The rental application is one of many tenant screening tools to assess potential risk of lease default by an applicant. Risk assessment is an essential management practice in making an informed business decision to offer tenancy. A rental application is the most efficient means to gather preliminary information about a prospective tenant to begin the […]

You should first understand the issue before taking an action. Can you verify by independent means or firsthand observation that the tenant has moved in a permanent guest? As example, has the guest conducted himself as a tenant, i.e., receiving mail at the rental address, moved personal property into the unit, or keep a regular […]

If a tenant stays past the lease expiration date, the tenant has held over. Your state or city may address the issue of a tenant holding over by statute or ordinance. If so, you will be governed by what the statute or ordinance says. Your lease may have a clause that addresses holdover and appropriate […]

A risk mitigation fee is a fee paid by a rental applicant to the landlord as a requirement for conditional approval for tenancy. The risk management fee is nonrefundable and is in addition to the landlord’s required security deposit fee. A landlord may be willing to rent with conditions to an applicant who does not […]

Landlords set their rents, fees and deposits in accordance with applicable state statutes, local ordinances and business necessity. In jurisdictions not governed by rent control or rent stabilization regulations, landlords may set any rent amount they choose taking into account what the local rental market will bear. In practice, landlords are advised to set rents […]

Traditional property management practices screen rental applicants to evaluate potential financial risk to business operations. Of primary importance is an applicant’s potential risk of rent default, evaluated on a history of the applicant’s management of financial obligations and a current, stable source of income. If there is potential business risk of rent default, but the […]

As of this writing, source of income is not a protected class under the federal Fair Housing Act. However, in some states, cities, and counties, source of income is a protected class. In these jurisdictions housing providers cannot reject an applicant based on where his income comes from as long as the income is from a […]

Depending upon the circumstances it may be advisable to seek legal advice on how to proceed. You may wish to also research HUD guidance FHEO-2020-01, the “Assistance Animal Notice” that clarifies how housing providers can comply with the Fair Housing Act (FHA) when assessing a person’s request to have an animal in housing to provide […]

Utilizing a property management company can be advantageous for an owner particularly in managing the everyday details in property operations. Keep in mind however that the use of a property management company does not eliminate owner liabilities related to business ownership and operation. The property management company will be the owner’s legal agent who essentially […]

Lease agreements protect the interests of landlord and tenant by defining duties and responsibilities required during the term of tenancy. Changes, additions, and deletions can be made to the lease agreement as warranted by business necessity and legal compliances. The type of document required to effect the change, addition, or deletion may depend upon its […]