• Understand the fee structure: It goes without saying that you should consider the cost of the service in relation to the services offered.  Often managment companies charge 10% or more of the rental income on your properties.  You can also expect additional fees for the initial rental and maintenance costs.  Review the contract to ensure that you are not surprised by the cost of services.
• Review the rental companies proposed lease and termination notices: Ultimately, you are responsible if your manager is using outdated leases and termination notices.  Problems with these forms can cause you to lose precious time and money if your eviction proceeding is delayed or dismissed because of inadequate forms.
• Review their fair housing policies: All property managers should know that there are federal anti-discrimination laws that apply in housing rentals.  If a potential manager cannot answer your questions about the laws or openly makes discriminatory statements in your presence, you may want to think twice.
• Take a look at other properties the potential manager is currently handling.  Do they look well kept?  Is the yard maintained?  If the other properties in the manager’s portfolio look run down, you may want to look elsewhere. 
• How does the manager talk about the tenants? If a potential manager sees the tenants as the enemy, you may have future problems.  In my experience, when people have healthy relationships with the landlord or property manager, they tend to cooperate and pay the rent.  When the relationship breaks down or the tenant feels disrespected, it becomes harder to collect. 
• What are the manager’s policies with regard to scheduled maintenance and inspections?  It is a good practice to have quarterly walk throughs of your property to ensure that they are maintained.  While you are there, you can see the properties yourself and talk to your tenants if there are things that need repairing.  This is also a way to verify that the mainenance you were charged for was done in a satisfactory manner.

Today’s Topic: The Landlord’s Rights if Tenants Neglect Their Responsibilities

Earlier we focused on the tenant’s responsibility to maintain the dwelling. Today we will talk about what the landlord may do if the tenant seriously neglects his or her responsibilities. First let’s look again at the tenant’s responsibilities.

The new law essentially imposes upon tenants a duty to treat the property in a way that would not diminish its value. To that end, the law requires the tenant to:

• Keep the apartment reasonably clean. This includes taking out the trash as well as general cleaning that would be necessary to ensure that the property is not damaged.
• Refrain from deliberate or negligent behavior that would damage the property. Examples of this might be allowing large objects to be put down the drains. This could also include removing or destroying the fixtures in the unit without the owner’s permission.
• Refrain from using the apartment in such a way that would be a safety hazard. This might include interfering with the wiring or using the stove as a heating unit or other risky behavior that could cause damage to the unit.
• Refrain from behaviors that would be disruptive to the neighbors.

Although having these provisions in the law is extremely helpful, it is a good idea to include a set of rules in the lease or as a signed exhibit to the lease so that each tenant understands the landlord’s expectations. Landlords should review the property rules with each tenant at the signing of the lease and make sure that the rules are signed by the tenant in case there is a future legal dispute.

If the landlord determines that the tenant has created a problem within the unit that needs immediate intervention the landlord may take action to correct the problem and charge the tenant for the cost of repairs. If, however, the problem is not an emergency but does have a serious effects on safety conditions in the unit or a presents a significant health concern, the landlord may take steps to remedy the problem. In the case of a non-emergency, the landlord must give the tenant a seven day notice that identifies the condition that must be remedied and allow the tenant to correct the problems. Landlords should be careful that they do not simply enter the dwelling and make repairs without first considering whether the problem is a true emergency. Some examples of an emergency that may give rise to an immediate right to enter and repair might be:

• The tenant has left on a faucet that is leaking into another apartment and causing significant flood.
• The tenant has left the gas on or damaged a gas appliance causing a safety hazard

§ 35-9A-422. Failure to maintain.

If there is noncompliance by the tenant with Section 35-9A-301 materially affecting health and safety that can be remedied by repair, replacement of a damaged item, or cleaning, and the tenant fails to comply as promptly as conditions require in case of emergency or within 7 days after written notice by the landlord specifying the breach and requesting that the tenant remedy it within that period of time, the landlord may enter the dwelling unit and cause the work to be done in a workmanlike manner and submit the itemized bill for the actual and reasonable cost or the fair and reasonable value thereof as rent on the next date periodic rent is due, or if the rental agreement has terminated, for immediate payment.

§ 35-9A-301. Tenant to maintain dwelling unit.

A tenant shall:

(1) comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety;

(2) keep that part of the premises that the tenant occupies and uses as clean and safe as the condition of the premises permit;

(3) dispose from the dwelling unit all ashes, garbage, rubbish, and other waste in a clean and safe manner;

(4) keep all plumbing fixtures in the dwelling unit or used by the tenant as clear as their condition permits;

(5) use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances including elevators in the premises;

(6) not deliberately or negligently destroy, deface, damage, impair, or remove any part of the premises; or knowingly, recklessly, or negligently permit any person to do so; and

(7) conduct himself or herself and require other persons on the premises with the tenant’s consent to conduct themselves in a manner that will not disturb the neighbors’ peaceful enjoyment of the premises.