Specific requirements and responsibilities concerning carbon monoxide detectors vary among states. In many states, a landlord’s duty of care to take adequate measures to provide for the safety of a tenant includes the landlord’s responsibility to install, maintain, and inspect carbon monoxide alarms. If a landlord breaches his duty of care by failing to take appropriate steps to protect the tenant from CO exposure and the tenant suffers carbon monoxide poisoning, the landlord as a result of his negligence will likely be held liable in a personal injury lawsuit.

Most state and local laws require at least one approved carbon monoxide alarm or detector installed in each dwelling unit. Wherever there is a carbon monoxide source (appliance or system) there should be a CO alarm. This may include placing an alarm in the kitchen, furnace room, laundry room, and garage. Installation and placement of CO detectors should be done according to the manufacturer’s instructions. As a rule, carbon monoxide detectors must be located outside of each separate sleeping area, in the immediate vicinity of the bedroom and on each level of the residence.

Landlords and tenants can help reduce exposure to carbon monoxide by:

• Keeping all gas appliances properly inspected and maintained.
• Using a vented space heater.
• Using proper fuel in kerosene space heaters.
• Installing and using an exhaust fan vented to the outside over a gas stove.
• Opening the fireplace flue when using a fireplace.
• Using a wood stove that has been certified to meet EPA emission standards.
• Not leaving an idling vehicle inside an attached garage.
• Using additional ventilation to temporarily vent potential high levels of CO that are expected to occur for a short period of time.

The most common sources of carbon monoxide exposure come from appliances, fireplaces, and grills. Tenants should be instructed on the proper use of appliances and systems, how to inspect appliances for proper working order, make sure ventilation ducts for any appliances and systems are kept clean and unobstructed, and promptly report any problems to the landlord. It is important for a landlord to periodically inspect all rental appliances and fossil fuel sources in the rental unit for proper maintenance and repair issues. Additionally a landlord should have a trained professional inspect, clean, and adjust heating systems on a regular basis including inspection and cleaning of chimneys and flues.

Tenant selection is a critical business decision that can have significant impact upon a landlord’s rental operations. To make an informed decision for tenant selection, a landlord relies upon tenant screenings as a risk assessment tool to identify and evaluate known or reasonably foreseen risks as presented by a rental applicant. Tenant screening is a landlord’s due diligence for asset protection and duty of care to his tenants.

The tenant screening service provider that the landlord chooses as a business partner also has a significant impact on rental operations by the quality and scope of his business products for tenant screenings and, accordingly, their use in the tenant selection decision.

The due diligence that goes into developing the landlord’s rental standards and requisite tenant screening criteria must extend to the evaluation and selection of his tenant service provider. The selected provider conducts important risk management assessments that used with other risk prevention practices protect the landlord’s business. The tenant screenings conducted by the service provider provide data to help defend against potential liabilities of tenant financial risk, property damage, lawsuits, and claims of tenant discrimination or landlord negligence.

A landlord should be confident in his tenant selection decisions. The landlord places his confidence in the screening service provider to accurately compile and report applicant consumer data for qualification to the landlord’s rental standards. However, there are many tenant screening service providers offering a variety of screening products on various platforms allowing a landlord to customize options for the right screening tools to support his business requirements. Which service provider is best for a landlord’s rental operations requires landlord analysis and evaluation of critical elements in the decision making process for tenant selection.

It can be beneficial for a landlord to prepare a checklist of the important criteria to evaluate potential tenant screening providers. The checklist can be used to analyze the products, pricing, and screening process that each provider uses to produce tenant screening reports.

The following list is representative of important considerations that could be used in evaluating a screening provider’s qualifications. A tenant screening service provider should be:

• Knowledgeable of applicable federal, state, and laws regarding the use of tenant screenings in the jurisdiction of the rental property location. Both the landlord and the service provider must be compliant with applicable laws.
• Able to offer a wide range of screening products, e.g., credit reports and background reports. If the product line is too specialized, a landlord would need to have multiple screening providers to obtain all necessary screenings for his applicant. Having to interface with multiple providers and different collection and delivery methods can present challenges in analysis and evaluation of reports or the reports could contain conflicting or confusing information requiring further investigation and verification.
• User friendly in their process for data entry and data return for access on multiple platforms. Clear, understandable information should be presented for products, pricing, and process. Instructions should be provided for guidance on data entry, data retrieval or delivery of processed data. Frequently asked questions should be posted on the website and direct access to trained service staff for help on problems with reports, billing questions, or other assistance should be readily available. If the screening process is cumbersome or difficult to understand and complete, a landlord should consider another provider. Ideally, being user friendly would mean simple, direct data entry and retrieval in a timely manner. Transparency and clear language are important considerations to help select a good qualified tenant quickly and easily. A landlord should check to see if the provider posts sample reports on his website or has a video demonstrating how to enter an order for screening reports as a preview of what the landlord could expect if he engages the services of the provider.
• Capable of processing requests in a timely manner. Delays in processing or long intervals before reports are returned can cause a landlord to lose a good prospective tenant. Time is of the essence in screening and selection to fill a vacancy as soon as possible.
• Available for customer service. Customer support is all important to a busy landlord. A major complaint against screening providers is not being able to reach a representative to ask questions or resolve a problem. Real, live personal contact with a trained friendly customer service rep is valuable in of itself and is a primary consideration in selecting a provider. If the provider offers flexible hours of customer service, the greater the chance that the provider will get the landlord’s business. Applicants don’t just apply during regular business hours. Landlords want a provider that can help them qualify an applicant nights, weekends, or holidays. Client reviews and ratings may provide insight on real time response to landlord questions and help in resolving problems.
• Concerned with quality assurance that report data is accurate, verifiable and current. Providers should be able to furnish information regarding how their system matches rental applicant records to corresponding data with appropriate filters in place to identify and remove duplicative data and minimize errors of false reporting. Providers should be able to provide information on what databases are used for public records and how often the database information is refreshed.
• Transparent in their product pricing and customization options. Providers should post clear understandable pricing structures to define price points for affordability and flexibility for landlord productivity and cost efficiencies. A la carte pricing can be attractive to landlords that need only basic services. Package pricing of the most utilized screenings can offer a more comprehensive screening report yet at a lesser cost than purchasing several products separately. A landlord may want to ask whether the applicant can pay the screening report fee or whether the only option is for the landlord to pay the screening costs.

A landlord can compare product costs from several providers but may find that prices of most providers are fairly consistent with the level of product being offered. If the provider does not show product prices on his website, or products descriptions and details of the pricing plan are not clear the landlord should call for a quote and request a better explanation of the products offered.

• FCRA compliant with requirements and procedures for tenant screening providers. Tenant background checks are considered consumer reports under the Fair Credit Reporting Act (FCRA) if they are used to help decide eligibility housing and include information that has bearing on a consumer creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. Both landlords and tenant background screening providers are subject to FCRA compliance. The provider is required to follow reasonable procedures to ensure accuracy, require certifications from their clients, and provide clients with information about the FCRA.

An important question to ask the provider is how the adverse action process is handled. An adverse action notice is required by FCRA if the landlord chooses not to rent to an applicant based upon the content of a background check.

• Utilize current technology measures to ensure data security and safeguarding of sensitive information to prevent data theft, and data fraud.

It is not uncommon for landlords and tenants to disagree over a variety of rental issues such as rents, security deposits, habitability, landlord access, repairs, tenant privacy, and lease violations. Many times disputes are a result of a tenant misunderstanding important rental policies. How a landlord handles a dispute can have a significant impact on business operations and consequently bottom line numbers.

Most disputes, when addressed in a timely manner and with the landlord and tenant willing to work through the issues, can be resolved without litigation. The willingness of each party to negotiate in good faith can lead to a satisfactory settlement of issues.

To the degree possible, the best way to handle a dispute is to avoid the necessity for a dispute. To minimize the chance of disputes, a landlord must understand his legal duties and obligations by statute. To help the tenant understand his corresponding legal duties and obligations by the lease agreement, a landlord should provide specific detail in the lease agreement for terms and conditions, rules and regulations, and remedies for lease defaults. Tenant orientation, landlord regular communication of important rental policies and practices, and landlord enforcement of lease terms and conditions guide the tenant in understanding his responsibilities and rental standards during his tenancy.

Although many disputes can be avoided, there are some disputes that require quick action such as a tenant’s material default of lease terms. Material violations of lease terms and conditions that pose a direct threat to others or damage to property are priority matters that must be dealt with immediately through appropriate remedies.

While disputes are stressful, disruptive, and costly in terms of time, energy, and money, a landlord cannot afford to avoid disputes simply by ignoring them. Doing nothing to resolve a conflict is rarely an effective business policy and usually leads to more costly legal action. However, being too quick to take legal action can also be a less than effective approach to resolving a dispute. Before deciding to resolve a dispute in the courtroom, a landlord should consider all available options. There are alternative methods of resolving a dispute without having to consult a lawyer or go to court. A landlord will need to select the option that allows him to control and resolve the issue appropriately and in a professional manner.

In considering possible options to resolve a problem, a primary determination is whether the issue can be solved in a manner that is acceptable to both landlord and tenant yet in line with good business practices.

The first step in any problem solving process is to understand the issue. It makes sense for the landlord to begin by talking with the tenant to determine the nature and extent of the issue. By keeping an open mind and actively listening to the tenant, a landlord may find the tenant has a valid point. The information gained from the tenant may provide insight to the landlord that can strengthen his rental policies, clarify certain practices and help avoid potential future disputes. In discussion with the tenant a landlord can determine if negotiation and settlement is possible. It may simply be that either landlord or tenant misremembered or misunderstood certain facts, which could be easily verified with documentation from the tenant’s file.

In determining the underlying issues and extent of the problem, a landlord should be aware that his own behaviors can directly affect the situation and the solution. Keeping personal emotion in check is important in the initial assessment of the problem. By removing emotion from the situation, a landlord can determine the facts of the matter and make an informed decision that is in the best interest of his business. Emotional responses lead to discussions of what is “right” and the “principle of the matter” which may only delay resolution of the issue or fast forward to legal action.

In reaching a satisfactory compromise, both parties want to feel they’ve won, or at least not lost very much. While money is usually the chief motivator to resolve problems, not everyone puts a premium on the dollar. It is a better approach to ask a tenant what it would take to solve the problem. If a landlord can determine the tenant’s motivation, i.e., what the tenant wants to see happen, a landlord may be able to reach agreement and settlement on the issue. If a settlement is reached, it is important to document all details including signed written acknowledgment of the offer and acceptance by each party.

Negotiation of problem issues should be a primary consideration before threatening a tenant with legal action. There is little room left to maneuver a settlement when the first communication to the tenant is a threat. Legal action may be necessary and appropriate in certain circumstances to protect the business interest and safety and security of others.

Mediation can be an important next step if negotiation efforts are unsuccessful in settlement of issues but both landlord and tenant are willing to keep trying for a satisfactory resolution. Using a mediator, an independent, neutral third party trained to help facilitate communication, can help landlord and tenant to work out their own solution to the issue. A mediator does not have authority to bind either landlord or tenant to an agreement. Either party is free to proceed with legal action if no compromise can be reached. Studies have shown however that those who agree to mediate their differences are more likely to be satisfied with the resolution that those who proceeded directly to court.

Many business contracts include language specifying that any disputes under the contract are to be settled by binding arbitration. A landlord may have incorporated such language in a customized lease agreement. Arbitration is another non-judicial method of resolving disputes. An arbitrator is a neutral third party who reviews the case evidence and makes a final decision. Unlike mediation, the arbitrator has the authority to bind the parties to an enforceable decision. If the arbitration decision involves a money award and the losing party does not pay as required, the money award can be converted to a court judgment.

Alternatively, landlord or tenant may file a lawsuit against each other. Most lawsuits involving a relatively small amount of money are handled through the state’s small claims courts. Small claims courts have a maximum limit on the amount of money that can be awarded, with the majority of states limiting the amount to less than $15,000 but some states have much lower limits. A few states have a higher maximum limit, but information such as this should be verified with the appropriate court of jurisdiction before bringing a lawsuit. Small claims court procedures are relatively simple and most landlords can easily represent themselves in court. However, it is usually advisable to be represented by an attorney if the tenant has engaged the services of an attorney.

Keeping written documentation of tenant records, tenant correspondence, and tenant warnings and notices is particularly important in handling tenant conflicts. Landlords should document everything including the time, date, the problem/issue, and other relevant information regarding the disputes raised by a tenant and actions taken to date for resolution. A landlord will want a complete, detailed record of events and actions from the first notification of a problem or conflict through the final resolution of the issue. Good detailed records will help to defend against possible tenant claims of discrimination, landlord negligence, or other potential liability issues.

There is another consideration that could arise in landlord tenant disputes. If the tenant has exercised a legal right such as a complaint to a government agency, building or housing agency regarding code violations for health or safety, or has organized or become a member of a tenants’ union organization, any action taken by the landlord against the tenant is or is presumed to be retaliatory, which is a violation of state law. Retaliatory landlord action may take the form of raising the rent, reducing services to the tenant, or threatening to bring legal action for eviction. Some states have an automatic presumption timeframe, ranging from 90 days to one year from the time of the tenant’s legal activity, during which a landlord’s action would be considered retaliatory.

However it may be that if the landlord can prove his action is due to the tenant being in arrears for rent or that code violations are the tenant’s fault due to lack of reasonable care of the property, presumptive retaliation may not be applicable. To help avoid charges of retaliation landlord must accurately document the interactions with the tenant (e.g., repairs, complaints, or inspections), the type of action taken, and the date and time received/resolved.

As an alternative to security deposits, in some rental markets, primarily metropolitan areas, some landlords use a rental policy of collecting a tenant move-in fee. A move-in fee is a non-refundable fee collected from the tenant for turnover costs associated with preparing a rental unit for a new tenant. Unit preparation costs may include general cleaning and painting. Collecting a move-in fee may provide a benefit to the landlord in time savings for administrative costs of deposits while tenants may benefit from not having to come up with a large security deposit amount at lease signing.

In general, move-in fees are not regulated by statutes and landlords are not held accountable for the use of move-in funds. Security deposits are regulated by state statutes and landlords are held accountable to specific duties and obligations. For independent landlords this difference may be a key factor in determining their rental policies regarding fees and deposits.

A move-in fee is a specified dollar amount that is not refundable to the tenant. The rental prospect/applicant/tenant should clearly understand that the move-in fee is non-refundable. A move-in fee is money that is paid directly to the landlord and is immediately available to the landlord to administer the funds as the landlord chooses.

For many tenants, the total dollar amount of move in costs can be quite high. There is a potential risk that the new tenant will over-extend his financial abilities to pay or under-estimate his ongoing costs of living including rent and utilities. The tenant may be able to pay his deposits but fall short when the next rent payment is due. Adequate tenant screening by the landlord and clear communication of rent policies to the new tenant may help to minimize potential risks. A move-in fee in lieu of a security deposit can often provide some relief to the new tenant for his signing costs while allowing the landlord to collect a set fee upfront to potentially offset a future expense caused by a tenant default.

Move-in fees may be assessed as a flat fee, for example, based upon the size of the rental unit, or as a calculated percentage of the monthly rental amount. A landlord may take into consideration the costs of a typical tenant turnover and set a move-in fee based upon that cost (within reason). Move-in fees that are less than a customary security deposit amount are usually more attractive to rental prospects and more easily budgeted by incoming tenants. A range of 1/3 to 1/2 of the monthly rental amount may be less a burden to the tenant than a one to two months’ rent amount collected as a security deposit.

There are key differences between move-in fees and security deposits:

• Security deposits by statute are refundable to tenants. Move-in fees are non-refundable.
• Security deposits are typically an amount ranging from one to two months’ rent. Move-in fees are typically one-half the monthly rent amount.
• Security deposits are regulated by state statutes with specific landlord obligations and requirements. Move-in fees are generally not regulated.

A landlord has a legal duty under the implied warranty of habitability to provide fit and sanitary housing during the term of the lease. A landlord breaches this duty if he fails to provide essential services, fails to respond and resolve serious repair problems, fails to respond and correct environmental health hazards or substantially interferes with the tenant’s right to use and enjoy the rental premises. When the landlord by his acts or omissions causes the housing to become uninhabitable, the tenant is deemed to have been constructively evicted. The tenant can use constructive eviction to vacate the premises, terminate the lease, end rent obligations, and file a lawsuit against the landlord for damages resulting from the landlord’s breach of his duty to provide and maintain habitable housing. The tenant has the burden of proof to show that the unit became uninhabitable as a result of the landlord’s negligence, and that the landlord was unresponsive to the tenant’s requests for repairs.

Be sure you understand your state statutes regarding handling and return of security deposits particularly the requirement regarding the deadline for itemization and return of the deposit.

Once you have conducted the move-out inspection, and determined what will be required to return the unit to good condition, you should prepare a written security deposit itemization statement. The statement should list the deductions taken from the deposit with a brief explanation of the required work. Keep in mind that you cannot charge the tenant for damage that was evident at tenant move-in, replacing an item when a repair would be sufficient, or cleaning if the tenant paid a non-refundable cleaning fee. You cannot charge the tenant for normal wear and tear.

If you find that repairs or cleaning cannot be completed within the time required by statute to return the accounting statement and security deposit, you should make a reasonable estimate of costs. When the work has been completed, the receipts must be for an amount at least as much as the amount deducted from the deposit.

One way to make a reasonable dollar estimate for repairs is to determine whether the tenant shortened the useful life of an item that will wear out. If the tenant has damaged or shortened the item’s useful life, you may charge the tenant for the prorated cost of the item based upon cost of the item, the expected useful life, and the replacement cost.

In a letter accompanying the accounting statement, you should request the tenant immediately remit the balance due as shown on the statement. If the tenant responds by challenging the deductions, you may be able to resolve the issue through discussion and reach an acceptable compromise.

If the tenant does not respond to your request for payment, or refuses to pay the amount due, you may consider taking legal action to collect the money owed you. The question that needs to be asked is whether the amount due is worth your time, and effort to pursue collection.

However before filing a lawsuit against the tenant, it is best to write a formal demand letter to the tenant requesting payment of the outstanding balance. The demand letter should state the facts clearly, set a deadline for payment, and advise that a lawsuit will be filed in small claims court if an understanding and resolution cannot be accomplished by the deadline. In some states a written demand letter for payment is a requirement by statute before a landlord can file in small claims court.

If the tenant does not respond and you intend to pursue the matter, you will need to research the requirements for filing a small claims lawsuit in your jurisdiction.

Before starting any construction project, you need to define the project by its type and scope of work. Project definition and scope of work will be needed to provide adequate detail to selected candidate contractors to submit a bid based on your specifications.

You should research your state and local requirements for building standards and codes, and licensing laws and requirements. This is important because many states address construction issues by statute to define which tasks must be performed by licensed contractors and set maximum dollar limits for which a license is not required no matter what the type of work. Local city or county building and code regulations may also apply.

As a first step in the process, you will need to research names of local contractors by trade to identify potential candidates for a bid request. There are a variety of sources that can provide listings of contractors by trade for your area. However, word of mouth referrals from people you know who have recently had work done can be the easiest and often the best source of information.

Once you have identified several potential candidates for your project, for each contractor you will need to verify that the contractor’s license is current and in good standing. Your due diligence should also confirm each contractor has the applicable business license for the jurisdiction of your location and carries required insurance coverages for liability and workers comp. You will want to obtain work references from each contractor for recently completed projects similar in scope to your work project.

When bids are received, you should review each bid for the referenced scope of work, detailed description of work per specification, project timeline, price, payment schedule, permit requirements, materials provided, and any other defined obligations of all parties.

Regular property inspections are important to protect your business. Proper maintenance extends the useful life of structures, systems, and equipment and can reduce the long-term expense of maintenance. A proactive policy for property management with regularly scheduled inspections for exterior and interior conditions and corrective action for identified problems reduces landlord exposure to potential liabilities for health and safety issues. An annual safety and maintenance inspection is generally considered an acceptable standard particularly when a move-out inspection by a departing tenant and a move-in inspection by a new tenant are conducted within a relatively short period of time. A landlord should always have a documented baseline of property conditions at the beginning of a new tenancy.

However it is not uncommon, depending upon the type and age of the property, for landlords to conduct property inspections on a semi-annual basis. A shorter interval between inspections does have value in early identification of a variety of maintenance issues that may not be reported to the landlord by the tenant who either does not regard the issue as important or is simply not aware of the issue.

Your lease agreement should specify the types of inspections, schedules, and notifications that are required for property maintenance and repair. If there are other types of inspections that must conducted during the tenancy (other than scheduled landlord inspections) the lease agreement should provide specifics on the type of inspection, the regulating agency, and the notification and inspection process required. These inspections may be required for reasons of health, safety, fire protection, building/occupancy codes, municipal rental property registration, business insurance coverages, or housing assistance programs.

Most states address by statute landlord entry to rental property including landlord entry to inspect the premises and to make repairs, alterations, or improvements. You will need to research your state law regarding the specific circumstances for landlord entry and the amount of notice required for non-emergency situations.

Frequent property inspections or improper use of property inspections may lead to claims by the tenant of landlord harassment and result in legal action by the tenant against the landlord for violation of the tenant’s rights. The tenant has a legal right of the covenant of quiet enjoyment of the rental premises.

Courts have upheld the right of the tenant to quiet enjoyment of leased premises regardless of whether the lease agreement contains such a covenant. This covenant ensures the tenant that during his tenancy, the tenant’s use and enjoyment of the dwelling unit will not be disturbed by someone with a superior legal title to the land including the landlord. The covenant between landlord and tenant provides the tenant with the right to exclude others from the premises, the right to peace and quiet, the right to a clean and habitable environment, and the right to basic services. If the tenant is deprived in whole or in part of the beneficial use and enjoyment of the leased premises due to actual or constructive action by the landlord, the landlord is in breach of the covenant.

A landlord-tenant agreement can be a rental agreement for a periodic tenancy (typically a month-to-month term) or a lease agreement for a tenancy for years (typically a fixed term for one year or more).

The terms and conditions of a landlord-tenant agreement have a significant impact on a landlord’s business. The rental agreement or lease agreement signed by the landlord and tenant is the legal contract for their obligations and responsibilities for the specified term. The decision of whether to use a rental agreement or a lease agreement should be based on analysis and evaluation of certain business factors. Whether one type of agreement is better for the business is an individual landlord’s decision as a business preference or as a response to business conditions.

The business decision should consider a number of factors, including: (1) advantages or disadvantage of a periodic tenancy under applicable state and local laws, (2) the current condition of the local rental market including vacancy rates, (3) the type and size of the applicant pool related to the particular property type and location (4) market rents in the local area, and (5) forecasted future local rental market conditions as affected by general economic trends, population growth, and projected supply and demand of rental units. In the last few months there has been another consideration for the landlord in his decision making process. Due to the COVID-19 pandemic regulations and guidelines, tenant defaults on rents, and eviction moratoriums by state and local governments, some landlords are using month-to-month rental agreements for business protections and flexibility in changing conditions.

A rental agreement between landlord and tenant for a periodic tenancy is a legal contract setting out landlord and tenant responsibilities and obligations in the same manner as a lease agreement between landlord and tenant for a fixed-term tenancy. The landlord is obligated to offer and maintain housing in a safe and sanitary condition under the implied warranty of habitability and to protect the tenant’s rights to quiet enjoyment of the rental premises. The tenant is responsible to keep the rental unit in good condition and to pay rent as set out in the agreement terms and conditions.

As due diligence, a landlord should understand applicable state and local laws for periodic tenancy, particularly notice requirements to change or terminate a month-to-month tenancy. While some states do not have a state statute for the amount of notice required to change rent or other terms, in general, the amount of notice that a landlord must give to increase rent or change another term of the rental agreement in a month-to-month tenancy is the same as that required to terminate a month-to-month tenancy. If the rental unit is governed by state and local rent control laws, there may be different notice requirements.

Note that the amount of notice may also depend upon which party, landlord or tenant, gives notice to end the tenancy. There may be different notice requirements if the tenant has violated terms of the rental agreement, as example, tenant failure to pay rent.

A month-to-month tenancy is automatically renewed each month unless the landlord or tenant gives the other party the proper amount of written notice, typically 30 days, to terminate the agreement.

The most frequently mentioned advantage of a month-to-month agreement is the flexibility and control that it offers landlords. The flexibility of a month-to-month agreement allows a landlord to quickly adjust to market conditions, notably if rents are rising, the landlord does not have to wait until the end of a tenant’s fixed-term lease to increase his rents. In many states the landlord can notify a tenant of an upcoming rent increase with only 30 days’ notice. Terms and conditions of the rental agreement can also be changed for business necessity (subject to any restrictions of state or local rent control) as long as the required notice is given to the tenant.

A landlord has the flexibility to set his rents at a higher than market rent to compensate for a perceived higher risk of vacancy in the near future. Tenants looking for month-to-month rentals often have a specific reason for wanting a short term rental. The ability of a landlord to provide rentals of a short-term nature could be attractive to more rental prospects. A potential renter may want the benefit of a month-to-month rental for a variety of purposes, such as a vacation stay, job assignment, family considerations, being new to the area, waiting to close escrow on residential housing, temporary housing due to new home construction, completion of major renovations to existing residence, military temporary duty station, seasonal work, change in financial situation, or for many other and varied reasons. A tenant with possible changes in his future living arrangements may feel that a month-to-month agreement offers a greater benefit to him by the fact he will not have to break a fixed-term lease when his circumstances change and he moves out.

A landlord has more immediate control of his property if a tenant fails to comply with rental month-to-month terms and conditions. A landlord can initiate termination of a month-to-month tenancy by giving the required legal notice to end an unsatisfactory landlord-tenant relationship before it becomes a more costly legal action for eviction. The eviction process through the court system for a material violation of a fixed-term lease condition can take months. During this pandemic period, eviction moratoriums have prevented landlords from filing and completing the legal process of eviction in a timely manner. Utilizing a month-to-month rental agreement and complying with required notification procedures, a tenant in material violation of rental terms and conditions could be terminated and possession of the rental unit returned to the landlord within a relatively short time and without the need for a court filing.

However, there can be other considerations in offering a month-to-month rental agreement that may be seen as a disadvantage by some landlords. Many times a landlord will hesitate to offer a month-to-month rental agreement because of the perceived risk of constant tenant turnover. However, even with a tenant on a fixed-term lease, a landlord has no guarantee against tenant turnover. Not only can a landlord terminate the rental agreement on fairly short notice, the tenant is also free to terminate his tenancy with adequate notice. The rental unit could be turned over several times a year. A landlord will need to be prepared to handle a vacancy quickly and efficiently once notice by either party is given to terminate the tenancy. The amount of preparation needed to restore the unit to good condition and time to market the unit will be dependent upon the circumstances.

Some landlords believe that a tenant with a fixed-term lease agreement will take better care of a rental unit than would a tenant with a shorter term rental agreement. However, if the landlord conducts adequate tenant screenings and selects a qualified tenant each time to fill a vacancy, no matter what the time period of the rental term, the landlord will be better prepared to help protect his property from damage and his current tenants from risks.

There are many different approaches to advertising rental vacancies, many of which are greatly influenced by local market conditions, property location, property conditions, and rental policies. Budgetary considerations and the need to fill a vacancy quickly may also influence what types of advertising are used. Social media and online rental postings are some of the most commonly used advertising methods. Word of mouth advertising from existing tenants or referrals from friends and family can also be quite effective in finding potential tenants. You could also consider asking your fellow landlords in the area how they advertise/market their properties and see if they will share any tips. What works for one landlord may not work for another. You may have to try several different methods and track your responses to determine what method best attracts rental prospects to your properties.

You want to make sure that your advertising complies with fair housing requirements at federal, state, and local levels. At the federal level, Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended in 1988, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, and handicap. State and local fair housing laws may provide greater anti-discriminations protections to additional protected classes or characteristics.

Advertising of any type and any media should be honest and truthful regarding rental terms, conditions, and policies and descriptions of property features and amenities. When advertising a rental vacancy, the listing should clearly state in a non-discriminatory manner the basic rent details that a person would need to know in order to determine an interest in the property. Basic details commonly include property location, size (e.g., number of bedrooms, baths), rent amount, deposit/fees, availability date, lease term, and important policies (e.g., pets allowed, credit check required). Bait and switch advertising is illegal under consumer fraud laws.

If the rental unit is governed by an HOA be sure that you are familiar with your HOA’s Bylaws, Covenants, Conditions and Restrictions (CC&Rs), and Rules and Regulations regarding tenant occupants. If there are specific restrictions or regulations regarding advertising rentals of units, as long as those requirements are legal, you are obligated to comply with your HOA’s requirements.