The Lease

A lease is the written legal agreement between a tenant and landlord, property manager, or property owner. Be careful when dealing with any legal document, as they represent binding terms. Certain information is necessary within the contents of the lease document, but sections can be tailored to match your (the landlord’s) specific preferences and that of the property. At Jason Cohen Pittsburgh, we know the importance of this document and cannot stress it enough. It is the basis for what youyou’re your tenant expect from one another. The Internet houses an abundance of sample leases, which you can use either as guides to write a tailored lease. A lawyer can also draw up a lease for a nominal fee.

The required sections of a lease are:

• The parties involved
• Property location
• Lease term
• Rental amount
• Acknowledgment or signature

The first section, parties involved, is simply a clarification of the names of the tenant and the landlord.  The property location should be listed in as detailed a description as possible. Include the unit number with the street address. The lease term should include the date that the tenant can take possession of the property and when she/he will have to vacate or renew the lease. The rental amount can be listed as a weekly, monthly, or annual fee — monthly is most common. Lastly, the lease must be signed by the tenant and the landlord, property manager, or property owner to be valid.

Within the section of the lease including the rental amount, it is advisable to detail additional terms. The deposit amount should be clearly stated in this section. The circumstances in which the deposit can be used can be explained in a separate section. The late payment policy can be included with the rental amount, or it could have its own addendum. The latter is more common.

Although a pet policy is not a necessary section in the lease, at Jason Cohen Pittsburgh, we advise you to include it in as much detail as possible. If an additional deposit is required for pets, describe it in this section. If pets are allowed, detail the types and sizes of the allowed and restricted pets. Consider all types of pets — from mice and hamsters to cats and dogs. Even take into account exotic pets, such as lizards and monkeys — you never know what you’ll encounter renting out a property. While many people do not consider fish a problem when it comes to rental unit, the size of aquarium should be limited to what the floor can support. Research the types of pets that residents may have before writing this section to be sure to cover all situations. Of course, the pet policy can be a simple “no pets allowed, ” but you may find the tenant pool shrinks with this strict rule. 

Sometimes a tenant will allow friends or family to visit or stay for an extended period. You can choose to include a section limiting the time that a guest can stay. Fifteen days is a common term for a guest. Detail the circumstances in which this can be allowed. For instance, a tenant caring for an ailing mother in the apartment can be viewed differently than a friend crashing on the couch for six months. Punishments for breaching this rule can either be listed in this section or in a section allotted to breach of contract for any reason. 

The words written in a lease agreement can be as important as the tenant’s signature. Including the mandatory parts of a contract make the agreement legal. Adding additional sections tailored to the property and your preferences will minimize issues later on in the renting process. 

Eviction 101: For Property Managers

As a property owner, you know that it is very important to find the perfect residents for your rental properties. Have you ever stopped to think, what happens if I was wrong? Just how hard is it to get a bad tenant out of my rental unit? While it varies from state to state, in most cases the process of eviction is long and arduous. Jason Cohen Pittsburgh knows how to protect yourself and your company while also maintaining the rights of your tenants by following several rules.

Even before you have a resident, you must consider eviction and the process of eviction. When creating the lease agreement, include sections explaining when and why you, as the property owner, have the right to evict a tenant. A violation of the rules and regulations in the lease is a reason to begin the eviction procedure. Obviously, failure to pay rent and regular late payment are two major reasons to evict a tenant. If the tenant is willfully destroying the property, you also have a case for eviction.

The first step in the process is giving the tenant written notice. If the reason for eviction is failure to pay rent, or breaking the lease by having an illegal roommate or pet, you may want to serve a “Notice to Quit” in place of the eviction notice. A “Notice to Quit”, allows the resident a period, such as 10 days, to correct the wrong. If the tenant has broken the lease to the point that a correction will not be offered, the tenant must be given a 30-day notice to leave if the lease is for a year or less. A 90-day notice is issued for leases that are longer than a year. This notice must include certain information in order to be legal — the date of the notice, the name and address of the tenant’s rental unit, the reason for the notice, the time period for correction, the date of eviction, and a statement detailing how the notice was given to the tenant. If essential information is omitted, the notice is not valid and the process must start over.

Rules are in place for getting the notice to quit or evict to the tenant as well. Oddly, you cannot mail this notice. The property owner or a representative at least 18 years old can deliver the notice. If it cannot be given directly to the resident, the notice can posted on the tenant’s door of the rental unit or somewhere else where the tenant will be sure to see it. Be sure to make sure it is conspicuous.  The notice cannot be hidden, covered, or placed in the mailbox. If the notice is not delivered properly, the notice is not valid and the process must begin again.

The next step depends greatly on the resident’s reaction to the notice. If the notice demanded a correction to illicit behavior and the tenant corrects this wrong, the tenant cannot be evicted. For example, if the notice gives the tenant 10 days to pay the late rent, and the tenant pays the rent, the tenant cannot be evicted. This also holds true for illegal pets or roommates. If a correction was not offered, the best-case scenario is that the tenant vacates the premises within the notice period. 

If the resident does not comply with the eviction, the property owner must file a complaint. The complaint will result in a hearing. Until the hearing is held and the decision is made, the tenant will still be in the rental unit. At this point, the tenant can file a counter-complaint, which will also be considered at the hearing. If you, as the landlord, win the case, you will receive a judgment for possession. However, you must wait no less than 15 days to have a constable or sheriff give the resident an “Order for Possession”.  Issuing an “Order for Possession” informs the tenant that, after a set date on the notice, the constable or sheriff will forcibly remove the tenant and the belongings from the unit. The set date must be at least 15 days from the notice.

When reviewing the procedure for eviction, it can be shocking how long it can take to remove a problem resident. Even though the procedure does not seem fair from a landlord’s perspective, it is the law. In order to avoid these proceedings, Jason Cohen Pittsburgh knows that it is essential to find the proper residents.

The Face of an Apartment Resident

The face of an apartment resident cannot be pinned to any certain statistic. Apartment renters range in age, income, and household size. When renting, you can choose from apartment complexes with multiple units, duplexes, and single-family houses. Of course, each of these options has its benefits and drawbacks. At Jason Cohen Pittsburgh, we try to diversify our investments to accommodate the preferences of a variety of tenants.

Most apartment residents will stick to one type of units throughout their rental experiences. Those who find convenience in an apartment complex will generally stay with that type of accommodation. The upkeep in apartments in complexes tends to be minimal, thus ideal for those with little time to spare. While a duplex or single-family household may require the residents to clear the sidewalks in the winter and mow the lawn in the summer, apartment complexes have dedicated employees for these tasks. These factors may contribute to why 43% of rental households are in apartment complexes.

Out of the 122,500,000 households in the United States, 35% (or 43,018,000) are rental units. The rest of the households are considered owner-occupied. The vast number of renters in this country adds to the convenience of many options associated with renting. 

The majority of apartment residents are under the age of 35. This is not to say that other age groups do not rent.  In fact, more than 7 million people renters are over the age of 60. Renters under the age of 30 are more likely to move from year to year while older renters are more likely to stay in one place. This trend is most likely because younger renters tend to graduate from school, and get job or change jobs that may require them to move. The changing priorities demand that the younger renter move more often.

The largest demographic of apartment residents are those who live with unrelated people. Close to 50% of rental households are made up of nonfamily members living together. This figure combined with the 26% of renters that live alone, make single people the largest group of renters.   

The income of renters can be broken in to three categories — Affordable Housing renters, Middle-Income Renters, and Lifestyle Renters. Those in the Affordable Housing category make less than $20,000 a year and may or may not receive some sort of housing assistance. The Middle-Income Renters make between $20,000 and $49,999. Many of these apartment residents cannot quite afford to buy a house without saving and may choose not to buy now, if ever. A new and growing demographic, the lifestyle renters make $50,000 or more a year. These apartment residents have made the choice to rent and not buy. Many in this group may have owned a house at one point in their lives but have downsized due to an empty-nest. The three groups each comprise almost equal portions of the rental market.

Renting is a way of life for many. Young and old choose to live in a rental unit free of the stresses of home-ownership. The face of an apartment resident is the face of everyone you see. For more information on renting apartments, visit the Jason Cohen Pittsburgh site.

The Pros and Cons of Renting to Section 8 Tenants

Sure, there are the horror stories of tenants turning your property into a veritable house of horrors, but renting to Section 8 tenants can have advantages. The U.S. Department of Housing and Urban Development runs this financial assistance housing program to help low-income families afford rentals. As with any demographic, there are risks and rewards to renting. At Jason Cohen Pittsburgh, we believe in thoroughly researching a program before either writing it off or diving in headfirst.

Pro: Rent comes in on time via direct deposit

Since HUD is responsible for the payments, rent is automated and deposited to a landlord on time every month. The federal government does not have medical or education expenses or vacation plans that make monthly payments late.

Con: Inspections

Local Public Housing Authorities conduct frequent inspections in 13 aspects of the property that must all meet their standards.

Pro: HUD takes care of payments if a tenant cannot

Even if a resident falls into unemployment, HUD will cover the rent until work is found.

Con: Lack of security deposits

The vouchers that HUD supplies for monthly rent payments do not cover security deposits. Obtaining the deposit directly from the tenant can be challenging, but it should be an essential step towards ensuring the state of your investment.

Pro: Higher profit margins

Because of the government assistance, you can charge more monthly rent in lower-income neighborhoods where properties are much cheaper to purchase.

Con: Limits on voucher amounts

Although you could receive more money in rent from HUD if you were to rent to non Section 8 tenants in the same depressed area, there are also limits on how much rent the government will pay each month. HUD calculates Fair Market Rents annually and allots voucher amounts based on those while factoring in number of bedrooms and condition of property. Even if your property is immaculate, there is a limit on how much HUD will pay.

Pro: Free marketing

Tenants are relatively easy to find by listing your property on the Section 8 web site. Keep your marketing costs low by containing your advertising on a free government site.

Con: Stigma

While you may not have any trouble renting your HUD-assisted unit, you may have issues renting other units in your building due to the stigma attached to Section 8 tenants. Even if the conception that Section 8 tenants are unruly is wholly untrue, it is still enough to drive other potential renters away from your property.

When dealing with Section 8 and any other tenants, screening potential renters is extremely important. If you are worried about the wear and tear that is often (whether fair or not) associated with HUD-assisted tenants, the onus is on you as a responsible landlord to thoroughly screen all applicants. At Jason Cohen Pittsburgh, we cannot endorse Section 8 housing either way. It is up to you as a landlord to decide if the pros outweigh the cons.