As more cities enact rental housing ordinances and states continue to add or revise landlord-tenant statutes, there is correspondingly significant impact on landlord business management policies. Legislative efforts that move toward more inclusive tenant screening and selection practices do not prohibit a landlord from operating to his business necessity. However the new regulations have requirements and prohibitions on certain rental practices that could change a landlord’s policies and practices for rental qualification criteria, screening, and selection. In some circumstances a landlord may be required to conduct individualized assessment of an applicant’s qualifications and history.

There are many types of tenant screenings that provide data for applicant qualification to rental standards and consideration for tenancy.  A landlord will need to pay particular attention to the applicable laws and ordinances in effect for the location of his rental property. In some areas scheduled implementation dates of new legislation have been postponed until a later this year. A landlord must be prepared now for the compliance that will be required. Compliance efforts should include a review of policy and practices including all forms and documents used in his property operations. Landlord screening policies and practices will need to be re-formulated to business necessity and compliance. Tenant screenings retain the same business purpose of risk management to qualify applicants to rental standards for ability to meet lease terms and conditions, to pay full and timely rent, to respect tenant neighbors, and to maintain the rental unit to good condition.

As a recommendation for areas particularly affected by issues of affordable housing, rental practices for screening prospective tenants has begun to focus more attention on qualifying applicants on such factors as income and employment verifications, credit history, and rental references.

The tenant screening practices discussed below are selected screenings recommended by some metropolitan areas as guidelines for landlords to determine if an applicant would be a good renter.

The implied warranty of habitability is a legal doctrine in most states that requires landlords to offer and maintain leased premises in a safe and sanitary condition fit for human habitation for the duration of the lease.

For most states, basic requirements for habitable housing include:

• Maintenance of systems for electrical, plumbing, heating and/or cooling, ventilating, sewage and sanitation
• Supplying potable water and hot water
• Providing for trash collection and removal
• Maintenance of common use areas

A landlord should check his state statutes and local ordinances to determine whether there may be additional requirements to ensure habitable conditions. Requirements could include climate protections such as weather-proofing measures for protection from extreme heat and cold, waterproofing, severe weather shelters and environmental hazards protections including pest extermination. There may also be requirements by state and local housing codes for health and safety protections.

Landlord provided amenities are typically not covered under the warranty of habitability. Amenities, while not considered essential for living, add to the comforts of rental living as well as provide value-added incentives to attract potential tenants. A landlord should be aware, however, that if a landlord does provide amenities, in most jurisdictions, the landlord will be required to maintain and repair those amenities.

Painting a unit will often make a rental unit more attractive to prospective tenants but is usually not a requirement in most jurisdictions. However you should always check your state’s landlord-tenant statutes and local ordinances to determine if they address the issue. Landlord-tenant statutes of most states require only that a landlord provide clean and safe habitable housing but local laws may regulate landlord responsibilities differently. As example, as of this writing, the New York City Housing Maintenance Code painting law has specific requirements for landlords regarding the issue.

In general, painting of a rental unit is considered a cosmetic issue. Painting is usually done at the landlord’s discretion for scheduled property improvements or as necessary for property repair issues. If there are no governing statutes or ordinances for your property location and the interior of the unit has been maintained in good condition, a thorough cleaning of all surfaces would usually be enough to freshen up the unit.

What does your lease agreement say regarding tenant alterations and improvements? In many leases there is language that prohibits tenants from making alterations and improvements to rental property. As example, a lease clause might read:

“Except as authorized by statute or as authorized by the prior express written consent of Landlord, Tenant will not make any repairs, alterations, or improvements to the premises including but not limited to painting, carpeting, wallpapering, electrical or lighting changes, nailing holes in the wall, rekeying of locks, installation of new locks or installation or alterations of alarm systems.”

The lease agreement might also contain a notification clause such as:

“Tenant accepts the rental unit, fixtures, and furniture as is. Unauthorized Tenant repairs, alterations, and improvements are a material violation of the Tenant’s Lease Agreement and subject to lease default remedies as stated in the lease agreement.”

Also keep in mind that many lease agreements define that any attachments to the property become a permanent fixture to the property. Absent lease language to the contrary or a documented landlord-tenant agreement returning specified objects to the tenant, the attached fixtures become the landlord’s property. Be sure you know what your lease says and understand exactly what the tenant is requesting.

You are fortunate that your tenant has asked for your permission to make an alteration to your property rather than having the work done without your knowledge and permission. A straightforward request from a tenant for an alteration or improvement to the unit allows the landlord and tenant to consider options to determine if the alteration or improvement could be allowed. A landlord should require tenants to submit written requests for alterations and improvements.  A landlord may want to determine whether the improvement or alteration is work that could be easily undone (repaired or restored) when the tenant moves out. Another consideration might be whether the proposed improvement might add value to the rental unit. If the improvement is an object that the tenant wants to take with him/her upon moving out, the landlord and tenant must document their agreement in writing. A landlord might be receptive to approving an alteration if the tenant understands that he/she will be responsible for restoring the unit to its original condition at the end of the lease term. If the landlord deems the tenant’s restoration work is unacceptable under workmanlike standards, the landlord will deduct the costs of repairing or restoring the unit from the tenant’s security deposit.

The authorization agreement between landlord and tenant should be documented in writing with specifics regarding the scope of the work, material to be used, whether the alteration or improvement would be fixed (permanent) or portable and the terms of tenant reimbursement if any. Without such an authorization agreement, a dispute between landlord and tenant could occur when the tenant’s lease expires and the tenant wants to remove the attachment. If the matter ends up in court, the court will need to determine whether the attachment should be considered a permanent fixture belonging to the landlord or portable object that the tenant could take with him/her at move-out.

To help determine whether an object is portable or permanent, a court may look to the specifics of the issue, such as (1) whether the tenant received the landlord’s permission for installation or attachment of the object; (2) did the object require structural changes that affected the use and/or appearance of the unit/property; (3) did the installation of the object require firm attachment to the property using nails, screws, bolts, permanent bonding, or cement;  and (4) what did the landlord and tenant intend to happen regarding the object.