Tenants

Storing Your Tenant’s Stuff

I have written several times about how much joy I get in having to store a tenant’s stuff after they move out.  This is really a kick in the teeth if I have to store it after I just evicted them.  Not only do they owe me money, they probably didn’t clean the place at [...]

I have written several times about how much joy I get in having to store a tenant’s stuff after they move out.  This is really a kick in the teeth if I have to store it after I just evicted them.  Not only do they owe me money, they probably didn’t clean the place at all, and now I have to take care of their stuff!

Previously, a landlord would have to store the tenant’s “Abandoned Personal Property” for 60 days.  This should be inventoried and stored somewhere secure. I often will leave it in a bedroom in the unit if possible or at least in the basement.  Still, I have to move it and ultimately I have to dispose of it (as tenants never come back for it).

A new law that went into affect on August 1, 2010 reduces the retention period to only 28 days.  Much easier and nicer.  While I don’t like to store their stuff ever, at least this way I can get rid of it a month earlier.

Painting Between Tenants

My long time reader, John Gall, shot me a question that is a great post that many other landlords can probably benefit from.  Here is what he asked:
I’d be interested to hear your thoughts on painting walls between tenants.  Seems like the bedroom walls always get scuffed up, dirty etc.  I could almost paint between [...]

My long time reader, John Gall, shot me a question that is a great post that many other landlords can probably benefit from.  Here is what he asked:

I’d be interested to hear your thoughts on painting walls between tenants.  Seems like the bedroom walls always get scuffed up, dirty etc.  I could almost paint between tenants each time.  I stopped and just allow them to paint if they want, some do and some don’t. 

1:  Do you paint between tenants?

2:  If you’ve painted between tenants and after they ones move out the paint is scuffed, dirty and generally worn do you charge them for the repaint from the deposit?

3:  Why do tenants always seem to dirty the paint?  I’ve been in my house 10 years and nothing needs painting.  I don’t get what goes on.  I’m not even talking about trashing the place, the paint just seems to be “wearing” in the bedrooms.

Great questions.  Here are my answers:

1. Do you paint between tenants? Yes, typically.  I rarely just do touch up, I will repaint the walls.  The ceilings get done every 4-5 years depending if I have smokers.  As your follow on questions show, I rarely have a unit that is perfect enough to be rented as is.  Plus, I want to put my best foot forward with the new tenant. 
   • Because I use the same paint color on all my units (a darker beige color) it is pretty easy to roll the walls and not have to cut in.
   • The amount of time I have during my turnover may also determine how well I paint or if I do.  If my handyman has time, I will often have him roll the walls as necessary.  If there are other rehab or maintenance to do, again, it may change the amount of paint we are doing at the turn.
   • I do have some friends that paint their walls dark tan and the woodwork (when painted) very dark brown to hide dirt.  They will often not have to repaint, but maybe wash the walls in places or touch up such as where the couch was.
2. If you’ve painted between tenants and after they ones move out the paint is scuffed, dirty and generally worn do you charge them for the repaint from the deposit? That depends.  Your lease does state, normal wear and tear.  I know that even in my own house, I personally dinged the wall when I was moving something, plus the wall behind my computer desk gets marked occasionally by me sliding something around on my desk.
   • If the apartment is otherwise perfectly clean when they move out and it appears they were trying to be careful and do the best they could, then NO, I don’t charge them.  Alternatively, I know other landlords that want the unit in the same perfect condition as when the tenant moved in and will charge the tenant for any marks.  You need to find your happy medium.  Remember you should document your charges with pictures in case the tenant takes you to court claiming foul.
3. Why do tenants always seem to dirty the paint?  I’ve been in my house 10 years and nothing needs painting.  I don’t get what goes on.  I’m not even talking about trashing the place, the pant just seems to be “wearing” in the bedrooms. Wow!  I knew the answer to that, I would screen for the people that were not going to wear everything out!  I think everyone just has a different standard of living. 
   • My kids rooms are occasionally messy and they always have a toy or two in the family room at my house.  I can’t stand it and it drives me crazy.  When I complain about it, my wife has said that our house is perfect compared to some friends of hers that have toys and stuff ankle deep on their entire main floor.
   • It is no surprise that each community or neighborhood draws a different tenant profile.  This is driven by nearby jobs, schools, bus lines, rent amounts, and many other socioeconomic facts.  Your rental properties will attract the typically resident for that neighborhood.  Your experiences as a landlord for cleanliness, upkeep, paying rent, politeness, etc of your tenants is simply a byproduct of where your property is located.

It is not impossible to have a tenant that treats your rental like you treat your own home, but you need to search.  One option you do have when screening tenants, is to require an on-site inspection of their existing apartment.  Write up a 100 point scoring system to keep it completely legit and legal.  When you walk through, give them points for how clean the stove is (is it full of grease or is clean), how clean in the bathroom, are there clothes everywhere, what do the walls look like?  Using this scoring system and more importantly, getting into their current rental will tell you loads about how they will maintain your place.

You will be surprised at what a tenant calls “I just cleaned my apartment” and what you may call it.  Hopefully you are pleasantly surprised like my friend who’s tenant tells him to take off his shoes if he is coming in the door!

Summary of New Tenant’s Bill of Rights

On May 11th, Governor Pawlenty signed a new bill into law.  Although the official name is HF2668, most are calling it the Tenant Bill of Rights.  It is the first change to landlord/tenant regulations and law in over a decade.  As a landlord, you should be aware of these changes as some will come as [...]

On May 11th, Governor Pawlenty signed a new bill into law.  Although the official name is HF2668, most are calling it the Tenant Bill of Rights.  It is the first change to landlord/tenant regulations and law in over a decade.  As a landlord, you should be aware of these changes as some will come as a surprise.  Some are tougher rules, more are neutral and others are simply clarifying unwritten rules and rumors we all assumed were true.  Most of these changes go into effect on August 1, 2010:

• Tenants living in homes in foreclosure will have the right to stay in the property until the end of the term of their lease or 90 days, which ever is longer.  This brings state law inline with current federal laws.
• Property left behind by a tenant had to be stored by the landlord for 60 days.  This has been changed to 28 days, but now a landlord can be held liable for disposing of the property early in the amount of triple the damages or $1000, which ever is greater.
• Not returning the proper amount of security deposit at the end of the lease has a penalty that is not at $500, up from $200 previously.
• Division of Utility Costs is not very common from what I have seen, but now if the tenant can prove that the landlord has improperly divided the utility costs, the landlord is liable to the tenant for triple the damages or $500, whichever is greater.
• If tenants can be forced to pay Attorney’s Fees if they lose a court case and your lease contains that language; now, if the tenant wins, they can force the landlord to pay the attorney’s fees also.
• Tenant Screening Fees and Criteria have changed. While I thought most of this was already law, it appears they have clarified it further:
  • The landlord must use a clear and consistent screening process for all applicants.
  • Landlords much provide the criteria in written form upon which they will screen applications, prior to accepting and screening fee.   It is thought that if they read the criteria and see something that will disqualify them, they may not then chose to pay the fee and apply.  [In my experience, they will apply anyway!]
  • You must process applicants in sequential order as you cash their check or take their money.  You may NOT take all the applicants money, process all of them and then compare the applicants choosing the best one (and keeping all the money).
  • If the tenant is reject for any reason other than what was specified on the written screening criteria form, the landlord must return the application fee.
• Tenants that knowingly provides materially false information on the application or omits information can be held liable to the landlord for damages plus a civil penalty of up to $500, court filing fees, and attorney fees.  Not sure how you prove this or get the civil penalty charged against them.
• Tenants must be given a receipt if they pay with cash.
• Late fees will now be capped at 8% of the rental amount. This provision begins on January 1, 2011.  You can not charge daily late fees either.

Make sure to start integrating these new changes into your leases and tenant screenings.  You do not want to be the first test case for this new law!

IP201 Seminar: How to Evict Your Tenant!

[ May 25, 2010; 6:30 pm to 8:00 pm. ] If you are a landlord long enough or own enough rental properties, you will eventually need to evict a tenant. It can seem like a traumatic and complicated event, but if you follow some simple tips, it is actually quite simple.  As a new landlord, it is very easy to listen to the sob story [...]

If you are a landlord long enough or own enough rental properties, you will eventually need to evict a tenant. It can seem like a traumatic and complicated event, but if you follow some simple tips, it is actually quite simple.  As a new landlord, it is very easy to listen to the sob story about why a tenant can’t pay their rent and before you know it, they can become several month behind in their rent. Ultimately, most books and “experts” will say, start the eviction process the first day after the rent is late. I would argue that in the real world, it rarely happens that way.  Come and hear practical and step by step ways to get rid of that bad tenant.

Sign up on our registration form or call 612-281-5419 for more information.

Is a Notice To Quit Required?

Here is a great post written by Matt Engel regarding if a Notice To Quit is required prior to filing an eviction on your a tenant.
A Notice to Quit would be required in a “tenancy-at-will” situation, which means there is no fixed ending date, or the lease has expired and is now month-to month.  Minn. [...]

Here is a great post written by Matt Engel regarding if a Notice To Quit is required prior to filing an eviction on your a tenant.

A Notice to Quit would be required in a “tenancy-at-will” situation, which means there is no fixed ending date, or the lease has expired and is now month-to month.  Minn. Stat. 504B.001 defines tenancy at will: “Tenancy at will means a tenancy in which the tenant holds possession by permission of the landlord but without a fixed ending date.”

In such cases, this is what Minnesota law says about terminating tenancy at will:

504B.135 TERMINATING TENANCY AT WILL.

(a) A tenancy at will may be terminated by either party by giving notice in writing. The time of the notice must be at least as long as the interval between the time rent is due or three months, whichever is less.

(b) If a tenant neglects or refuses to pay rent due on a tenancy at will, the landlord may terminate the tenancy by giving the tenant 14 days notice to quit in writing.

Notice must be given in writing that the tenancy will be terminated on a certain date, and should state that if the tenant does not vacate by that date, an eviction action will be pursued. The notice should be drafted with a termination date pursuant to the applicable time period from section (a) or (b) of Minn. Stat. 504B.135 – the interval between time rent is due (typically 1 month or up to three months), or if termination is for non payment of rent, 14 days.

Here is some sample langauge for written notice terminating tenancy at will:

• The purpose of this written notice is to terminate your tenancy at will.  Please be advised that your tenancy will be terminated on ___________  ____, 2010, [14] [30] [60] [90] days from the date of this notice, pursuant to Minn. Stat. 504B.135.  If you do not vacate by this date, an eviction action will be pursued in ___________ County Housing Court to have you removed from the property.

I suggest the written notice be sent to the tenant via certified mail, return receipt requested, as well as a second copy by regular mail, mailed at the same time.  In case the certified mail is returned for refusal to sign or failure to pick-up, you’ve also sent the written notice via regular mail to the tenant’s address – save the return receipt, if returned, or the refused certified letter, which will be returned to you – for the court hearing.

After the notice to quit time period has expired, and if the tenant still does not vacate, then an eviction action would be required to remove the tenant.  Eviction action hearings are typically set 14 days from date of filing the Eviction Action Complaint.  The Eviction Action Complaint must be served on the tenant at least seven (7) days prior to the hearing via personal service with affidavit under the Minnesota Rules of Civil Procedure (by a third party not a party to the action), and if personal service cannot be made, the process server can complete service by posting on the property after two failed attempts, and then completing an Affidavit of Not Found and Posting.  See Minn. Stat. 504B.331.

Matt Engel

Aase, Engel & Kirscher, PLLC

2499 Rice Street, Suite 236

Roseville, MN 55113

T: 651-209-6884

F: 651-209-8088

C: 612-385-0554

www.aeklawfirm.com

Cost of Minneapolis Evictions Increasing

I have written about evictions often in the past.  It is a necessary part of being a landlord.  It is neither pleasant nor often fruitful, but necessary.  As I was down at the Hennepin County courthouse today filing several evictions (one for me and one for a customer of mine), I was told by the [...]

I have written about evictions often in the past.  It is a necessary part of being a landlord.  It is neither pleasant nor often fruitful, but necessary.  As I was down at the Hennepin County courthouse today filing several evictions (one for me and one for a customer of mine), I was told by the desk clerk that the cost of evictions is increasing.  I have been unable to confirm this via anything on the County websites or anywhere else, but according to the clerk, the costs are going to rise from $252 to $340 on July 1.

I guess it is just another example of how the government thinks that all of us “rich” landlords have money to burn.  My recommendation is that if you have any tenants on the fence, get your evictions in during June to save the cash.  I am going to check in Ramsey County also to see if this is a state change or just Hennepin County.