Searching for another reason to move to Portland Oregon? Thanks to a recent study by Commercial Cafe, we know that Portland has ranked among the top 20 states for networking.
Networking is essential especially for business, and there are a wide variety of venues to connect with people in the PDX area including breweries, bars, restaurants, gyms, health clubs and countless destinations for outdoor enthusiasts.
About The Study
Portland ranked as the 13th-best city for networking in the country. The city ranked 6th for its number of networking events (227) and claimed the 7th-highest level of educational attainment across the top 20 list (51% of its population earned at least a bachelor’s degree.
NYC Is No Longer A Top City For Networking
In 1985, telecommunications expert and consultant Bill Lewis wrote a news article in which he first coined the term ‘networking’ to describe interactions between individuals looking to strengthen their businesses. The term caught on, as it gives a name to one of the most important steps for the success of both companies and professionals. And, in light of the growing trend towards hybrid work, being purposeful about one’s networking efforts has become even more crucial in career advancement and a company’s success.
So, because cities play a big part in nurturing a business-friendly environment and creating the spaces and opportunities that incentivize people to come together, we decided to look at the top 20 U.S. cities for networking.
However, our aim was to look beyond the obvious pull of New York City for all things business related. To that end, we looked at cities with more than 200,000 residents and ranked these across three compound metrics – networking opportunities; social and economic; and event-hosting capabilities – each of which in turn had various points allocated to their specific indicators. For more details, please read our methodology section.
Notably, the nationwide ranking revealed a few interesting highlights, such as Houston leading the list with a total of 66 points. However, looking at the highest-ranking entries for each of the compound metrics, we find Denver in first place for the networking category; San Francisco leading the social and economic index; and Houston dominating the list for event venues.
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One of the top problems a landlord can have is when a tenant doesn’t move out in time.
Sadly, this has happened more frequently in recent years but the good news is that there is a process landlords can follow to professionally resolve this situation.
In this article, we will provide you with tips you can use for dealing with tenants who don’t move out in time.
What is a Holdover Tenant?
A holdover tenant is a renter who stays in a rental property after the lease expiration date. If they refuse to leave or do not have your express permission, they are a holdover tenant, and you can evict them. However, accepting rent payments means the holdover tenant can legally remain in the property.
How long can a tenant stay after the lease expires? The answer depends on whether you decide to accept rental payments from them. Accepting rent payments after the lease expiry date means you and the tenant enter an informal lease agreement. Sometimes, this arrangement can be advantageous for you and the tenant.
However, in most cases, holdover tenancies are rarely in a landlord’s best interests. They typically give more rights to tenants with fewer responsibilities. In cases where you continue to accept rent payments from a holdover tenant, state and local laws determine the lease terms. More often than not, you must give a 30 to 60-day notice for them to vacate the unit.
When a tenant stays on after a formal lease agreement ends, one of two types of holdover tenancies comes into force.
Tenancy at sufferance
A tenancy at sufferance means the tenant stays on after the lease expires without your permission. Also called a “holdover tenancy,” you typically must end this type of tenancy with a formal eviction. However, the tenant must still comply with the lease terms, and you must give the required notice to leave.
Should you accept monthly rent payments from a holdover tenant? It is best not to accept rent payments if a tenant refuses to leave the unit. Taking rent — unless it’s for unpaid rent under the original lease terms — can derail the entire eviction process.
Accepting rental payments after a tenant has outstayed their welcome can be viewed as entering a month-to-month lease.
Tenancy at will
A tenancy at will is when you do not renew the lease but allow the tenant to remain in the property. Usually, you or the tenant can end the informal agreement by providing proper notice. An “at-will” holdover tenant must continue to pay rent and adhere to the lease terms.
Local state laws define the “tenancy at will” lease terms. The fixed-term lease usually converts to a month-to-month lease if you continue accepting rent payments. However, it’s vital to remember that landlord-tenant laws still apply without a formal agreement. This includes adhering to the terms of at-will tenancies.
Therefore, you may still have to give the required notice to evict them for a lease violation.
Suppose the tenant stops paying rent or commits another lease violation. In that case, you can serve a notice to “cure or quit” to give the tenant time to resolve the issue. After the required notice period, you can start eviction proceedings and refuse to accept rental payments. However, the holdover tenancy remains in force if you continue to take payments.
Periodic tenancy agreement
Compared to an “at-will tenancy,” a periodic tenancy can offer greater protection to a tenant. This type of lease has no fixed term and remains in place until you and the tenant agree to terminate the agreement. A disadvantage of a periodic lease for landlords is that increasing rent is difficult.
In all cases, it is crucial to understand local landlord-tenant laws before taking action. Local laws dictate how to act if a tenant doesn’t move out in time and the appropriate notice requirements. These also depend on the type of “holdover” tenancy agreement in force.
Why Hasn’t the Tenant Moved Out?
It is incredibly frustrating when a tenant doesn’t move out in time. But to avoid these situations, it’s a good idea to find out why the tenant hasn’t left. Sometimes, the tenant doesn’t move because they need help finding a new place. Or they could be challenging an eviction notice.
Apart from the most delinquent tenant, it is usually possible to avoid situations where a tenant stays after the lease expires. Avoiding having holdover tenants in a rental unit can ensure you get regular rental income and avoid the cost and time of eviction hearings.
Here are a few reasons tenants don’t move out on time and what you can do about it.
Lack of clear communication with tenants
A common reason tenants don’t move out on time is a need for clarity in the rental agreement. The agreement should have a lease renewal clause stipulating what happens after a lease ends. Therefore, the rental agreement clarifies your expectations and what the tenant must do.
For example, the tenancy could become a month-to-month tenancy after the lease expiration date. Or you could state that the tenant must vacate the premises if they don’t renew the lease.
It’s also good to send advance notice that a lease renewal letter is approaching. This gives the tenant time to think about how they should act. And they have plenty of time to look for a new place if they plan on vacating the apartment.
Renew the lease early
You can often avoid holdover tenants by renewing leases early and giving them adequate notice. For example, although a 30 or 60-day notice is common, you could have a 90-day notice clause. This gives the tenant time to look for a new apartment during the current rental period.
However, always check with local and state rental laws about what constitutes proper notice.
The tenant ignores the lease expiry date
Some tenants chance their luck and hope to move to a monthly tenancy after the fixed-term lease ends. Even with months of notice, they may decide they love your unit so much they remain after the lease expires. But how long can they stay after the lease expiration date?
You have two options. First, you could let them become holdover tenants on a month-to-month lease. This may be possible if they are responsible tenants. However, your ultimate aim should be to renew a formal lease.
The second option is eviction. After the lease expires, you should send a notice to quit. Then file an eviction order at the local court and stop accepting rent payments.
The tenant disagrees with the eviction notice
The worst-case scenario is when a holdover tenant ignores the notice of eviction. They may have appealed the decision and refused to vacate the premises. In the first case, you must wait on the court ruling. However, if they don’t leave after a final decision, you can call the local sheriff and forcefully remove them.
How to Remove a Holdover Tenant
Removing a holdover tenant is a challenging process. But it must be done if they don’t move out on time after their lease has expired. Depending on the reasons for holding over after the lease expiry, you have several options, ranging from a friendly chat to a complete eviction.
Ask them to leave
Communication is always the first step when resolving issues with problematic tenants. Explain the lease terms, the notice you gave them, and any other relevant facts. Because staying after the lease expiry date is a violation, you can start eviction proceedings.
Most tenants realize an eviction is a black mark on their rental history, making it harder to find a new apartment. Additionally, seeking debt collection for unpaid rent could remain on their credit report for seven years and hit their credit score.
Depending on the tenant, you could ask them to leave within a few days. Or you could offer a tenancy at will for one month while they organize their affairs.
Cash for keys
You can offer a tenant “cash for keys” to leave if they don’t move out on time. This involves proposing to give them a cash sum if they turn over the keys on a specific date. The cash incentive could get the tenant out fast, avoiding a lengthy and costly eviction process.
How can you get a holdover tenant out with a “cash for keys” offer? Here are a few tips:
Start with a lowball offer of around 10% of the monthly rent
Arrange a date they will move their belongings out
On the arranged date, inspect the property and ask them to resolve any property damage or cleanliness issues
When you are satisfied everything is in order, get them to sign a document relinquishing their tenancy
Hand over the cash
Change the locks immediately
Remember, even with a cash-for-keys resolution, and you must still return the security deposit in line with state laws. For example, if necessary, you can deduct unpaid rent or the cost to repair property damage.
Over the years, we’ve witnessed firsthand soaring rental prices in the Portland Oregon Rental Market, and many people are left wondering why rents continue to increase despite efforts to slow down the average rent in the Portland Oregon area.
In this article we will analyze the Portland Oregon rental market and offer you several reasons behind rising rents, and what’s being done to fix this problem.
Factors contributing to high rental prices in Portland, Oregon
The high rental prices in Portland, Oregon can be attributed to a combination of factors. Firstly, the city’s strong economy has attracted a large influx of people, resulting in a surge in demand for rental properties. Portland’s thriving tech industry, along with its reputation as a hub for creatives and entrepreneurs, has made it a magnet for job seekers. This increased demand has put upward pressure on rental prices, making it challenging for renters to find affordable options.
Secondly, the limited supply of rental properties has further contributed to the high prices. Due to strict zoning regulations and a shortage of available land, there has been a scarcity of new construction in desirable neighborhoods. This imbalance between supply and demand has allowed landlords to increase rents, taking advantage of the high demand and limited options for renters.
Additionally, the rising cost of living in Portland has also played a role in driving up rental prices. As the city experiences an increase in property taxes, utilities, and other expenses, landlords pass these costs onto tenants through higher rents. This has made it increasingly difficult for individuals and families with lower incomes to find affordable housing options in the city.
Rental property demand in Portland, Oregon
The demand for rental properties in Portland, Oregon remains strong due to several factors. The city’s population has been steadily growing over the years, fueled by both domestic and international migration. People are drawn to Portland’s unique blend of natural beauty, cultural diversity, and progressive values. As a result, the demand for housing has outpaced the available supply, leading to higher rental prices.
Furthermore, Portland’s vibrant job market and the presence of major companies such as Nike, Intel, and Columbia Sportswear have attracted young professionals seeking employment opportunities. This influx of well-paid workers has increased competition for rental properties, driving up prices in popular neighborhoods.
It is also worth noting that the city’s rental market is influenced by the presence of several renowned educational institutions. Students attending universities and colleges in Portland often look for nearby rental properties, creating additional demand and intensifying the competition for available units.
Supply and vacancy rates in the Portland, Oregon rental market
Despite the high demand for rental properties in Portland, the supply has struggled to keep pace. Limited land availability, zoning restrictions, and the high cost of construction have contributed to a shortage of rental units. This scarcity has led to a decrease in vacancy rates, further driving up rental prices.
According to recent data, Portland’s vacancy rate hovers around 3%, which is significantly lower than the national average. A low vacancy rate indicates a tight rental market where competition among renters is fierce. Landlords can be more selective with their tenants and are more likely to increase rents due to the high demand.
Moreover, the COVID-19 pandemic has had a significant impact on the rental market in Portland, as it has in many cities worldwide. The economic uncertainty caused by the pandemic has led to a decrease in new construction projects and a reluctance among some renters to move, resulting in an even tighter supply and higher rental prices.
Impact of population growth on rental prices in Portland, Oregon
The rapid population growth in Portland, Oregon has had a profound impact on rental prices. As more people move to the city, the demand for housing has increased exponentially. The influx of new residents has not only put pressure on the rental market but also contributed to the rising cost of living.
The population growth has been fueled by various factors, including Portland’s reputation as an environmentally conscious and livable city. The city’s strong job market, cultural attractions, and access to outdoor activities have made it an attractive destination for individuals and families looking for a high quality of life. However, this popularity has come at a cost, with rental prices skyrocketing and affordability becoming a major concern for many.
Neighborhoods with the highest rental prices in Portland, Oregon
While rental prices have increased citywide, there are certain neighborhoods in Portland, Oregon that command particularly high rents. These neighborhoods are often characterized by their proximity to downtown, vibrant cultural scenes, and access to amenities such as parks and restaurants.
One such neighborhood is the Pearl District, a former industrial area transformed into a trendy and upscale residential and commercial district. The Pearl District offers a mix of luxury apartments, high-end restaurants, art galleries, and boutique shops. The desirability of this neighborhood, coupled with its central location, has made it one of the most expensive areas to rent in Portland.
Another neighborhood known for its high rental prices is the Hawthorne District. Located in Southeast Portland, Hawthorne boasts a vibrant and eclectic atmosphere, with an abundance of independent shops, cafes, and live music venues. Its walkability, proximity to downtown, and charming historic homes make it a sought-after neighborhood, driving up rental prices.
The Alberta Arts District is yet another neighborhood known for its high rental prices. This vibrant area is home to numerous art galleries, boutiques, and award-winning restaurants. Its cultural diversity and thriving arts scene have made it a popular destination for both residents and visitors, resulting in higher rental costs.
Strategies for finding affordable rental properties in Portland, Oregon
While the rental market in Portland, Oregon can be challenging, some strategies can help renters find affordable properties. Here are a few tips to navigate the competitive rental market:
Start your search early: Begin looking for rental properties well in advance of your desired move-in date. This will give you a better chance of finding available options and negotiating favorable terms.
Expand your search area: Consider exploring neighborhoods outside of the highly sought-after areas. While these neighborhoods may not have the same level of popularity, they often offer more affordable rental options.
Utilize online resources: Take advantage of online platforms and websites dedicated to rental listings in Portland, Oregon. These resources can provide a comprehensive overview of available properties, allowing you to narrow down your search based on your budget and preferences.
Network and ask for referrals: Reach out to friends, colleagues, and acquaintances who live in Portland. They may have valuable insights or know of available rental properties that are not listed publicly.
Be prepared and act quickly: When you find a rental property that meets your criteria, be prepared to submit your application promptly. The rental market in Portland moves quickly, and delays can result in losing out on a desirable property.
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Investing in rental properties can be an excellent way to generate passive income and build wealth. However, when considering purchasing a rental property, it’s crucial to understand the unique dynamics of owning a property within a homeowners association (HOA) community.
In this article, we will explore the pros and cons of investing in rental property within an HOA community, as well as provide valuable insights and tips for successful management.
Pros of Investing in a Rental Property within an HOA Community
There are several advantages to investing in rental property within an HOA community. Firstly, HOAs often have strict rules and regulations in place to maintain the overall appearance and value of the community. These rules can be beneficial for rental property owners as they help ensure that neighboring properties are well-maintained, which can attract quality tenants and potentially increase rental income.
Secondly, living within an HOA community typically means access to various amenities such as swimming pools, fitness centers, and parks. These amenities can be attractive to potential tenants and may allow you to charge higher rental rates compared to properties without such amenities.
Lastly, HOAs often handle exterior maintenance and repairs. This can be a significant advantage for rental property owners as it reduces the burden of maintenance and can save both time and money in the long run. Additionally, HOAs may also handle landscaping, snow removal, and other common area maintenance, further relieving the property owner of these responsibilities.
Cons of Investing in a Rental Property within an HOA Community
While there are clear benefits to investing in rental property within an HOA community, there are also potential drawbacks to consider. One major concern is the HOA fees. HOAs charge fees to cover the costs of maintaining common areas and amenities, as well as for general administration. These fees can vary greatly depending on the community and the services provided. As a rental property owner, you will need to factor in these fees when determining the profitability of your investment.
Another potential con is the restrictions imposed by the HOA. HOAs have specific rules and regulations that all residents, including rental property owners, must adhere to. These can include restrictions on the number of tenants, pet policies, and even limitations on exterior modifications or decorations. It is essential to review these rules to ensure they align with your investment strategy and goals.
Lastly, HOAs have the power to enforce their rules through fines and penalties. If your tenants violate any of the HOA regulations, you may be held responsible for any associated fines or penalties. This can create additional headaches and potentially eat into your rental income.
Understanding the Role of the HOA in Rental Properties
To navigate the complexities of investing in rental property within an HOA community, it is crucial to have a clear understanding of the role of the HOA. HOAs are typically run by a board of directors elected by the community residents. Their primary purpose is to enforce the rules and regulations outlined in the HOA’s governing documents, such as the bylaws and covenants.
The HOA board is responsible for maintaining the common areas, managing the community’s finances, and enforcing the rules. When it comes to rental properties, the HOA board may have specific guidelines in place, such as requiring property owners to register their rental units and provide tenant information. It is essential to familiarize yourself with these guidelines and ensure compliance to avoid potential conflicts with the HOA.
Additionally, the HOA board may have the authority to approve or deny potential tenants for rental properties within the community. They may require tenant screenings or background checks to maintain the overall safety and quality of the community. Understanding these processes and requirements is crucial when considering investing in rental property within an HOA community.
Factors to Consider When Investing in a Rental Property within an HOA Community
Before committing to investing in rental property within an HOA community, several factors should be carefully considered. Firstly, it is essential to evaluate the financial health of the HOA. Review their financial statements, budget, and reserves to ensure they are adequately funded and capable of meeting their financial obligations, such as maintenance and repairs.
Secondly, thoroughly review the HOA’s governing documents, including the bylaws, covenants, and rules and regulations. Pay close attention to any restrictions or policies that may impact your ability to rent out the property or attract potential tenants. It is also advisable to consult an attorney or real estate professional to ensure you fully understand the implications of the HOA’s rules on your investment.
Additionally, consider the rental demand and market conditions within the HOA community. Research the rental rates and vacancy rates in the area to determine the potential profitability of your investment. It is also essential to assess the overall desirability of the community for tenants, such as its proximity to schools, shopping centers, and transportation.
Lastly, factor in the potential impact of HOA fees on your rental income. Calculate the monthly fees and determine if they are reasonable about the rental rates you can charge. High HOA fees can eat into your profits and make the investment less lucrative.
Tips for Successful Management of a Rental Property within an HOA Community
Managing a rental property within an HOA community requires careful attention to detail and effective communication with both tenants and the HOA board. Here are some tips to ensure successful management:
Familiarize yourself with the HOA’s rules and regulations and ensure your tenants are aware of them as well. Provide them with a copy of the HOA’s guidelines and explain any specific rules that may impact them.
Maintain open lines of communication with the HOA board. Attend board meetings or appoint a representative to stay informed about any changes or updates that may affect your rental property.
Screen potential tenants thoroughly to ensure they meet the HOA’s requirements and are likely to be responsible and respectful community members.
Be proactive in addressing any maintenance or repair issues promptly. This will help maintain the property’s value and prevent conflicts with the HOA.
Establish clear expectations with your tenants regarding their responsibilities in adhering to the HOA rules and regulations. Provide them with a copy of the community guidelines and ensure they understand the consequences of non-compliance.
By following these tips, you can minimize potential conflicts and ensure a positive and profitable experience as a rental property owner within an HOA community.
Case Studies: Success Stories of Rental Property Investments within an HOA Community
To further illustrate the potential benefits of investing in rental property within an HOA community, let’s explore a couple of success stories.
Case Study 1: Sarah, a real estate investor, purchased a condominium within an HOA community. The HOA provided maintenance services, including snow removal and landscaping, which saved Sarah time and money. The attractive amenities, such as a gym and a pool, allowed Sarah to charge higher rental rates. By carefully screening tenants and ensuring compliance with the HOA’s rules, Sarah successfully managed her rental property and enjoyed consistent rental income.
Case Study 2: John and Lisa invested in a single-family home within an HOA community. The HOA’s strict rules on property maintenance ensured that their neighboring properties were well-kept, attracting quality tenants. The community’s proximity to schools and shopping centers made it highly desirable for families, resulting in low vacancy rates. John and Lisa maintained open communication with the HOA board and promptly addressed any maintenance issues, leading to a positive relationship and a successful rental property investment.
These case studies demonstrate the potential for success when investing in rental properties within an HOA community. However, it is essential to conduct thorough research and due diligence to evaluate the specific circumstances and dynamics of each community before investing.
Common Challenges Faced by Rental Property Owners in HOA Communities
While investing in rental property within an HOA community can be lucrative, there are common challenges that property owners may face. One challenge is the potential for conflicts with the HOA board or other community members. Disputes can arise regarding noise complaints, parking violations, or other violations of the HOA’s rules. It is crucial to address these conflicts calmly and professionally to maintain a positive relationship within the community.
Another challenge is the limited control over certain aspects of the property. HOAs often have restrictions on exterior modifications or landscaping, which can limit the property owner’s ability to make changes that may enhance the rental property’s appeal. It is important to carefully review these restrictions and consider their impact on your investment strategy.
Lastly, changes in the HOA’s rules and regulations can also pose challenges for rental property owners. For example, if the HOA implements new restrictions on rental properties or increases the fees, it can impact the profitability of the investment. Staying informed and actively participating in the HOA community can help mitigate these challenges.
Alternatives to Investing in a Rental Property within an HOA Community
Investing in rental property within an HOA community is not the only option available. There are alternative investment opportunities to consider. One alternative is to invest in properties located in non-HOA communities. While these properties may lack the amenities and strict regulations of an HOA, they also offer greater freedom and fewer restrictions.
Another alternative is to invest in commercial real estate properties, such as office buildings, retail spaces, or industrial warehouses. Commercial properties are typically not subject to HOA regulations and often offer longer lease terms and potentially higher rental income.
Additionally, investing in real estate investment trusts (REITs) can provide exposure to the real estate market without the responsibilities of property ownership. REITs are publicly traded companies that own and manage various types of real estate properties, allowing investors to diversify their portfolios.
Ultimately, the decision to invest in rental property within an HOA community or explore alternative options depends on your investment goals, risk tolerance, and preferences.
Conclusion: Is Investing in a Rental Property within an HOA Community Right for You?
Investing in rental property within an HOA community can be a rewarding venture, but it is not without its challenges. It is essential to carefully weigh the pros and cons, consider the unique dynamics of each community, and conduct thorough research before making a decision.
The advantages of strict regulations, attractive amenities, and reduced maintenance responsibilities can make investing in an HOA community appealing. However, potential drawbacks such as HOA fees, restrictions, and conflicts with the HOA should also be taken into account.
By understanding the role of the HOA, evaluating key factors, and implementing effective management strategies, you can increase the likelihood of a successful rental property investment within an HOA community.
Ultimately, the right investment choice will depend on your individual goals, preferences, and risk tolerance. Whether you choose to invest in rental property within an HOA community or explore alternative options, always remember to conduct thorough due diligence and seek professional advice when necessary.
Investing in real estate is a significant financial decision, and careful consideration is essential to maximize your returns and achieve your investment objectives.
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2023 has been a tough year for Oregon tenants as rents continue to increase statewide. In a move to curb rising rental costs and protect the rights of tenants, Governor Kotek has signed Senate Bill 611.
This bill introduces significant changes to how the maximum allowable annual rent increase percentage is calculated for residential tenancies in the state.
In this article, we will break down SB 611 and provide more information so that housing providers and tenants both know how it will affect Oregon’s rental market.
Understanding SB 611
Under SB 611, the maximum allowable annual rent increase percentage is calculated based on two criteria. The landlord must adhere to the lesser of the following:
Ten percent; or Seven percent plus the September annual 12-month average change in the Consumer Price Index for All Urban Customers.
This calculation ensures that landlords cannot impose exorbitant rent increases on tenants and provides a fair and reasonable approach to balancing the interests of both parties.
There Will Be Limitations on Rent Increases
SB 611 also introduces limitations on how often a landlord can increase the rent during a tenancy. Apart from week-to-week tenancies, landlords are now prohibited from increasing the rent more than once within any 12 months. This provision aims to provide stability and predictability for tenants, ensuring that they are not subjected to frequent and potentially unaffordable rent hikes.
Effective Immediately
It is essential to note that SB 611 took effect immediately upon Governor Kotek’s signature. As such, it applies to all notices of rent increase delivered on or after July 6, 2023. Landlords and tenants should familiarize themselves with the new legislation and ensure compliance with its provisions.
In addition to the changes introduced by SB 611, it is worth noting that the bill seeks to address the issue of affordable housing and the challenges faced by renters in the current market. By implementing stricter regulations on rent increases, the aim is to create a more stable and affordable rental market for tenants across the state.
Conclusion
Senate Bill 611 brings significant changes to the calculation of the maximum allowable annual rent increase percentage for residential tenancies in the state.
By introducing limitations on rent increases and providing a fair calculation method, the bill aims to protect tenants from excessive rental costs while ensuring landlords can still maintain their investments. Housing providers and tenants must familiarize themselves with the new legislation and seek legal guidance when needed. With the implementation of SB 611, the state takes a step towards creating a more stable and affordable rental market for all parties involved.
While SB 611 outlines the key changes to maximum allowable annual rent increases, housing providers and tenants must seek legal advice for specific situations. Consulting a legal professional, or property manager, can help clarify any uncertainties and ensure that both parties understand their rights and obligations under the new legislation.
Thankfully, working with a licensed property manager like 4 Rent Local can help because, a property manager stays on top of the changing rental market, including the latest laws, so owners can rest easy and enjoy passive income.
To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.
Are you planning on investing in rental properties in Portland Oregon? If so, there are landlord-tenant laws every landlord should know.
While the process of finding a new tenant can be relatively straightforward, the tricky part is familiarizing yourself with landlord-tenant laws. And, even if you are familiar with them, rental laws are constantly changing. That’s why regularly keeping tabs on local regulations can help you better manage your rental properties.
While the best way to familiarize yourself with rental laws is to consult a qualified legal expert, this article offers a closer look at ten landlord-tenant laws that all landlords should research.
1. Rental Licenses
Depending on where you live, you may need a rental license before renting out your property. Rental licensing programs exist to ensure that rental properties meet minimum housing standards.
Some states, like Oregon, require all landlords to have rental licenses for their properties. However, other states may only have mandates in certain counties, cities, or municipalities. For example, landlords in Philadelphia must be licensed, despite Pennsylvania not having a statewide requirement.
Failing to comply with these requirements could result in fines and other penalties, so review your state and local laws before leasing your rental properties.
2. Rent and Security Deposit Collection
Rent collection is the primary income stream for rental businesses, so it’s essential to be aware of any applicable rent laws for your state. States like Ohio and Virginia have no specific statewide rent regulations. Meanwhile, California law says landlords can’t require tenants to pay rent in cash.
Security deposits are also subject to specific laws that vary from state to state. Rhode Island landlords, for example, aren’t allowed to charge a security deposit of more than one month’s rent and must return the deposit within 20 days of the lease ending.
Florida has no limit to how much a landlord can charge for a security deposit. Still, if you decide to hold a deposit in an interest-bearing account, you’ll have to choose to pay the tenant either at least 75% of the annualized average interest rate or 5% simple interest per year.
3. Late Fees and Grace Periods
A late fee is an easy and enforceable way to encourage on-time rent payments, but states may have specific rules that apply to them. According to Tennessee law, landlords can impose late fees if they don’t exceed 10% of the rent price.
Before charging a late fee, you should also consider laws concerning grace periods. Tennessee has a statewide five-day grace period before landlords can consider rent late.
In states with no laws concerning late fees and grace periods, landlords should include their policies in the lease for them to be enforceable.
4. Required Clauses and Disclosures in Lease Agreements
Your lease agreement is a legally-binding contract that outlines rules and expectations both parties must follow during the lease period. To be an enforceable agreement, it must include locally-required clauses and clauses that don’t violate renters’ rights.
States like New York, Minnesota, and Rhode Island all require the following clauses:
Landlord’s name, address, and phone number
Rent amount and due date
Length of the lease agreement
Description of the rental unit
Separate from clauses, landlords may also need to include specific disclosures in the lease as well. A common requirement in several states is to disclose all known lead-based paint and lead-based paint hazards with a warning and an EPA pamphlet.
Some states may have more specific requirements. For example, landlords in Missouri must also disclose if the property was used as a site for methamphetamine production.
You can research your local landlord-tenant laws to verify what clauses are required, but it can be helpful to include the clauses listed above in your written lease, even if there’s no statewide requirement.
5. Marijuana Use
While laws surrounding marijuana use are changing in states nationwide, landlords are generally allowed to set their own policies for their rental properties. Similar to prohibiting cigar and cigarette smoke, you can also prohibit tenants from smoking marijuana in your unit. You may also be able to prohibit tenants from producing marijuana.
For example, Wisconsin law prohibits the possession, sale, and manufacture of marijuana. Landlords can serve a non-curable five-day notice to quit to tenants who produce or distribute marijuana on the rental property.
6. Pets, Emotional Support Animals, and Service Animals
Over half of US households own a pet, so understanding landlord-tenant laws in your state concerning pets can benefit your rental business. Some states, like Kansas, restrict how much landlords can charge for a pet deposit. Other states, like New Hampshire, have no limitations on pet fees.
It’s worth noting that emotional support animals (ESA) and service animals are not considered pets and are regulated differently. ESAs are animals that provide disability-relieving emotional support to an individual. According to the Fair Housing Act, disabled tenants with an emotional support animal may reside in housing with a “No Pets” policy.
Landlords are allowed to request proper documentation for an ESA. However, landlords may not:
Charge a fee, additional rent, or a security deposit for having an emotional support animal
Ask the tenant about their disability
Require the animal to have any specific training
Refuse to house the tenant because their insurance does not cover ESAs
According to the Americans with Disabilities Act, service animals are animals that are individually trained to do work or perform tasks that mitigate their handler’s disability. Because they aren’t pets, they can’t be subjected to pet fees. However, landlords can collect a security deposit to address any damage the animal may cause to the property.
7. Property Abandonment
Occasionally, tenants may leave some of their belongings at the property after moving out. Before discarding the items, you may need to follow a certain procedure to confirm the tenant no longer wants them.
These laws tend to vary from state to state. Michigan has no specific laws regarding the abandonment of property, while New Mexico landlords must store any of the tenant’s personal property left at the rental for at least 30 days and notify the owner of their intent following the 30 days. Discarding the belongings without following the right process can leave you susceptible to legal issues.
8. Subleasing
If your tenant plans to be away from the property for an extended period, you may discuss subleasing as an option to keep your rental income uninterrupted. But what are the laws surrounding subleasing?
In most states, landlords can determine their subleasing policies based on their lease agreements. Generally, landlords will include a clause about subleasing within the written lease or add one with a lease amendment if necessary.
Certain states like New York and Virginia have more specific requirements, so verify your state’s policy to avoid any challenges.
9. Lease Renewals
Whether you’ve included an automatic renewal clause in your lease or found high-quality tenants you’d like to retain, you should verify your state’s lease renewal laws.
Some states mandate that fixed-term tenancies terminate automatically at the end of the specified period and convert to renewing month-to-month tenancies with continued occupancy and payment by the tenant. In other states, automatic renewal clauses must be disclosed, and the landlord should remind the tenant during a specified notice period.
Knowing how to handle lease renewals per local landlord-tenant laws can help you cover your bases and communicate clearly with your tenants as a lease ends.
10. Evictions
Sometimes, the only way to deal with a problem tenant is by evicting them. This eviction process is highly specific and varies from state to state, so understanding the laws is essential if you plan to pursue an eviction.
While the eviction process may differ between states, they generally begin by identifying a legal reason to evict a tenant. Some of these reasons include:
Nonpayment of rent
Violation of lease terms
No lease or end of lease
Material health or safety violation
It’s important to note that there must be a valid legal reason for a landlord to begin the eviction process. Furthermore, self-help evictions are considered illegal in most states. This means landlords can’t try to evict a tenant by changing locks, cutting off utilities, entering the property, removing the tenant’s belongings, and so on.
Are you tired of managing your property on your own? Look no further! 4 Rent Local is here to take the stress out of property management in the PDX area. Our team of experts is ready to handle everything from finding tenants to handling maintenance requests, so you can sit back and relax. With our personalized approach and attention to detail, we guarantee your property will be in the best hands. Don’t miss out on this exciting opportunity to partner with us. Contact us today and let’s get started on maximizing your rental income!
Despite the challenges posed by COVID-19, real estate remains a solid and lucrative investment for your future. In this article, I will discuss the advantages of owning rental property, offer tips for investing in rental property, and explore the trends in rental property investment post-COVID.
If you’re still on the fence about investing in Portland Rental Property, this article will share with you more information about investing in rentals in 2023 and beyond.
Introduction to Rental Property Investment
Investing in rental property is a popular way to build wealth and generate passive income. Rental property refers to real estate that is purchased to rent it out to tenants for a profit. This type of investment can take many forms, including single-family homes, multi-unit apartment buildings, and commercial properties.
One of the biggest advantages of owning rental property is the ability to generate passive income. When you own rental property, you collect rent from your tenants each month, which can provide a steady stream of income. In addition, rental property can appreciate over time, allowing you to make a profit when you sell.
Advantages of Owning Portland Rental Property
There are numerous advantages to owning rental property, including:
Steady Cash Flow
When you own rental property, you can generate a steady stream of income in the form of rent payments. This can provide financial stability and help you build wealth over time.
Appreciation
Real estate has historically appreciated over time, which means that your investment can increase in value as the property becomes more desirable and the local real estate market improves.
Tax Benefits
Owning rental property comes with several tax benefits, including the ability to deduct expenses such as property taxes, insurance, and repairs from your rental income. You may also be able to deduct depreciation on the property over time.
Control
When you own rental property, you have control over the Oregon property and the tenants who live there. This can give you a sense of security and control over your investment.
Rental Property Investment Statistics
The statistics show that rental property is a solid investment choice. According to a recent study by the National Association of Realtors, the median investment property sales price in 2020 was $470,000, and the median annual gross rental income was $39,000. In addition, 30% of all investment property owners reported that they purchased their property for rental income.
In another study by Roofstock, a leading online marketplace for rental properties, single-family rental homes had an average annual return of 8.7% between 2012 and 2017. This is higher than the average annual return of 6.7% for the S&P 500 index during the same period.
Tips for Investing in Rental Property
If you’re interested in investing in rental property, there are several tips you should keep in mind:
Research the Local Real Estate Market
Before investing in Portland rental property, it’s important to research the local real estate market. Look for areas with a high demand for rental properties and low vacancy rates.
Crunch the Numbers
Make sure to carefully calculate the potential costs and returns of your investment. Consider expenses such as property taxes, insurance, repairs, and property management fees, as well as potential rental income.
Consider Property Management
If you don’t want to manage the property yourself, consider hiring a property manager. They can handle tasks such as finding and screening tenants, collecting rent, and handling repairs.
How to Finance a Rental Property Investment
Financing a rental property investment can be challenging, but there are several options available:
Traditional Mortgages
You can finance a rental property investment with a traditional mortgage, just like you would with a primary residence. However, you may need to put down a larger down payment and meet stricter eligibility requirements.
Hard Money Loans
Hard money loans are short-term loans that are often used by real estate investors. They have higher interest rates and shorter repayment terms, but they can be a good option for investors who need quick access to cash.
Cash
If you have the funds available, paying cash for a rental property can be a good option. This can give you more control over the property and allow you to avoid interest payments and other fees.
Property Management for Rental Properties
Property management is an important aspect of owning rental property. It involves managing the day-to-day operations of the property, including finding and screening tenants, handling repairs and maintenance, and collecting rent.
Benefits of Hiring a Property Manager
There are several benefits to hiring a property manager for your rental property investment:
Time Savings
Hiring a property manager can save you time and allow you to focus on other aspects of your life and business.
Tenant Screening
Property managers can help you find and screen tenants, which can help ensure that you find high-quality tenants who pay rent on time and take care of the property.
Maintenance and Repairs
Property managers can handle maintenance and repairs for your property, which can save you time and ensure that the property is well-maintained.
Trends in Rental Property Investment Post-COVID
The COVID-19 pandemic has had a significant impact on the rental property market. However, there are still opportunities for investors:
Remote Work
The rise of remote work has made it possible for people to move to areas with lower costs of living and better quality of life. This has led to increased demand for rental properties in these areas.
Short-Term Rentals
Short-term rentals, such as Airbnb properties, have become more popular as people look for alternative travel options during the pandemic.
Tenant Screening
Tenant screening has become more important than ever as landlords look to ensure that their tenants can afford to pay rent and won’t default.
Risks and Challenges of Owning Rental Property
While there are many advantages to owning rental property, there are also risks and challenges to consider:
Vacancies
Vacancies can be costly for landlords, as they mean that there is no rental income coming in. It’s important to have a plan in place for filling vacancies quickly.
Repairs and Maintenance
Repairs and maintenance can be costly for landlords, and it’s important to have a plan in place for handling these expenses.
Tenant Issues
Tenant issues, such as non-payment of rent or damage to the property, can be stressful and time-consuming for landlords.
Conclusion – Why Rental Property is Still a Solid Investment for the Future
Despite the challenges posed by COVID-19, rental property remains a solid investment for the future. The advantages of owning rental property, including steady cash flow, appreciation, tax benefits, and control, make it an attractive investment option. If you’re interested in investing in rental property, make sure to research the local real estate market, crunch the numbers, and consider hiring a property manager. With careful planning and management, rental property can provide a reliable source of passive income and long-term financial security.
Contact Us
To learn more about the property management services we can offer you, for your Portland Rental Property, contact us today by calling (503) 447-7788 or click here to connect with us online.
As an experienced property manager, we understand the importance of having the right team to manage your rental property.
Owning an investment property can be a lucrative investment, but it also requires a significant amount of time and effort to maintain. That’s why we recommend hiring a professional property manager to save you both time and money in the long run.
In this article, we will explain why choosing our rental property management services in Portland (PDX) is the best decision you can make.
Introduction to Rental Property Management
Rental property management is the process of overseeing and maintaining a rental property on behalf of the owner. This includes everything from tenant screening and lease agreements to maintenance and repairs. A professional property manager can help you maximize your investment by ensuring that your property is well-maintained and generating income consistently.
The Importance of Hiring a Professional Property Manager
Hiring a professional property manager can save you a significant amount of time and money in the long run. Property managers are experienced in all aspects of property management and can handle everything from advertising your property to finding tenants, handling maintenance requests, and collecting rent. They also have a network of reliable contractors and vendors to ensure that any repairs or maintenance issues are resolved quickly and efficiently.
Additionally, a property manager can help you avoid costly mistakes by ensuring that your property is in compliance with all the necessary local and state regulations. They can also help you stay up-to-date on market trends and rental rates to ensure that you are charging fair rent and attracting quality tenants.
Why Choosing Our Rental Property Management Services Will Save You Time and Money
At our rental property management company in Portland (PDX), we have over a decade of experience managing investment properties. Our team of experienced property managers is dedicated to providing you with the best possible service and ensuring that your property is well-maintained and generating income consistently.
Our property management services include everything from tenant screening and lease agreements to maintenance and repairs. We understand that your time is valuable, which is why we handle everything from advertising your property to finding tenants, handling maintenance requests, and collecting rent on your behalf.
Our Experience in Managing Investment Properties in Portland (PDX)
We have been managing investment properties in Portland (PDX) for over a decade and have a deep understanding of the local market. We have experience working with all types of properties, from single-family homes to multi-unit apartment buildings. Our team of property managers is dedicated to providing you with the best possible service and ensuring that your property is well-maintained and generating income consistently.
Our Property Management Services and How They Benefit Landlords
Our property management services benefit landlords in many ways. We handle everything from advertising your property to finding tenants, handling maintenance requests, and collecting rent on your behalf. This frees up your time and allows you to focus on other important tasks.
We also provide comprehensive tenant screening services to ensure that you are renting to reliable tenants who will take care of your property and pay rent on time. Our lease agreements are designed to protect your interests and ensure that your tenants understand their responsibilities.
How We Handle Tenant Screening and Lease Agreements
We understand that finding reliable tenants is crucial to the success of your rental property. That’s why we provide comprehensive tenant screening services to ensure that you are renting to reliable tenants who will take care of your property and pay rent on time. Our tenant screening process includes background and credit checks, employment and income verification, and rental history verification.
Our lease agreements are designed to protect your interests and ensure that your tenants understand their responsibilities. We will work with you to create a lease agreement that meets your specific needs and includes all the necessary legal provisions.
Our Approach to Maintenance and Repairs
We understand that maintenance and repairs are an essential part of managing a rental property. That’s why we have a network of reliable contractors and vendors who can handle any maintenance or repair issues that arise. We also perform regular maintenance inspections to identify any potential issues before they become major problems.
Our approach to maintenance and repairs is designed to ensure that your property is well-maintained and in good condition. We handle everything from routine maintenance to emergency repairs, and we keep you informed every step of the way.
Our Competitive Pricing and Transparent Fee Structure
We understand that cost is an important factor when it comes to property management. That’s why we offer competitive pricing and a transparent fee structure. Our fees are based on a percentage of the monthly rent, and there are no hidden fees or charges.
We believe in transparency and will provide you with a clear breakdown of our fees and services before you sign any contracts. We want you to feel confident that you are getting the best possible service at a fair price.
Testimonials from Satisfied Clients
We are proud of the work we do and the relationships we have built with our clients over the years. Here are a few testimonials from satisfied clients:
“Working with this property management company has been a game-changer for me. They have taken care of everything from finding tenants to handling maintenance requests, and I couldn’t be happier with the service I have received.”
“I was hesitant to hire a property manager at first, but after working with this company, I can’t imagine managing my property without them. They have saved me so much time and stress, and I know that my property is in good hands.”
“I have worked with several property management companies in the past, but this one is by far the best. They are responsive, professional, and have helped me maximize my investment in ways that I never thought possible.”
Conclusion and How to Get Started with Our Rental Property Management Services
If you own an investment property in Portland (PDX) and are looking for a professional property manager to help you maximize your investment, look no further than our rental property management services. Our experienced team of property managers is dedicated to providing you with the best possible service and ensuring that your property is well-maintained and generating income consistently.
To get started, simply contact us to schedule a consultation. We will work with you to understand your specific needs and develop a customized property management plan that meets your needs and exceeds your expectations. We look forward to working with you!
Are you a real estate investor or property owner in Aloha, Oregon? Are you struggling to manage your properties effectively and efficiently? Look no further than Aloha, Oregon Property Management.
As a real estate investor or property owner, you know that managing properties can be a time-consuming and stressful task. That’s where Aloha, Oregon Property Management comes in. With their expertise in managing rental properties, you can sit back and relax, knowing that your investments are in good hands. Not only do they handle the day-to-day tasks of property management, but they also provide valuable insight and advice to help you maximize your returns.
In this article, we will explore why Aloha, Oregon Property Management is the key to your real estate success and how they can help you achieve your investment goals.
Benefits of Using a Property Management Company
As a property owner or real estate investor, it’s crucial to understand the benefits of using a property management company. One of the most significant benefits is their ability to save you time and reduce stress. Property management companies handle everything from screening tenants to handling maintenance and repairs, and collecting rent. This means you can focus on other aspects of your business while leaving the day-to-day management of your properties to the professionals.
Another benefit of using a property management company is their ability to help you maximize your returns. They have a deep understanding of the local real estate market and can help you set competitive rental rates, attract quality tenants, and keep your properties well-maintained. They also provide valuable advice and insights on how to improve your properties and increase your ROI.
How Aloha Property Management Can Help You Succeed in Real Estate
Aloha, Oregon Property Management is an experienced property management company that has been serving the Aloha community for many years. They offer a range of services designed to help property owners and real estate investors succeed in the local market. From tenant screening to rent collection, they handle everything so you can focus on growing your business.
One of the ways Aloha Property Management helps property owners succeed is through their tenant screening process. They use a comprehensive screening process to ensure that only the most qualified tenants are approved for your properties. This helps to reduce the risk of late payments, evictions, and property damage, which can be costly and time-consuming.
Another way Aloha Property Management helps property owners succeed is through their maintenance and repair services. They have a network of trusted vendors and contractors who can handle everything from routine maintenance to emergency repairs. This ensures that your properties are well-maintained and that your tenants are happy and satisfied.
Services Offered by Aloha Property Management
Aloha Property Management offers a wide range of services designed to help property owners and real estate investors succeed in the local market. Some of their core services include:
Tenant Screening: Aloha Property Management uses a comprehensive screening process to ensure that only the most qualified tenants are approved for your properties. This includes running credit and background checks, verifying employment and income, and checking references.
Maintenance and Repairs: They have a network of trusted vendors and contractors who can handle everything from routine maintenance to emergency repairs. This ensures that your properties are well-maintained and that your tenants are happy and satisfied.
Rent Collection and Accounting: Aloha Property Management handles all aspects of rent collection and accounting, including sending out monthly invoices, collecting rent, and providing detailed financial reports.
Property Inspections: They conduct regular property inspections to ensure that your properties are well-maintained and that your tenants are complying with the terms of their lease.
The Importance of Tenant Screening
Tenant screening is one of the most important aspects of property management. It helps to ensure that your properties are rented to responsible tenants who will pay their rent on time and take care of your properties. Aloha Property Management understands this and uses a comprehensive screening process to ensure that only the most qualified tenants are approved for your properties.
Their screening process includes running credit and background checks, verifying employment and income, and checking references. This helps to reduce the risk of late payments, evictions, and property damage, which can be costly and time-consuming.
How Aloha Property Management Handles Maintenance and Repairs
Maintenance and repairs are an essential part of property management. Aloha Property Management has a network of trusted vendors and contractors who can handle everything from routine maintenance to emergency repairs. This ensures that your properties are well-maintained and that your tenants are happy and satisfied.
When a maintenance or repair request is received, Aloha Property Management responds promptly and works to resolve the issue as quickly as possible. They keep tenants informed throughout the process and ensure that all work is done to a high standard.
Rent Collection and Accounting Services
Rent collection and accounting can be a time-consuming and stressful task for property owners and real estate investors. Aloha Property Management takes care of all aspects of rent collection and accounting, including sending out monthly invoices, collecting rent, and providing detailed financial reports.
They also handle any late payments or delinquencies and work to resolve any issues that may arise. This ensures that your rental income is collected on time and that your financial records are accurate and up-to-date.
How Aloha Property Management Can Increase Your ROI
Aloha Property Management can help you increase your ROI by maximizing your rental income and reducing your expenses. They have a deep understanding of the local real estate market and can help you set competitive rental rates, attract quality tenants, and keep your properties well-maintained.
They also provide valuable advice and insights on how to improve your properties and increase your ROI. This includes suggestions for upgrades, renovations, and other improvements that can help to increase the value of your properties and attract higher-quality tenants.
Choosing the Right Property Management Company for You
Choosing the right property management company is crucial to the success of your real estate business. When selecting a company, it’s important to consider their experience, reputation, and services offered. You should also consider their pricing and any additional fees or charges.
Aloha Property Management is an experienced and reputable property management company that offers a wide range of services designed to help property owners and real estate investors succeed in the local market. They have a proven track record of success and offer competitive pricing with no hidden fees or charges.
In conclusion, if you’re a property owner or real estate investor in Aloha, Oregon, and are struggling to manage your properties effectively and efficiently, look no further than Aloha, Oregon Property Management. They offer a range of services designed to help you succeed in the local market, including tenant screening, maintenance and repairs, rent collection and accounting, and more.
By using their services, you can save time and reduce stress while maximizing your returns. They have a deep understanding of the local real estate market and can provide valuable advice and insights to help you grow your business.
So why wait? Contact our property management company today by calling (503) 447-7788 or click here to connect with us online.
Tenant move-outs are a way of life for every landlord but what happens if a tenant doesn’t move out in time?
In this article, we will answer this question and offer you several tips on how to handle tenant move-outs when a tenant hasn’t moved out within 30 days.
What To Do If A Tenant Doesn’t Move Out On Time
It is incredibly frustrating when a tenant doesn’t move out in time. But to avoid these situations, it’s a good idea to find out why the tenant hasn’t left. Sometimes, the tenant doesn’t move because they need help finding a new place. Or they could be challenging an eviction notice.
Apart from the most delinquent tenant, it is usually possible to avoid situations where a tenant stays after the lease expires. Avoiding having holdover tenants in a rental unit can ensure you get regular rental income and avoid the cost and time of eviction hearings.
Here are a few reasons tenants don’t move out on time and what you can do about it.
Lack of clear communication with tenants
A common reason tenants don’t move out on time is a need for clarity in the rental agreement. The agreement should have a lease renewal clause stipulating what happens after a lease ends. Therefore, the rental agreement clarifies your expectations and what the tenant must do.
For example, the tenancy could become a month-to-month tenancy after the lease expiration date. Or you could state that the tenant must vacate the premises if they don’t renew the lease.
It’s also good to send advance notice that a lease renewal letter is approaching. This gives the tenant time to think about how they should act. And they have plenty of time to look for a new place if they plan on vacating the apartment.
Renew the lease early
You can often avoid holdover tenants by renewing leases early and giving them adequate notice. For example, although a 30 or 60-day notice is common, you could have a 90-day notice clause. This gives the tenant time to look for a new apartment during the current rental period.
However, always check with local and state rental laws about what constitutes proper notice.
The tenant ignores the lease expiration date
Some tenants chance their luck and hope to move to a monthly tenancy after the fixed-term lease ends. Even with months of notice, they may decide they love your unit so much they remain after the lease expires. But how long can they stay after the lease expiration date?
You have two options. First, you could let them become holdover tenants on a month-to-month lease. This may be possible if they are responsible tenants. However, your ultimate aim should be to renew a formal lease.
The second option is eviction. After the lease expires, you should send a notice to quit. Then file an eviction order at the local court and stop accepting rent payments.
The tenant disagrees with the eviction notice
The worst-case scenario is when a holdover tenant ignores the notice of eviction. They may have appealed the decision and refused to vacate the premises. In the first case, you must wait on the court ruling. However, if they don’t leave after a final decision, you can call the local sheriff and forcefully remove them.
How to Remove a Holdover Tenant
Removing a holdover tenant is a challenging process. But it must be done if they don’t move out on time after their lease has expired. Depending on the reasons for holding over after the lease expiry, you have several options, ranging from a friendly chat to a complete eviction.
Ask them to leave
Communication is always the first step when resolving issues with problematic tenants. Explain the lease terms, the notice you gave them, and any other relevant facts. Because staying after the lease expiry date is a violation, you can start eviction proceedings.
Most tenants realize an eviction is a black mark on their rental history, making it harder to find a new apartment. Additionally, seeking debt collection for unpaid rent could remain on their credit report for seven years and hit their credit score.
Depending on the tenant, you could ask them to leave within a few days. Or you could offer a tenancy at will for one month while they organize their affairs.
Cash for keys
You can offer a tenant “cash for keys” to leave if they don’t move out on time. This involves proposing to give them a cash sum if they turn over the keys on a specific date. The cash incentive could get the tenant out fast, avoiding a lengthy and costly eviction process.
How can you get a holdover tenant out with a “cash for keys” offer? Here are a few tips:
Start with a lowball offer of around 10% of the monthly rent
Arrange a date they will move their belongings out
On the arranged date, inspect the property and ask them to resolve any property damage or cleanliness issues
When you are satisfied everything is in order, get them to sign a document relinquishing their tenancy
Hand over the cash
Change the locks immediately
Remember, even with a cash-for-keys resolution, and you must still return the security deposit in line with state laws. For example, if necessary, you can deduct unpaid rent or the cost to repair property damage.
While this resolution is unfair to you, it can help resolve problems with bad tenants fast.
Evict the tenant
Eviction is the last resort when a tenant doesn’t leave the property on time. Unfortunately, evicting a delinquent tenant is the only legal way to remove them forcibly from the rental unit. In some states, you can file for eviction immediately without the specific notice to quit period.
However, it is crucial to refuse attempts by the tenant to make rental payments after the lease expiry date. This removes the tenant’s right to benefit from a tenancy at will or other holdover tenancies.
Unfortunately, the entire eviction process is long and drawn out. But if you have all paperwork in order, you can soon see the back of your bad-apple tenant.
Things you cannot do if a tenant doesn’t move out on time
When a tenant refuses to move out on time, you must ensure you are not guilty of illegal eviction. Here are some things to remember that you cannot do while waiting for a holdover tenant to leave the unit:
Harass, threaten, or use force to get the tenant to leave
Change the locks without their consent
Refuse to make necessary repairs to keep the property inhabitable
Arrange a self-help eviction
Shuf off utilities
Increase rent as a retaliatory measure for not renewing a lease in time
Enter the property and remove their personal belongings
What if they are paying rent?
Getting a tenant with an at-will tenancy out of your property may be necessary. However, as long as they pay rent, the lease is active. Therefore, you must determine state laws about evicting holdover tenants paying rent.
In some cases, you cannot evict without cause. In that case, you must wait until the informal lease expires, or they get behind on rent.
What if they aren’t paying rent?
Not paying rent is a lease violation and gives you a reason to file for an eviction hearing. If you want them out of the property, start eviction proceedings. First, however, you must give the delinquent tenant proper notice. Again, state laws regulate the appropriate notice you must serve.
What if their lease has expired?
Determining how to act with a holdover tenant depends on individual circumstances. For example, you could continue to accept rent and then get them to sign a new lease. However, if they refuse to go and won’t pay rent, then you must evict them.
Remember — consult with the rental agreement and state laws before evicting a tenant after the lease expires.
What if there is no lease agreement?
A tenant without a lease agreement is considered a “tenancy at will.” In this case, you can terminate the informal tenancy at any time. Unfortunately, this doesn’t mean removing the delinquent tenant from the rental unit will be easy. According to state laws, you may have to serve a 30-day notice. However, some states require a 7-day or even no notice.
Dealing with a tenant who doesn’t move out in time can be frustrating. But, in most cases, clear communication and a well-written rental agreement can stop holdover tenants from becoming an expensive and time-consuming issue to resolve.
However, whether the tenant pays rent, you must always follow state laws. Therefore, seek legal advice and follow proper procedures to avoid potential legal issues with a holdover tenant.
