Question I know I must have smoke detectors in my rental units. Do I also need carbon monoxide detectors? Answer As for smoke detectors, requirements regarding carbon monoxide detectors may depend on what state or county, even what municipality your units are located in. In review, carbon monoxide (CO) is a colorless, odorless gas potentially […]

When Landlords Buy Tenant Occupied Properties. Existing tenants in rental property that is being considered for purchase can be either assets or liabilities. The most obvious benefit is having no rent-up time for any units that are currently leased.  A related secondary benefit is that obtaining financing may be easier because the lender knows what […]

Lease Agreements Between Landlords and Tenants – Part 6 In Part 5 of our Lease Agreements series we discussed the issue of specific clauses being required by some states.  In this article we’ll briefly discuss several issues regarding lease changes. Modifications There are a variety of circumstances when a lease agreement must be amended.  Reasons […]

Question Recently, an applicant for one of the units in my 24-unit property asked whether my property provides for Section 42 housing. What is this about? Answer Section 42 housing is housing that was constructed under the Low Income Housing Tax Credit program. This is a cooperative effort between HUD and the IRS that provides […]

Question I recently moved into a new home and plan to rent my old house.  I’m wondering who is responsible for the landscaping. Answer Most states allow a landlord to make landscape maintenance the tenant’s responsibility for a single-family residence (even multi-unit rentals when units have individual private yard areas). When doing so, the landscaping-related […]

IRS Audits Most landlords filed their 2012 income tax return months ago and have since forgotten about the matter. For some landlords, especially those who push the limit regarding their rental business, the 2012 return won’t be forgotten for at least many months because as everyone knows, the IRS can pursue issues for three years […]

Consumer Reports and Adverse Action Notices For tenant screening purposes, landlords may collect information from a variety of data sources including applicant supplied information, verifications, reference checking, and screening reports ordered through outside service companies. The collected information is analyzed to produce a profile of applicant behaviors in areas of interest to most landlords, namely, […]

Best Practices for Landlords doing Tenant Screening. It’s a risky business. Landlords must take appropriate measures to help reduce their exposure to known risks. Non-payment of rent, nuisance disturbances, property damage, or direct threats to the safety and welfare of others are examples of  high risk tenant behaviors that are costly, time consuming, and bad […]

Can a Landlord reject potential tenants if the rental properties septic system can only handle 3 people and they have more? Question I am renting a duplex that has two bedrooms and an office. It is on a septic system and cannot handle more than three persons living in the house. I am in the […]

California Depreciation Information for Landlords and Tenants Question This is a clarification of a previously asked question regarding CA depreciation. I am concerned about depreciation as used when deducting damages from a security deposit or when suing for damages. Answer The depreciation that is allowed when charging for damaged carpet is not defined by law […]