Harassment in housing or housing-related transactions on the basis of the protected classes of race, color, religion, national origin, sex, familial status or disability is prohibited under the Fair Housing Act. Sexual harassment is a form of sex discrimination that violates the Fair Housing Act.

Sex discrimination, including sexual harassment, that impacts the terms or conditions of housing used as a basis for housing decisions; has the purpose or effect of unreasonably interfering with housing rights; or creates an intimidating, hostile, or offensive environment is illegal.

HUD has formalized standards for use in investigations, administrative adjudications, and cases brought in federal and state courts under the Fair Housing Act involving allegations of harassment on the basis of race, color, religion, national origin, sex, familial status or disability.

The Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices under the Fair Housing Act guidance specifies how HUD will evaluate complaints of quid pro quo (“this for that”)harassment and hostile environment harassment under the Act.

Quid pro quo harassment refers to an unwelcome request or demand to engage in conduct where submission to the request or demand, either explicitly or implicitly, is made a condition related to: the sale, rental or availability of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. An unwelcome request or demand may constitute quid pro quo harassment even if a person acquiesces in the unwelcome request or demand.

Hostile environment harassment refers to unwelcome conduct that is sufficiently severe or pervasive as to interfere with: The availability, sale, rental, or use or enjoyment of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision or enjoyment of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. Hostile environment harassment does not require a change in the economic benefits, terms, or conditions of the dwelling or housing-related services or facilities, or of the residential real-estate transaction.

While the seven protected classes under the federal Fair Housing Act are the most commonly cited for fair housing compliance, many states and some local jurisdictions fair housing laws may have additional protected classes which grant greater protection against fair housing discrimination. State and local protected classes may include age, sexual preference, gender identity, gender expression, occupation, source of income, participation in Section 8 Housing Choice Voucher program, educational status, medical status, marital status, military background, political affiliation, or any other arbitrary reason.

Fair housing compliance will be in accordance to the laws, federal, state, and local, that offer the most protection for individuals in protected classes and characteristics. State and local fair housing laws can be more restrictive than federal laws. As an example, the New York City Human Rights Law prohibits housing discrimination based on a person’s real or perceived race, color, national origin, gender (including gender identity and sexual harassment), creed, disability, sexual orientation, marital status, partnership status, alienage or citizenship status, age, lawful occupation or because children may be or will be residing with the tenant.

Some state courts have also interpreted fair housing laws to mean that protected class categories serve as examples of illegal discrimination or harassment practices and that any arbitrary discrimination based on an individual’s characteristics or traits is also a violation of fair housing laws.

Since an applicant/tenant is potentially a member of any of the federally protected classes or state and local protected classes, the landlord’s rental screening and selection policies should be based on sound business policies rather than exclusion of certain group characteristics.

A landlord should be well aware of the protections afforded by the Fair Housing Act (FHA) and the prohibitions against any form of discrimination of protected classes under the FHA.

A landlord cannot deny housing opportunity to families with children. By outright refusal to rent to families with children, such as an “Adults Only policy”, or by imposing special or arbitrary restrictions and requirements for applicants or tenants with children, a landlord violates the familial status provisions of the Fair Housing Act.

The protections afforded under familial status are broad-based protections. Familial status protection applies to a family household where a child or children under the age 18 live with an adult who has legal custody of the child or children. The custodial adult may be a biological parent, a step-parent, grandparent, foster parent, or other designated adult as granted by written permission from the parent or legal custodian of the child or children. The household is qualified for familial status protection against housing discrimination.

The status of the adult member (s) of a qualified household, i.e., married, single, divorced, separated, or widowed, is not material to familial status protections. A landlord cannot impose status restrictions or place requirements on adult members as a condition of tenancy. It is illegal for a landlord to treat an individual or individuals of any status who have legal custody of a child in a different manner than the landlord would treat an individual or individuals without a child.

Familial status protection is afforded to households with at least one child under the age of 18 living with adult members with legal or designated custody. Protection continues for the household until the youngest child turns 18. An individual who is 18 years old or older is considered an adult. If there are no qualifying children under the age of 18, a family living with adult children cannot be afforded familial status protection.

The familial protection status applies to an applicant or tenant who is pregnant or in the process of adopting a child if the household intends the child to become part of the household. A landlord cannot discourage renting to families with children by using restrictive policies such as:

• limiting families to a designated section or building on the rental property,
• requiring higher rent or larger security deposits,
• limiting the number of occupants for the unit, making special rules and regulations applicable to children only, such as property access restrictions or unsupervised use of amenities,
• using more restrictive standards to control noise or behaviors by children, and
• imposing different limitations and conditions for families by citing health regulations.

April 2018 commemorates the 50th anniversary of the passage of the Civil Rights Act of 1968. Title VIII of the Civil Rights Act of 1968 – The Fair Housing Act – prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, religion, or national origin.

Congress has twice amended the Fair Housing Act (FHA) to expand and enhance protections from housing discrimination. In 1974 the FHA was amended to prohibit housing discrimination based on sex. In 1988 the Fair Housing Act was amended by the Fair Housing Amendments Act which expanded FHA coverage to prohibit discrimination based on disability or on familial status (presence of child under age of 18 and pregnant women). The FHA as amended provides a more fair, inclusive housing market free from discrimination.

During this year’s National Fair Housing Month, a variety of initiatives and activities by federal, state, and local agencies, fair housing advocates, fair housing organizations, and local communities will celebrate the FHA’s 50th anniversary. Public service announcements are scheduled throughout the year in efforts to increase the public’s awareness of fair housing rights and fair housing enforcement efforts. Fair housing education programs and local outreach efforts are important to provide information on fair housing protections and how to report housing discrimination.

While the federal Fair Housing Act receives much national attention during Fair Housing Month, state and local fair housing laws also provide protections from housing discrimination. State and local city or county fair housing laws often provide broader coverage to additional protected classes such as sexual preference, gender identity, occupation, source of income, Section 8 voucher program participation, educational status, medical status, marital status, military service, political affiliation, or other classes as noted by statue. Fair housing compliance should always be to those fair housing laws providing the greatest protections against discrimination.

As review, the Fair Housing Act covers most housing. Under the Fair Housing Act, in the sale and rental of housing, no one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap:

• Refuse to rent or sell housing
• Refuse to negotiate for housing
• Make housing unavailable
• Deny a dwelling
• Set different terms, conditions or privileges for sale or rental of a dwelling
• Provide different housing services or facilities
• Falsely deny that housing is available for inspection, sale, or rental
• For profit, persuade owners to sell or rent (blockbusting) or
• Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing.

It is illegal for anyone to:

• Threaten, coerce, intimidate or interfere with anyone exercising a fair housing right or assisting others who exercise that right.
• Advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.

Fair Housing Act and Sexual Harassment

Harassment in housing or housing-related transactions on the basis of the protected classes of race, color, religion, national origin, sex, familial status or disability is prohibited under the Fair Housing Act. Sexual harassment is a form of sex discrimination that violates the Fair Housing Act.

Sex discrimination, including sexual harassment, that impacts the terms or conditions of housing used as a basis for housing decisions; has the purpose or effect of unreasonably interfering with housing rights; or creates an intimidating, hostile, or offensive environment is illegal.

HUD took action in third quarter 2016 to amend fair housing regulations to formalize standards for use in investigations, administrative adjudications, and cases brought in federal and state courts under the Fair Housing Act involving allegations of harassment on the basis of race, color, religion, national origin, sex, familial status or disability.

The Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices under the Fair Housing Act specifies how HUD will evaluate complaints of quid pro quo (“this for that”) harassment and hostile environment harassment under the Act.

(1) Quid pro quo harassment refers to an unwelcome request or demand to engage in conduct where submission to the request or demand, either explicitly or implicitly, is made a condition related to: the sale, rental or availability of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. An unwelcome request or demand may constitute quid pro quo harassment even if a person acquiesces in the unwelcome request or demand.

(2) Hostile environment harassment refers to unwelcome conduct that is sufficiently severe or pervasive as to interfere with: The availability, sale, rental, or use or enjoyment of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision or enjoyment of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. Hostile environment harassment does not require a change in the economic benefits, terms, or conditions of the dwelling or housing-related services or facilities, or of the residential real-estate transaction.

Department of Housing and Urban Development (HUD)

The Department of Housing and Urban Development in a press release dated April 12, 2018 announced it is recognizing the 50th anniversary of the Fair Housing Act with its new initiative to increase awareness and reporting of sexual harassment in housing. The new initiative creates an interagency task force with the U.S. Department of Justice (DOJ) to combat sexual harassment in housing. The new task force is an extension of a 2017 Department of Justice pilot program initiative to raise awareness of the issue of sexual harassment in housing.

HUD/DOJ Interagency Task Force

The DOJ pilot program was developed to collaborate with local law enforcement agencies, legal services providers, and public housing authorities in selected jurisdictions to identify barriers to reporting sexual harassment to the Department of Justice and to other enforcement agencies. The focus of the initiative was to increase DOJ efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees or representatives of rental property owners. The Department of Justice has settled or filed nine sexual harassment cases to date as a result of the pilot program.

The HUD and the DOJ joint task force objective is to work together to combat sexual harassment in housing. There are three major components in the joint initiative:

1. The joint task force will use a shared strategy between the Justice Department and HUD for combating sexual harassment in housing. The task force will focus on five key areas: continued data sharing and analysis; joint development of training; evaluation of public housing complaint mechanisms; coordination of public outreach and press strategy; and review of federal policies.
2. An outreach toolkit with templates, guidance and checklists based on the pilot program feedback will be available to help victims of sexual harassment connect with a nationwide network of enforcement resources.
3. A public awareness campaign will include a partnership package for relevant stakeholders, the launch of a social media campaign, and public service announcements by the Executive Office of U.S. Attorneys. The campaign is specifically designed to raise awareness, and make it easier for victims across the country to find resources and report sexual harassment.

Additional Information

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Most employers use background checks when considering an applicant for employment. Federal law does not prohibit employers from asking applicants about their criminal history or conducting a criminal background check as long as compliance requirements are met. However, many states and local jurisdictions have enacted prohibitions or restrictions on the use of criminal background checks for employment purposes. When an employer utilizes background checks for employment purposes, the employer must ensure compliance with the applicable federal, state, and local laws.

The state statutes and county and local ordinances that prohibit or restrict background checks for employment purposes are referred to as Ban the Box laws. In jurisdictions that have enacted Ban the Box laws, employers cannot ask applicants to disclose criminal history on the job application. In some jurisdictions Ban the Box laws further restrict employers from asking questions about criminal history including arrest records, convictions that have been sealed, dismissed, expunged or statutorily erased, or participation in a diversion program, until a later time in the hiring process, such as after a first interview with an applicant or a conditional offer of employment has been made.

Ban the Box laws are specific by state statutes and local city and county ordinances. Currently more than half the states and many cities and counties have enacted Ban the Box laws. Ban the Box coverage protects public sector employees and in many jurisdictions coverage has been extended to private sector employees. Ban the Box laws may impose different and/or additional employer obligations for disclosures, notices, and adverse action requirements in hiring processes than required by the federal Fair Credit Reporting Act (FCRA). Compliance to requirements at the appropriate governing level can pose a challenge for employers. It is imperative employers conduct due diligence for specific requirements for their jurisdictions.

Ban the Box laws seek to prevent employment hiring discrimination against persons with a criminal history. A hiring process should not be structured to disqualify an applicant before the applicant has the chance to qualify on his merit. The Ban the Box laws help provide an opportunity for those individuals to compete fairly in the job application process by an initial screening based on their qualifications and ability to perform the job, rather than a screening based on questions on the application. The applicant’s past criminal history should not serve to keep the applicant from a chance for qualifying for employment. Ban the Box requirements that eliminate any disclosure on the application form about an applicant’s criminal history and restrict inquiries about criminal history until a time further into the hiring process offer an applicant the opportunity to discuss his history with the employer. In theory this process provides the applicant a better chance for employment.

Negligent Hiring Risk

Background screenings of applicants are considered a business necessity for many employers in various types of business as a critical risk reduction measure against claims of negligent hiring. Negligent Hiring holds an employer responsible for the conduct of an employee if the employer failed to use due care in the hiring and retention of the employee.

Under a negligent hiring doctrine, employers have the duty of care to assess the nature of employment, the degree of risk that the employment poses to third parties, and to conduct reasonable background investigations to ascertain the applicant is competent and able to perform job duties.

A reasonable care doctrine holds the employer responsible to evaluate applicants and employees in light of known risks and foreseeable risks that may pose a threat to third parties. If the duty of care is breached by the employer and that breach was the cause of injuries to a third party, the employer may be liable for negligent hiring.

The Equal Employment Opportunity Commission (EEOC) and Ban the Box

The Equal Employment Opportunity Commission issued updated guidance in its 2012 EEOC Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights Act of 1964 regarding the use of arrest or conviction records in employment decisions.

Ban the Box laws expand this EEOC guidance for employers. As referenced by the Guidance, an employer, by not asking an applicant to disclose criminal history initially on the application form, would be more likely to objectively assess the relevance of an applicant’s conviction as it became known if the employer is already knowledgeable about the applicant’s qualifications and experience. Deferring inquiries to a later time such as the applicant interview allows an employer to evaluate an applicant’s basic qualifications.

Fair Chance Laws and Ban the Box

In some jurisdictions Ban the Box laws have requirements and restrictions beyond the application process. State and local Fair Chance laws have been enacted to regulate how criminal information is utilized in the hiring processes.

Seattle

Seattle’s Fair Chance Employment Ordinance restricts how employers can use conviction and arrest records during the hiring process and course of employment within City limits. Restrictions under Seattle’s Ordinance:

• Prohibit categorical exclusions in job ads (e.g., Does not allow statements like, “Felons need not apply.”)
• Limit criminal history questions on job applications and criminal background checks until after an employer conducts an initial screening to eliminate unqualified applicants.

• Require employers to have a legitimate business reason to deny a job based on a conviction record.

• Require an opportunity for an applicant or employee to explain or correct criminal history information.

Employers are required to consider certain factors to determine whether there is a legitimate business reason for rejecting an applicant or taking an adverse action against an employee due to criminal history, pending criminal charges, or conduct related to an arrest.

A legitimate business reason exists if the employer, after considering the following factors, believes in good faith that the criminal conduct underlying a conviction or charge will either:

1. Have a negative impact on the employee’s or applicant’s fitness or ability to perform the position sought or held, or
2. Harm or cause injury to people, property, or business assets.

The factors that the employer must consider are:

• The seriousness of the underlying criminal conviction or pending criminal charge;
• The number and types of convictions or pending criminal charges;
• The time that has elapsed since the conviction or pending criminal charge, excluding periods of incarceration;
• Any verifiable information provided by the individual related to his/her rehabilitation or good conduct;
• The specific duties and responsibilities of the position sought or held;
• The place and manner in which the position will be performed.

New York City

New York City has enacted the Fair Chance Act (FCA) that requires all public and private employers to wait until they offer an applicant a job before they ask about an applicant’s criminal conviction history or conduct a background check. An employer will evaluate the applicant using existing New York law that prohibits discrimination based upon criminal records. Under that law, employers have to consider, among other things:

• The specific duties and responsibilities of the job and the bearing, if any, of the person’s conviction history on his or her fitness or ability to perform them;
• How long ago the offense occurred, how serious it was and the person’s age at the time;
• The person’s evidence of good conduct, achievements and positive life changes; and
• The employer’s legitimate interest in protecting property, specific individuals, or the general public.

California

The California Fair Chance Act is considered one of the strongest ban the box laws in the country and requires most public and private sector employers to delay background checks and written and verbal inquiries about conviction history until after a candidate has been selected and offered the job.

After a conditional offer an employer can ask about the applicant’s conviction history and run a conviction background check. To revoke the job offer, the employer must follow certain steps:

• Consider the nature and age of any conviction and whether it is directly related to the job duties;
• Notify the applicant in writing of the employer’s intent to revoke the job offer (attaching a copy of the conviction background check report) and allow the applicant at least five business days to respond;
• Review any response from the applicant and again notify the applicant in writing if the employer ultimately decides not to hire him/her.

Takeaway

Employers will need to assess their screening policies for criminal background checks in light of EEOC guidance and, as applicable, state and local Ban the Box laws for use of criminal background checks. A policy that allows for individualized assessments provides opportunity for applicants to explain a conviction and takes into consideration the nature of the crime, the time elapsed, and the nature of the job before making employment determination may protect business interests and the rights of applicants. A policy that categorically rejects all applicants with criminal convictions from consideration for employment is discriminatory.

Landlord liability can result from negligence, violation of health and safety laws, failure to repair, failure to maintain the rental premises in a safe and habitable condition, or intentional harm to others and property.

Landlord duties and responsibilities regulate property management operations. Failure to perform according to statutes for health, safety, and habitability are breaches of contract. Failure to perform to standards of care can lead to tenant claims and/or findings of liability. Any breach puts the landlord at risk.

Repair and maintenance issues are commonly a cause of action for tenant injuries. To help avoid potential problems and loss related to property maintenance, a landlord must be vigilant in inspecting his property for unsafe conditions, for hidden defects that may not be obvious to tenants or guests, and making sure all repairs are done in a timely and workmanlike manner.

Communication and notifications to tenants about property policies and practices, including ways they can better protect themselves if they encounter a dangerous situation, can help mitigate risks of harm and injury. Communication between landlord and tenants should be encouraged to allow management to be aware of activity or incidents on the property that need attention. Managers need to be particularly aware of suspicious activities or illegal activities that must be dealt with immediately to remove the threat before causing greater harm to tenants or the neighborhood.

Physical safety and security devices and property assessments help to protect tenants and reduce landlord liability. Safety and security measures incorporated into rental policies and procedures help control property management operations. A failure to maintain or to deliver security measures as promised is a breach of contract by the landlord and probable cause of liability in tenant claims of harm or loss.

Policies and practices without enforcement of such policies create potential liability for the rental property to become a site for criminal activity. Tenants must depend upon the landlord to enforce his policies fairly and in a nondiscriminatory manner. Landlords are legally responsible to take action against tenant illegal activities on their property, such as drug dealing. Without proper enforcement of the rules, tenant safety becomes compromised.

Landlords must practice safety and security measures in safeguarding tenant documents and personal information including applications, credit reports, background reports, and correspondence. Access to such tenant files should be restricted on a need to know basis with files kept securely in a locked file cabinet.

Landlords should have sufficient business insurance coverage to help protect against liability claims. Insurance coverage should be reviewed at least annually to make sure the type and amount of coverage is adequate for the current business operations.

The key is to keep vigilant on rental property activities, enforce protective policies such as tenant screening and security of personal data, and work within the neighborhood and community to protect people and property.

A landlord has a legal responsibility to take reasonable care to protect tenants from foreseeable harm. Legal obligations for tenant safety may be specified under state statutes, local ordinances, building and housing codes, and case law.

The landlord’s duty of care extends to protect tenants from third party criminal acts and correspondingly to protect the neighborhood from criminal acts of his tenants. The landlord has the duty to enforce his rental policies and take appropriate action against illegal activities on the rental premises. For dangerous situations that cannot be prevented, a landlord has a duty to provide timely warning to tenants about the dangers or potential danger so that tenants may take their own appropriate safety precautions.

While it is unlikely that a landlord could completely crime-proof a property and fully guarantee tenant safety, working diligently toward a crime-free property with best efforts to protect tenants from foreseeable harmful acts is a critical part of business operations. Such efforts can also provide a defense against liability claims if when not having prevented the particular crime.

The best way to protect people and property and to reduce liability is to prevent criminal activities in the first place. Safety and security measures are high priority tasks in property management.

Some states have specific laws regarding the landlord’s responsibility to secure the rental premises. Most states have general safety and security requirements that hold the landlord responsible for clean and safe housing.

There can be specific requirements for safety and security measures under state and local regulations, building, housing, health, and fire safety codes. Basic safety devices such as smoke detectors, carbon monoxide detectors, deadbolt entry doors, locking windows, security bars, door viewers, and adequate exterior and interior lighting are commonly required under local ordinance or municipal codes.

A landlord is not required to provide security measures other than those devices or measures required by law. Alarm systems, security cameras, or security patrols may add to the security measures taken by the landlord to protect tenants and the property. However providing such additional measures obligates the landlord to ensure that the security measures are kept in place and devices maintained in good working order at all times.

A well-maintained property indicates active property management and is in itself a deterrent to criminal-minded individuals. Good tenants in good properties have a vested interest to be safe and secure and can alert the landlord to issues or suspicious activities that require investigation and resolution.

Yes, you could be held liable for a tenant’s injury that occurred on your rental property if you have acted in a negligent manner and the tenant’s injury was caused by your negligence.

A landlord has the duty of reasonable care to help protect the safety of his tenants. Landlord liability for tenant claims of injury can arise from the landlord’s failure to exercise the duty of reasonable care. The tenant has the burden of proof to show that the landlord knew or should have known of a dangerous condition and failed to act in a reasonable manner as any landlord would have done.

Landlord negligence would be determined after careful analysis of the facts. A key consideration is whether the landlord’s actions were reasonable under the circumstances. The following issues would be considered in determining landlord liability.

Landlord Control

Did the landlord have a legal obligation over the area where the incident occurred? Landlords are generally liable for most areas of the property such as the common areas of a building and grounds and proper supervision and maintenance of all systems and equipment used in the property management. If the landlord’s failure to properly maintain or secure these areas was determined to be the injury causing factor, the landlord could be held legally liable for tenant injuries.

Probability of risk

If a tenant can show that a reasonable person could have foreseen a high probability of risk of an accident, the landlord could be held responsible for the tenant injury. An act of nature or unusual one-time event that caused an accident would not usually hold the landlord liable for injuries.

Difficulty of risk reduction measure

The landlord’s efforts to take reasonable steps to help prevent accidents and injuries will be a consideration in determination of liability. Were there reasonable measures such as warning signs or additional lighting that could have averted an injury?

The tenant move-out process should be a simple and easy process. Both landlord and tenant want the move-out to be as trouble-free as possible. With some preparation and planning prior to lease expiration date, landlords and tenants can simplify the move-out process and help ease some of the stress of move.

For many tenants, the priority is the return of their security deposit. For many landlords, the priority is a tenant move-out with no surprises. Clear communication between the two parties can help accomplish those priorities.

Communication begins with the new tenant move-in orientation whereby the landlord reviews the lease agreement, rental policies and procedures, and tenant duties and responsibilities during the tenancy and at lease expiration. Including move-out procedures in the lease agreement can help reduce tenant uncertainty about what to do at move-out time and what to expect regarding the accounting and return of their security deposit.

The process of a tenant move-out should be a routine business function that transitions the rental unit back to the landlord. With so many details involved in the transition, what can a landlord do to make things go more smoothly during the tenant move out? A priority task in property management is having a written rental policy and detailed procedures for tenant move-outs including timelines for notices, inspections, unit possession, and accounting and return of security deposits. With a plan in place, there is greater control over the process. The plan provides a consistent process that ensures all required steps are taken in proper order and are legally compliant. This creates a faster, smoother process allowing the tenant to move on and the landlord to fill his vacancy.

A move-in/move-out checklist and inspection conducted by the landlord and tenant can help the moving process go more smoothly whether the tenant is moving in or the tenant is moving out. The documented move-in inspection report is the basis for the move-out inspection and determination whether the rental unit was well maintained during tenancy per tenant obligations under the lease. Some states mandate the checklist and/or inspection.

To minimize potential problems at the lease expiration date, a landlord should give written notice to the tenant prior to the lease expiration date that the tenant’s lease will be expiring soon and remind the tenant that there are certain tenant duties and responsibilities required by the lease agreement regarding move-out. Generally the notice of lease expiration is sent approximately two months prior to lease expiration date to allow the tenant time to evaluate his situation and provide adequate notice to the landlord of the tenant’s intent.

A landlord should always require in the lease agreement that the tenant to provide written notice of the intent to vacate the premises on a specified date. A landlord will need to conduct due diligence to determine the legal notice period per state landlord-tenant statutes and federal law for the applicable circumstances. In many states, a tenant is required to give the landlord at least 30 days’ notice of the tenant’s intent to move.

Once a landlord receives the tenant’s written notice of intent to move, the landlord should sent a confirmation move-out letter to the tenant.

Move-Out Letter

The landlord‘s move-out letter should detail what the tenant must do when his lease expires in order to meet the terms of the lease. These move-in procedures must have been stated in the lease agreement and should have been discussed with the tenant when the landlord conducted new tenant orientation.

A good move-out letter explains the process of closing out the tenancy and what is expected of the tenant. The letter should include the following issues, all of which should be in the lease agreement:

• A reminder that the lease agreement gave the landlord and the landlord’s agents the right to show the unit to prospective tenants or to schedule contractor work upon reasonable notice per statute.
• A statement of the landlord’s expectations that the unit will be cleaned and left in the same condition as the tenant found upon moving in.
• A summary discussion of the move-out inspection procedures. This should include a reminder that all personal possessions must be removed from the premises prior to inspection.
• An instruction that the tenant must call the landlord at a specified time period before the lease termination date or move-out inspection date (whichever is earlier) to schedule an appointment for the final walk-through inspection.
• A statement that the inspection must be performed on or before the termination date and that the tenant must return possession of the premises including return of keys, garage door openers, gate keys, and pool pass, as appropriate to the rental unit.
• A reminder that the security deposit cannot be utilized for last month’s rent, including penalties for doing so.
• A discussion regarding the deposits that were collected and the deductions that can be legally taken.
• An explanation of how the security deposit refund will be handled including reference to the applicable state law for accounting and return of the deposit.
• A requirement that the tenant provide a forwarding address and contact information for future communications and mailing of the check for the portion of the security deposit being returned and an accounting of any amount not being returned.

An itemized list can be prepared to provide instructions to tenants on how to meet the landlord’s cleaning standards and what items on the move-in checklist are the items of concern at move-out. A move-out checklist cannot, in general, be more inclusive than was the move-in checklist.

Since the tenants may not be able to locate their copy of the move-in checklist that was completed at the time of the initial inspection, it is advisable to attach a copy of the signed checklist to the move-out letter. The landlord should also remind the tenant to refer to their lease agreement if there are any questions regarding move-out duties and responsibilities.

The lease agreement should have prohibited attaching items to walls, ceilings, or floors without written permission from the landlord. This would include such things as window coverings, bookcases, or towel bars. As part of the lease terms and conditions, tenants should have been made aware that they are responsible for the costs of repairs following removal of the items if they attached such items without landlord permission and the landlord chooses to remove them.

The letter should also remind the tenant that electricity, gas, and water must be left on until the final inspection has been conducted. All utilities in the tenant’s name should be scheduled for turn-off by the date of termination. The landlord should instruct the tenant of any climate and seasonal conditions that warrant special requirements for utility shut-off, such as cold weather water shut-off and draining of pipes and fixtures.

Move-Out Inspection and Checklist

Neglecting to inspect and document the condition of the rental unit before the tenant moves in often leads to disputes or misunderstandings over security deposits after the tenant has moved out. Consequently, move-in /move-out checklist s are required by law in many states. Failure to follow the rules can have important implications regarding the landlord’s right to withhold any part of the security deposit. There is no set format for inspection checklists except what might be specified in the laws of some states. Formats used by landlords vary from a single page to multi-page documents having a separate page that covers each room or other area in detail.

Landlords should require that the final inspection take place after the tenant has removed all personal possessions and the premises have been cleaned to the level of cleanliness that the tenant intends. This will increase the likelihood of positive identification of any damage to the unit including that which might otherwise be hidden behind furniture and damage caused by carelessness during the removal of furniture.

Landlords must anticipate tenant turn-over and have a tenant retention strategy to minimize vacancies and reduce expenses associated with tenant turnovers.

Lease renewals benefit a landlord in many ways. A good tenant is most often a good neighbor, a good caretaker of the rental unit, and can be depended upon for timely payment of the rent.

Keeping good tenants is cost-effective property management. Effective property management places emphasis on adequate tenant screening, selection of well qualified tenants, and good customer service as the most important factors in the retention of good tenants.

Moving is expensive, time consuming and stressful for a tenant. Unless there is a strong personal reason that requires a move, a tenant usually finds it easier and simpler to stay in place. Understanding the factors that can influence a tenant’s decision to move can help in developing a strong tenant retention strategy.

There are three key factors that can motivate a tenant to renew a lease rather than move on:

• The local market conditions
• The physical condition of the rental unit (maintenance and repair)
• The property management (quality of service)

Local Market Conditions

If a landlord wants to be competitive, he must know what’s going on in the local rental market. Without market knowledge, a landlord has no idea if his business is competitive, can be competitive or clearly in need of a makeover. If the landlord stays competitive in his local area, a tenant is not likely to find a better deal elsewhere and should be receptive to an offer to renew his lease.

Maintenance and Repair Issues

Maintenance issues can be a major motivation for tenants to move. A tenant is not likely to be receptive to a lease renewal option if he has had poor response to his maintenance and repair requests during his tenancy.

Property Management

A quality property management team invested in customer service can be a significant factor in tenant retention. Tenant satisfaction with customer service that promptly addresses tenant requests and resolves tenant concerns can be a major influence in a tenant’s decision to renew a lease or move on.

Tenant screening is a core management practice that has an impact on a tenant’s decision to renew a lease. Good tenants want to be sure that the management continues to screen and select more good tenants. Tenant retention has been shown to be higher in properties where landlords conduct complete and comprehensive tenant screenings for selection.

Enforcement of rental terms and conditions is a business practice that helps retain good tenants. Good tenants leave if a landlord does not enforce consequences for lease defaults or allows dangerous conditions or illegal activities to occur on the rental property.

Tenant communication and feedback are important tools to help improve customer service and measure whether rental policies, practices, and services are meeting tenants’ housing needs and lifestyles. However being responsive to market demands does not supersede the landlord’s duty of care obligations, legal compliances, and responsibility to operate his business using sound business principles.

A tenant retention strategy is a priority management function to reduce tenant placement costs through fewer turnovers and to provide a steady income stream.