Every Landlord’s Legal Guide 8th edition by Marcia Stewart and Attorneys Ralph Warner & Janet Portman Eighth Edition MAY 2006 Legal Researcher ALAYNA SCHROEDER Illustrations LINDA ALLISON Cover Design TONI IHARA Book Design TERRI HEARSH CD-ROM Preparation ANDRÉ ZIVKOVICH Proofreading ROBERT WELLS Index THÉRÈSE SHERE Printing CONSOLIDATED PRINTERS, INC. Stewart, Marcia. Every landlord’s legal guide / by Marcia Stewart, Ralph Warner & Janet Portman 8th ed. p. cm. ISBN 1-4133-0414-1 (alk. paper) 1. Landlord and tenant United States Popular works. 2. Leases United States Popular works. 3. Rent United States Popular works. I. Warner, Ralph E. II. Portman, Janet. III. Title KF590.Z9S74 2006 3 46.7304'34 dc22 2005058990 Copyright © 1996, 1997, 1998, 2000, 2001, 2003, 2004, and 2006 by Nolo A LL RIGHTS RESERVED. Printed in the U.S.A. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use. For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. For academic sales or textbook adoptions, ask for Academic Sales. Call 800-955-4775 or write to Nolo at 950 Parker Street, Berkeley, CA 94710. About Our Cover Astrid plays an integral role at Guide Dogs for the Blind (www.guidedogs.com)—her pups become loyal helpers and confidence-boosters to visually impaired people. In much the same way, Nolo books and software will guide you step by step through the unfamiliar legal tangles of life’s big events. Table of Contents I How Landlords Can Use This Book A. What This Book Covers—And How to Use It 2 B. What This Book Doesn’t Cover 3 C. Guide to Icons Used in This Book 4 1 Screening Tenants: your Most Important Decision A. Avoiding Fair Housing Complaints and Lawsuits 6 B. How to Advertise Rental Property 6 C. Renting Property That’s Still Occupied 8 D. Dealing With Prospective Tenants and Accepting Rental Applications 9 E. Checking References, Credit History, and More 16 F. Choosing—And Rejecting—An Applicant 25 G. Finder’s Fees and Holding Deposits 28 2 Preparing Leases and Rental Agreements A. Which Is Better, a Lease or a Rental Agreement? 34 B. Using the Forms in This Book 36 C. Completing the Lease or Rental Agreement Form 37 D. Changing a Lease or Rental Agreement 60 E. Signing a Lease or Rental Agreement 61 F. About Cosigners 61 3 Basic Rent Rules A. How Much Can You Charge? 72 B. Rent Control 72 C. When Rent Is Due 76 D. Where and How Rent Is Due 77 E. Late Charges and Discounts for Early Payments 79 F . Returned Check Charges 81 G . Partial or Delayed Rent Payments 81 H . Raising the Rent 82 4 Security Deposits A. Purpose and Use of Security Deposits 86 B. Dollar Limits on Deposits 87 C . How Much Deposit Should You Charge? 88 D . Last Month’s Rent 90 E . Interest and Accounts on Deposits 91 F . Nonrefundable Deposits and Fees 93 G . How to Increase Deposits 94 H . Handling Deposits When You Buy or Sell Rental Property 94 5 Discrimination A. Legal Reasons for Rejecting a Rental Applicant 96 B. Sources of Antidiscrimination Laws 99 C . Types of Illegal Discrimination 102 D . Valid Occupancy Limits 116 E . Managers and Discrimination 120 F . Unlawful Discrimination Complaints 121 G . Insurance Coverage in Discrimination Claims 122 6 Property Managers A. Hiring Your Own Resident Manager 127 B. How to Prepare a Property Manager Agreement 133 C . Your Legal Obligations as an Employer 138 D . Management Companies 141 E . Your Liability for a Manager’s Acts 145 F . Notifying Tenants of the Manager 147 G . Firing a Manager 147 H . Evicting a Manager 148 7 Getting the Tenant Moved In A. Inspect the Rental Unit 150 B. Photograph the Rental Unit 156 C . Send New Tenants a Move-In Letter 156 D . Cash Rent and Security Deposit Checks 159 E . Organize Your Tenant Records 159 F . Organize Income and Expenses for Schedule E 161 8 Cotenants, Sublets, and Assignments A. Cotenants 164 B. What to Do When a Tenant Wants to Sublet or Assign 169 C . When a Tenant Brings in a Roommate 175 D . Guests and New Occupants You Haven’t Approved 178 9 Landlord’s Duty to Repair and Maintain the Premises A. The Implied Warranty of Habitability 183 B. How to Meet Your Legal Responsibilities 186 C . Tenant Responses to Unfit Premises: Paying Less Rent 193 D . Tenant Responses: Calling Inspectors, Filing Lawsuits, and Moving Out 201 E . Minor Repairs 205 F . Delegating Landlord’s Responsibilities to Tenants 209 G. A voiding Problems by Adopting a Good Maintenance and Repair System 212 H. Tenant Updates and Landlord’s Regular Safety and M aintenance Inspections 217 I . Tenants’ Alterations and Improvements 222 J . Cable TV Access 224 K . Satellite Dishes and Antennas 227 10 Landlord’s Liability for Dangerous Conditions A. Landlord Liability for Tenant Injuries 234 B. If a Tenant Is at Fault, Too 243 C . How Much Money the Tenant May Be Entitled To 243 D . How to Prevent Liability Problems 244 E . Liability and Other Types of Property Insurance 247 11 Landlord’s Liability for Environmental Health Hazards A. Asbestos 254 B. Lead 257 C. Radon 266 D . Carbon Monoxide 267 E. Mold 268 12 Landlord’s Liability for Criminal Acts and Activities A. Your Responsibility to Keep Tenants Safe 275 B. How to Protect Your Tenants From Criminal Acts 283 C . Protecting Tenants From Each Other 292 D . Landlords and the Fight Against Terrorism 295 E . Your Responsibility for an Employee’s Criminal Acts 297 F . Protecting Neighbors From Drug-Dealing Tenants 298 13 Landlord’s Right of Entry and Tenants’ Privacy A. General Rules of Entry 306 B. Entry in Case of Emergency 308 C . Entry With the Permission of the Tenant 309 D . Entry to Make Repairs or Inspect the Property 310 E . Entry to Show Property to Prospective Tenants or Buyers 313 F . Entry After the Tenant Has Moved Out 314 G . Entry by Others 315 H . Other Types of Invasions of Privacy 316 I . What to Do When Tenants Unreasonably Deny Entry 318 J . Tenants’ Remedies If a Landlord Acts Illegally 319 14 Ending a Tenancy A. Changing Lease or Rental Agreement Terms 322 B. How Month-to-Month Tenancies End 323 C . How Leases End 329 D . If the Tenant Breaks the Lease 331 E . When a Tenant Dies 338 F . Condominium Conversions 340 15 Returning Security Deposits and Other Move-Out Issues A. Preparing a Move-Out Letter 342 B. Inspecting the Unit When a Tenant Leaves 345 C . Applying the Security Deposit to the Last Month’s Rent 346 D . Basic Rules for Returning Deposits 347 E . Deductions for Cleaning and Damage 347 F . Deductions for Unpaid Rent 351 G . Preparing an Itemized Statement of Deductions 353 H . Mailing the Security Deposit Itemization 360 I . Security Deposits From Cotenants 360 J . If a Tenant Sues You 361 K . If the Deposit Doesn’t Cover Damage and Unpaid Rent 364 L . What to Do With Property Abandoned by a Tenant 366 16 Problems With Tenants: How to Resolve Disputes Without a Lawyer A. Negotiating a Settlement: Start by Talking 372 B. When Warning Notices Are Appropriate 375 C . Understanding Mediation 375 D . Using Arbitration 379 E . Representing Yourself in Small Claims Court 379 F . How to Avoid Charges of Retaliation 381 17 Terminations and Evictions A. The Landlord’s Role in Evictions 386 B. Termination Notices 387 C . Late Rent 388 D . Other Tenant Violations of the Lease or Rental Agreement 392 E . Violations of a Tenant’s Legal Responsibilities 393 F . Tenant’s Illegal Activity on the Premises 393 G . How Eviction Lawsuits Work 394 H . Illegal “Self-Help” Evictions 400 I . Stopping Eviction by Filing for Bankruptcy 404 18 Lawyers and Legal Research A. Finding a Lawyer 408 B. Types of Fee Arrangements With Lawyers 411 C . Saving on Legal Fees 412 D . Resolving Problems With Your Lawyer 414 E . Attorney Fees in a Lawsuit 414 F . Doing Your Own Legal Research 415 G . Where to Find State, Local, and Federal Laws 415 H . How to Research Court Decisions 417 Appendixes A State Landlord-Tenant Law Charts Attachment to Florida Leases and Rental Agreements State Landlord-Tenant Statutes 421 S tate Rent Rules 422 N otice Required to Change or Terminate a Month-to-Month Tenancy 424 S tate Security Deposit Rules 427 S tates That Require Landlords to Pay Interest on Deposits 433 S tate Laws on Rent Withholding and Repair and Deduct Remedies 435 S tate Laws on Landlord’s Access to Rental Property 437 S tate Laws on Handling Abandoned Property 439 S tate Laws Prohibiting Landlord Retaliation 440 S tate Laws on Termination for Nonpayment of Rent 442 S tate Laws on Termination for Violation of Lease 445 S tate Laws on Unconditional Quit 447 B How to Use the CD-ROM A. Installing the Form Files Onto Your Computer 456 B. Using the Word Processing Files to Create Documents 456 C . Using PDF Files to Print Out Forms 458 D . Files Provided on the Forms CD-ROM 459 C Tear-Out Forms Rental Application Consent to Contact References and Perform Credit Check Tenant References Notice of Denial Based on Credit Report or Other Information Notice of Conditional Acceptance Based on Credit Report or Other Information Receipt and Holding Deposit Agreement Month-to-Month Residential Rental Agreement Month-to-Month Residential Rental Agreement (Spanish Version) Fixed-Term Residential Lease Fixed-Term Residential Lease (Spanish Version) Cosigner Agreement Agreement for Delayed or Partial Rent Payments Property Manager Agreement Landlord-Tenant Checklist Move-In Letter Landlord-Tenant Agreement to Terminate Lease Consent to Assignment of Lease Letter to Original Tenant and New Cotenant Resident’s Maintenance/Repair Request Time Estimate for Repair Semiannual Safety and Maintenance Update Agreement Regarding Tenant Alterations to Rental Unit Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards ( Spanish Version) Protect Your Family From Lead in Your Home Pamphlet Protect Your Family From Lead in Your Home P amphlet (Spanish Version) Notice of Intent to Enter Dwelling Unit Amendment to Lease or Rental Agreement Tenant’s Notice of Intent to Move Out Move-Out Letter Letter for Returning Entire Security Deposit Security Deposit Itemization (Deductions for Repairs and Cleaning) Security Deposit Itemization (Deductions for Repairs, Cleaning, and Unpaid Rent) Warning Letter for Lease or Rental Agreement Violation Index INTRODUCTION I How Landlords Can Use This Book A. What This Book Covers—And How to Use It 2 B. What This Book Doesn’t Cover 3 C. Guide to Icons Used in This Book 4 [...]...2 EVERY LANDLORD’S LEGAL GUIDE T his book is a complete legal guide for anyone who owns or manages rental property in the U.S This introductory chapter provides an overview of what Every Landlord’s Legal Guide covers and how it’s organized A What This Book Covers—And How to Use It Every Landlord’s Legal Guide covers the key laws affecting landlords in... 28 2 Holding Deposits 28 6 EVERY LANDLORD’S LEGAL GUIDE C hoosing tenants is the most important decision any landlord makes, and to do it well you need a reliable system Follow the steps in this chapter to maximize your chances of selecting tenants who will pay their rent on time, keep their units in good condition, and not cause you any legal or practical problems later discrimination... have a history of paying rent late However, it’s optional, because the wording of your ad does not legally obligate you to rent on any particular terms In other words, just because your ad doesn’t specify “no pets,” you are not obligated to rent to someone with two Dobermans 7 8 EVERY LANDLORD’S LEGAL GUIDE Be sure your ad can’t be construed as discriminatory The best way to do this is to focus only... tenants a move-out letter describing your specific cleaning requirements and conditions for returning the tenant’s security deposit (Chapter 15 discusses move-out letters.) 9 10 EVERY LANDLORD’S LEGAL GUIDE Show the property to and accept applications from everyone who’s interested Even if, fter a talking to someone on the phone, you doubt that a articular tenant can qualify, it’s best to olitely p p take all applications... name 123 State Street, Chicago, Illinois Address 312-555-9876 Phone Number February 2, 200X Date 15 16 EVERY LANDLORD’S LEGAL GUIDE it) are available from the USCIS website at http:// uscis.gov, or by phone at 800-375-5283 Remember that an Individual Taxpayer Identification Number (ITIN) is not proof of legal status in the U.S.—it is merely a way for the IRS to identify a taxpayer Some people who have... minors and violent sexual offenses against anyone (42 U.S Code §§ 14701 and following.) Every state has its own version of Megan’s Law These laws typically require certain convicted sexual offenders to register with local law enforcement officials, who keep a database on their whereabouts 23 24 EVERY LANDLORD’S LEGAL GUIDE a How Megan’s Law Works Unfortunately, the states are not consistent when it comes... poor credit history, pets (if you don’t accept pets), or a negative reference from a previous landlord—on the Tenant References form or other paper so that 25 26 EVERY LANDLORD’S LEGAL GUIDE you have a paper trail if an applicant accuses you of illegal discrimination you want to be able to back up your reason for rejecting the person Keep organized files of applications, credit reports, and other materials... Dates Lived at Address: May 1990–date Landlord/Manager: Jane Tucker Reason for Leaving: New job in NYC Rent $ 2,000 Security Deposit $ 4,000 Landlord/Manager’s Phone: (609 ) 555-7523 11 12 EVERY LANDLORD’S LEGAL GUIDE Previous Address: 1215 Middlebrook Lane, Princeton, NJ 08540 Dates Lived at Address: Landlord/Manager: June 1987-May 1990 Security Deposit $ 1,000 Rent $ 1,800 Landlord/Manager’s Phone:... Sued someone else? yes Been evicted? yes Been convicted of a crime? yes Explain any “yes” listed above: ✓no ✓no ✓no ✓no ✓no How many times How many times How many times How many times 13 14 EVERY LANDLORD’S LEGAL GUIDE References and Emergency Contact Personal Reference: Joan Stanley Friend, coworker Relationship: Address: 785 Spruce St., Princeton, NJ 08540 Phone: ( 609 ) Personal Reference: Marnie... limit that is clearly tied to health and safety or legitimate business needs can also be a legal basis for refusing tenants It goes without saying that you may legally refuse to rent to someone who can’t come up with the security deposit or meet some other condition of the tenancy 2 Fair housing laws specify clearly illegal reasons to refuse to rent to a tenant Federal law prohibits more or less equally—for . Use It 2 B. What This Book Doesn’t Cover 3 C. Guide to Icons Used in This Book 4 2 EVERY LANDLORD’S LEGAL GUIDE T his book is a complete legal guide for any- one who owns or manages rental property. chapter provides an overview of what Every Landlord’s Legal Guide covers and how it’s organized. A. What This Book Covers—And How to Use It Every Landlord’s Legal Guide covers the key laws affecting. Every Landlord’s Legal Guide 8th edition by Marcia Stewart and Attorneys Ralph Warner & Janet Portman Eighth Edition MAY 2006 Legal Researcher ALAYNA SCHROEDER Illustrations