What does your lease agreement say? Once the lease agreement is signed, you and the tenants have a binding legal contract. If the lease agreement did include a contingency regarding the sale of their house, your options would be limited to the terms of that contingency. If not, your lease agreement terms and conditions govern tenant obligations and defaults.

You should require for your records that the tenants notify you in writing that they intend to break their lease agreement by not moving in. By terms of the lease agreement the tenants are legally liable for rent for the entire term of the lease agreement (whether they would occupy the rental property or not). By breaking their lease, the tenants are liable for any other actual expenses such as additional advertising or marketing costs in a landlord’s efforts to find a replacement tenant.

In most states, however, you as the landlord have the duty to mitigate damages and take reasonable effort to re-rent the property as soon as possible.

You could consider negotiating a written cancellation of the lease whereby you let them out of the lease for some consideration, as example, a month’s rent. If you have already collected a security deposit, you could apply the security deposit toward rent owed until the property is re-rented. Any unused portion of the security deposit would be refunded to the tenant. If the rent amount due exceeds the security deposit amount, the tenant will be liable for the difference and all future rents until a replacement tenant is installed. Applying the security deposit to rents may be a problem for a landlord if the tenant refuses to cooperate once the security deposit is used up. You could instead require the tenant to pay rent each month until the property is re-rented. The full amount of the security deposit would then be refunded to the tenant in the manner and timeframe as required by state landlord-tenant statutes.

Landlords should not make rental decisions based on gut feelings. Decisions should be made based on the results of a number of objective screening procedures as applicable per federal, state, or local laws. Typical tenant screenings include identity verification, employment history, income verification, previous rental housing history, references, and background screenings for credit, criminal, and eviction history.

A lease agreement is a binding legal contract between landlord and tenant. The contract takes effect on the day the contract is signed regardless of the date when the tenant moves in.

To my knowledge no jurisdiction in the country has a law that allows either a landlord or a tenant to change his mind after he signs a lease. A possible exception may be if it could be shown that one or the other parties committed fraud.

Consumer protection laws allowing a consumer a “right to rescind; i.e., to cancel a consumer contract in certain circumstances within 3 days, do not apply to residential leases.

If a month-to-month lease was signed, you could immediately give a termination notice (many states require only a 30 day notice) and you would likely find that the tenant would prefer to end the lease rather than again move in a month. If the lease term was a fixed term lease, you might be able to negotiate a settlement with the tenant for early termination. However, there could be potentially serious issues regarding landlord default or discrimination claims. You may need to consult with legal counsel should you want to pursue the matter of cancellation.

There are several issues here that require clarification before determining how to handle your situation. A primary issue is that, although you call the person a tenant, you do not explicitly state that the lease has been fully executed. If you and the person executed a written lease agreement, you can hold her to the terms of the lease. However, if she chooses to break the lease, you can only hold her responsible for the rent until a new tenant begins paying rent and you must exert reasonable effort toward finding a new tenant. You can probably also hold her responsible for paying extra expenses related to again having to market the property, including advertising and leasing commissions.

If it is an oral lease and there is no written lease agreement, it would be your word against hers as to the exact terms of said agreement unless there were witnesses on one or both sides.

You are not specific regarding whether the deposit was a security deposit under terms of the lease or was actually a separate holding deposit for which there should have some other written agreement. If the deposit was a holding deposit you must abide by the terms of the holding deposit agreement.

A holding deposit is associated with a potential tenant, the applicant, who has requested the landlord take the rental unit off the market until the applicant qualifies or otherwise fulfills the landlord’s terms and conditions for tenancy.

When the landlord holds the rental unit for an applicant, it should be considered off the market and unavailable to other qualified prospective tenants who may have to be turned away. If the applicant later changes her/his mind, the landlord may have suffered financial harm. In such a case, the landlord is justified in retaining all or part of the holding deposit within the limits allowed by state law and according to the signed, written holding deposit agreement (including what happens to the funds in the event of a tenant default). If there was no such written agreement, it could be difficult to prove the terms of the deal.

Deposits and fees are required by a landlord to protect his business against possible financial losses from tenant unpaid rents and property damages beyond normal wear and tear. The type, use, and amount of rental deposits and fees are customarily regulated by state landlord-tenant statutes. Additionally, local ordinances, area rental market conditions, property location and characteristics, and the landlord’s ability to absorb risk can affect the landlord’s deposit and fee requirements.

Most landlords utilize the security deposit as a primary risk management tool to protect their investment. The administration of security deposits for legal compliances requires the landlord’s due diligence on state statures for the collection, handling, and return of security deposit funds. In some markets local municipalities may also regulate the administration of tenant security deposits. For landlords with multiple properties, multi-family housing, and/or frequent tenant turnovers, administration of security deposit accounts can be time consuming.

As an alternative risk management measure, in some rental markets, primarily metropolitan areas, some landlords have utilized a policy of collecting a tenant move-in fee instead of a security deposit. A move-in fee is a non-refundable fee generally characterized as a fee collected from the tenant for turnover costs associated with preparing a rental unit for a new tenant. Unit preparation costs may include general cleaning and painting. Collecting a move-in fee may provide a benefit to the landlord in time savings for administrative costs of deposits while tenants may benefit from not having to come up with a large security deposit amount at lease signing.

While due diligence is required to determine whether a move-in fee is addressed by state statute and local ordinance as applicable to the rental property location, in general, a move-in fee is not regulated in many states. This is perhaps the most obvious difference between a security deposit and a move-in fee. Security deposits are regulated by state statutes and landlords are held accountable to specific duties and obligations. For the most part, move-in fees are not regulated by statutes and landlords are not held accountable for the use of move-in funds.

Security Deposits

All states allow a landlord to collect a security deposit when the tenant moves in and to hold the deposit until the tenant moves out. Security deposits are funds that legally belong to the tenant and remain a credit of the tenant during the tenancy. A landlord is legally accountable to the tenant for use of the security deposit funds.

State landlord-tenant statutes regulate security deposit limits, deadlines for itemization and return of security deposits, and disclosure requirements. The statutes provide clear protections to tenants for the use of their security deposit funds and the return of deposits upon tenant move-out.

Deposit disclosure requirements must usually be in writing. Common disclosures require the landlord to disclose the conditions under which part or all of the security deposit may be withheld and how the deposit is refundable. A landlord may be required to provide a written list of preexisting damage to the rental unit, a copy of inspection orders for the unit or a list of habitability defects before collecting a security deposit. In most states landlords that require a security deposit must utilize a move-in/move-out property inspection checklist to document the condition of the rental unit at time of tenant move in and upon tenant move out.

In states that require a separate account for holding a security deposit, a landlord is required to disclose the account number, amount on deposit, interest rate, and name and address of the financial institution.

The purpose of a security deposit is to protect the landlord from damage caused by a tenant. Specifically a landlord may only recover funds from a tenant’s security deposit if the tenant has defaulted on his obligation to pay rent (tenant owes past due rents) and/or the tenant has caused physical damage to the property that is beyond normal wear and tear allowed by statute.

Move-in Fees

A landlord may choose to collect a move-in fee for necessary services to prepare the rental unit for a new tenant. A move-in fee is a specified dollar amount that is not refundable to the tenant. The rental prospect/applicant/tenant should clearly understand that the move-in fee is non-refundable. A move-in fee is money that is paid directly to the landlord and is immediately available to the landlord to administer the funds as the landlord chooses.

When filling a vacancy, a landlord may collect an application fee and/or screening fee from the applicant. The applicant upon selection for tenancy will be required to pay the first month’s rent, possibly the last month’s rent, security deposit, and/or other fees or deposits, such as pet fees, parking, or use of other amenities. For many tenants, the total dollar amount of move in costs can be quite high. There is a potential risk that the new tenant will over-extend his financial abilities to pay or under-estimate his ongoing costs of living including rent and utilities. The tenant may be able to pay his deposits but fall short when the next rent payment is due. Adequate tenant screening by the landlord and clear communication of rent policies to the new tenant may help to minimize potential risks. A move-in fee in lieu of a security deposit can often provide some relief to the new tenant for his signing costs while allowing the landlord to collect a set fee upfront to potentially offset a future expense caused by a tenant default.

Move-in fees may be assessed as a flat fee, for example, based upon the size of the rental unit, or as a calculated percentage of the monthly rental amount. A landlord may take into consideration the costs of a typical tenant turnover and set a move-in fee based upon that cost (within reason). Move-in fees that are less than a customary security deposit amount are usually more attractive to rental prospects and more easily budgeted by incoming tenants. A range of 1/3 to 1/2 of the monthly rental amount may be less a burden to the tenant than a one to two months’ rent amount collected as a security deposit.

If agreed to by mutual consent of landlord and tenant in a written document and as allowed by statute, a landlord could collect a security deposit and a move-in fee from the tenant. An amount designated as the security deposit could be held for the tenant during his tenancy and refunded per the tenant meeting terms and conditions of his lease. The amount designated as a move-in fee would not be refundable, being immediately converted to landlord use. Care should be taken that total deposits and fee amounts comply with applicable statutes and ordinances.

Key Differences

The key differences between move-in fees and security deposits:

• Security deposits by statute are refundable to tenants. Move-in fees are non-refundable.
• Security deposits are typically an amount ranging from one to two months’ rent. Move-in fees are typically one-half the monthly rent amount.
• Security deposits are regulated by state statutes with specific landlord obligations and requirements. Move-in fees are generally not regulated.

Considerations

Whether a security deposit or another form of security should be used to protect a landlord’s business will depend upon several factors including legal compliances, prevailing rental market conditions, property location, property brand, and the rental policies and practices of the landlord.

As a landlord best practice a traditional rental policy of collecting a security deposit in the amount as allowed by statute may help protect the rental investment to a greater degree. The tenant has an obligation to take good care of the rental unit and pay rent as agreed in the lease contract. The tenant has a vested interest to uphold that obligation. The tenant is protected by statute in his right to a refund of that deposit upon his meeting the terms and condition of his lease. The landlord has the right to deduct his financial losses if the tenant defaults.

Formulation of rental policies and practices must be done with complete understanding of applicable business regulations, landlord-tenant statutes, local ordinances, and financial safeguards.

Many states require a move-in checklist to be completed when possession of the rental unit is given to the new tenant. The checklist is a written statement of the condition of the rental unit at the time of move-in. The completed checklist documents any existing damage to the unit and/or an inventory of landlord supplied appliances or furnishings and requires signatures by landlord and tenant to acknowledge move-in condition of the rental unit.

The original signed checklist should be retained by the landlord in the tenant’s file and a copy given to the tenant. The move-in checklist is an inspection report and should be referenced when future scheduled inspections are conducted to determine if the rental unit remains in satisfactory condition or repairs are needed. The move-in checklist and inspection reports will be utilized during the final inspection and walk-through of the rental unit when the tenant is moving out.

The move-in and move-out inspections document why deductions were taken from the tenant’s security deposit for property damage and as proof for damages in excess of the deposit when a lawsuit is filed for damages recovery.

It may prove helpful to provide another copy of the move-in checklist along with a copy of the annual inspection checklist to the tenant before the actual inspection date for move-out to allow the tenant advance notification of the items/conditions to be inspected. Minor items that should have been taken care of by the tenant can be dealt with before the inspection date and the actual inspection should go much smoother since the tenant will know what to expect.

Landlords can use the checklist/inspection document to better manage properties by knowing when repairs were done and when to schedule future routine maintenance. Checklists are another source of documentation to help refute claims of neglect or unsafe conditions in a rental unit. As with all property records, inspection documents should be retained in a permanent file for the appropriate time period as specified by specific legal requirements or by statute of limitation laws.

If the property is not kept in good repair and the problems are not corrected during a vacancy, the new tenants will start out with a bad experience. The fewer defects for a property when a tenant moves in, the less argument the tenant can have when the tenant moves out.

The importance of regularly scheduled inspections can be emphasized by clear language in the terms and conditions of the lease agreement. The lease agreement should specify the types of inspections, schedules, and notifications that are required for tenant health and safety issues and property maintenance and repair. Separate sections in the lease agreement for maintenance responsibilities and inspection schedules will help reinforce the tenant’s duty and responsibility to report problems regarding maintenance and repair.

If there are other types of inspections that must conducted during the tenancy (other than scheduled landlord inspections) the lease agreement should provide specifics on the type of inspection, the regulating agency, and the notification and inspection process required. These types of inspections might include Section 8 Housing Choice Voucher Program, business insurance coverage requirements, municipal rental housing inspection and registration programs, and local health, safety, fire protection, or building/occupancy code requirements.

An annual safety and maintenance inspection is generally considered an acceptable standard. Semi-annual inspections may have more value to help reduce risk and contain costs by identifying a problem early on. The longer interval between inspections creates greater potential for property damage and loss, including increased exposure to claims of liability.

Depending upon the type and age of the property, the condition of the property at the time of the last tenant move-in, the landlord may want to schedule periodic, detailed inspections of the property. Some landlords schedule these inspections to coincide with seasonal maintenance tasks.

Periodic inspections will allow the landlord to inspect the property for a variety of maintenance issues, including those that may not be reported by the tenant but would be costly for the landlord if not taken care of. Some landlords rely upon the tenant to notify the landlord of any maintenance or repair issue. However if the tenant ignores issues that should be corrected before they become an emergency repair or cause collateral damage, a landlord could incur liability for habitability issues or claims for damages to tenant health and safety.

In most states, property inspections may be a statutory requirement for rental housing compliances. It is important for a landlord to know the specific standards under his state’s law and to use those standards as a minimum standard for his properties in order to fulfill his legal responsibilities and protect his financial interests.

Some municipalities have implemented rental housing inspection and registration programs to help ensure rental units meet basic housing code standards. These programs require properties to be inspected by qualified rental housing inspectors to help identify and correct habitability issues of health, safety, and security. Landlords may be required to certify their properties meet quality of housing standards before they can register their properties with the municipality.

Landlord-tenant statutes of most states require specific advance notification to the tenant before a landlord can enter the rental unit to conduct an inspection. There may be different requirements regarding landlord entry in the event of an emergency or other need to access the rental unit. By giving the proper legal notification, a landlord will usually receive the tenant’s cooperation in scheduling a mutually agreeable time for inspection.

Regular maintenance inspections can extend the useful line of the property’s structures, systems, and equipment helping to reduce long-term expense of property maintenance.

Be aware though that “too frequent” property inspections by a landlord may be considered a violation of the tenant’s right to quiet enjoyment of the rental premises.

Landlords spend a great deal time and effort to attract and qualify potential tenants. Not all prospects who express some interest in the rental vacancy will complete an application. Not all applicants will qualify to the landlord’s rental criteria. All applicants that do complete the application process will require the landlord to perform tenant screenings in a consistent and non-discriminatory manner. Of those applicants that do qualify, only one will be offered tenancy. The others will be rejected.

The decision to say “No” is a business decision that some landlords find difficult. To aid in the decision making the landlord can provide a copy of his tenant screening criteria and screening process to interested prospects. In some states a landlord may be required to provide such disclosure to prospective tenants. The disclosure may allow prospects to self-qualify themselves to the landlord’s rental criteria before making a rental application.

Rejecting an applicant is part of business management – an assessment of the potential risk that the business may have to absorb if the tenant is installed. It is important to develop rental policies that protect the business and the tenants already in residence.

By setting rental standards to support his business and keep compliant with applicable laws on all governing levels, the landlord sets the level of risk he believes his business can afford. The selection of a new tenant is considered the most important business decision a landlord can make for his property management. The amount of due diligence a landlord gives to this critical task of tenant screening can directly impact his business operations.

Some applicants may be rejected immediately for obvious business reasons. Other applicants may qualify but may be in competition with other qualified applicants for the vacancy. Decisioning is the landlord’s choice provided legal compliance and legitimate business purpose underlies his decision.

What is important is how the rejection of an applicant is handled with proper notification in a timely manner. Documentation of the facts will help to defend against an applicant’s claim of discrimination or other cause for action.

There are many legitimate business reasons to reject an applicant.

Lease Terms and Conditions

An applicant’s failure to qualify under the landlord’s lease terms and conditions is a common reason to reject an applicant. As examples, a landlord sets his requirements for:

• Length of lease term (fixed term or month-to-month)
• Security deposits and fees
• Occupancy limits
• Property specific policies
• Property/Unit availability date
• Signed, fully completed application

If the applicant will not or refuses to agree to stated lease terms and conditions, a landlord should reject the applicant. If a landlord determines that an applicant has falsified information or provided misleading information, the landlord should reject the applicant.

Tenant Screenings

The results of tenant screenings and verifications can disqualify an applicant from consideration for tenancy. An applicant can fail to qualify because of:

Credit Report/Credit Score

Every landlord sets his own business criteria for an acceptable credit report/score. A review of the applicant’s credit history may show items that the landlord considers a risk to the business, such as a history of slow pay or missed payments, or substantial debt obligations.

A low credit score may or may not cause an applicant to be rejected. There is no hard line on what credit score should automatically disqualify an applicant. Many landlords use the credit score and the analysis of the full credit report into consideration within the context of the landlord’s business. It is the landlord’s decision to determine if the risk is too high for his business.

Income Standard

The industry standard for gross income to rent is a ratio of 3:1. If the applicant cannot provide verifiable proof of income to meet the income standard, a landlord should reject the applicant. If the gross income to contracted debt ratio is insufficient to support general living expenses including the expected rent amount, a landlord should reject the applicant. A general rule of thumb is that contracted debt payments including the rent cannot exceed 50 per cent of the applicant’s gross income.

Bankruptcies and Judgments

A tenant bankruptcy will impact a tenant’s credit score. Some landlords may take into consideration a tenant’s satisfactory payment history since a bankruptcy discharge, or consider if the bankruptcy filing was for a debt obligation that was outside the applicant’s control. It will be the landlord’s decision regarding the tenant’s potential risk to the business.

While a discharged bankruptcy and the length of time that has passed since the filing may be taken into consideration by a landlord, a judgment filed against an applicant for money damages for unpaid rent or property damage is a legitimate business reason to reject an applicant.

Background Checks

Landlords must comply with federal, state and local laws that regulate or prohibit the use of criminal history background for tenant screenings. A landlord’s blanket policy that excludes any person who has been convicted of any offense is discriminatory and violates provisions of the Fair Housing Act. Arrest records cannot be used to determine an applicant’s qualifications and are not a valid reason to deny housing to an applicant. A landlord may only use a criminal conviction to deny housing to an applicant if the record clearly shows a criminal conviction that would endanger the safety of other tenants, or put the property or neighborhood at risk.

There have recent changes in state laws and some local ordinances that may restrict or disallow a landlord’s use of criminal background checks for tenant screening. A landlord should conduct due diligence for the current applicable state and local laws or consult with experienced landlord-tenant law attorney to determine compliance requirements.

Verifications

The results of verifications can disqualify an applicant from consideration for tenancy. An applicant can fail to qualify because of:

Employment

A landlord should verify an applicant’s employment directly with the employing organization. If the landlord is unable to verify employment, or the applicant has been terminated from his employment a landlord should reject the applicant.

A landlord may consider that an applicant who is only recently employed or have had frequent job changes in a short period of time may be a risk to the landlord’s business. If there is a valid business reason to do so, a landlord may choose to reject the applicant.

Eviction Record

An eviction search should always be conducted to determine if the applicant has a history of eviction. An eviction is a red flag to most landlords to reject the applicant. With recent changes in public records reporting on consumer credit reports, a landlord cannot be certain that an absence of eviction/money judgment on the credit report is an indication that the applicant does not have an eviction history. Contacting previous landlords to gain direct knowledge of rental history behaviors may be useful in determining eviction history or issuances of eviction notices.

Landlord References

If there are unsatisfactory references from previous landlords and those landlords would not rent to this applicant again, a landlord should consider these reports to be an indication of business risk and reject the applicant. If there was unpaid rent, property damage, nuisance complaints, violence, criminal activity, or lease violations of any type at the applicant’s previous housing address, there is a good probability that similar problems could occur in the future. Such actions may indicate the landlord should reject the applicant.

Notifications

When an applicant does not qualify under the landlord’s rental criteria, a landlord should move quickly to notify the applicant that he (the applicant) has not been selected for tenancy in accordance with the law. Providing timely notification allows the applicant to move forward and continue his search for rental housing with other landlords and properties.

Adverse Action Notice

An adverse action is any action by a landlord that is unfavorable to the interests of a rental applicant. It includes a landlord’s denial of a rental application as well as an action by the landlord that imposes a burden on the applicant that is not required of all tenants, such as requiring a co-signer or a larger security deposit.

When a landlord takes an adverse action that is based solely or in part on information contained in a consumer report or tenant screening report, the Fair Credit Reporting Act requires the landlord to provide the applicant with notice of the adverse action. The adverse action notice is required even if the information in the consumer report/screening report was not the primary reason for the adverse action.

The notice must contain certain information:

• the name, address, and phone number of the credit reporting agency (CRA) [including a toll-free number for the nationwide CRA(s) that supplied the report,
• a statement that the CRA didn’t make the adverse decision and can’t explain why the decision was made,
• notice of the consumer’s right to a free copy of their report from the CRA if the consumer asks for it within 60 days,
• notice of the consumer’s right to dispute the accuracy or completeness of any information provided by the CRA, and
• the consumer’s credit score, if a score was used.

Federal law does not require a landlord to provide an adverse action notice if the decision to reject the applicant is based on information that the applicant furnished or the landlord or his employees verified on their own. Landlords should conduct due diligence for state statutes and local ordinances to determine if there are adverse action requirements at those levels.

Documentation

A landlord will need to keep written documentation of the reason why the applicant was rejected along with supporting documentation such as screening reports or reference interviews. A good paper trail will help to defend against a claim of fair housing discrimination. All applicant documentation including the completed application, tenant screenings, verifications, interviews, copy of the adverse action notice, notation of date and manner in which the applicant was notified of the denial, and other miscellaneous paperwork should be organized in the applicant’s file and retained according to the statute of limitations for fair housing claims or per state statute.

While there is no federal requirement to disclose a death that occurred on a rental property, a few states address this issue by statute which requires landlord disclosure of a death in a rental unit. In some disclosure states a landlord has the legal duty to truthfully answer a direct question from a prospective tenant or tenant regarding a death on the property. In other disclosure states, a landlord must volunteer information regarding a death in a rental unit. The disclosure requirement for a death in a rental unit may include death as a result of homicide, felony act, suicide, accidental death, and natural death.

In other states a death in a rental unit does not require a landlord to disclose such a fact to prospective tenants. A landlord will need to conduct due diligence for his state’s disclosure requirements. As example, the state of California requires landlord disclosure, if asked, of any deaths on the premises in the past three years. The landlord is not obligated to disclose a death that occurred more than three years ago.

State statutes address various landlord-tenant issues, regulate landlord-tenant duties and obligations, and require landlord disclosure of important landlord-tenant laws.

Notice and disclosure requirements will vary among the states. The most common state disclosure requirements are policies on owner and agent identity, security deposits, nonrefundable fees, and move-in/move-out checklist requirements.

Owner/Agent

The majority of mandatory disclosure states require owner/agent information be provided to the tenant at or before the commencement of the tenancy. Disclosure requirements include the name and address of the property’s owner; the name and address of the owner’s agent who is authorized to manage the premises; the name and address of the authorized agent who can act for and on behalf of the owner for the purpose of service of process and receiving notices and demands. Some states include a requirement for the name and address of the person who can be readily contacted by the tenant or a requirement of the name of the person authorized to accept and collect rent.

Security Deposits and Non-refundable Fees

The landlord’s deposits and fees policies are always key issues in the landlord-tenant relationship.

Most states require the landlord to inform the tenant at or before collection of the security deposit how the deposit will be used. Common disclosures require the landlord to disclose in writing the conditions under which part or all of the security deposit may be withheld and whether any part of the deposit is refundable.

A landlord may be required to provide a written list of preexisting damage to the rental before collecting a security deposit or provide a copy of inspection orders or habitability defects. In states that require a separate account for holding a security deposit, a landlord is required to disclose the account number, amount on deposit, interest rate, and name and address of the financial institution.

Some states address the issue of whether nonrefundable fees are permitted as a simple “No.” Some states permit nonrefundable fees as a “Yes” with disclosure requirements. Those states that permit nonrefundable fees require the lease or written statement to explain the fees that are required and the purpose for which they are required. A landlord may be required to provide the explanation to the tenant before the deposit is taken and in some states the fee must be expressly agreed to in writing by the tenant.

Tenant Move-in/Move-out Checklists

In most states if the landlord collects a security deposit, a move-in checklist is required. The move-in checklist is a written record of the inventory and condition of the rental premises as retained in the tenant file along with the lease agreement. A tenant has the right in many states to be present during the landlord move-out inspection of the rental premises.

Other

Additionally most states require landlord disclosure of landlord policies and conditions and material facts about the property that may affect the tenant’s right to habitable, safe, and sanitary housing, and the tenant’s right to quiet enjoyment of the rental premises.

There are many other landlord disclosures required by federal laws, state statutes or local ordinances that may apply to the rental property.

Environmental hazard issues requiring disclosure may include:

• Lead-based Hazards
• Toxic Mold
• Radon Gas
• Asbestos
• Air Contamination
• Flooding/Flood Zone
• Military Ordnance Zone

Health and safety issues that may require disclosures may include:

• Housing Code Violations
• Condemnation Orders
• Methamphetamine Contamination
• Pest Control
• Bedbugs
• Smoking
• Marijuana
• Fire Alarms/Fire Protection
• Smoke Detectors
• Carbon Monoxide Detectors
• Child Protection Window Guards
• Safety and Security Measures provided by Landlord
• Tenant Notification of Hidden Defects
• Domestic Violence Victim Rights
• Megan’s Law Registered Sexual Offender Database

Disclosure may also be required in some states for:

• Rent Control
• Condominium Conversions
• Foreclosure Proceedings
• Demolition permits
• Truth in Renting Act

The landlord’s rental policies may also require applicant/tenant disclosure before entering into a lease agreement. Policies may include:

• Shared Utility Arrangements
• Screening Criteria
• Background Checks
• Late Fees
• Dishonored Check Fees

Local ordinances may regulate essential services and housing code requirements that must be disclosed to applicants and tenants.