Question

NY state law requires at least a 30 day notice to terminate by tenant.  My tenant moved with no notice.  Can I Keep the Deposit?

Answer

Whether you can “keep the deposit” may depend on the details of the matter. In general, in most circumstances the landlord can keep amounts from the security deposit to cover unpaid rents, damages to the property, and additional expenses incurred from breaking the lease agreement. Since you mention the lack of a 30-day notice from the tenant, I assume that the tenant was on a month-to-month lease. Accordingly, if the tenant was otherwise current with payment of rent, the maximum lost rent would be 30 days’ worth from the date of breaking the lease. That is, if the tenant left within the month that had already been previously paid for, the unpaid rent would be less than the monthly rent amount. If you had a deposit equal to the monthly rent, you could apply any remainder to physical damages, not including normal wear and tear.

Most states, including NY, have abandoned property laws. Laws regarding tenant property left behind vary significantly among states and for many states improper handling of tenant property can be costly for the landlord.  Requirements vary from none at all to the need to securely store the property, publish notice of its future sale date, and return to the tenant any excess realized from the sale, with even more complicated procedures in some jurisdictions.

Financial and physical damages that exceed the amount of security deposit are theoretically recoverable through a lawsuit if you can find where the tenant is currently located so that he/she can be served with a complaint and can obtain a judgment in the court of jurisdiction.

As with many matters related to tenants, landlords must also adhere to any more stringent requirements under county and municipal ordinances, including those in rent control jurisdictions.

Question

What is PALS (prior address locator service)?

Answer

Tenant screening should include some information reqarding renter history of applicants rather than only credit history, eviction history or criminal background history.  It can also include previous address history information as well.

In the past, a landlord had to check renter history addresses by calling previous landlords as listed by the applicant.  This was not only time-consuming, but was often unreliable when applicants provided phone numbers of friends as references.  Now there is PALS (Prior Address Locator Service), which can confirm previous addresses and providea a way to directly find previous landlords for those addresses via official public records.

Youcheckcredit.com provide PALS either as part of special packages or as an individual report.

Question

In the State of Ohio, is a landlord required to
pay interest on a security deposit to a tenant that has left the home?

Answer

You do not state if the tenant left at termination of the lease period, without a required notice, or by breaking the lease agreement, issues that may or may not have implications for your case.

It is my understanding that Ohio law regarding interest on security deposits is as follows: A security deposit in excess of $50 or one month’s rent, whichever is greater, must bear interest on the excess at the rate of 5% per annum if the tenant remains for a period of 6 months or more. The interest must be paid at least annually as well as upon termination.

I’ll also mention that Ohio requires a landlord to provide an itemized accounting of deductions from the security deposit and to return the remaining amount within 30 days.

Pets in Rental Housing – Part 1

In this Part 1 of a multi-part series, we’ll discuss some basics related to landlord pet policy. In future parts of the series, we’ll discuss in more detail some of the issues mentioned in this first part as well as discuss a variety of specific legal and management issues related to pets.

Pet ownership in the United States continues to trend upward, with some market analysts predicting continued rises in number of the number of households that have pets and the number of pets per average household. Pets have become a more important issue for landlords because more tenants wish to have them than was the case decades ago While there are no available statistics on the ratio of pet owners who rent, a very conservative estimate is that more than 50 percent of renters own pets. Many tenants do so in spite of prohibitions against it in lease agreements. For a number of years now, pets have been increasingly regarded as family members and renters carefully search out living arrangements and amenities suitable for their entire family. A pet friendly atmosphere is a higher priority than a private parking space for many families.

Consumer demands for pet services and amenities are correspondingly on the rise and new or enhanced market opportunities exist to capture this demand. The rental housing industry is making changes in response to the growing demand for pet friendly housing. Property managers and landlords are adjusting their rental policies to provide pet friendly options to attract and retain tenants with pets.

Studies have shown that rental housing located in neighborhoods with nearby community parks and greenbelts, veterinary facilities, pet specialty stores or other establishments offering pet products and services are perceived more favorably when compared to rental properties in other neighborhoods without such features. This can influence pet owners’ rental decisions in deciding where to live. Pet friendly housing can be as accommodating and attractive as the property manager/owner’s attitude and rental policies.

New apartment construction is being designed to provide options for pet friendly spaces, amenities, and services such as a dog run, bark park, onsite pet daycare, pet spa, pet grooming, pet sitters, dog walkers, or concierge services. Existing multi-family housing has eased away from the restrictive policies of the past toward a more cooperative, accommodating relationship between management and pet owner tenant.

Pet friendly housing is a growing niche market that is underserved in many areas. Renting to pet owners may make good business sense. Landlords may receive the benefits of additional rental income and potentially fewer and shorter vacancies.

Rental surveys in some areas currently show that three out of four rental households have pets. Despite this high number, surveys in those same areas also show prospective renters still have difficulty in locating pet friendly housing. Market potential is there for those providers willing to take advantage of the opportunity.

While rental policies will continue to focus attention on people friendly services and amenities, value added pet policies will be implemented to accommodate the needs of a growing market segment of renters. A policy of renting to those with pets can bring additional income revenue for rents and deposits and increase applicant pools and market share.  Consider that:

• Vacancy rates for pet friendly housing can be much lower than “No Pets Allowed” housing
• Vacancies for pet friendly properties usually rent faster than non-pet friendly properties
• Tenants with pets are more likely to remain in the rental for longer terms
• Pet policies are an important factor for renters with pets in deciding where they want to live
• Pet deposits are common rental policies to help reduce risk
• Monthly pet fees are in addition to monthly unit rents
• Rents have potential to set to market rent for added amenities

Understandably, pet friendly housing does carry some restrictions necessary to protect and preserve property values, to allow for safety and quality of life for other tenants, and to consider the public in general. The most common restrictions are the number of pets allowed per household and for dogs, the breed, the size (weight and height) of the pet, and proof of required licensing and vaccinations. Note that size and weight for dogs is seldom an indication of pet damage potential. Although large dogs could theoretically do more damage, many large dogs are more docile than many small dogs. Some breeds of small dogs are notoriously nervous and prone to cause lots of smaller damages.

While pet-friendly housing is not without certain costs, with customary due diligence for tenant screening and selection and adequate documentation, most rental housing providers would find that the positive benefits of pet friendly policies are far greater than initial costs for set-up and maintenance.

A pet friendly housing policy does not mean all tenants will have pets. Some tenants like pets but choose not to have one at the time of lease signing. Renters without pets and renters with pets can co-exist peacefully as long as rental policies and standards are fairly enforced among all tenants.