California court minimizes liability risk for landlords offering amenities

There was a time when simply providing a clean, comfortable and safe living space was all that was required of landlords. That was before the advent of community pools, common recreational areas, on-site laundry facilities and fitness facilities became the norm at apartment complexes across the country. Now tenants expect a host of extra amenities in addition to their rental unit.

But do all those amenities leave landlords vulnerable to lawsuits and other legal trouble? Should landlords be liable for injuries sustained by tenants or guests while using such amenities? A state appeals court in California has recently narrowed a tenant’s ability to sue landlords for negligence in such instances, thanks to their ruling on a case involving a tenant who fell off a treadmill and injured his shoulder in an apartment complex’s fitness room and sued the landlord for negligence.

According to an article in the San Francisco Chronicle, the Fourth District Court of Appeal in Riverside, CA, said a 1975 California law that prohibits rental agreements that try to excuse the landlord from any legal liability when it comes to personal injuries applies only to “core functions” of the residence and not to amenities like recreation areas.

The law was intended to protect “a tenant’s basic, essential need for shelter” and leaves a landlord free to demand a waiver of liability for “a nonessential matter of personal improvement or enjoyment” like a gym, the court majority said.

It’s good news for landlords in California who want to offer their tenants the best in amenities, but don’t want that generosity and good business sense to come back to haunt them later on.

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Tenant screening service should help you interpret the results, not just spit out a report

Most property owners understand the importance of tenant screening, but many are still a bit lost about how best to use all the information gleaned from background checks and credit reports. The best way to make the tenant screening process as simple and clear as possible is to hire a tenant screening service that not only provides accurate reports but also qualifies the information. This rare extra step allows the landlord to make an informed, quantifiable decision about who should become their next tenant.

At ATS, the landlord sets the criteria for the hiring decision. In other words, you pick what is most important to you in regards to the background check, and ATS returns an approval, conditional approval or denial based on what was found regarding the criteria you set. This system not only simplifies the screening process, it also creates a uniform decision that negates any question of bias and helps eliminate any subconscious discrimination against an applicant.

For even greater efficiency, ATS offers its clients pre-filled denial notice and Fair Credit Reporting Act compliance letters, to help landlords deal with the legalities involved with making the best decision for their property while maintaining a balance of fairness and objectivity.

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How to decide between two great potential tenants

All landlords dream about finding that perfect tenant. But what happens when you find two?

It might sound like a pipe dream, but there are lots of good quality renters out there, and if you find yourself in the company of more than one tenant who makes a good first impression, has a stable monthly income, and passes the tenant screening process with flying colors, it can be difficult to decide which one should get the keys and the lease.

What you don’t want to do is let your personal biases become discriminatory, thereby violating Fair Housing laws. The first thing to do is to compare their tenant screening reports side by side and see whether one rises to the top based on cold hard facts (including the credit rating and background check). If not, think about other factors, like the stability of their respective employers, the length of time they’ve worked there, and how long you expect them to live there.

Make the decision based on who is the better risk, not on which one you think you like better or which one you are personally more comfortable with. And when you think you’ve made your decision, justify it to yourself on paper so that you are sure there are no illegal biases at play. 

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Knock, Knock: Know Your Rights About Entering Rental Property

One area of the landlord-tenant relationship that should be clear between both tenant and landlord — but seldom is — is when, how and how often a landlord may enter the tenant’s residence. Some tenants think the landlord never has the right to enter, that for as long as their name is on the lease the landlord can only enter with an invitation. Conversely, some landlords believe they have the right to come and go as they please. Neither of those assumptions is correct.

Rights of entry differ for every state, although in every state a landlord may enter the rental property without notice to the tenant if there is an emergency such as a fire, gas leak, or severe water leak.

If it’s not an emergency, the rules vary, although in most states the landlord must give advance notice — typically 24 to 48 hours — of their desire and intent to enter the premises, and the reason for the visit. A landlord can’t just stop by to check on the place; there should be a specific reason, such as a repair needing to be made or the need to show the property to a prospective tenant or buyer. In some states, the landlord must only enter the tenant’s residence during normal business hours, which are generally understood to be between 8 a.m. and 5 p.m. And if the tenant refuses the landlord’s request, the landlord can enter without permission at a reasonable time.

Hopefully a landlord has worked at fostering a cordial relationship with the tenant, as well as a mutual understanding that maintaining the rental unit properly and safely is in both of their best interests. But it is best to also know your rights, and limitations, when it comes to entering your rental unit when it is occupied.

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Commercial Landlords — Time to Invest Money to Make Money

Every businessperson has heard the old adage:  “You have to spend money to make money.” Commercial landlords would be wise to heed this advice.

Unfortunately, economic times have hit commercial landlords hard since the market tanked in 2008. But that’s no excuse for those still in the game to avoid the realities of their situations:

1.  Tenants are Still Looking for Properties to Rent

Someone is going to win tenants’ leases. Will it be you? Not if you haven’t spent any money fixing up your commercial property in the past three years. Now is the time to invest a little money to make your property “pop.” You want curb appeal, but you also want to fine-tune the interior a bit to make the place look exceptional to potential renters who stop by to take a look.

At the very least, make sure the place is clean and move-in ready — nothing should stand in need of repair or be “negotiable.” Today’s market is not favorable for those kinds of landlord short cuts.

2.  Competition is High

If you want to compete with all the other “hungry” commercial landlords in your area, you have to be willing to put forth an investment. Is your space really worth what you’re asking? If you haven’t pulled the necessary reports in awhile, now’s the time to do some market research and make sure you’re priced competitively in your area for your type of property.

3.  The Market is Rebounding

Certainly, real estate is slow in rebounding… but all signs point to an upward swing. And when that happens, if you haven’t spent anything to help you, you’re likely to reap what you haven’t sown.

4. You Have to Do Your Own Cheerleading

Even if your property is primed and ready for new tenants, don’t expect them to magically appear. You have to do the legwork to move traffic to your commercial property. Start by placing a classified ad in the local newspaper’s commercial real estate section, and check into the cost of advertising in a trade magazine specific to your property’s use or location.

5. Tenants Are Online ... And You Should Be Too

Advertising on the Internet is a crucial step in finding qualified tenants. Add your listing to websites like LoopNet and Craigslist, and always include a picture or two as well as all the wonderful features of your property.

Use a word processing application to create a flier with photographs of the property and pertinent details, such as square footage, parking, zoning, and lease requirements, and save that flier as a PDF. Then email it to colleagues, friends, and owners of similar properties who might be in the market to expand their investments.

Commercial landlords who invest today will be happier – and more profitable – tomorrow.  A little financial outlay can result in huge rewards.

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Top 3 Tips for Finding Good Tenants

Are you a new landlord who isn’t sure how to select a “good” tenant? It’s not rocket science, but there is no set-in-stone formula that works for every prospective tenant and every property, every time. Here are a few tips for newbies out there:

1. Don’t wait until the perfect tenant comes to you; seek him out. Take an honest look at your rental property and surrounding area and decide what the ideal tenant looks like. Is this a three-bedroom house in a quaint neighborhood? Is it a one-bedroom flat in an up-and-coming section of the city? Think about the demographic who will most likely find your place appealing, and advertise where they are. The community bulletin board in the artsy coffee shop just down the block from your flat is probably the perfect place to hang a “For Rent” sign.
2. Credit, credit, credit. Running a credit report on a prospective tenant will tell you a lot more than how much debt they have. You’re not looking at the score, or the debt, as much as you’re looking for the overall history, to get a sense of whether the person is fiscally responsible. Car repossessions, credit card charge-offs, and previous evictions will show up on a credit check, so pay attention.
3. Double-check the dollars. Employment verification is key. Anyone can pluck a figure out of the air and tell you it’s their take-home pay. Verify the prospective tenant’s employment status, not just with a phone call but by requesting the most recent pay stub. A good rule of thumb is to decide the rent can’t be more than 30 or 35 percent of someone’s income. The last thing you want is a tenant who cares for the place but can’t pay the bills. 

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Evicted Tenants Aren’t Allowed On Any Part of Your Property

Eviction notices, proceedings and judgments can be tedious, stressful and time-consuming, which is why so many landlords use every means possible to avoid such a hassle. However, once the eviction judgment has been handed down, it is in place to protect you and your assets from the evicted tenant.

As such, if the evicted tenant is seen on your property — even in the common areas of your apartment complex, even if invited by other residents — that person is considered to be trespassing and you have every right to get law enforcement involved. Chances are evicted tenants return to their old apartments for one of two reasons: 1. To retrieve articles of clothing, furniture or other belongings left on the premises; and 2. To vandalize the property or simply to antagonize the landlord.

Let’s face it, they want revenge, either by taking what they consider to be theirs, or by doing something out of spite to the landlord or the landlord’s property. And they should not be allowed to get that revenge in any way, shape or form. Instead, a restraining order can be obtained to prevent the evicted tenant from returning to the apartment community. Don’t hesitate to file for one, thereby further protecting your assets.

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