amenities like swimming pools and grills is a great way to keep tenants happy and feeling good about their residency in your rental unit. Just be sure to guard against potential liability by making sure relevant rules and expectations are clearly communicated to and followed by your tenants.

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