Q&A: Renting
You asked for answers to renting questions. Nokomis Johns kindly volunteered.
She's the senior tenant/landlord counselor for Baltimore Neighborhoods Inc., a nonprofit that has a hot line just for questions in this arena. A BNI employee for more than seven years, her mission is getting "more people informed on the correct laws and procedures before they get into a bad situation."
BNI counselors often provide information about tenant/landlord laws, but they're not attorneys -- and of course the answers to the questions below aren't legal advice. They're designed to point you in the right direction.
Take it away, Nokomis:
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Question: What is considered "normal wear and tear" in a rental agreement? I am thinking about what a landlord can deduct from a security deposit and what he cannot deduct.
Answer: Normal wear and tear are things that result from coming and going. They are things that cannot be prevented. For example, the carpet wears down as you walk on it, or after a while the paint starts to crack and peel. These types of things cannot be prevented and the landlord cannot charge you for replacing the carpet or repainting due to ordinary wear and tear. If you do not agree with what is deducted from your security deposit, you can sue the landlord.
Q: I'm really concerned about rising rental costs. Are there rent consumer advocates to help us fight for our rights? For instance, it would be useful for consumers to determine if the rent is fairly priced for the area and amenities. When there's a rent increase, is the amount fair?
A: To determine fair market rent, you will want to contact HUD or use their National Housing Locator System. Or contact the state Department of Housing and Community Development.
There are a several types of rental housing advocacy agencies. You may want to do an internet search to determine what exists in your county and the state.
Q: What resources are available for mom-and-pop landlords to check out potential tenants before renting to them?
A: You may want to check the Better Business Bureau website for companies that do tenant background checks. You want to check rental history as well as criminal and credit history. Verify employment and check personal and professional references. Be sure to ask in your application if the person is a member of the military.
Q: If the landlord refuses to return my security deposit and offers no reason (or no valid reason), what can I do?
A: The landlord has 45 days to return the security deposit or an itemized list of damages and costs incurred. If they fail to return the security deposit or list within 45 days, the tenant can sue for up to three times the security deposit amount.
Q: What recourse do tenants have if they’re ordered to move out before the lease is up even though payments have been made on time and they’re not breaking the contract in any other way? What about cases where the landlord or property manager is making false claims about the renter – for instance, "you’re letting your pet run amok”?
A: Don’t leave. If your landlord gives you a written notice to leave in the middle of your lease, you can dispute it by not leaving. The landlord has to go through a court process to evict. If you can prove the notice is not valid, you may be successful in getting the case dismissed. (There are some exceptions for Baltimore City residents if the landlord plans to move himself or family into the property. Contact the BNI tenant/landlord hot line for more information. If you are a tenant in a foreclosed property, seek out an attorney for legal advice.)
Q: In Baltimore County, does a renter have any obligation to notify the county when the property they rent has not been registered under the new law? If the county finds out a landlord has not registered their property, what is the risk to the renter? Can that end up voiding the lease and forcing the renter to find a new residence?
A: The tenant has no legal obligation to notify the county if the landlord is not registered. If the county finds out the landlord has not registered the property, the landlord will be cited and fined until he does register. If the landlord continues to ignore the citations, there is a possibility that at some point the county will shut down the property and remove all occupants.
Q: What’s the most common complaint you hear from renters and landlords, and what advice do you give?
A: Our most common problem is nonpayment of the rent. The first thing we stress is no one can be evicted without a court procedure. Then we explain the court procedure and in some cases help them understand the court form. We do this so our callers are informed about the law. We cannot give any legal advice.
Q: What steps could renters and landlords take to promote a more harmonious relationship?
A: I’ll give a few suggestions:
1. Use a written lease. You want everything spelled out in writing so that it's clear what the landlord’s responsibilities are and what the tenant’s responsibilities are. Are utilities included? Is there a deductible for repairs? Are there shared meters? Does the lease renew? What is proper notice to end the tenancy?
2. Read your lease! I cannot stress this enough. Read it before you sign it and then read it again ... and again. If you do not understand something, ask a question. If you are not satisfied with the answer, you have a choice not to sign.
3. Get all verbal promises in writing! Otherwise, do not expect them to hold up in court.
4. Electronic communication may or may not hold up in court. We recommend certified letters to communicate.
5. Tenants should get a receipt from the landlord for their payments. Money-order stubs are not good enough, and personal checks do not give proof of receipt until they are cashed. Never pay in cash without a receipt.
6. Landlords should do thorough background checks on their tenants. If you decide to rent to a person with a credit, criminal or rental-history blemish, know that it is not a quick procedure to remove a tenant in the state. Some counties take four to six weeks, while other counties can take two to three months for eviction.
7. Keep the relationship strictly business. It may be a friend or relative, but they should still sign a lease and have clear terms and conditions.
8. Know the laws before you rent. You can visit BNI’s website to download our free introductory packets for tenants and landlords. You may even want to consider ordering our Guide to Local, State, and Federal Laws Governing Tenant-Landlord Relations. It has the laws written in layman’s terms. We also sell leases and rental applications.
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Thanks, Nokomis!
If you have other questions, she suggests calling the Baltimore Neighborhoods' tenant/landlord hot line, which is available free of charge from 9 a.m. to 5 p.m. Monday through Friday. That number is 410-243-6007 or 1-800-487-6007. You can also submit a question online if you get a busy signal. Go to bni-maryland.org and click on "Have a Question? Ask a Specialist."
Thoughts? Comment away.
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And if you've got questions on another topic you'd like to see a guest poster address, ask away right here.Categories: Expert guest post, Guest post, Landlording, Q&A, Real estate investing, Renting
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Comments
Great information. BNI helped me tremendously when I needed to evict tenants.
Posted by: Anonymous | June 13, 2011 7:35 AM
For the question on the security deposit, I thought they had to return the security deposit OR if the security deposit is not returned in full they must provide the check for the remaining portion AND an itemized list of what they deducted for.
Posted by: Anonymous | June 13, 2011 10:45 AM
10:45 a.m. Anonymous, that's how I'm reading her answer, though the way you lay it out makes it more clear that the middle ground -- some money returned -- still requires a list.
Feel free to pick a screen name. You're anonymous even if you don't call yourself Anonymous, you know!
Posted by: Jamie Smith Hopkins | June 13, 2011 10:50 AM
Nice summary. A few things I would like to add from my experience of being a perpetual renter now for 11 years. This is written from the perspective of a tenet to help other tenets, not the landlord.
PLEASE NOTE THIS IS NOT TO BE CONSIDERED LEGAL ADVICE!!!! I AM NOT A LAWYER OR OFFERING LEGAL ADVICE. DO NOT RELY ON ANYTHING WRITTEN HERE, PLEASE CONSULT A LAWYER.
1. Read your lease and understand every part of the lease (Google is your friend)
2. A signed lease does not supersede state law!
3. Make adjustments to the lease and have the lease rewritten not just pencil or penned over.
a. check for remarketing terms. Boiler plate language states 90 days, but the tenet should try to get this decreased to 30 days or if possible, get this removed from the lease entirely.
b. Owners right for entry: get this removed entirely or have the time frame increases. If time increased, include specific cause for which an owner shall have the right to enter to property.
c. Tenets responsibility for additional rent. Change this as much as possible to remove as much liability as possible.
d. Any changes you want to make such as painting a room or allowing a pet, get them included in the lease with initial lines for both tenet and landlord.
4. Always add an Early Termination Agreement to the lease!!!!
Example that I always use:
Early Termination Option. Tenant shall have the right to prematurely terminate this Lease herein known as the “Termination Option”, the date of which herein known as the “Early Termination Date”, subject to the following terms and conditions:
(a) Tenant shall not be in default under this Lease either on the date that Tenant exercises the Termination Option or on the designated Early Termination Date; and
(b) Tenant must give Owner no less than 60 days advance written notice of Tenants election to exercise this Termination Option (“Tenants Termination Notice”), time being of the essence; and
(c) Upon exercise of the Termination Option, Tenant shall pay Owner an early termination fee of $x,xxx.xx (the “Early Termination Fee”). The Early Termination Fee shall be payable in full no later than the Early Termination Date. Rent shall thereafter be payable as scheduled through the Early Termination Date.
If Tenant properly exercises this Termination Option, and performs all of its obligations through the Early Termination Date, then all Rent payable under this Lease shall be paid through and apportioned as of the Early Termination Date, the Terms of this Lease shall terminate as of the Early Termination Date, and neither party shall thereafter have any further rights or obligations accruing after said Early Termination Date, except those which by the provisions of this Lease expressly survive the expiration of the Lease Term.
5. Before you move into your rental, take a lot of pictures and/or video of the entire rental noting all existing damage. This is your only remedy should you need to go to court over claimed damages. Also if you need to clean upon move in, send the landlord a bill for your time with pictures of the dirty conditions.
6. Read and understand all of the rental laws applicable to you (also consider county/city/town laws)
The actual Annotated Code of Maryland http://www.michie.com/maryland/lpext.dll?f=templates&fn=main-h.htm&cp=mdcode
* then select MICHIE'S CODE OF MARYLAND
* then select REAL PROPERTY
* then select TITLE 8
7. After having read Marylands Annotated code from #6 above note the following:
Annotated Code of Maryland Real property, Title 8: Landlord and Tenant § 8-203 (f)(1)(ii-vii),
“(f) Withholding of deposit - Generally; tenant's right to be present at inspection of premises.-
(1)
(ii) The tenant has the right to be present when the landlord or the landlord's agent inspects the premises in order to determine if any damage was done to the premises, if the tenant notifies the landlord by certified mail of the tenant's intention to move, the date of moving, and the tenant's new address.
(iii) The notice to be furnished by the tenant to the landlord shall be mailed at least 15 days prior to the date of moving.
(iv) Upon receipt of the notice, the landlord shall notify the tenant by certified mail of the time and date when the premises are to be inspected.
(v) The date of inspection shall occur within five days before or five days after the date of moving as designated in the tenant's notice.
(vi) The tenant shall be advised of the tenant's rights under this subsection in writing at the time of the tenant's payment of the security deposit.
(vii) Failure by the landlord to comply with this requirement forfeits the right of the landlord to withhold any part of the security deposit for damages. “
You must be notified of the date of the inspected at least 15 days prior to the date of moving and this inspection MUST occur between 5 days before or after the date of moving. The tenet also has a right to be present at the inspection. If these do not occur, the landlord FORFEITS their right to withhold any security deposit.
Also, when the tenet first pays the security deposit, the landlord is obligated to inform the tenet of these laws in writing; if not the landlord FORFEITS their right to withhold any security deposit.
Annotated Code of Maryland Real Property, Title 8: Landlord and Tenant § 8-203 (e)(1-4),
“(e) Return of deposit to tenant; interest.
(1) Within 45 days after the end of the tenancy, the landlord shall return the security deposit to the tenant together with simple interest which has accrued in the amount of 3 percent per annum, less any damages rightfully withheld.
(2) Interest shall accrue at six-month intervals from the day the tenant gives the landlord the security deposit. Interest is not compounded.
(3) Interest shall be payable only on security deposits of $50 or more.
(4) If the landlord, without a reasonable basis, fails to return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the tenant has an action of up to threefold of the withheld amount, plus reasonable attorney's fees. “
The law states that the security deposit plus interest is due within 45 days after the end of the tenancy. Also note that this and unlawful withholding of the security deposit provides the tenet grounds to sue for threefold of the withheld amount, plus reasonable attorneys fees. Also again note, a lease does not supersede state or local law, your landlord is legally obligated to pay interest on the security deposit, even if they don’t know.
Posted by: Bubblemore | June 13, 2011 11:33 AM
Hopefully someone reading this blog will be able to answer my rental question regarding a landlord renting out a townhouse to multiple tenants (ie: each of three bedrooms rented to separate individuals, and all common areas shared), which seems to be a fairly common practice in Baltimore City.
What rights does a tenant have to be consulted over the replacement of other tenants by the landlord? The signed rental agreement in question stipulates that leasee's co-tenants are to be "A" and "B"; when "A" and "B" are replaced by tenants "C" and "D" without leasee's knowledge or consent, what can be done? No new lease agreement was signed with the new tenants names. Is the lease still valid? Does leasee have ground to break the lease without penalty? Is there any Maryland case law pertaining to multi-renter replacement?
Posted by: LivingWithStrangers | June 13, 2011 12:22 PM
Great information. Dealing with tenants can be a hassle, especially when it comes to evicting them.
Posted by: Utah Real Estate | June 13, 2011 1:10 PM
Great post - - thanks Jamie!!
Posted by: SLL | June 13, 2011 10:31 PM
Having repeatedly experienced landlords who bill against the deposit for normal wear and tear, or disposal of junk in a storage closet that was already there on move in, all after you were told to and complied with removing a couch on the 3rd floor that was already there on move in (with a heavy duty reciprocating saw and bolt cutters because you have no idea how it ever got up those narrow, twisting stairs),
Why shouldn't we apply the security deposit to the last month's rent? I know the land lord will moan and groan and threaten, but the bottom line is if they can't document any damages to the property, then their only damages are a loss of one month's rent which is made whole by the security deposit.
The key difference is it shifts the burden onto the landlord. If they want more money out of the tenant, THEY have to take it to court and prove reason for it. As it traditionally is expected to go, the landlord shorts the tenant, and then the burden is on the tenant to extract it from the landlord in court.
I say we all start a practice of simply applying the security deposit to the last month's rent. They're not going to evict you in 30 days. What is there to lose? A good reference? You've already lined up a new place to live by the time you're inside the 30 day window.
And LivingWithStrangers has a really good question that I hope someone can answer.
Posted by: Keep the Deposit | June 14, 2011 9:30 AM
Thanks for all the comments, folks.
LivingWithStrangers, if you don't get a good answer here, you might want to ask Baltimore Neighborhoods Inc. directly (see the numbers and online-question link above). At some point I might seek out another landlord/tenant expert to answer new questions, and I think this would be a good one to include.
Posted by: Jamie Smith Hopkins | June 14, 2011 9:37 AM
@keep the deposit
Sorry you've been burned by slumlords. They are most likely not reporting rental income. Maintaining your property is an tax deductible expense to the landlord.
I'd much rather give you back your full security deposit rather than waste time fixing damage.
Posted by: ironhide196 | June 14, 2011 12:22 PM