Ten Terms To Include in Your Lease or Rental AgreementWhat should be included in every lease or rental agreement. A lease or rental agreement sets out the rules landlords and tenants agree to follow in their rental relationship. It is a legal contract, as well as an immensely practical document full of crucial business details, such as how long the tenant can occupy the property and the amount of rent due each month. Whether the lease or rental agreement is as short as one page or longer than five, typed or handwritten, it needs to cover the basic terms of the tenancy.

Here are some of the most important items to cover in your lease or rental agreement.

1. Names of all tenants. Every adult who lives in the rental unit, including both members of a married or unmarried couple, should be named as tenants and sign the lease or rental agreement. This makes each tenant legally responsible for all terms, including the full amount of the rent and the proper use of the property. This means that you can legally seek the entire rent from any one of the tenants should the others skip out or be unable to pay; and if one tenant violates an important term of the tenancy, you can terminate the tenancy for all tenants on that lease or rental agreement.

2. Limits on occupancy. Your agreement should clearly specify that the rental unit is the residence of only the tenants who have signed the lease and their minor children. This guarantees your right to determine who lives in your property -- ideally, people whom you have screened and approved -- and to limit the number of occupants. The value of this clause is that it gives you grounds to evict a tenant who moves in a friend or relative, or sublets the unit, without your permission.

3. Term of the tenancy. Every rental document should state whether it is a rental agreement or a fixed-term lease. Rental agreements usually run from month-to-month and self-renew unless terminated by the landlord or tenant. Leases, on the other hand, typically last a year. Your choice will depend on how long you want the tenant to stay and how much flexibility you want in your arrangement.

4. Rent. Your lease or rental agreement should specify the amount of rent, when it is due (typically, the first of the month), and how it's to be paid, such as by mail to your office. To avoid confusion and head off disputes with tenants, spell out details such as:

acceptable payment methods (such as personal check only) whether late fees will be due if rent is not paid on time, the amount of the fee, and

whether there's any grace period, and any charges if a rent check bounces.

5. Deposits and fees. The use and return of security deposits is a frequent source of friction between landlords and tenants. To avoid confusion and legal hassles, your lease or rental

agreement should be clear on:

the dollar amount of the security deposit (be sure you comply with any state laws setting maximum amounts)

how you may use the deposit (for example, for damage repair) and how the tenant may not use it (such as applying it to last month's rent)

when and how you will return the deposit and account for deductions after the tenant moves out, and

any legal non-returnable fees, such as for cleaning or pets.

It's also a good idea (and legally required in a few states and cities) to include details on where the security deposit is being held and whether interest on the security deposit will be paid to the tenant.

6. Repairs and maintenance. Your best defense against rent-withholding hassles and other problems (especially over security deposits) is to clearly set out your and the tenant's responsibilities for repair and maintenance in your lease or rental agreement, including:

the tenant's responsibility to keep the rental premises clean and sanitary and to pay for any damage caused by his or her abuse or neglect

a requirement that the tenant alert you to defective or dangerous conditions in the rental property, with specific details on your procedures for handling complaint and repair requests, and

restrictions on tenant repairs and alterations, such as adding a built-in dishwasher, installing a burglar alarm system, or painting walls without your permission.

7. Entry to rental property. To avoid tenant claims of illegal entry or violation of privacy rights, your lease or rental agreement should clarify your legal right of access to the property -- for example, to make repairs -- and state how much advance notice you will provide the tenant before entering.

8. Restrictions on tenant illegal activity. To avoid trouble among your tenants, prevent property damage, and limit your exposure to lawsuits from residents and neighbors, you should include an explicit lease or rental agreement clause prohibiting disruptive behavior, such as excessive noise, and illegal activity, such as drug dealing.

9. Pets. If you do not allow pets, be sure your lease or rental agreement is clear on the subject. If you do allow pets, you should identify any special restrictions, such as a limit on the size or number of pets or a requirement that the tenant will keep the yard free of all animal waste.

10. Other Restrictions. Be sure your lease or rental agreement complies with all relevant laws including rent control ordinances, health and safety codes, occupancy rules, and antidiscrimination laws. State laws are especially key, setting security deposit limits, notice requirements for entering rental property, tenants' rights to sublet or bring in additional roommates, rules for changing or ending a tenancy, and specific disclosure requirements such as

past flooding in the rental unit.

Any other legal restrictions, such as limits on the type of business a tenant may run from home, should also be spelled out in the lease or rental agreement. Important rules and regulations covering parking and use of common areas should be specifically mentioned in the lease or rental agreement.

For details, see your state's landlord-tenant statutes.

Top Ten Legal Mistakes That Can Sink Your Landlord BusinessKnow the laws in your state before you rent out space.

Being a successful landlord requires lots of practical know-how, business moxie, and familiarity with the market. Until about 30 years ago, the law didn’t have much to do with it. Now, however, federal law and most states closely regulate nearly every aspect of your business. Not knowing the rules can land you in lots of legal hot water.

1. Using Generic or Outdated Lease Forms

Most landlords know it’s important to have a written lease or rental agreement. But using the wrong form can get you into trouble. So-called “standard” forms that are sold everywhere probably aren't compliant with the laws in your state. If you use a stationery store lease that short-cuts tenants’ rights, you could find yourself at the losing end of a lawsuit because of an unenforceable lease clause. On the other hand, some standard forms actually impose greater obligations and restrictions on you than your state’s law does! (My favorite requires landlords to return security deposits within ten days, which no state requires.)

2. Asking the Wrong Questions During Applicant Screening

Thorough tenant screening is the most important part of your business -- if you choose poorly, you’re in for nothing but headaches, with tenants who don’t pay the rent, trash your place, or worse. But there are limits to what you can ask. Many landlords don’t realize that even well-meaning questions (such as asking a disabled person about his disability or asking if a couple is married) can be illegal forms of discrimination. If the applicant doesn’t get the rental, even though your rejection had nothing to do with the offending question, that disappointed tenant has ammunition for a fair housing complaint (which fair housing watch-dog groups are eager to pursue).

3. Setting Policies that Discriminate Against Families

Although it’s been illegal to discriminate against families for over 20 years, many owners’ practices are far from family-friendly -- and are downright illegal. Excluding families because you feel children cause more wear and tear and you prefer a “mature, quiet” environment is illegal. And while you’re permitted to limit the number of residents in a unit (in most situations, two occupants per bedroom), you may not apply that standard differently when dealing with families. The cost of this mistake can be another trip to your lawyer’s office, to deal with a fair housing complaint.

4. Making Promises That You Don’t Deliver On

It’s fine to be enthusiastic about the benefits of your property, and it’s necessary to do so in competitive markets, but understand that your enthusiastic promises will become binding if

applicants rely on them when deciding to rent. For example, you may have to deliver the goods if you assure an applicant of a parking space, satellite service, or a new paint job. A tenant who feels ripped off may legally break the lease or sue you for the difference in value between what he was promised and what you delivered. Whether the tenant will win is hardly the point -- you’ll have to respond, which will cost time and money.

5. Charging Excessive Late Fees

Late fees can be a powerful tool to motivate tenants to pay the rent on time. And while a higher fee can be a better motivator, some landlords cross the line, by setting fees that bear little resemblance to the actual damages they suffer when tenants pay late. Courts are increasingly invalidating excessive late fees that can’t be justified with hard evidence. You’re better off setting a modest fee that reflects your true damages, and dealing with chronic late-payers with pay-or-quit notices.

6. Violating Tenants’ Rights to Privacy

Most states have detailed rules on when, for what reasons, and with how much notice you may enter a tenant’s home. Yet many landlords stop by unannounced, asking to check things over, perform an on-the-spot repair, or show the place to prospective tenants. Repeated violations of a tenant’s privacy (or even one outrageous violation) can excuse a tenant from any further obligations under the lease and may also result in court-ordered money damages against the landlord.

7. Using Security Deposits for the Wrong Projects

The most frequent types of cases heard in small claims court are arguments over security deposit retentions. Yet the basic rule -- that deposits should be used only to cover damage beyond wear and tear, needed cleaning, and unpaid rent -- isn’t hard to understand. Still, landlords routinely use the deposit to cover appliance upgrades, cosmetic improvements and other refurbishing, not repairs. Not surprisingly, many of these landlords lose these cases in small claims court.

8. Ignoring Dangerous Conditions In and Around the Rental

Landlords in virtually every state are required to offer and maintain housing that meets basic health and safety standards, such as those set by state and local building codes, health ordinances, and landlord-tenant laws. If you fail to take care of important repairs, deal with environmental hazards, or respond when your property has become an easy mark for criminals, tenants may break the lease and, in many states, withhold the rent or make the repair themselves and deduct the expense from the rent.

Landlords who have failed to make their properties reasonably secure in the face of repeated on-site crime are often ordered to compensate the tenant-victim when yet another criminal intrudes. These are expensive ways to learn the law.

9. Keeping Security Deposits When Tenants Break a Lease

When tenants break a lease and leave early, landlords often keep the entire deposit, reasoning that the tenant’s bad behavior justifies doing so, and that they’ll ultimately need it anyway to cover rent. In many states, this is illegal -- you must take reasonably prompt steps to re-rent, and credit any new rent toward the tenant’s obligation for the rest of the lease. Keeping a two months’ rent deposit and re-renting within a month is not legal.

10. Failing to Return Security Deposits According to Law

This list wouldn’t be complete without another reference to security deposits. Not only are they used improperly, they’re often not returned according to state law, either. Many states have deadlines by which landlords must itemize their use of the deposit and return any balance. It’s not uncommon for tenants to wait many weeks or months for this accounting. In some states, the deliberate or “bad faith” retention of the deposit will result in harsh penalties against the landlord, such as an order that the landlord pay two or three times the deposit to the tenant.

Article content © 2008 Nolo.com

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Chart: Security Deposit Limits, State by StateLearn how much security deposit a landlord can charge in your state. Here's the limit each state sets on the amount of security deposit landlords can charge. "No statutory limit" means that the state does not specify the amount landlords can charge. For the specific law in your state, see your state's landlord-tenant statutes. Also, be sure to check local rent control or rent regulation rules for any deposit limits.

Washington No statutory limit

California

Two months' rent (unfurnished, no waterbed); two and one-half months' rent (unfurnished, tenant has waterbed); three months' rent(furnished, no waterbed); three and one-half months' rent (furnished, tenant has waterbed)

Create an Advertisement for Your Rental PropertySetting out your basic rental terms is your first step to finding great tenants.

Finding and choosing tenants is the most critical decision any landlord makes, and to do it well you need a reliable system. Savvy landlords follow specific steps to maximize their chances of selecting tenants who will pay their rent on time, keep their rentals in good condition, and not cause any legal or practical problems later.

Your first step is to define all of the terms of the rental so that you can properly advertise the space.

Determine Your Basic Rental Terms

Before you advertise your property for rent, make a number of basic decisions -- including how much rent to charge, whether to offer a fixed-term lease or a month-to-month tenancy, how many tenants can occupy the rental unit, how big a security deposit to require, and whether you’ll allow pets. Making these important decisions should dovetail with creating your lease or rental agreement.

Amount of rent. There’s only one rent you should charge for any rental -- the market rent, or slightly below. No matter what your carrying costs are for this property, or the return you’d like to see, you won’t see any return unless you have a tenant. Tenants know the market and you’ll simply waste time with an unoccupied unit if you set an above-market rent.

Lease or month to month? Decide whether you want a fixed-term lease (typically for a year), or a month-to-month rental agreement. If the market is soft, you may want the assurance of knowing your tenants will be tied in for a year. On the other hand, if you want the ability to raise the rent (with the right amount of notice, of course), you may want a month-to-month agreement.

How many tenants? Decide how many people may occupy your rental, taking into consideration the physical layout, such as the number of bedrooms. As a general rule of thumb, allow two persons per bedroom, but in some states, you may need to allow one more tenant.

The security deposit. Most landlords will require a deposit, which covers damage beyond normal wear and tear and any unpaid rent. Many states limit the amount you can collect, setting limits based on the monthly rent -- twice the monthly rent is common.

Pets. If you wish, you may prohibit pets, but not if the animal is a service or comfort animal needed by a disabled person. However, many landlords have found that allowing pets gives them a competitive edge in a tight market -- and pet owners may be extra conscientious when they know that there are limited rentals that will take them with their pets.

Terms to Include in Your Rental Listing

Write out the basic details you’ve decided on, including:

rent size location lease length or month-to-month rental agreement special features how many tenants allowed whether pets are allowed phone number for more details date and time of any open house.

To stay out of legal hot water when you advertise, describe the rental unit accurately. Your ad should be easy to understand and scrupulously honest. And try to avoid abbreviations and real estate jargon.

Next you’ll need to place the advertisement.

Top Ten Tax Deductions for LandlordsYou are probably paying too much in taxes on your rental income. No landlord would pay more than necessary for utilities or other operating expenses for a rental property. But, every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property.

Rental real estate provides more tax benefits than almost any other investment. Often, these benefits make the difference between losing money and earning a profit on a rental property. But tax deductions are worthless if you don’t take advantage of them. Here are the top ten tax deductions for owners of small residential rental property.

1. Interest. Interest is often a landlord’s single biggest deductible expense. Common examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire

or improve rental property and interest on credit cards for goods or services used in a rental activity.

2. Depreciation. The actual cost of a house, apartment building, or other rental property is not fully deductible in the year in which you pay for it. Instead, landlords get back the cost of real estate through depreciation. This involves deducting a portion of the cost of the property over several years. Residential rental property must be depreciated over 27.5 years.

3. Repairs. The cost of repairs to rental property (provided the repairs are ordinary, necessary, and reasonable in amount) are fully deductible in the year in which they are incurred. Good examples of deductible repairs include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.

4. Local travel. Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. For example, when you drive to your rental building to deal with a tenant complaint or go to the hardware store to purchase a part for a repair, you can deduct your travel expenses.

If you drive a car, SUV, van, pickup, or panel truck for your rental activity (as most landlords do), you have two options for deducting your vehicle expenses: You can deduct your actual expenses (gasoline, upkeep, repairs) or you can use the standard mileage rate (48.5 cents per mile in 2007; 44.5 cents per mile in 2006). To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can't use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.

5. Long distance travel. If you travel overnight for your rental activity, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction. However, IRS auditors closely scrutinize deductions for overnight travel -- and many taxpayers get caught claiming these deductions without proper records to back them up. To stay within the law (and avoid unwanted attention from the IRS), you need to properly document your long distance travel expenses.

6. Home office. Provided they meet certain minimal requirements, landlords may deduct their home office expenses from their taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. This is true whether you own your home or apartment or are a renter.

7. Employees and independent contractors. Whenever you hire anyone to perform services for your rental activity, you can deduct their wages as a rental business expense. This is so whether the worker is an employee (for example, a resident manager) or an independent contractor (for example, a repair person).

8. Casualty and theft losses. If your rental property is damaged or destroyed from a sudden event like a fire or flood, you may be able to obtain a tax deduction for all or part of your loss.

These types of losses are called “casualty” losses. You usually won’t be able to deduct the entire cost of property damaged or destroyed by a casualty. How much you may deduct depends on how much of your property was destroyed and whether the loss was covered by insurance.

9. Insurance. You can deduct the premiums you pay for almost any insurance for your rental activity. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance. And if you have employees, you can deduct the cost of their health and workers’ compensation insurance.

10. Legal and professional services. Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.

Did You Know?

Did you know that:

Landlords can greatly increase the depreciation deductions they receive the first few years they own rental property by using "segmented" depreciation.

Careful planning can permit you to deduct, in a single year, the cost of improvements to rental property that you would otherwise have to deduct over 27.5 years.

You can rent out a vacation home tax-free, in some cases. Most small landlords can deduct up to $25,000 in rental property losses

each year. A special tax rule permits some landlords to deduct 100% of their rental

property losses every year, no matter how much. People who rent property to their family or friends can lose virtually all

of their tax deductions.

If you didn’t know one or more of these facts, you could be paying far more tax than you need to.

Choosing Tenants: Avoid Fair Housing Complaints and LawsuitsAntidiscrimination laws limit the tenants you can accept and reject. Federal and state antidiscrimination laws limit what you can say and do in the tenant selection process. When choosing tenants, keep in mind the following best practices.

Check credit, income, and references. Today you can easily run a credit check for a minimal fee. Also, you can and should call the tenant’s references, especially former landlords. You

should also verify an applicant’s employment, income, and bank account information. Be consistent in your screening. Make it your policy, for example, to always require credit reports; don’t just get a credit report for a single parent or people of a particular nationality.

Make decisions based on business reasons. You are legally free to choose among prospective tenants as long as your decisions are based on legitimate business criteria. Don't make choices based on personal reasons. You are entitled to reject applicants with bad credit histories, income that you reasonably regard as insufficient to pay the rent, or past behavior -- such as property damage or consistent late rent payments -- that makes someone a bad risk. It goes without saying that you may legally refuse to rent to someone who can’t come up with the security deposit or meet some other condition of the tenancy.

Understand fair housing rules. Fair housing laws specify clearly illegal reasons to refuse to rent to a tenant. The Federal Fair Housing Acts (42 U.S. Code §§3601-3619, 3631) prohibit discrimination on the basis of race, religion, national origin, gender, age, familial status, physical or mental disability (including recovering alcoholics and people with a past drug addiction). Many states and cities also prohibit discrimination based on marital status or sexual orientation.

Train your staff to understand the rules, too. Anybody who deals with prospective tenants must follow fair housing laws. This includes owners, landlords, managers and real estate agents, and all of their employees. As the property owner, you may be held legally responsible for your employees’ discriminatory statements or conduct, including sexual harassment.

Be consistent. Consistency is crucial when dealing with prospective tenants. If you don’t treat all tenants more or less equally -- for example, if you arbitrarily set tougher standards when renting to members of a racial minority -- you are violating federal laws and opening yourself up to lawsuits. And if you give one person a break (such as lowering the security deposit for a single mother but not for other tenants), you’ll likewise risk a charge of discrimination from other tenants.

Whether to Use a Lease or Rental AgreementAnd why a handshake shouldn't seal the deal between landlords and tenants.

Renting your property without a clear rental agreement or lease is an invitation for trouble. The landlord-tenant relationship is complicated today, with laws and regulations governing all aspects of renting residential property. Landlords have more responsibilities, tenants have more rights, and small claims court makes it easy to take disputes to a judge. All of the details of your rental agreement should be recorded in a written lease or at least a month-to-month rental agreement. (For which makes the most sense for you, see Lease vs. Rental Agreement: Which Is Better?, below.)

Why You Need a Lease or Rental Agreement

Some landlords don't use written agreements -- they just have a conversation with the tenant, taken the tenant's check, and let the tenant move in. While oral promises can be legally binding, it can be difficult if not impossible to prove them to a judge. Don't take a chance -- use a legal, complete rental agreement or lease. Here are some other important reasons to use a written agreement.

Avoid Disputes

A landlord who provides no written lease often finds that the result is chaos. With no clear agreement written down, every small disagreement -- whether it's over repairs, the fee for a late rent check, or deductions made from a departing tenant's security deposit -- has the potential to escalate into a nasty legal battle. For instance, what happens if the fine print in the lease says no pets, but the landlord turned a blind eye to the cat when the tenant moved in?

Deal With Key Issues

In addition to heading off disputes, a good lease nudges the landlord to deal with key issues that might otherwise be overlooked before getting into the rental relationship. The result? Happier, stable tenants and satisfied landlords.

Lease vs. Rental Agreement: Which Is Better?

A rental agreement establishes a tenancy for a short period of time, usually one month. A month-to-month rental agreement is automatically renewed each month unless you or your tenant gives the other the proper amount of notice (typically 30 days) and terminates the agreement. You may increase the rent, change other terms of the tenancy, or terminate the lease on relatively short notice (usually 30 days) -- unless local rent control ordinances specify otherwise.

A lease obligates both you and the tenant for a set period of time, usually a year. You can't raise the rent or change other terms until the lease runs out, unless the lease itself provides for modifications or the tenant agrees in writing to the changes. In addition, you usually can't ask the tenant to move out or prevail in an eviction lawsuit unless the tenant fails to pay the rent or violates another important term of the lease or state or local law. At the end of the lease term, you can either decline to renew it or negotiate to sign a new lease or rental agreement.

Which is better? Many landlords prefer month-to-month agreements, particularly in tight rental markets where new tenants can be easily found and rents are trending upwards. The flip side is that month-to-month tenancies almost guarantee more tenant turnover, and more work to keep rental properties full.

Landlords often prefer leases in areas where there is a high vacancy rate or where it is difficult to find tenants for certain seasons of the year -- for example, in college towns that are often deserted in summer.

How to Advertise Your Rental PropertyUse several advertising methods when you list your property for rent.

You can advertise your rental property in many different ways. The kind of advertising that will work best depends on a number of factors, including the characteristics of the particular property, its location, your budget, and whether you are in a hurry to rent. Many landlords and property managers choose a combination of the following advertising methods to get the best results.

“For Rent” Signs

The most common method of advertising involves putting a “For Rent” sign in front of the building or in one of the windows. This method works best when there’s a lot of foot and car traffic past the building, and the building itself is at least as attractive as the rental unit. Why is this second factor important? If you’ve got a diamond in the rough, which neither the neighborhood or the exterior of the building does justice, you’re better off using another method that won’t mislead (or discourage) interested renters.

Newspaper Ads

Newspaper ads are as traditional as for rent signs, and now they’re usually available online if the newspaper has an online version.

Many tenants will begin their search with the classified ads, and those who are from out of town will log on to the local paper from afar. Ads work best in papers that have many residential listings.

Try to target your ads to produce the pool of prospective tenants you want. For example, if you rent primarily to college students, your best bet is the campus newspaper or housing office. To be on the safe side, list also in a newspaper of general circulation -- you don’t want to inadvertently invite a fair housing claim by, for example, advertising in a foreign-language newspaper but no other.

Neighborhood Flyers

If your neighborhood has public bulletin boards at grocery stores, laundromats or coffeehouses, consider posting an ad on one of these. Include tear-off strips with your phone number. Consider whether your rental will appeal to the people visiting these establishments -- if you’ve got a pricey property, you may not find many tenants doing their washing at the local laundromat -- though you might find takers at the high-end gym down the street.

Online Listings

Online rental services have sprouted like weeds in recent years. Some are national in scope; others are regional. To find one in your area, use your search engine to look for residential

renting. Don’t overlook craigslist, an extremely popular and free service that has all but usurped the other services in many parts of the country.

Homefinders’ or Apartment-Finding Services

In some areas, apartment-finding services are very popular (though in large cities, they’re getting a lot of competition from craigslist). Landlords pay to list their properties, though sometimes it’s the tenants who pay the fee when the unit is rented. If this system is popular in your area, you may want to consider it, especially if other approaches have not yielded results.

Word of Mouth

Many smaller landlords find that instead of advertising widely and having to screen many potential tenants in an effort to sort the good from the bad, it makes better sense to market their rentals through word-of-mouth -- telling friends, colleagues, neighbors, and current tenants. After all, people who already live in your property will want decent neighbors. For example, if you know a vacancy is coming up, you might visit or send a note to all tenants whom you or your manager think well of. Ask them to tell friends or relatives about the available apartment.

University or Corporate Housing Offices

If your rental is near a large college or university, consider posting the rental through their housing offices. Same goes for big employers nearby with employee assistance programs. Most college and corporate housing offices will list your rental for little or no fee. Corporate housing is often a very good bet for landlords -- you know the tenant has a job, and you also know that the tenant has passed many of the same screening tests (in order to land the job) that you’ll use, too. For example, chances are the employer spoke with former employers. You can take advantage of these “pre-screened” applicants.

Next we’ll look at some advertising methods that work for higher end properties or multiple units:

Real Estate Offices

Many real estate offices handle rentals -- for a fee, of course. The rental business supplements the agents’ income, and it gives them a bead on potential homebuyers (the agents hope that your tenant will become their client). You’ll pay about 10% of the rent, or one month’s rent, for the agent to advertise, show, and sometimes choose your tenant.

Property Management Companies

Property management companies will handle advertising, showing, and choosing the tenant and will want to remain in the picture as the entity that collects the rent and interacts with residents during the tenancy (handling repairs, for example). Again, you’ll pay for this service as you would if you use a real estate agent. If you want to off-load continuing responsibilities for tenant

management, you may want to choose this alternative.

Print Rental Magazines

Many national and print magazines cater directly to the residential landlord. You’ve undoubtedly seen them in racks next to newspapers on the street. Listing in a national magazine usually makes most sense for large landlords with multiple properties. If you find a local magazine that has lots of listings for rentals like yours, you may want to use it.

Next Steps

After you advertise your space, you’ll need to create a rental application and carefully select a tenant.

Leases and Rental Agreements FAQWhat you need to know to create a legally valid lease or rental agreement.

What's Below:

Do I need a written lease or rental agreement?

What's the difference between a rental agreement and a lease?

How do rent control laws work?

How much security deposit can a landlord charge? What can it be used for?

Where can I find a dependable lease or rental agreement?

Do I need a written lease or rental agreement?

The lease or rental agreement is the key document of the tenancy, setting out important issues such as:

the length of the tenancy the amount of rent and deposits the tenant must pay the number of people who can live on the rental property who pays for utilities whether the tenant may have pets whether the tenant may sublet the property the landlord's access to the rental property, and

who pays attorney's fees if there is a lawsuit concerning the meaning or implementation of the lease or rental agreement

Leases and rental agreements should always be in writing, even though most states enforce oral (spoken) agreements for a certain period. While oral agreements may seem easy and informal, they often lead to disputes. If a tenant and landlord later disagree about key agreements, such as whether the tenant can sublet, the end result is all too likely to be a court argument over who said what to whom, when, and in what context. This is particularly a problem with long-term leases, so courts in most states will not enforce oral agreements after the passage of one year.

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What's the difference between a rental agreement and a lease?

A rental agreement provides for a tenancy of a short period (often 30 days) that is automatically renewed at the end of the period unless the tenant or landlord ends it by giving written notice. For these month-to-month rentals, the landlord can change the terms of the agreement with proper written notice.

A written lease, on the other hand, gives a renter the right to occupy a rental unit for a set term -- most often for six months or a year but sometimes longer -- as long as the tenant pays the rent and complies with other lease provisions. The landlord cannot raise the rent or change other terms of the tenancy during the lease, unless the tenant agrees.

Unlike a rental agreement, when a lease expires it does not usually automatically renew itself. A tenant who stays on with the landlord's consent after a lease ends becomes a month-to-month tenant, subject to the rental terms that were in the lease.

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How do rent control laws work?

Communities in only five states -- California, the District of Columbia, Maryland, New Jersey, and New York -- have laws that limit the amount of rent landlords may charge.

Rent control ordinances (also called rent stabilization or maximum rent regulation) limit the circumstances and the times that rent may be increased. Many rent control laws also require landlords to have a legal or just cause (that is, a good reason) to terminate a tenancy -- for example, if the tenant doesn't pay rent or if the landlord wants to move a family member into the rental unit.

Landlords and tenants in New York City, Newark, San Francisco, and other cities with rent control should be sure to get a current copy of the rent control ordinance and any regulations interpreting it. Check the phone book for the address and phone number of the local rent control board or contact the mayor or city manager's office.

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How much security deposit can a landlord charge? What can it be used for?

All states allow landlords to collect a security deposit when the tenant moves in. Half the states limit the amount landlords can charge, usually not more than a month or two worth of rent -- the exact amount depends on the state.Many states require landlords to put deposits in a separate account, and some require landlords to pay tenants the interest on deposits.

Landlords use the deposit to cover unpaid rent and perform needed repairs or cleaning that results from more than normal use. But your security deposit should not go towards remedying ordinary wear and tear during your occupancy. For instance, a landlord cannot withhold your deposit to pay for house cleaning, carpet cleaning, or repainting unless these chores were necessary because of your unreasonable use of the rental. You can protect your security deposit by recording the condition of the premises when you move in, by using a move-in checklist and/or taking pictures. For more information, see Take Steps to Protect Your Security Deposit When You Move In.

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Where can I find a dependable lease or rental agreement?

Using a jargon-laden form bought at a local office supply store can spell trouble. These forms are often overly legalistic, may contain illegal clauses, and are probably out of date and not in sync with your state's laws.

Nolo's forms are easy to understand, fair, and always up to date. For a Fixed-Term Residential Lease or a Month-to-Month Residential Rental Agreement, see Every Landlord's Legal Guide, by Marcia Stewart, Ralph Warner, and Janet Portman (Nolo).

How to Screen and Select Tenants FAQCheck tenants' credit and avoid legal trouble over discrimination.

What's Below:

What's the best way for landlords to screen tenants?

Are landlords or property managers allowed to pull a prospective tenant's credit report?

Are landlords required to use written rental applications?

What types of discrimination are illegal when choosing a tenant?

What kinds of subtle actions might be illegal discrimination by the landlord?

What's the best way for landlords to screen tenants?

Savvy landlords should ask all prospective tenants to fill out a written rental application that includes the following information:

employment, income, and credit history Social Security and driver's license numbers past evictions or bankruptcies, and references.

Before choosing tenants, landlords should check with previous landlords and other references; verify income, employment, and bank account information; and obtain a credit report. The credit report is especially important because it will indicate whether a particular person has a history of paying rent or bills late, has gone through bankruptcy, or has ever been evicted.

To avoid trouble with fair housing laws, be sure to be consistent and fair in your screening. For instance, make it your policy to require credit reports from all applicants..

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Are landlords or property managers allowed to pull a prospective tenant's credit report?

Yes, you are allowed to obtain a credit report on a prospective tenant. If you turn down an applicant because of negative information on a credit report, you must send the applicant an "adverse action" letter, which informs the applicant of three things:

the reason you rejected the applicant the name and address of the agency that reported the negative information, and the applicant's right to obtain a free copy of the report by requesting it from that agency within

60 days.

To run a credit check, you'll need a prospective tenant's name, address, and Social Security number or Individual Taxpayer Identification Number (ITIN). You can order a credit report from a credit reporting agency, which will get the report from one of the three major national credit bureaus:

Equifax: www.equifax.com

Experian: www.experian.com

TransUnion: www.transunion.com

To find a credit reporting agency that operates in your area, look in the Yellow Pages or type "credit reporting agency" in your browser's search box.

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Are landlords required to use written rental applications?

Asking prospective tenants to fill out written applications can protect you from lawsuits filed by irate applicants that you rejected as tenants.

For example, suppose you talk to six applicants before renting one of your units. You pick Applicant #3 because you feel he is most likely to reliably pay the rent. Two weeks later, you get a call from a lawyer representing Applicant #5, who claims she was discriminated against because she is African-American and a single mother. If you aren't willing to pay $10,000 to settle the matter, you'll promptly be sued in federal court for $50,000.

Because you have no written documentation explaining how you picked Applicant #3, your insurance carrier proposes to pay the rejected applicant $10,000. After all, the insurance company points out, it looks bad that you picked a white male with no children, especially since it turns out that the African-American single mother has a higher-paying job.

Had you been able to produce all the candidates' comprehensive written applications, their credit reports, and references from previous landlords, the result would likely have been different. You would have had good written documentation supporting why you picked Applicant #3 -- his credit history and job stability were far better than that of Applicant #5, who (despite her current good job) had recently declared bankruptcy and had poor references from previous landlords.

.

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What types of discrimination are illegal when choosing a tenant?

Fair housing laws specify illegal reasons to refuse to rent to a tenant, such as rejecting an applicant because of race, religion, ethnic background, sex, or because the applicant has children or a disability.

In addition, some state and local laws prohibit discrimination based on a person's marital status, sexual orientation, or age.

Landlords are legally free to choose among prospective tenants as long as their decisions comply with these laws and are based on legitimate business criteria. For example, a landlord is entitled to reject someone with a poor credit history, insufficient income to pay the rent, or past behavior

-- such as damaging property -- that makes the person a bad risk. A valid occupancy policy limiting the number of people per rental unit -- one that is clearly tied to health and safety -- can also be a legal basis for refusing tenants.

Landlords must apply selection standards, such as requiring a minimum income and a good credit report, equally to all tenants.

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What kinds of subtle actions might be illegal discrimination by the landlord?

The Fair Housing Acts prohibit landlords from taking any of the following actions based on race, religion, or any other protected category:

falsely denying that a rental unit is available to some applicants advertising that indicates a preference based on group characteristic, such as skin color setting more restrictive standards, such as higher income, for certain tenants refusing to reasonably accommodate the needs of disabled tenants, such as allowing a guide

dog, hearing dog, or other service animal setting different terms for some tenants, such as adopting an inconsistent policy of responding

to late rent payments, or terminating a tenancy for a discriminatory reason.

Can I put tenants' security deposits in my checking account?QUESTION:

As a New York landlord, I put the tenants' security deposits in my checking account and left them there. Do I have any liability for doing this?

ANSWER:

It is not a good idea to mix a tenant's security deposit with your other money or spend it as you wish. Legally speaking, it is not your money: A security deposit belongs to the tenant until it is later refunded or applied to cover unpaid rent or damage beyond normal wear and tear.

And living in the Big Apple, you are skating on particularly thin ice. New York rules are some of the strictest in the country. They require you to hold a security deposit in trust for the tenant. That means keeping the money safe and separate from your other funds. It is cleanest to open a special segregated New York bank account for your tenants' security deposits. Only one account is necessary; you will not need to open a separate account for each tenant.

Landlords who commingle or mix tenant security deposit funds with their personal or business

funds risk forfeiting the security deposits. Borrowing from your tenant's security deposit or pledging the funds as an asset to get a loan are also off limits.

There are a couple more special rules for NY landlords, depending on the size of the building and whether it is rent regulated.

1. Security deposits for tenants of rent-stabilized and rent-controlled units must be deposited into a New York bank.

2. New York bank accounts are also required for security deposits collected from tenants who live in buildings with six or more units. This rule applies even if you own fewer than six units in the building. It is the building's size, not the number of units you own, that is determinative.

How do I enforce my "no pets" policy?QUESTION:

My house has a separate apartment that I rent out. In my newspaper ad, I specified NO PETS because I am severely allergic to cats. The apartment and my living quarters share the heating system, so any hair makes its way into my rooms. Now my tenant has brought in a cat and refuses to get rid of it. My allergic reactions are making my life miserable, and my doctor tells me I must get away from the cat hair and dander. I'm desperate -- this person has a year's lease!

ANSWER:

Giving up a cat is never easy -- but cat allergies are no joke. Your tenant was fairly warned. You made it plain in your ad that pets were not allowed, so she was legally bound by this rule unless you did something that would make her think you'd changed your mind.

If, for example, you've been openly tolerating the cat's presence, you might have a difficult time convincing a judge that you ought to be able to enforce this rule. From the sounds of things, though, it appears that you've acted promptly to remind your tenant that she is violating the "No Pets" term of her rental.

A violation of an important term or condition of a rental is grounds for termination. (Of the rental, that is, not the tenant; and certainly not of the cat.) You'll need to send your tenant a written notice telling her to cease the violation (as in, find kitty a new home) or move out. In legalese, this notice is called a "Cure or Quit" notice. If she does neither, you may file for eviction. Most states' laws give tenants a set amount of time (between three and ten days) in which to comply with the Cure or Quit notice.

What Does "Last Month's Rent" Really

Mean?QUESTION:

A tenant has been in my single-family rental for three years, on a month-to-month basis. When she moved in, I collected a security deposit (equal to a month's rent) and the last month's rent. Last year, I raised the rent by $50 per month. I now want to terminate her tenancy with a 30-day notice. I know that I have been paid for the last month, but can I legally expect her to pay the extra $50?

ANSWER:

When you collect the last month's rent, and clearly label it as such, the tenant is paid up for that last month -- whenever it is, even if the rent has gone up in the meantime. You might have increased the "last month's rent" that you were holding by $50 at the time you raised the rent, but now it's too late.

For this reason, it's rarely in a landlord's interest to label deposits as the last month's rent. Far better to collect a deposit that is at or below your state's limit, and label it simply as a deposit (which you can use to remedy damage, perform necessary cleaning, and cover unpaid rent). This approach will give you flexibility when it comes to using that money, too. For example, you may need the whole amount to cover damage and cleaning, but need none of it for unpaid rent. There's no reason to sideline a large portion for the last month's rent when you can simply expect the tenant to pay for that month when it is due.

Are tenants entitled to a rent receipt?QUESTION:

I'm in the middle of an argument with a tenant of mine who is demanding I issue her receipts for rent when she presents me with a check. I'm telling her that's not possible -- I travel a lot and am also worried about the occasional bounced check -- but she insists. What should I do?

ANSWER:

Many states require landlords to give tenants a receipt for the rent. This protects tenants who pay in cash, who would have no other way to prove that they did indeed pay the rent if they are challenged by the landlord. Although most tenants now pay by check or credit card, landlords in these states must still issue receipts if asked. And if the check bounces, the fact that you gave the tenant a receipt for that rubber check will not hinder you in your attempts to get the tenant to pay.

Many states give tenants a "renters' tax credit," which they can take when they file their income taxes, and tenants who pay in cash will need that receipt to back up their deduction.

Repairs, Maintenance, and Entry to Rented PremisesLandlords' duties to repair rental property and to give tenants notice before entering.

To avoid problems with tenants, you should make repairs to rental units as soon as you can. Major problems, such as a plumbing or heating problem, should be handled within 24 hours. But before entering rented premises to make needed repairs, you must provide advance notice to the tenant (usually 24 hours). Without advance notice, in most states a landlord or property manager may enter rented premises only in an emergency, such as a fire or serious water leak.

Landlords' Maintenance Responsibilities

Under most state and local laws, you must offer and maintain housing that satisfies basic habitability requirements, such as adequate weatherproofing, available heat, water and electricity, and clean, sanitary, and structurally safe premises.

Local building or housing codes typically set specific standards, such as the minimum requirements for light, ventilation, and electrical wiring. Many cities require the installation of smoke detectors in residential units and specify security measures involving locks and keys.

Your local building or housing authority, and health or fire department, can provide information on local housing codes (and penalties for violations).

Consequences of Not Making Required Repairs

When a tenant requests necessary repairs and the landlord or property manager doesn't meet legal responsibilities in providing them, a tenant usually has several options, depending on the state. These options include:

withholding the entire rent until the problem is fixed (some states require the tenant to place the rent in an escrow account)

hiring someone to make necessary repairs and deducting the cost from the next month's rent paying less rent calling the local building inspector, who can usually order landlords to make repairs, or moving out, even in the middle of a lease.

A tenant can also sue the landlord for a partial refund of past rent, and in some circumstances can sue for the discomfort, annoyance, and emotional distress caused by the substandard conditions.

Your best bet is to handle repairs as soon as possible (or delegate the repairs to the tenant in exchange for decreased rent). Take care of major problems, such as a plumbing or heating problem, within 24 hours. For minor problems, respond in 48 hours. Always keep tenants

informed as to when and how the repairs will be made, and the reasons for any delays.

Entry to Rental Property

Typically, after giving notice to tenants, you can enter rented premises in order to make needed repairs (or in some states, just to determine whether repairs are necessary), or to show the property to prospective new tenants or purchasers.

States typically require you to provide 24 hours' advance notice before entering a rental unit.

Without advance notice, in most states a landlord or manager may enter rented premises while a tenant is living there only in an emergency, such as a fire or serious water leak, or when the tenant gives permission.

Several states also allow landlords or property managers to enter rental property during a tenant's extended absence (often defined as seven days or more) in order to maintain the property as necessary and to inspect for damage and needed repairs. In most cases, a landlord may not enter just to check up on the tenant and the rental property.

Chart: Notice Requirements to Enter Rental Property, State by State

State rules on the amount of notice landlords must give tenants before they enter. Here are your state's rules on the amount of notice landlords must give tenants before they enter (in non-emergency situations). For details, see your state's landlord-tenant statutes.

State Amount of Notice Required

Washington Two days

Criminal Acts and Activities: Landlord Liability FAQLandlords have some degree of legal responsibility to protect their tenants from assailants, thieves, and fellow tenants.

What's Below:

What are the landlord's responsibilities for tenant safety and security?

How can a landlord limit responsibility for crime committed by strangers on the rental property?

What kind of legal trouble do landlords face from tenants who deal drugs on the property?

How can a property owner avoid liability because of tenants who deal drugs or otherwise break the law?

What are the landlord's responsibilities for tenant safety and security?

Landlords in most states have some degree of legal responsibility to protect their tenants from would-be assailants and thieves and from the criminal acts of fellow tenants. Landlords must also protect the neighborhood from their tenants' illegal activities, such as drug dealing. These legal duties stem from building codes, ordinances, statutes, and, most frequently, court decisions.

Rental property owners are being sued with increasing frequency by tenants injured by criminals, with settlements and jury awards typically ranging from $100,000 to $1 million. Landlords are especially likely to be held liable when a crime occurs on property where a similar assault or other crime occurred in the past.

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How can a landlord limit responsibility for crime committed by strangers on the rental property?

The following steps will not only limit the likelihood of crime, but also reduce the risk that the property owner will be found responsible if a criminal assault or robbery does occur. A landlord should:

Meet or exceed all state and local security laws that apply to the rental property, such as requirements for deadbolt locks on doors, good lighting, and window locks.

Realistically assess the crime situation in and around the rental property and neighborhood and design a security system that provides reasonable protection for the tenants. Local police departments, your insurance company, and private security professionals can provide useful advice on security measures.

Educate tenants about crime problems in the neighborhood, and describe the security measures provided and their limitations.

Maintain the rental property and conduct regular inspections to spot and fix any security problems, such as broken locks or burned out exterior flood lights. Asking tenants for their suggestions as part of an ongoing repair and maintenance system is also a good idea.

Handle tenant complaints about dangerous situations, suspicious activities, or broken security items immediately. Failing to do this may saddle you with a higher level of legal liability should a tenant be injured by a criminal act after a relevant complaint is made.

If additional security requires a rent hike, discuss the situation with your tenants. Many tenants will pay more for a safer place to live.

While some of these measures may be costly, the money you spend today on effective crime-prevention measures may pale in comparison to the costs that may result from crime on the premises. Settlements paid by landlords' insurance companies for horrific crimes such as rape and assault are typically hundreds of thousands of dollars -- and jury awards are higher.

Protecting Tenants from the Manager

Rental property owners should be particularly careful hiring a property manager -- the person who interacts with all tenants and has access to master keys. Landlords should scrupulously check a property manager's background to the fullest extent allowed by law, and closely supervise his or her job performance. A tenant who gets hurt or has property stolen or damaged by a manager could sue the property owner for failing to screen or supervise the manager properly. If tenants complain about illegal acts by a manager, landlords should pay attention. Finally, property owners should make sure their insurance covers illegal acts of their employees.

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What kind of legal trouble do landlords face from tenants who deal drugs on the property?

Drug-dealing tenants can cause landlords all kinds of practical and legal problems:

Anyone who is injured or annoyed by drug dealers -- be it other tenants or people in the neighborhood -- may sue the landlord on the grounds that the property is a public nuisance that seriously threatens public safety or morals.

Local, state, or federal authorities may levy stiff fines against the landlord for allowing illegal activity to continue.

Law enforcement authorities may seek criminal penalties against the landlord for knowingly allowing drug dealing on the rental property.

In extreme cases, the presence of drug dealers may result in the government confiscating the rental property.

A drug dealing environment can make it difficult to find and keep good tenants, and the value of the rental property will plummet.

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How can a property owner avoid liability because of tenants who deal drugs or otherwise break the law?

There are several practical steps landlords can take to avoid trouble caused by criminal tenants and to limit their liability in any lawsuits that are filed:

Screen tenants carefully and choose tenants who are likely to be law-abiding and peaceful citizens. Weed out violent or dangerous individuals to the extent allowable under privacy and anti-discrimination laws that may limit questions about a tenant's past criminal activity, drug use, or mental illness.

Don't accept cash rental payments. Do not tolerate tenants' disruptive behavior. Include an explicit provision in the lease or rental

agreement prohibiting drug dealing and other illegal activity and promptly evict tenants who violate the clause.

Be aware of suspicious activity, such as heavy traffic in and out of the rental premises. Respond to tenant and neighbor complaints about drug dealing on the rental property. Get

advice from police immediately upon learning of a problem. Consult with security experts to do everything reasonable to discover and prevent illegal activity

on the rental property.

Tenant Injuries: Landlord Liability and Insurance FAQProtect yourself from liability from tenant injuries.

What's Below:

When is a landlord liable for an injury to a tenant or visitor to the rental property?

How can landlords minimize financial losses related to repairs and maintenance?

How can insurance help protect a rental property business?

When is a landlord liable for an injury to a tenant or visitor to the rental property?

To be held responsible for an injury on the premises, the landlord or property manager must have been negligent in maintaining the property, and that negligence must have caused the injury. All of the following must be proven for a landlord to be held liable:

It was the landlord's responsibility to maintain the portion of premises that caused the accident. The landlord failed to take reasonable steps to avert the accident. Fixing the problem (or at least giving adequate warnings) would not have been unreasonably

expensive or difficult. A serious injury was the probable consequence of not fixing the problem (the accident was

foreseeable). The landlord's failure -- his negligence -- caused the tenant's accident. The tenant was genuinely hurt.

For example, if a tenant falls and breaks his ankle on a broken front door step, the landlord will

be liable if the tenant can show all of the following:

It was the landlord's responsibility to maintain the steps (this would usually be the case, because the steps are part of the common area, which is the landlord's responsibility).

The landlord failed to take reasonable measures to maintain the steps (for days or weeks, not if it had only been broken for minutes).

A repair would have been easy or inexpensive (fixing a broken step is a minor job). The probable result of a broken step is a serious injury, and it was foreseeable (falling on a

broken step is highly likely). The broken step caused the injury (the tenant must be able to prove that he fell on the step and

that the step is where he broke his ankle). The tenant is really hurt (the tenant isn't faking it).

A tenant can file a personal injury lawsuit or claim against the landlord's insurance company for medical bills, lost earnings, pain and other physical suffering, permanent physical disability and disfigurement, and emotional distress. A tenant can also sue for damage to personal property, such as a stereo or car, that results from faulty maintenance or unsafe conditions.

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How can landlords minimize financial losses related to repairs and maintenance?

You can avoid many problems by maintaining the property in excellent condition. Here's how:

Use a written checklist to inspect the premises and fix any problems before new tenants move in.

Encourage tenants to immediately report safety or security problems such as plumbing, heating, broken doors or steps -- whether in the tenant's unit or in common areas such as hallways and parking garages.

Keep a written log of all tenant complaints and repair requests with details as to how and when problems were fixed.

Handle urgent repairs as soon as possible -- take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made.

Twice a year, give tenants a checklist on which to report potential safety hazards or maintenance problems that might have been overlooked. Use the same checklist to personally inspect all rental units once a year.

Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement.

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How can insurance help protect a rental property business?

A well-designed property insurance policy can protect a landlord's rental property from losses

caused by many perils, including fire, storms, burglary, and vandalism. (Earthquake and flood insurance are typically insured under separate policies.)

A comprehensive general liability ("CGL") policy provides liability insurance, covering injuries or losses suffered by others as the result of defective conditions on the property. Equally important, liability insurance covers the cost (mostly lawyers' bills) of defending personal injury lawsuits.

Here are some tips on choosing insurance:

Purchase enough coverage to protect the value of the property and assets. Be sure the policy covers not only physical injury but also libel, slander, discrimination, unlawful

and retaliatory eviction, and invasion of privacy suffered by tenants and guests. Carry liability insurance on all vehicles used for business purposes, including the manager's car

or truck if it's used on the job.

If you need more information, The Legal Guide for Starting & Running a Small Business, by Fred S. Steingold (Nolo), contains a detailed discussion of small business law, including how to insure your rental property.

Chart: Landlord-Tenant Statutes, State by StateTo help you research your state laws, here's a listing of landlord-tenant codes for the 50 states. Because landlord-tenant laws vary significantly depending on where you live, it's important to check your state laws for specifics. Here are some of the key statutes pertaining to landlord-tenant law in each state. To find these statutes, go to Nolo's State Research page and click on your state.Washington Wash. Rev. Code Ann. §§ 59.04.010 to .900, .18.010 to .911

How Evictions Work: Rules for Landlords and Property ManagersAn overview of the eviction process, including the termination notices required for different situations.

A landlord can't begin an eviction lawsuit without first legally terminating the tenancy. This means giving the tenant written notice, as specified in the state’s termination statute. If the tenant

doesn't move (or reform -- for example, by paying the rent or finding a new home for the dog), you can then file a lawsuit to evict. (Technically, this is called an unlawful detainer, or UD, lawsuit.)

State laws set out very detailed requirements to end a tenancy. Different types of termination notices are required for different types of situations, and each state has its own procedures as to how termination notices and eviction papers must be written and delivered ("served").

Notice for Termination With Cause

Although terminology varies somewhat from state to state, there are basically three types of termination notices for tenancies that landlords terminate due to tenant misbehavior:

Pay Rent or Quit Notices are typically used when the tenant has not paid the rent. They give the tenant a few days (three to five in most states) to pay the rent or move out ("quit").

Cure or Quit Notices are typically given after a tenant violates a term or condition of the lease or rental agreement, such as a no-pets clause or the requirement to refrain from making excessive noise. Usually, the tenant has a set amount of time in which to correct, or "cure," the violation. A tenant who fails to do so must move or face the possibility of an eviction lawsuit.

Unconditional Quit Notices are the harshest of all. They order the tenant to vacate the premises with no chance to pay the rent or correct a lease or rental agreement violation. In most states, unconditional quit notices are allowed only when the tenant has:

o repeatedly violated a significant lease or rental agreement clause o been late with the rent on more than one occasion o seriously damaged the premises, or o engaged in serious illegal activity, such as drug dealing on the premises.

However, in some states, landlords may use Unconditional Quit Notices for transgressions that would require Pay or Quit Notices or Cure or Quit Notices in other, more tenant-friendly states. In these strict states, landlords may extend second chances if they wish, but no law requires them to do so.

Even after receiving notice, some tenants won’t leave or fix the lease or rental agreement violation. If you still want the tenant to leave, you must begin an unlawful detainer lawsuit by properly serving the tenant with a summons and complaint for eviction.

Notice for Termination Without Cause

Landlords may usually use a 30-Day or 60-Day Notice to Vacate to end a month-to-month tenancy when the tenant has not done anything wrong. Many rent control cities, however, do not allow this; they require the landlord to prove a legally recognized reason for eviction ("just cause") of tenants.

Tenant Defenses

If the tenant decides to mount a defense, it may add weeks -- even months -- to the process. A

tenant can point to mistakes in the notice or the eviction complaint, or improper service (delivery) of either, in an attempt to delay or dismiss the case. The way that you have conducted business with the tenant may also affect the outcome: If your rental unit is uninhabitable or the tenant thinks you are retaliating, this may excuse or shift attention away from the tenant's wrongdoing and diminish your chances of victory.

Removal of the Tenant

If you win the unlawful detainer lawsuit, you will get a judgment for possession of the property and/or for unpaid rent. But you can't just move the tenant and his things out onto the sidewalk -- trying to remove a tenant yourself can cause a lot of trouble.

Be Careful Removing Tenants' Abandoned PropertyA few states allow landlords to freely dispose of property a tenant leaves behind after moving out. Even in these states, this is legal only if it is quite clear that the tenant has left permanently, intending to turn the place over to the owner. In many states, landlords must follow storage and notification procedures.

Typically, you must give the court judgment to a local law enforcement officer (sheriff or marshal), along with a fee that is charged to the tenant as part of your costs to bring suit. The sheriff or marshal gives the tenant a notice that the officer will be back within a number of days to physically remove the tenant if he isn't gone by then.

Rationale for the Rules

Landlords often chafe at the detailed rules that they must follow. There is a reason, however, why most states have insisted on strict compliance. First of all, an eviction case is, relatively speaking, a very fast legal procedure. (How many other civil cases are over and done with after a few weeks?) The price to pay for this streamlined treatment is unwavering adherence to the rules.

Second, what's at stake here -- a tenant's home -- is arguably more important than a civil case concerning money or business. Consequently, legislators have been extra careful to see to it that the tenant gets adequate notice and an opportunity to respond.

Chart: Cleaning and Repairs a Landlord Can Deduct From a Security DepositLandlords are permitted to deduct from security deposits for damage or excessive filth, but not for ordinary wear and tear. Typically, landlords may charge tenants for any cleaning or repairs necessary to restore the rental unit to its condition at the beginning of the tenancy. Landlords may not, however, use the tenant's security deposit to cover the costs of ordinary wear and tear. Here are examples of wear

and tear versus damage or excessive filth:

Ordinary Wear and Tear:Landlord's Responsibility

Damage or Excessive Filth:Tenant's Responsibility

Curtains faded by the sun Cigarette burns in curtains or carpets

Water-stained linoleum by shower Broken tiles in bathroom

Minor marks on or nicks in wall Large marks on or holes in wall

Dents in the wall where a door handle bumped it Door off its hinges

Moderate dirt or spotting on carpet Rips in carpet or urine stains from pets

A few small tack or nail holes in wall Lots of picture holes or gouges in walls that require patching as well as repainting

A rug worn thin by normal use Stains in rug caused by a leaking fish tank

Worn gaskets on refrigerator doors Broken refrigerator shelf

Faded paint on bedroom wall Water damage on wall from hanging plants

Dark patches of ingrained soil on hardwood floors that have lost their finish and have been worn down to bare wood

Water stains on wood floors and windowsills caused by windows being left open during rainstorms

Warped cabinet doors that won't close Sticky cabinets and interiors

Stains on old porcelain fixtures that have lost their protective coating Grime-coated bathtub and toilet

Moderately dirty mini-blinds Missing mini-blinds

Bathroom mirror beginning to "de-silver" (black spots) Mirrors caked with lipstick and makeup

Clothes dryer that delivers cold air because the thermostat has given out

Dryer that won't turn at all because it's been over-loaded

Toilet flushes inadequately because mineral deposits have clogged the jets

Toilet won't flush properly because it's stopped up with a diaper

Resolving Landlord-Tenant Disputes FAQLawyers and lawsuits should rarely be your first choice when faced with a landlord-tenant dispute.

What's Below:

How can landlords and tenants avoid disputes?

Can I get help settling a landlord-tenant dispute out of court?

What's the best court to use for landlord-tenant disputes?

How can landlords and tenants avoid disputes?

Whether your disagreement is over a rent increase, responsibility for repairs, or the return of a security deposit, rarely should lawyers and litigation be the first choice for resolving a landlord-tenant dispute.

Both landlords and tenants should follow these tips to avoid legal problems:

Know your rights and responsibilities under federal, state, and local law. Make sure the terms of your lease or rental agreement are clear. Keep communication open. If there's a problem -- for example, a disagreement about the

landlord's right to enter a tenant's apartment -- see if you can resolve the issue by talking it over or using a local dispute resolution service.

Keep copies of any correspondence and make notes of conversations about any problems. For example, tenants should ask for repairs in writing and keep a copy of the letter. The landlord should keep a copy of the repair request and note when and how the problem was repaired.

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Can I get help settling a landlord-tenant dispute out of court?

If you can't work out an agreement on your own, consider mediation by a neutral, third party, called a mediator. Unlike a judge, the mediator has no power to impose a decision, but will simply work to help find a mutually acceptable solution to the dispute. Mediation is often available at little or no cost from a publicly funded program.

For information on local mediation programs, call your mayor's or city manager's office, and ask for the staff member who handles "landlord-tenant mediation matters" or "housing disputes." That person should refer you to the public office, business, or community group that handles landlord-tenant mediations.

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What's the best court to use for landlord-tenant disputes?

If mediation fails, you can take the case to small claims court, assuming the disagreement involves money, such as return of the security deposit.

Small claims court fees are relatively low, and you aren't required to bring a lawyer to small claims court, which saves attorneys fees. (In fact, in some states, such as California, you are not allowed to bring a lawyer to small claims court.)

A few states use different names for this type of court (such as "Landlord-Tenant Court"). Whatever the name, the purpose is the same: to provide a speedy, inexpensive resolution of disputes that involve relatively small amounts of money. (The maximum amount you can sue for in small claims court varies, but most states range from $3,000 to $10,000.)

Terminating a Lease or Rental Agreement FAQLearn how to give tenants proper notice to end a lease or rental agreement, or evict if necessary.

What's Below:

What are the rules for returning security deposits?

What happens if a tenant breaks a lease?

When can a landlord legally terminate a lease to end the tenancy?

What are the rules for returning security deposits?

Landlords may make deductions from a tenant's security deposit, provided they do it correctly and for an allowable reason. Many states require landlords to provide a written itemized accounting of deductions for unpaid rent and for repairs for damages and necessary cleaning that exceed normal wear and tear, together with payment for any deposit balance.

The deadlines vary from state to state, but landlords usually have a set amount of time in which to return deposits, usually 14 to 30 days after the tenant moves out -- either voluntarily or by eviction.

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What happens if a tenant breaks a lease?

As a general rule, a tenant is bound to the length of the lease unless the landlord significantly breaks the law or violates its terms -- for example, by failing to make necessary repairs, or by failing to comply with an important lease clause. A few states have laws that allow tenants to break a lease because of health problems or a job relocation that requires a permanent move. Federal law and many similar state laws allow tenants who enter active military service and

related government positions to terminate a lease early.

A tenant who breaks a lease without good cause will be responsible for the remaining rent due under the lease term. In most states, however, a landlord has a legal duty to use reasonable efforts to try to find a new tenant -- no matter what the tenant's reason for leaving -- rather than charge the tenant for the total remaining rent due under the lease.

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When can a landlord legally terminate a lease to end the tenancy?

A landlord may legally terminate a lease if a tenant significantly violates its terms or the law -- for example, by paying the rent late, keeping a dog in violation of a no-pets clause in the lease, substantially damaging the property, or participating in illegal activities on or near the premises, such as selling drugs.

A landlord must first send the tenant a notice stating that the tenancy has been terminated. State laws set out very detailed requirements as to how a landlord must write and deliver (serve) a termination notice. Depending on what the tenant has done wrong, the termination notice may state that the tenancy is over and warn the tenant that he or she must vacate the premises or face an eviction lawsuit. Or, the notice may give the tenant a few days to clean up his or her act -- for example, to pay the rent, or to find a new home for the dog.

If the tenant fixes the problem or leaves as directed, no one goes to court. If a tenant doesn't comply with the termination notice, the landlord can file a lawsuit to evict the tenant.