What is a landlord?
A landlord is the owner of a house, apartment, condominium, land, or real estate which is rented or leased to an individual or business, who is called a tenant.
What is a tenant?
A tenant is a person who occupies land or property rented from a landlord
What will be covered in this course and what understanding should you walk away from the landlord tenant class?
Basic landlord topics and preparing leases and rental agreements
Whether owning one rental property or several hundred, the key is for your business to be profitable, protected and avoid legal hassles. This course will help you to do so from years of experience I have in renting profitable locations with limited issues for over a decade.
We will cover agenda items from accepting rental applications to returning security deposits when your tenant moves out and everything in-between.

Josh Ellis

*  Getting a unit ready for perspective tenant
*  How to advertise rental properties
*  Basic lease specifications for a tenant/landlord lease
*  Description of general requirements to obtain an apartment
*  Required information for tenancy
*  Application

### Screening Tenants ###

Avoid Fair Housing Complaints and Lawsuits. Federal and State laws govern what can be said done during the tenant selection process. You are always free to choose amongst prospective tenants if your decisions are based on legitimate business criteria.

**Examples are as follows:**

*  Credit score or lack of - Potential tenant should show average or above average credit score. Lack of credit is also a red flag and should be considered as well
*  Income that is insufficient to pay the rent – Potential tenants should make on average at least 3 times the amount of the rent they will be paying. Also take into consideration things like child support and car payments and how they will affect paying rent.
*  Past behavior – This includes not paying rent or other issues as violence and being problematic with other tenants
*  Legal issues – People with recent felonies of violence or other major crimes should be taken into consideration


Chapter 1: Landlord Topics

 ![property managers](http://147.182.217.97/images/property-management.jpg)

### Property Managers vs Building Supers ### 

* Property Managers - * usually have more tenant relations responsibilities than supers do. Such as taking applications, accepting rent, and responding to tenant problems and complaint.

* Building Supers - *  Usually concentrate on building repairs and maintenance task. They often possess special skills and are experienced at running complicated heating and air condition issues

 ### Hiring a Property Manager ### 
First and foremost, put some thought into a job description and what you are specifically looking for. Do not hurry the process or rush into the first offer you receive. Decide the managers Duties, Hours and Pay



Chapter 6: Property Managers

Lesson 3

Lesson 4

Lesson 5

Sample Video

Sample FREE Landlord Course

dwayne

*  Screening Tenants: 
*  Preparing leases and agreements: 
*  Basic Rent Rules: 
*  Security Deposits: 
*  Discrimination: 
*  Property Managers: 
*  Getting the tenant moved in



### Screening Tenants ###

Avoid Fair Housing Complaints and Lawsuits. Federal and State laws govern what can be said done during the tenant selection process. You are always free to choose amongst prospective tenants if your decisions are based on legitimate business criteria.

**Examples are as follows:**

*  Credit score or lack of 
*  Income that is insufficient to pay the rent 
*  Past behavior or legal issues 
*  Ex. Damage to property habitual late payments

You can always refuse tenancy to people that cannot come up with the security deposit or meet other criteria of the rental agreement.

** Illegal reasons to refuse tenancy are: **
*  Race
*  Religion
*  National Origin
*  Gender
*  Age
*  Familial Status
*  Physical or mental disability (includes alcoholics or people with a past drug addiction)
*  Marital Status
*  Sexual Orientation

Consistency is key and crucial when dealing with prospective tenants.


Chapter 1.1: Landlord Topics - Screening Tenants

### Getting A Unit ready for perspective tenant ###
1. First and foremost, make sure the unit is clean!
2. Clean all rooms furnishings floors, walls, and ceilings,
3. It’s very important that the kitchen and bathroom are spotless
4. Make sure there are no rodent or bug infestations, if so, make sure that is resolved
properly before next tenant. This is a good time to make sure there are no gaps in- between the floorboard or holes where mice can get in from the outside.
5. Make sure all the appliances are working properly i.e., Refrigerator microwave washer 7 dryer.

Chapter 1.2: Landlord Topics - Getting A Unit ready for perspective tenant

### How to advertise rental properties ###
*  Post an online advertisement
*  Put an apartment for rent sign in window
*  Posting flyers in neighborhood advertisements or bulletin boards
* Taking out ads in local news paper
*  Listing with local real estate companies that handle rentals
*  Hiring a property management company
*  Posting an ad with a local university or college or corporate housing
* Using social media

To stay out of issues while renting make sure you Describe the rental accurately!!

Avoid abbreviations and real estate jargons as prospective tenants might not understand.

Chapter 1.3: Landlord Topics - Advertise Unit

### Basic Lease Specifications for a Tenant/Landlord Lease ### 

**Include all basic details such as:**
*  Rent and Deposit
*  Size – number of bedrooms and bathrooms
*  Location – either general neighborhood or street
*  Move in date and term – lease or month to month rental agreement
*  Special features – kitchen, fenced in, fireplace, hardwood floors and granite
countertops, stainless steel appliances
*  Pets - whether allowed or not or any restrictions or breeds your insurance prohibits
*  Phone number, email, or details for them to reach you
*  Date and time for open houses


Be sure that your ad does not have anything that is discriminatory. The best way to do this is focus on the rental property and its highlights and not the tenants specifically.

**Things to never mention in the ad are:**
*  Sex
*  Race
*  Religion 
*  Disability
*  Age – unless it is a senior citizen housing


### Description of General Requirements to Obtain an Apartment ###

Always describe your general requirements right away!! 
*  Rent
*  Deposits
*  Pet policy 9 
*  Move-in-date
*  Maximum number of occupants
*  Also, any special rules to your property



### Required Information for Tenancy ###
**Tell them all required information for them to obtain the apartment**

Phone number of previous landlords 
Credit and Social
Employee references

Always have perspective tenants fill out a rental application this helps keep everyone on the same plane and avoids racial or discriminatory complaints

Chapter 1.4: Landlord Topics - Basic Lease Specifications for a Tenant/Landlord Lease

### Pricing ###
If you find a well-qualified tenant and it seems like you can raise the rent from the listed price based on their income, don’t that is illegal.

If that well qualified tenant wants you to add more items. i.e., Access to laundry room private parking or other things you can then raise the rate and bargain on the price.

Do not do a bait and switch.

Example: A 2 bedroom where one bedroom is a closet. 
A high security building and then a tenant is robbed, and you have no proof of security practices.

Chapter 1.5: Landlord Topics - Pricing

In certain occasions waiting until the existing tenant leaves and refurbishing the apartment gives you the opportunity to raise the rent. 

But if you have an existing tenant, make sure you strike a balance of showing the apartment to prospective tenants while still showing respect and privacy to the existing tenant.

1. Discuss with the existing tenant your plans so you can be accommodating to them.
2. Give the existing tenant as much notice as possible before showing the apartment at least 2 days.
3. Try to limit the number of times the apartment is shown a week and make sure the existing tenant agrees to the times.
4. Consider reducing the rent during the time you will be showing the unit.
5. Try to not put a sign on the rental that might have potential renters ringing their door bell.

Dealing with perspective tenants and dealing with rental applications
In effort to avoid future legal issues and problems its essential to carefully screen the prospective tenant



Chapter 1.6: Landlord Topics  - Renting out an apartment that is still occupied

1. First and foremost, make sure the unit is clean! 
2. Clean all rooms furnishings floors, walls, and ceilings, 
3. It’s very important that the kitchen and bathroom are spotless 
4. Make sure there are no rodent or bug infestations, if so, make sure that is resolved properly before next tenant. This is a good time to make sure there are no gaps in between the floorboard or holes where mice can get in from the outside. 
5. Make sure all the appliances are working properly i.e., Refrigerator microwave washer dryer 
6. Make sure there are no leaking faucets or drips anywhere. 



Chapter 1.7: Landlord Topics - Getting A Unit ready for perspective tenant

The application should show the fee to check the credit as well as all fees that need to be paid prior to moving in.
Every adult over the age of 18 interested in renting an apartment should be given an application. Whether married single a couple or unrelated roommates.
Insert a copy of your rental application or make a custom one for this LLC and go over it at length

Always make sure it a completed application with SSN all references, employer information.
Don’t ask applicants for their date of birth. Most fair housing experts feel that asking age is discriminatory. If you need a date of birth to run their credit profile specify on the application under that section.
If an applicant does not have an SSN because they are an immigrant or authorized to work in the USA, please ask them for an Individual Taxpayer Identification Number or ITIN, if someone is here long enough to apply for an apartment, they should be paying taxes and have an ITIN.

Do not consider an ITIN as legal evidence of the applicant’s rightful status in the US

Make sure that the applicant signs that they are aware they will be having a credit check as well as that you will be reaching out to previous landlords and their place of employment.


Chapter 1.8: Landlord Topics - Application

### Check references, Credit History and More! ###
Be consistent with all applicants so you don’t run a chance of discriminatory.

Have a tenant reference form filled out make sure you speak to the previous tenant’s landlord and find out the applicant’s behavior. Take notes on your conversation with previous landlords and keep them on file for proof. Cover yourself and future decisions to prevent potential lawsuits.

Call applicant’s employer. Take notes on their income verification. You may also ask to see previous pay stubs. But speaking to their employer and verifying the information is a lot better.

### Client Credit Report ###

Obtain a credit report. It is important to get the prospective tenants credit report from at least one agency. Upon getting their credit report write down your findings on the reference form. This will keep you from potential problems by documenting your findings. 

Make sure you get the prospective tenant’s approval to run their credit report. On your rental application add a consent form or quotation to run credit. 

The client can also print out their credit report from my free credit report or obtain the credit report from Reid Financial Solutions. 


### Things to look for on their credit report ### 
• Recent lateness 
• Previous evictions 
• Charge off from rentals 
• Bankruptcy 
• Garnishments



Usually, any FICO score over a 650 should present a medium to less risk 

### Credit check fees ### 

It is legal in most states to charge a credit check fee. The credit check rental application fee should be reasonable. An average cost of 30-100 is fair in most areas. 

### Solid credit. ### 
If they have poor credit, see what steps they have taken to fix their credit. If they have no credit history, you can reject them or require a cosigner. 

If their credit history brings about concern you can ask to verify their bank account to make sure they have savings. To do this you would need their written approval to check that as well. 

You can also review local court records while doing the background check In some states the results from Meaghan’s law may not be able to be used against the perspective tenant. So, proceed with caution. 


### Request proof of citizenship and Immigration status ### 

Many landlords ask for a driver’s license to verify the applicant’s identity and real name.
Take it a step further ask for an I9 form or proof of right to work in the US Take your time to evaluate the applicant You might be desperate to start making rental income and ready to rent to whoever to start getting afloat. 
Remember your life can only get worse with the wrong tenant in your residence. 



Chapter 1.9: Landlord Topics - Check references, Credit History and More!

### Background Reports and Investigating them ###
Some credit card companies also sell background reports. If not find one from a reputable company.
Check for:
• Criminal history
• Meaghan’s law
• Other major concerns


### What you need to look for specifically about the prospective tenant is ### 
Look at their monthly income what the rent is and their other bills, If the rent is over 40% of income and they have major outstanding bills that can present a major problem in the future. Good references

### Choosing – And Rejecting – Applicant ### 
After you received all potential applications, you can start by sifting through all of them. Start by eliminating the worst risk ones.
Negative references from previous landlords
Legal issues
Nonpayment
Poor credit Numerous evictions Criminal offenses


### What information to keep on rejected applicants. ###
To prevent a legal issue in the future and lawsuit, it is vital to keep information on all rejected applicants. Make sure to note your reasons. Credit history, pets if you don’t accept them, negative reference from previous landlords.

You need to be able to back up your rejections legally if it ever goes to the court of law. Make sure you document and keep your reasons on file for several years.


### How to Reject an Applicant ###
The fair credit reporting act of 2003 requires you to give certain information to the perspective applicant. If the denial is due to the credit report, make sure you let the applicant know they can request a copy of their credit report within 60 days or they can obtain their own. If they feel the validity of the report is off, they are free to dispute it privately.

Holding tenants’ fees will be discussed in a later chapter.

Chapter 1.10: Landlord Topics - Background Reports and Investigating them

Chapter 1 Quiz

![rental agreement](/images/application-for-rental.jpg)

Use an example of your lease or an online lease here to review. 

### Clause 1: Identification of the landlord and tenant ### 

Every lease must identify who the landlord is and who the tenant is. If a couple will be the tenants identify both here. Make sure all names match their licenses or ID that is used. At this point also make a copy of those ID as well.

### Clause 2: Identification of Premises ### 
This is where the location of the premises will be identified and the unit number. Make sure it is the city state and zip code. Also, in this section make sure you identify if this includes areas such as a basement a driveway or other area.

 ### Clause 3: Limits on the Use and Occupancy ### 
This is will you will identify the use of the residence. This apartment will be used for the lessees and their minor children. Occupancy by a guest for more than ____ days is prohibited without written consent.

This will prevent the tenant moving in people to the apartment that were not vetted properly by you or receiving your consent. This clause will help if your tenant tries to move in additional friends or family it will help with the eviction of said persons.

Any number of additional children that are minors of the tenants are not to be discriminated upon. If they live with the other parent part of the year or whatever the circumstances if a minor they are not to be discriminated upon.

 ### Clause 4: Term of the Tenancy (Lease) ### 
The term of the lease will begin on _______ and the lease will end on _______

 ### Clause 5: Payment of Rent ### 
This section will identify the monthly rental amount and the due date of the rent. The landlord should identify how the rent will be delivered either by mail or in person. Also, the form of deliver that is acceptable.
Cash
Personal check
Certified fund or money order
Credit card
Bank debit
Electric funds transfer – Cash App, Venmo, Zelle

Specify directly where and how the rent should pay. The time frame of hours, from ____ to ___
on which day.

If the tenant is moving in not at the beginning of the month make sure the rent is prorated based on the date of move in. Divide the rent by days in the month and then multiply the number of days they will be there that month.

 ### Clause 6: Late Charges ### 
If the tenant fails to pay the full rent by the specified due date the tenant will pay a late fee of ______.
It is your legal right to charge a late fee if rent is not paid on time. A late fee is simply a form of motivation for the tenant to pay on time.

 ### Clause 7: Returned check or other bank fees ### 
If a check offered by a tenant to landlord is returned or there is a lack of sufficient funds, a stop payment or other issue. The tenant will pay the landlord a returned fee of _____.
As with a late charge, any bounced check can have a charge within reason.

 ### Clause 8: Security Deposit ### 
On signing this agreement, the tenant is to pay the landlord the sum of ___ _ as a security deposit.

The use and return of security deposits is always a sensitive subject amongst tenants and landlords. To avoid any issues here make sure to specify the dollar amount of the security deposit, the fact that the deposit may not be used for the last month’s rent without your previous approval.

 ### Clause 9: Utilities ### 
Tenant will pay for the utilities except for the ones paid by the landlord. This clause will. Help prevent misunderstandings. If you will not be paying for any of the utilities, then delete the part with the except and state the tenant will pay all of them.

 ### Clause 10: Prohibition of assignment and subletting ### 
This part of the lease will prevent the tenant to subletting or assigning the lease to another person without your consent. It will also make sure that short stays don’t happen.

If the tenant must leave due to an emergency and finds you a suitable tenant to take his place
that qualifies that is a different rule.

 ### Clause 11: Tenant maintenance responsibilities ### 
1. Keep the premises clean
2. Immediately notify the landlord if there are any defects or dangerous conditions
3. Reimburse the landlord for any cost incurred by their damage or damages caused while
leasing.

The tenant should also be notified in this section of the garbage pickup times and their responsibilities to adhering to it. Also, if they are responsible for snow pick removal of sidewalks and driveway and the specified time they need to.

Also specify your rules on painting the apartment and restoring the apartment to the original condition it was received in. By doing this it will protect you in the future with the security deposit.

Under this section also specified the needed Renters Insure that is needed and make sure you obtain a copy of the policy once they bind it.

 ### Clause 12: Repairs and Alterations by tenant ### 
This is where you specify that by no uncertain terms should the tenant alter the apartment or make any changes without the written consent of the landlord.
This could be from changing locks to installing things in the apartment such as security systems. Your rules on satellite dishes being installed on the property or the roof.
If alterations need to happen due to a tenant or a member of the tenant’s family having a disability, then you may need to allow it due to the Federal Housing Act.

 ### Clause 13: Prohibition Against Violating Laws and causing disturbances ### 
1. Violating the law by selling drugs or using illegal drugs.
2. Committing waste or severe property damage
3. Creating a nuisance by annoying the peace of others

Committing Waste: Would be damage that goes beyond the normal. Like punching holes in the wall, pulling out the sinks or fixtures or knocking down doors.
Nuisance: Would be continuous loud noise, foul smells, smoking weed.

 ### Clause 14: Pets ### 
No animal may be kept on the premises without written consent of the landlord, except animals needed by the tenant for disabilities.

This clause helps you by keeping pets out of your apartment of you do not want any there. You can also require some pets or certain breeds or weight or size limits. You can also specify no allowance of dangerous pets like Dobermans or Pitbull’s.

 ### Clause 15: Landlords Right to Access ### 
Landlord or Landlords may enter the premises in the event of an emergency to make repairs or improvements. Also, to show the property to perspective buyers or tenants.

 ### Clause 16: Extended Absence ### 
If the tenant will be away for a prolonged amount of time, they will notify the landlord. This could be for military service, work, or vacation.

 ### Clause 17: Possession of premises ### 
Tenants’ failure to take possession of the apartment. The fees and rules associated with this

 ### Clause 18: Tenant rules and regulations ### 
As a landlord you are not a parent this is no need to enforce rules that make no sense.

Rules in which you can enforce:
1. Laundry room area and rules
2. Firework and explosives
3. Use of grounds and common area 4. Display of signs in windows
5. Having a waterbed

 ### Clause 19: Payment of court cost and attorney fees in a lawsuit ### 
In any action to or legal proceeding to enforce any part of this agreement the prevailing party (shall/Shall not) recover reasonable attorney fees and court cost.
This will be a way of getting the funds back you have used for attorneys or evictions fees.

 ### Clause 20: Disclosures ### 
Federal law mandates you disclose lead paint and or other hazards.

 ### Clause 21: Grounds for termination of tenancy ### 
The failure of tenants to comply with the lease or information on it may result in the end of their tenancy

 ### Signing the lease ### 
Prepare two identical copies of the lease including all attachments. Make sure there is a space for signature, both parties’ information and email addresses. Check that the tenants name and signature match their license or ID.

If the tenant has a cosigner make sure they are present and sign all necessary paperwork while presenting their ID. You can also have them fill out a separate cosigner agreement.


Chapter 2: Preparing Leases and Rental Agreements

Quiz for Preparing Leases and Rental Agreements

Chapter 2 Quiz

![rental agreement](/images/charge-rent.jpg)

 #### How much can you charge? #### 
In NJ most areas do not limit the amount of rent you can charge. However, in certain towns or areas they do control the amount you can charge and increase the rent. Some landlords decide to charge a little less than the going rate to find and maintain amazing tenant’s

 #### Rent increases for existing tenants #### 
NJ does not have a law for rent increase, however certain municipalities in NJ do. Please see your local town for ordinances and rules.

Rent increases when a tenant moves. In most rent-controlled areas landlords may raise rent either as they want or by a specified percentage when the tenant moves out.

 #### Registration of Rental Units #### 
In some rent-controlled areas you may need to register your property with the local rent control agency. This allows the agency to keep track of the local rentals in that area.

 #### Deposit and Notice Requirements #### 
Rent controlled areas may also have rules or regulations on security deposits or interest payments and the type of notice you must give to your tenant.

An example would be state law may require 30 days’ notice to inform your tenant of a rent increase. A local rent control law may require a smaller percentage and longer amount of time. Grace periods for late rent.

Some tenants believe they have a 5,7 or even 10-day grace period for late payments. That is not the case. Make sure the time frame is identified and the tenant is aware and enforce the policy strictly.

Chapter 3: Basic Rent Rules

Chapter 3 Quiz

 #### Purpose and use of Security Deposits #### 

All states allow you to collect a security deposit when tenants move in to hold as a security. The general purpose of a security deposit is to assure the tenant pays rent when due and keeps the rental in good condition.

State laws typically control the amount you can charge and how and when you must return the security deposit. (Usually within 14 to 30 days) in this time you need to either return the deposit or return an itemized statement of deductions and refund the difference.

 #### Withholding Security Deposit #### 

** You can generally withhold rent for the following things: **
1. Unpaid rent
2. Repairing damages to the apartment besides normal wear and tear
3. Cleaning that is necessary to restore the apartment to the level of cleanliness at the
beginning of the tenancy
4. Replace or repair unit property taken by the tenant. That is why it’s essential to take
great pictures before the tenant moves in.

 #### Dollar limit on deposits #### 
Many states limit you on how much you can collect as a deposit to an amount equal to one- or two-months’ rent.

 #### How to avoid problems with the last month’s rent #### 
To minimize confusion and disputes avoid labeling any of the security deposit as the last month’s rent.

 #### Interest and accounts on deposits #### 
You should keep the tenant’s security in separate accounts that bare interest that you can show proof of at any time as need. You should notify the tenant where the account is being held and the rate of interest.

 #### How to increase the deposit #### 
If you have rented to the same tenant for many years, you have the option to increase the amount of the security

If you have a fixed term lease you are not able to increase the rent while that lease is term is going on. While the tenant is in a month-to-month state you can work out a new agreement or lease with a new security deposit.

 #### Handling Deposit When You Buy or Sell Property #### 
When you sell your property how should you handle the security deposit? At the closing you should make sure that the new owner has the documented proof of the interest baring account. That means that you will you need to hand over the security deposits to the new owner. Make sure the tenants are made aware of their new owners and their contact information.



Chapter 4: Security Deposits

Chapter 4 Quiz

![discrimination](/images/discrimination.jpg)

#### Legal Reasons for Rejecting a Rental Applicant #### 

The most important decision you can make besides where you want your rental property is who your tenants will be.

When it comes to discrimination on rental properties you should be aware there are only a few forms that are illegal such as race or religion or ethnic background. You are legally free to determine or chose who your tenant would be based on qualified tenants.

Make sure that all your decisions are made in a sound manner that can be backed up properly if it goes to court before a judge.

 #### Inaccurate or Incomplete Rental Applications #### 
You can deny them for false information or not allowing you to check their credit report o background history.

Make sure that you are complying or following things from the Federal Fair Housing Act.

 #### Types of Discrimination #### 

The most common types of discrimination that are prohibited are: 
1. Race or color or religion
2. National origin
3. Familial status – including families with children under 18 and pregnant women and elderly
persons
4. Disability or handicap 
5. Sex

 #### The Civil Rights Act of 1866 #### 
Bans anti-discrimination in housing. Also, the racial discrimination of African Americans, Hispanics, and all dark-skinned persons.

 #### Intentional or Subtle Discrimination #### 
Renting to only members of your same religion or race is illegal. An example of unintentional discrimination would be finding out someone is a member of a hate group on their social media and denying them for that.

 #### Disability #### 
Having a mental or physical disability that substantially limits one or more of major life activities. Such as hearing, mobility, visual imparities. HIV or AIDS. You cannot prevent this person from having a home health aide or caregiver.

 #### Recovering Alcoholics #### 
If the person is in AA and attending AA meetings you cannot hold that against them. You may not refuse renting to a recovering alcoholic under HUD rules. You would have to be able to deny that person off other factors.

 #### Drug users #### 
Under the Fair Housing Amendments, a person who has a past drug history cannot be discriminated on. To be blunt your fear of them relapsing on drugs is not enough to deny them an apartment.

On the other hand, someone who is currently using illegal drugs is a different situation. Or if they have a felony conviction for selling or manufacturing drugs they can be denied or refusing tenancy.

 #### Mental or emotional impairments #### 
Just like prior drug users or recovering alcoholics. You cannot discriminate someone with a mental issue or past mental health issues.

 #### Verification of Disability Status #### 
If a tenant asks for a modification to the apartment due to a disability it may be obvious that the tenant falls under a disability, in some cases not. You are permitted to ask for a written verification of the tenant’s disability and a letter specifying the accommodation that is needed. Sources of reliable information would be:

1. The person themselves and having a visible disability
2. Documents- A person under the age of 65 who is on Supplementary Security Income
benefits or Social Security Disabilities. Such as showing you a disability card or even
license plate.
3. Doctors or medical professionals
4. Reliable 3rd party

You are required to let the tenant make reasonable changes to the apartment or modifications. So that they can enjoy the apartment the same as the other tenants. Such examples would be in a building having a handicap spot. Or if someone is blind having brail signs so that they can read.

 #### How to respond to unreasonable request or accommodations involving HUD and Section 8 #### 

HUD
Under HUD you cannot just say no and shut the door so to speak. You need to have what’s called an “interactive process”. You should try to reach an acceptable compromise.

Section 8 and Low-Income Housing Programs

Many potential tenants will qualify for a Section 8 program that will pay part of their rent and the tenant will pay a percentage of the rent.

 #### The Pros: #### 
1. The government pays a large amount of the rent guaranteed every month on time.
2. If you must evict due to nonpayment the government will pay the unpaid portion of the
rent or balance.
3. If there are damages to the property they will pay to a certain amount.
4. If your apartment is in a low housing area you will always have a plethora of potential
tenants.

 #### Disadvantages: #### 
1. The housing agency determines market rent
2. You are locked in for one year and cannot evict except for non-payment
3. When HUD has a budget crunch, they can lower the amount for landlords
4. New Section 8 will have to wait a month or more to qualify from mandatory inspections and
higher standards.
5. Any issues with the apartment that are called into HUD will react w swift movement

In NJ if an existing tenant becomes eligible for section 8 you cannot deny them tenancy

 #### Valid Occupancy Limits #### 
The law allows you to establish an occupancy policy that is truly tied to health and safety. You can also adopt standards that are for the capacities of your location like the plumbing and or electrical system. You cannot set limits just for the wear and tear of the apartment and trying to keep the property in good condition.

If you limit the amount of people in the residence or any reason except health and safety, you risk the chance of discrimination case. The government has set a standard in occupancy limits through the Fair Housing Amendment. To keep from potential lawsuits, you need to adopt a policy that is in line with the federal standard.

 #### The Federal Standard is based on several things such as: #### 
1. The size of the bedroom rental units
2. Age of the children
3. Configuration of the rental unit
4. Physical limitation of the building
5. State and local building codes
6. Prior discrimination complaints against the landlord



Chapter 5: Discrimination

Chapter 5 Quiz

### Property Managers vs Building Supers ### 

* Property Managers - * usually have more tenant relations responsibilities than supers do. Such as taking applications, accepting rent, and responding to tenant problems and complaint.

* Building Supers - *  Usually concentrate on building repairs and maintenance task. They often possess special skills and are experienced at running complicated heating and air condition issues

 ### Hiring a Property Manager ### 
First and foremost, put some thought into a job description and what you are specifically looking for. Do not hurry the process or rush into the first offer you receive. Decide the managers Duties, Hours and Pay

 ### What will be the managers responsibilities  ### –
 He or she needs to be able to handle all the jobs you need done. List out all the jobs you need done and responsibilities you will need them to take care of. Decide if this job will full time or part time. If you will need the property manager to live on sight or off site.

Hourly property managers can range from 15-25 an hour much of this will depend on the managers responsibility.

 ### Should you give the manager a reduced rent? ### 
Some landlords prefer giving resident manager a reduced rent rather than paying a separate salary. This is not a good idea, for one reason reduced rent won’t work for a fulltime manager. Also, if you are in a rent-controlled area this can present separate issues with this as well.

 ### Screen potential managers over the phone. ### 

* Areas to look at include: * 
1. Experience and qualifications
2. Interest in the position and type of work
3. Current employment
4. Ability to work at a proposed pat and schedule

 ### Interviewing strong Candidates ### 
Here are some questions to ask during the interview:
1. Tell me about your previous jobs managing rental properties
2. How much experience do you have collection rent? Doing repairs? Keeping records of tenant repairs and complaints
3. What have you liked most about previous manager jobs? What have you liked least?
4. What kind of problems have you encountered as a property manager?
5. Why do you want this job?
6. What would you do if you had a tenant that paid rent on time for 6 months ask for a 10-
day extension due to a family emergency?
7. What would you do if a tenant called you at 11pm with a complaint about a clogged
sink?

Make sure you get a completed application from the perspective property manager. Also check all references and speak to all previous places of employment for them.

 ### Character Traits of a good manager ### 
Look for a person who:
1. Honest and responsible
2. Patient
3. Financially Responsible
4. Personable yet professional
5. Fastidious
6. Meticulous about maintaining records
7. Fair and free of biases
8. Unafraid of minor confrontations with tenants


 ### Property Manager Agreement ### 
The following clauses should be numerated in the agreement 
1. Clause 1: Parties Involved
2. Clause 2: Beginning Dates
3. Clause 3: Responsibilities
4. Clause 4: Hours and Schedules
5. Clause 5: Payment Terms
6. Clause 6: Ending the managers employment 
7. Clause 7: Additional agreements and amendments 
8. Clause 8: Place of Execution

 ### Management Companies ### 

 #Pros and Cons #

One advantage is you avoid all the potential legal issues of being an employer. The management company is an independent contractor not an employee. Most companies pay between 5-10% of the total rent as a fee.

 Another advantage is they are usually well versed in the law and keep good records.

The primary disadvantage of hiring a management company is the expense. Also, companies work from a central location and never work on site Some landlords feel that the management company becomes too distant and unconcerned with the tenant’s day to day needs. 

Questions to ask when hiring a management company

1. Who are its clients? – look for a company with a lot of references and experience
2. What services are provided?
3. What is the cost?
4. What services have extra cost?
5. Will the management company take 24-hour calls and 7 days a week?
6. Will there be an individual property manager assigned to your property?
7. Is the company near your apartments?
8. Are employees trained in tenant law?
9. If your property is under rent control, are they well versed in rent control law?
10. Can you terminate the management agreement without cause on a reasonable notice?

 ### Your liability for Managers Acts ### 
You can be sued for several things that are the fault of the management company:
1. Refusing to rent to a qualified tenant
2. Sexually harassing a tenant
3. Makes illegal deductions from a security deposit
4. Ignores dangerous conditions
5. Invades a tenant’s privacy by flagrant gossip or trespassing 
6. Commits a crime such as assaulting a tenant

Keep an eye on you manager and listen to tenants concerns and complaints. At times a tenant might be providing you with valuable information about your management company that can help you stay away from potential lawsuits
Emergency Contacts and procedures for your employees

It is a very smart to prepare a list of emergency contacts and a set of instructions to follow:

1. Owner’s name and emergency phone number or nearest hospital
2. Ambulance police and fire department phone numbers
3. List of approve contracts phone numbers
4. 24-hour licensed plumber and electrician on standby

5. Procedures to follow in case of a flood, fire, natural disaster., electric or gas station.

 ### Notifying the tenants of the manager ### 
In most areas and municipalities, you are required to notify your tenants of the manager’s name
and address. Also inform them that manager can accept legal documents on your behalf. Such as court documents and eviction lawsuits.
It is advisable to give your tenants this information in writing. If you can send them this certified mail, it’s even better to keep documented in your records.

 ### Firing a manager ### 
Unless you have made a contract verbally or orally you should be able to terminate the contract at any point. You cannot end the agreement for illegal reasons such as: race, age, gender or other prohibited forms of discrimination.

* Reasons that may support a firing would include: * 
1. Preforming a poor job or service
2. Refusing to follow your implicit instructions
3. Possessing a weapon at work
4. Being dishonest
5. Stealing money
6. Endangering the health or safety of the tenants
7. Arguing or fighting with tenants
8. Behaving violently at work
9. Unlawful discriminating of tenants or perspective tenants




Chapter 6 Quiz

### Inspect the Rental Unit ###
This helps to prevent all kinds of future arguments with tenants in the future. This is also a great time to take well documented pictures and videos of all areas of the unit that are time stamped. These will be admissible in the court of law, if necessary, when the tenant is moving out.

 ### Use a landlord tenant checklist: ###
![tenant checklist](/images/checklist.png)


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