Make Sure Your Lease Agreement is Bulletproof for 2012

Keeping up on the ins and outs of lease agreements is something a Property Management company does for a client rental property owner. But for DYI property owners, it can be a challenge to keep up with issues that are beginning to trend and the legalities that they may implicate. The start of a new year is always a good time to maximize a property owner’s protections that are written in to lease agreements. This year’s emerging property management trends point to a couple areas of special interest.

Pet policies are coming into scrutiny with more and more of the population utilizing service animals. HUD has taken the position that the Fair Housing Act applies not just to service animals, but to “companion” animals as well, so a comprehensive review of any restrictive pet policy warrants consideration in 2012 lease agreements.

Nonsmoking Provisions are also trending as potential hot potatoes for 2102. More and more judges across the country are allowing tenants with related illnesses to sue their landlord because of secondhand smoke. Not only is it clear that nonsmoking is the future for profitable rentals, but the converse is also true. It may be time to add a nonsmoking policy to your lease agreement. Existing leases which allow smoking will need to be grandfathered in.

A lease agreement that doesn’t allow for periodic inspections or the right to evict a tenant in the case of crime or disorderly behavior could leave a property owner vulnerable in today’s legal climate. Dozens of cities across the country have begun imposing fines on landlords who do not evict problem tenants – in some cases fines are being assessed every day until the tenant has been evicted. Property owners need ironclad lease provisions to protect themselves - and give their tenants a good reason to behave. Tenant guests must also be considered in the lease agreement with wording that spells out how long a guest can visit before being required to sign a lease. This will avoid potential problems for property owners and reveal any offenders during the background check.

Also, victims of domestic violence gained added protections in 2011. For instance, it now may be illegal to evict the victim of domestic violence or their children if the crime was committed by a guest or co-tenant. 

Lawyers are reporting an uptick in the number of lawsuits initiated by tenants over security deposit deductions. For this reason security deposit rules must be clearly spelled out in the lease agreement. And tenants today are more likely to contest an eviction, especially the ones who are living rent-free. A lease agreement should not leave room for a dispute –inappropriate or illegal provisions in a lease can cost the property owner in court. There have also been a number of disputes reported where landlords and tenants simply disagree on who is responsible for what. For instance, one northern city is seeing a record-breaking number of icy sidewalk complaints this year. If the landlord isn’t clearing the snow, and the tenant says they don’t have to either, chances are the local municipality will be doing it, and billing the landlord. Utilities are another major area of dispute, as a number of towns have started billing landlords for their tenants’ delinquent water bills.

A good lease agreement clearly states rights and responsibilities so there is no room for confusion, and the property owner has a way to collect from the tenant if need be. For more information about bulletproofing your lease agreement, contact the Property Management professionals at Hayes Realty.  www.hayesreality.com.