Owner's Manual
for Landlords and Property Managers
A Complete Legal Survival Guideby Thomas E. Moorhead, J.D.
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Today, Thomas Moorhead is a successful real estate investor and attorney. But at one point he lost all his rental property. His partner had decided to manage all their rental property because he was a "good judge of character," which meant he had no need to screen or check out prospective tenants. They ended up with "occupied vacancies." That meant no rent, no mortgage payments, no insurance payments, no utility payments, no property tax payments.
The rental housing business is one of the most regulated businesses in the United States. It is also one of the easiest to get into. All you need is money, energy and some time. Without the knowledge of its pitfalls, it will eat up everything you own and leave you in the same situation as Tom Moorhead was. Even his being an attorney didn't help much. It just gave him leverage to sue people who had no money anyway.
What's in this book:
Table of Contents
Order Now! Excerpts from Owner's Manual Legal Point, p. 53 Never tell your tenant/resident that you may let him or her out of the lease for any reason including job transfers, etc. unless you are legally required to allow such termination which would be set forth in your lease as required in certain states. You may not be able to recover damages for early temination if you make such statements. Never tell your tenant/resident that it will be easy to re-rent the rental unit and he or she probably won't owe any money. Such statements could be used against you in any subsequent attempts to collect. Your ex-tenant could even claim they he or she would not have moved if you had stated that he or she would owe you money. Author's Tips and Techniques, p. 81 Your current tenants/residents may request that you check the Sex Offender Registry to see if any of the tenants/residents are registered. Do not do this. this is a no-win situation. If one of your tenants/residents is registered, then what do you do? You cannot require him (or her) to move unless you have a clause in your rental lease agreement or in your rules and regulations that prohibit registered sexual offenders from renting from you. However, this will not apply to your current tenants/residents. You could apply this standard at the time of renewal. However, I would not recommend that you advise other tenants/residents of the circumstances. Author's Tips and Techniques, p. 139 Most credit reporting agencies do not report possession judgments, but almost always report money judgments. There may come a time when your former tenant/resident attempts to buy a house, a vehicle, or obtain a loan and prior to closing they will, then, need to pay off your money judgment or not get the loan. Always turn your debt over to a national collection agency so that the debt is placed on your ex-tenant/resident's credit report and, if possible, rental history. This greatly increases your collection chances. Author's Tips and Techniques, p. 144 Generally, judges are pro-tenant/resident and anti-landlord (which is understandable because landlords own the property and therefore are rich, right?) I had a judge once personally tell me that there are more tenants/residents (potential voters) than landlords and therefore, the tenants/residents get every benefit of a doubt -- who said justice is blind? Order Now! |
About the author Thomas E. Moorhead, J.D., has been a practicing attorney since 1974 and is president and founder of RealChek, LLC, a service for landlords and property managers. He is a member of the State Bar and Real Estate Section of Michigan. He resides with his wife in Owosso, Michigan, and has two adult children. Order Now! |
