|
Barry is a new
landlord. He just purchased his first rental
property, a tri-plex that is across town from
where he lives. He was very excited to own a
piece of investment property (remember that
feeling?) and wanted to be a good landlord. He
also considered himself very lucky that he
bought a property with all three units occupied.
Great, no vacancies!
Shortly after
closing the escrow on his triplex, Barry got
some telephone calls from neighbors in the
vicinity of his property. They were complaining
about the single lady in Unit A. She has guests
late at night almost every night. They felt sure
she is a prostitute. Barry contacted the local
law enforcement, but was informed that he would
need further proof in order for the law
enforcement to get involved.
On the first of
the month, Barry got checks from the lady in
Unit A, and the tenant in Unit C, but no rent
from Unit B. When Barry went by to see the
tenant in Unit B, and to ask why he had not paid
his rent, the neighbor informed him that the
police had arrested the tenant from Unit B last
week for selling illegal drugs out of his rental
unit. This time, Barry contacted his attorney
for advice, but was disappointed to find that
even though his tenant had been arrested, Barry
does not automatically regain possession of the
rental unit. Barry wrote his attorney a check
for $500 to start the eviction process for
non-payment of rent.
The next month,
the tenant in Unit C complained that his unit
was infested with roaches. Being aware that the
implied warranty of habitability requires a
landlord to keep a rental unit pest-free, Barry
went to inspect the property and arrange for
pest control. He found that the tenant had
turned the unit into a garbage dump. The tenant
had obviously not taken out his trash in weeks;
there were piles of newspapers in every corner,
and mildew in the bathroom. No wonder he had a
roach problem! Barry called for pest control,
then went back to his attorney’s office and
wrote another check!
Barry has
learned a valuable lesson about investing in
rental property – not all landlords
screen tenants properly! If you are
purchasing property that is tenant-occupied, you
may want to consider making delivery of the
property vacant a condition of the close of
escrow. That way, you can select your own
tenants using your own criteria. Otherwise, you
may inherit someone else’s problems!
JOIN TODAY AND
SAVE! |
|
|
Landlord
Liable for Dangerous Tenant
This horror story comes from an actual court case (Rosales
v. Stewart) whereby a landlord was held liable for
injuries caused to a neighbor by his tenant. He was
held liable because the landlord knew of the tenant’s
dangerous propensities and failed to terminate the
tenancy after acquiring the knowledge.
In this case, a neighbor’s child, a 10-year old boy, was
killed by a gunshot fired by the tenant. The 10-year
old boy lived in the house across the street. The
landlord knew the tenant liked to discharge firearms
periodically in his back yard. The landlord failed to
evict the tenant once he found out that he was
conducting dangerous activities on the property. The
court found that the landlord was under a duty to third
persons to remove dangerous conditions on the property,
even if that meant getting rid of the tenant.
The lesson? A landlord must not allow a tenant
who poses a danger to others to remain in residence.
This would apply to a tenant who has a dog that is known
to be vicious or has a history of biting people, for
example, or a tenant who is known to be a reckless
driver, as well as any tenant who poses a danger to
others in any way.
Don't ever put an address on keys!
I
employ a number of housekeepers in my property
management business. The housekeepers are all
independent contractors who work for a number of other
people as well as working for me. One of the
housekeepers had her garage broken into recently. Along
with a camera and some cleaning equipment, her box of
keys to houses she cleans on a regular basis was taken.
Fortunately for me, none of my keys can be identified,
because they all have codes on them as opposed to
addresses. The codes match an internal system that the
burglar would not be able to figure out. However, one of
the other property management companies for whom she
manages has complete addresses on all their keys, so
they got busy re-keying about 80 houses on the day after
the robbery.
The
moral of the story: Don’t ever put an address on a
key! There are lots of code systems that you can use to
identify your keys. Pick one you like and use it!
|