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Tenant Thursday - Maryland Real Estate Investing Advice. A Weekly Series on handling Tenant issues when investing in Real Estate in Maryland.

You’ve found the perfect tenant: a single woman with a clear criminal background, good references and clean credit. She’s signed her one year lease. Things are looking good. You make the appointment for the initial walk through and then it happens. She brings her boyfriend. Oh yeah, and by the way he needs to move in because of some last minute change in his current living situation.

How convenient.

What are you going to do? The most important thing is to know what’s in your lease. This will dictate what you can and cannot do in this situation.

My leases specifically state that anyone who is going to live there must be specified in the lease. Any changes must have my prior written consent. Also, all adults who will be living in the home must have a criminal background check and credit check.

This applies to former spouses who move back in, college age children moving home, parents moving in with their children…everyone. I don’t mean to suggest that I wouldn’t rent to someone because of what shows up on the background check. But as a Landlord, I need to know what I’m getting into.

There are no exceptions to this policy, and it is clearly stated in my lease. Do you know what your lease says about who can live there? And do you enforce it?

Photo credit: http://www.flickr.com/photos/umjanedoan/497345293/

Tenant Thursday - Maryland Real Estate Investing Advice. A Weekly Series on handling Tenant issues when investing in Real Estate in Maryland.

You've gotten a tenant for your property, and you've all agreed to a year's lease.  Six months into the agreement, the Tenant informs you that they're going to buy a home and want to terminate the lease early.  What are your options?

I always inform my tenants right up front that if a lease is broken early, the Tenant remains responsible for the monthly rent payment - no if's, and's or but's.  This has helped prevent further issues down the line.  But what if you forgot to mention that part, or what if your Tenant didn't get the message?  Here are some of your options:

1. Stick to the original agreement you and the Tenant made in writing (the lease), and continue to hold the Tenant responsible for the monthly rent (as they contractually agreed).  It's always nice when people honor contractual agreements, especially the ones made concerning the roof over your head.
   
2. Hold the Tenant responsible for further rents until you are able to find another suitable Tenant.  This protects you against further loss while still providing the Tenant with a way out of the agreement.  I can't stress it enough - get it in writing.
   
3. Let the Tenant break the lease.  Get it in writing.  In many cases, the Tenant's future Lender may require a copy of the lease and especially the agreement to terminate the lease.

Or, you could find some other way to work it out.  How would you handle this situation?

Photo credit: http://www.flickr.com/photos/umjanedoan/497345293/

Tenant Thursday - Bed Bugs in Baltimore.  Ever heard of bed bugs? Yup, they're for real, and they are a real problem.  The cost and inconvenience of removal is enormous.

Last year, one of my tenants in a multi family unit had a bed bug problem.  As an accomodation, I treated the property using a licensed professional and the property was cleared of bed bugs.  The tenant claims they complied with all of the instructions provided to them by the pest removal service.

Fast forward, one year later.  The tenant has bed bugs again.  Fortunately, it is only this one unit.  The other units in the property are bug free.

The tenant works in Baltimore City, and is in and out of the city's high rise project homes.  These homes are notorious for their rampant bed bug infestations.

I've checked with the Baltimore County Department of Health and was referred to the Maryland Department of the Environment who told me to again check with the Department of Health.  I've given up, and am checking with my attorney.

In the meantime, I'm interested in your opinion - in this scenario, who should undertake the expense of this second infestation?

Tenant Thursday - Maryland Real Estate Investing Advice. A Weekly Series on handling Tenant issues when investing in Real Estate in Maryland.

It doesn't happen, often, but it does happen.  You have a disagreement with a tenant over refunding a security deposit, or backing out of a lease, or other financial matters, and the tenant says It - "I'm calling my attorney!"

A novice investor could be concerned about such a threat.  I've had my share of such confrontations in my experience as a Real Estate Investor, and I can tell you that in my opinion, 9 out of 10 times the tenant is not going to call an attorney.

And what about in the rare instance where a tenant does call an attorney?  What is the first thing the attorney is going to ask for?  The presiding document.  In this case, it is going to be your lease.

What you and the tenant have agreed to in writing takes precedence over any other ‘agreement' the tenant may claim you have made with them.  Know the terms in your lease.  Know them before a confrontation arises.  Stick to the conditions you've outlined in your lease, and make any amendments in writing.

If you'd like more information on investing in Real Estate in Maryland, feel free to contact me.

Photo credit: http://www.flickr.com/photos/umjanedoan/497345293/

Tenant Thursday - Maryland Real Estate Investing Advice.  A Weekly Series on handling Tenant issues when investing in Real Estate in Maryland.

Want to hear a tenant mess?  Two friends who want to be roommates, sign a lease for an apartment.  Shortly after they are settled, Tenant One decides to let his girlfriend move in.  His roommate, Tenant Two, hates the girlfriend and decides to move out.  I continue to get the rent, but then a month later, Tenant One kicks the girlfriend out and is no longer able to afford the apartment.  Tenant One said I could have the security deposit, but that he doesn't want a judgment, bad credit or a bad reference from me.

In the meantime, Tenant Two would like to move back in to the apartment, but would like to have Tenant One's name removed from the lease.  The only problem is that Tenant Two wants to add someone new to the lease - a new roommate - who has bad credit.

As a Landlord, how would you handle this situation?  Email me to find out how it all got resolved.

If you'd like more information on investing in Real Estate in Maryland, feel free to contact me.

Photo credit: http://www.flickr.com/photos/umjanedoan/497345293/