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So, you want to become a landlord. Since the housing market went south, some would-be sellers are now putting their homes up for rent.
Some would-be buyers are looking for rental properties and hoping that prices will fall even more.
Then there are the “flippers” who buy cheap and rehabilitate their purchases to make a profit on a resale.
If all this activity appeals to you, then there are a few rules you should know.
First you need to know something about leases. Do you, as a tenant, actually need one?
Well, yes, but any lease arrangement up to three years need not be in writing. Leases longer than three years, however, must be in writing to be enforceable.
There are sources that sell written lease forms, but I suggest calling on your local lawyer.
I make that suggestion not because I am a lawyer, but because there may be a number of things to consider and they aren’t always in a lease form.
One thing I have found that landlords don’t understand is that municipal agencies can put a lien against the landlord’s property if the tenant doesn’t pay the water bill, sewer bill or garbage fee. There are two things the landlord can do to protect himself or herself.
The first is to check every month with those agencies to make sure these items are paid. The second is to estimate the payments and include them in the rent. Then the landlord can pay them and know that it’s done.
The gas company and the electric company are not government owned, so they cannot place a lien on the property.
However, if they discontinue service, they will not restore it until they are paid. Either way, unpaid utilities cost the landlord.
But what really robs the landlord is the failure of the tenant to pay rent.
First, make sure you collect the rent on the first of the month or the first day of each rental period.
Nothing succeeds like consistency.
If you, as the landlord, don’t get paid, you had better know some other rules. You want to be cozy with your local district judge, because that’s where you go to enforce the lease.
But first, assuming that the tenant has become a “squatter” and will neither pay nor move, give the tenant written notice to move within 10 days if the rent is not paid.
I suggest having the notice served by one of the constables that work out of the district judge’s office.
Mobile home parks have their own special rules, because you’re not renting a building, you’re usually renting space.
Next time, I’ll examine some tenants’ rights.
Thomas Young, a graduate of Pitt and Harvard Law School, has been a lawyer in Johnstown since 1958. He is a former professor of business law at Pitt-Johnstown. Readers may send questions to Young in care of The Tribune-Democrat. The opinions expressed in this column are general in nature and may not apply to your situation. Consult your attorney for advice on specific legal matters.
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Thomas Young | Potential pitfalls for landlords
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