Image via WikipediaThere are a lot of things that you need to understand when it comes to living in an apartment. Moreover, there are also a lot of things that you need to learn when it comes to establishing your own apartment unit for rent. Your rights as a Landlord are very important, because the laws are designed to work in the favor of the renter. Take back your ownership rights. When building and renting out your apartment unit, not only do you need to have a good building but you also need to know what the landlord-tenant act is. This particular act is not voluntary but it is an act imposed by the local government which means that once you take on a landlord, you need to know about the landlord tenant act in the state that you are in. So before you open up your apartment for rent, you should know about the landlord-tenant act in your area first.When I was first looking for a spot to build my apartment complex in Pasadena, California which is just a walking distance from Café Santorini, I have to sought help from a Pasadena Realtor by name of Michael Gebntile and then we went into the cumbersome task of discussing the landlord-tenant act of Pasadena.
The Landlord Tenant Act, according to my Pasadena Realtor, is a housing rights protection that protects both the landlord and the tenant at the same time. This particular act was created following the Federal Fair Housing Act of 1968 which clearly defines the duties of the landlords and tenants in a particular building such as an apartment. This particular law imposes restrictions if one of the parties fails to perform the duties specified under the act. For my case, I am interested with my rights as a landlord.
There are certain rules or duties that my tenants should do. These duties include following the rules set up by the landlord and also paying rent on time. As a landlord, I should impose a strict policy about payment terms for the apartment I will be setting up.
Image via Wikipedia Michael, my Pasadena Realtor, also informed me of the other duties that I need to uphold as a landlord. I also need to make sure that I create a good environment for each apartment unit that I have which means that I am responsible for the repairs needed to be undertaken on each unit.According to my Pasadena Realtor, both tenants and landlords have an equal amount of shared responsibilities under the law and these duties and responsibilities are stated on the contract prior to the leasing of the apartment. For this reason, I was advised by my Pasadena Realtor to make sure that I drafted a clear contract with my tenant. Michael helped me draft these leases, and it was both helpful and a good education.
However, there are certain times that either one of the parties do not comply or do what is agreed upon problems arise from this situation. In grave situations, the remedy for the breach of contract includes eviction, reduced rent and even lawsuit for damages. As a landlord, I can implement these remedies to my tenants’ shortcomings.
It is also very important to take note that for different states, there are different ordinances acted upon by communities to determine the minimum standard of living conditions in order to regulate both parties’ rights and duties. For the case of Pasadena, the living standard are higher than other states thus both landlord and tenants should agree upon these conditions and these conditions are subject to change depending on the agreement of both parties.
Image via WikipediaHowever, it is very important that these changes will be written in a contract for reference. Moreover, the specified time that the tenant will also stay in the apartment as well as the payment terms is also agreed upon by the landlord as well. Once a contract is drafted, tenancy is created and the landlord will give the tenant the keys to the apartment. Failure to comply in the written contract will eventually result to breaching of the agreement and the party at fault can be sued. But make sure that your tenants are credit worthy, otherwise you may not collect a judgment that you get in court even if you win. This is perhaps one of the best lessons that I got from my Pasadena Realtor.The most important thing to consider before the landlord hands the key to the tenant is the deposit fee. In most states, the deposit fee is usually a fee that is equivalent to 2 months payment for the rent. This deposit fee implies that the tenant is capable of paying the rent monthly. As a landlord, I am obliged to return the deposit in complete sum at the end of the contract period of the tenant.
On the other hand, there are some things stipulated in the contract that may not be applicable over a period of time and one of these items that need to be updated is the rate of the apartment rent. As a landlord, I need to inform my tenant about the changes in the rent
My Pasadena Realtor also added that if a tenant agreed to stay in a specified period of time, for instance 5 years in an apartment and the contract has been drafted already, the rent increase should not take effect within that duration of time. It should remain constant within the 5 years’ span of time and that I can only impose an increased rate after the end of the contract of the tenant. Rent increases built into a long term residential lease are uncommon.
However, there are times when a tenant wishes to end the contract of tenancy prematurely for different reasons. A breach of contract will not occur as long as the tenant settles all financial obligations to the landlord and that the tenant should give at least 30 days notice to the landlord. The landlord is can file a lawsuit against the tenant for not following what is stipulated in the contract. This is your last resort. Trying to settle things without a lawsuit is advised.
So you see, setting up an apartment complex in Pasadena is not as easy as it may sound. There are a lot of things that you need to learn about landlord's rights and the little talk that I had with my Pasadena Realtor was probably the best and most informative talk that I had with regards to multifamily commercial Real Estate.
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