Tenants

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.

The Bully Tenant

Diane wrote this comment on my post about Evicting your tenants:
They are not maintaining the apartment – it is filthy. Although lease states they must maintain, isn’t this subjective and how can I hold them accountable? They are also in default with our no pet clause, and having furniture in front of an egress door; [...]

Diane wrote this comment on my post about Evicting your tenants:

They are not maintaining the apartment – it is filthy. Although lease states they must maintain, isn’t this subjective and how can I hold them accountable? They are also in default with our no pet clause, and having furniture in front of an egress door; do I have to give them a notice of violations with time to correct, or can I do an immediate evict? They are very scary – threats to fall down stairs as “they know the system” and have thrown a ton of bogus allegations of needed repairs as a way of delaying rent, using rent escrow threats. They are a handful – we feel like we are out of our league with these winners! They seem to know the rental law and how to work around it better than anyone! We believe they are using drugs, but have no way to prove, as their behavior is very volatile, erratic, moody, threatening and paranoid. I, too, would appreciate any guidance on resources; I have read MN code and the Attorney General handbook, and continue to research online. I just feel very inept and want to be sure I am doing this correct and legal as they throw threats at us each and every day and I know that they will show up in court and fight anything that we do! I, too, would love to know contact information regarding the service that you mention. I have contacted our lawyer for guidance, but he does not seem too versed in this area of law. Please help.

Diane called me and we talked through her issues.  Essentially she has a bully tenant.  Someone that is going to try and push you around whenever they get the chance.  These tenants are very difficult to deal with.  It is unnerving to be threatened and you lose sleep at night thinking about what they are doing to your investment.

Many landlords just hide and hope this will get better and that if they meet all the demands of this abusive relationship, everything will be fine.  I am here to tell you; this situation is not going to get any better.  I have seen landlords wait 6+ months to do anything.  I was in court Tuesday and one landlord said the tenant had not paid anything in 6 months!  What?  Are you kidding?

This tenant currently owes Diane the May’s rent only.  Although I am not an attorney, I told Diane that she needs to file an eviction immediately for non-payment of rent and for the lease violations (pets and operating a business out of the house).  Unfortunately, I expect this bully is going to be a bigger problem before they get him out.  I hated to say it, but I told her she may have to expect that he is going to destroy the house.   That is just who these people are.

Most importantly, though, the problem will be done.  Diane can repair the house and move on to find a better tenant.   Thankfully we don’t see many of these types, but an eviction on his record may help the next landlord steer clear of him.

Building Strong Relationships with the Neighbors

I have written about screening your tenants and tenant application red flags.  I have even written about screening your tenants using MySpace.  Generally, if a tenant is going to be a problem, they have some history of being problems.  When I wrote “Once a Bad Tenant, Always a Bad Tenant“, I was mostly talking about [...]

I have written about screening your tenants and tenant application red flags.  I have even written about screening your tenants using MySpace.  Generally, if a tenant is going to be a problem, they have some history of being problems.  When I wrote “Once a Bad Tenant, Always a Bad Tenant“, I was mostly talking about payment history.

I recently had an interesting situation with a tenant in one of my duplexes.  She is a single mom, very well spoken.  Her rental application was pretty clean except for a 5th degree misdemeanor from 4 years ago.  She has lived in the apartment for about 9 months.  Whenever I have stopped over, the place is clean.  Her previous landlords gave her a decent referral.

She did have some problems paying rent about 3 months ago and after I filed the eviction, she promptly found emergency assistance to pay her past due rent.  Despite that, there have been no complaints from the neighbors below her or the homeowners on either side, until now.

This weekend, I received an email from a neighbor with whom I have built a strong relationship.  She is motivated to keep her neighborhood safe, but also understands that it is better to work with me initially, than to just call the police.  She said that recently this tenant  “is showing all the signs of criminal activity”.  The neighbor went on to document multiple visits per day of a few minutes by differing men in fancy tricked out cars.  The neighbor is suspecting drug activity.

By having this good working relationship with this neighbor, it allows me to address the situation immediately.  I can demonstrate that I am good landlord and want to be a good neighbor.  Alternatively, if she had not contacted me, I could have a powder keg on my hands that would blow up with the police getting involved and my rental license in jeopardy.

I will be stopping by this apartment and discussing the situation with the tenant.  I will tell them that I received calls from the police and neighbors (never divulging who told me).  While I am not naive enough to believe that this will instantly cure the problem or that the tenant will openly admit to dealing drugs, I have always found that talking with the tenant will reduce the problem in the immediate future.  When they know they are being watched and the heat is on, the dealers will usually find an easier place to work.

I encourage you to know who the neighbors of your rental properties are.  Give them your phone number.  Ask them to report anything suspicious.  With all of us working together, we can keep the problems out of the neighborhood.

Pet Deposits and Roomates

John Gall shot me a question:
Is the amount paid as a pet deposit the only amount allowed to be used for pet related damage, or is it just a safety measure expecting that damage will occur. So if you have a $1500 deposit + $400 Pet deposit and $500 in damages, can you take [...]

John Gall shot me a question:

Is the amount paid as a pet deposit the only amount allowed to be used for pet related damage, or is it just a safety measure expecting that damage will occur. So if you have a $1500 deposit + $400 Pet deposit and $500 in damages, can you take the overage out of the general damage deposit? Similarly, if one party of say three other adults in the house who are on the lease owns the pet and paid the deposit for the pet and signed the addendum allowing the pet, are they the only one responsible for damages or can all tenants be held responsible for pet damage?

I am not sure there is a correct answer here, but here is how I would handle this:

1. The pet deposit is in addition to the standard deposit.  I look at it that I don’t care where the damages came from.  As in John’s example, I am taking $500 out of their $2000 deposit.  Some subtle differences is that the pet deposit does not accrue interest like the standard deposit.  Also, some of it can be non-refundable for cleaning carpets or such after the pet.
2. I tell roommates (and they must be reminded) that they all rise and fall together.  They can be more difficult to work with.  I am not going to worry or keep track of who paid what and who’s dog it is and such.  They need to work it out amongst themselves.  They are all on the lease and took that risk.  If there is a hole in the wall upon move-out, I don’t care who made the hole.  I am taking it off the deposit.

Now, maybe I am wrong in how I do it (if so, please drop me a comment on this post), but I have never had much complaint.

Correction: Plumbing Clogs are Landlord’s Problem

Like most landlords, I have learned most of what I know about tenants and toilets through my own experience and mistakes.  Occasionally, I do learn a new trick from another landlord.  Sometimes that learning comes because I asked a specific question of them when I was stuck on what to do, other times it comes [...]

Like most landlords, I have learned most of what I know about tenants and toilets through my own experience and mistakes.  Occasionally, I do learn a new trick from another landlord.  Sometimes that learning comes because I asked a specific question of them when I was stuck on what to do, other times it comes when I am helping new investors buy property and the learning simply presents itself.

Previously I published a post regarding “Power Lease Clauses for Your Investment Property“.  I had accumulated many of these clauses over time reviewing leases at Minnesota Investment properties that my customers were buying.  While I am not an attorney, most of these clauses seemed reasonable and if the tenant was given this requirement up front, I assumed it was all legal and within statutes.

I enjoy reading Kelly Klein’s posts on the Star Tribune website.  She is a real estate attorney in Minneapolis and answers questions from the public in her weekly column.  Her November 14, 2008 column made me rethink the #1 clause I had on the above article.  It said:

“All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any material blocking them after occupancy shall be repaired by the tenant except blockages caused by roots or backups from the street.”

All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any material blocking them after occupancy shall be repaired by the tenant except blockages caused by roots or backups from the street.

Again, I felt like this was not an unfair clause to put in a lease.  I have experienced tenants pouring pans full of grease down the drain, not because they are trying to be malicious, but simply because they didn’t think it was a problem.  Unfortunately, Kelly makes an argument (albeit brief) that in Minnesota, the landlord has the responsibility to “maintain the premises, which includes keeping the pipes and toilet in good working order”.

I am always willing to accept when I am wrong, but I think the clause is still usable and reasonable.  The clause could be reworked to read:

“All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any atypical material (such as toys, clothing, diapers, etc) blocking them after occupancy shall be repaired by the landlord with tenant paying all costs of repairs.”

Again, I am not an attorney, but I think a reasonable person (ie:  housing judge), would see the intent of this clause and probably give you the benefit of the doubt.  Tell me what you think!