If you are already involved in Park City property management you may have heard of SB 167, a law passed by the Utah legislature in 2011. This law has strong implications if you own a property that is part of a condominium association. Today I will cover the basics of the law and how it is applied and then share an experience I have had since this law was instituted. If you participate in Utah property management you should consider additional research into this law and, as always, I am not an attorney and this should not be considered legal advice. Let's begin.
SB 167 And Insurance
In speaking with attorneys that represent condominium associations and work in Utah property management law they have described the reasoning behind the legislature passing this law as a preemptive measure to avoid problems occurring in other states. Prior to this law being enacted insurance claims were handled in a different manner. In the example of a fire in a condominium building the property where the fire began and the person responsible would file a claim for their property, the condominium association would also file a claim, and the two insurance companies would determine who paid for what. As you may already be able to tell this could lead to problems, particularly when determining fault and which entity is responsible for what parts of the building. The Utah legislature noted that this problem was occurring with condominium properties in other states and took action to define clearly how these problems would be handled in Utah.
Primary Policy
SB 167 establishes a condominium insurance policy as the primary policy for all claims, regardless of cause or fault. It doesn't matter if Billy Bob and Suzie start a grease fire in their kitchen and the building burns down, the association's insurance is first in line for claims. The 
law also establishes that any property owner or owners involved in a property loss must pay the deductible for the association policy. If there are multiple properties involved in a single event of loss then the cost for the deductible is split between the multiple owners based on the percent of damage that occurred in each property. For example: $100,000 worth of damage occurred at a condominium association involving three separate properties, and the percent of damage is split 55%, 30%, and 15% respectively. The property owners would be responsible for 55%, 30%, and 15% of the deductible for the association and the association insurance would cover the rest of the $100,000. If you have a condominium property in Utah and participate in Park City property management make sure you are aware of the deductible for your condominium association.
Problems With The Law
Unfortunately this law is not without its problems. A recent incident at a condominium association I manage highlights a problem with this law. A drain line in a property on the third floor of a building became detached from the main drain for the building. The drain line only serviced the third floor property and was therefore the responsibility of that home owner per the condominium rules and regulations. This drain line was connected to the kitchen sink, dishwasher and washing machine so whenever these were used water would flood into the second and first floor properties. A claim was submitted to the condominium insurance but the total cost for repair came to around $3500, well below the $10,000 deductible for the condominium insurance. The cost for repairs for the second and first floor properties were then the responsibility of the property owners themselves, even though the cause was another owner who had no water damage in their property. Instances like this stress the importance of having insurance on a property even though there may be a condominium insurance policy in place as well. Park City property management professionals should be well aware of this possible scenario.
If you would like to learn more about property management Park City Utah download our free white page "5 Questions Every Landlord Should Ask Themselves".
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Most landlords are aware that they are liable for certain conditions in their property. For example if a tenant reports a broken stair, the condition is not remedied in a timely fashion, and the tenant subsequently injures themselves on the stair, a landlord would be held liable for the injuries sustained by the tenant. There are however other items a landlord may be held responsible for that most people are not aware of. This information can be beneficial to all property owners who participate in Park City property management.
Criminal Activity
A landlord has a responsibility to protect tenants from criminal activity through reasonable methods. If a landlord is aware of certain types of criminal activity they are obligated to take steps to reduce the crime. Things like proper locks on doors and windows, motion lighting outdoors and security systems are ways in which a landlord can help make a property less likely to be the target of criminals. If a landlord has been notified of a dangerous condition like a broken door lock of outdoor light, they must make a timely and complete effort to remedy the problem. If any suspicious activity is reported to a landlord the best response is to call the local law enforcement agency and alert them to the issue. Landlords have some responsibility to protect the community from the dangerous or criminal activities of their tenants. If a landlord is aware of criminal activity being carried out by his or her tenants they should contact the authorities and proceed with an eviction. Particularly if there is any type of distribution or manufacture of drugs by a tenant then law enforcement and civil authorities can impose fines or seek criminal penalties against a landlord for failing to have tenants removed from a property. Problem tenants can be avoided by running a thorough credit and criminal background check, calling references, and not renting to individuals that have a history of criminal activity. If you are involved in Park City property mangement make sure you take these steps before renting to an interested party so you can avoid possible headaches and legal problems.
Secondhand Smoke
First it should be known that secondhand smoke is considered a nuisance if the smoke travels from one property to another or from outside a property into it. It can even be seen as violating habitability laws, particularly if the resident affected by the secondhand smoke has any type of breathing issue or disability. I wrote a post that dives into this a little deeper, it is titled "Nuisance! Definition And Info For Park City Property Management", you can click here for more info. If a resident complains to a landlord about secondhand smoke and nothing so done to remove or reduce this nuisance than a landlord
may be liable. Particularly if you have a disabled tenant then you could be subject to the Fair Housing Act or the Americans with Disabilities Act. If you would like more information on the Fair Housing Act and how it applies to Park City property management you can click here to view my post "Fair Housing And Park City Property Management: Are You At Risk?" The best step for a landlord is to not allow smoking at all in their property. If they do receive a complaint of smoking, take the proper steps to solve the problem. This can protect a landlord against further liability and keep the tenants happy.
Other Items
If a landlord willing allows a dog they know to be dangerous to reside on a property they could be found liable if the dog attacks someone. Landlords are also liable to bed bugs in the property. If they are found the appropriate steps need to be taken to ensure they are eradicated. Landlords can also be liable for features of a property that can be dangerous to children, like low windows that do not have a protective railing. As a landlord you should proactively look to make your place safe for a tenant and respond quickly to any complaints or problems that occur.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
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In a previous article titled "Stigmatized Property - Info From Property Management Park City Utah" I wrote briefly about the idea of a stigmatized property and that contamination through drug use or manufacture, including methamphetamine or meth, puts certain requirements on the owner or landlord of a property. For the full text of that post you can click here. Today I would like to talk a little more about meth in particular and some of the laws regarding Utah property management. This is of course not designed to be any form of legal opinion. I am not an attorney and if you require further information for your Park City property management needs you should consult with an attorney licensed in the state of Utah.
Methamphetamine
Meth is a highly addictive, man-made substance that has been around for several decades. It can be made or "cooked" in small laboratories from household chemicals. These chemicals are dangerous to the environment and people in general. Meth can be introduced to the body by injection, ingestion, smoking or snorting. The two most common methods are injection and smoking, with smoking being the most damaging to a property. Fortunately for most property owners and landlords the cooking of meth has been in decline in Utah over the last decade. Meth use however continues to rise. The production of meth involves toxic and flammable chemicals that can leave a significant residue in a property where meth is produced. Smoking meth in a property also produces this residue on walls, ceilings, floors, ventilation ducts, essentially every place it contacts. If you have reason to believe meth is being used or cooked in a property you manage you can have the property professionally tested. You can find a list of state approved testing companies here.
Decontamination
Once meth has been discovered in a property a complete decontamination must take place. It is necessary in the leasing or sale of a property to disclose meth contamination. If there has been police action along with the property being identified as a meth lab, or if the property tests positive for meth decontamination is required. The rules and procedures for decontamination are lengthy. There is a state wide standard known as State Rule 392-600. This rule serves as the basis for all meth decontamination in the state. Local health departments also have a say in any additional procedures required for meth decontamination so check with your local health department as well. Decontamination can be carried out by a specialist or the owner of record for the property. If an owner undertakes decontamination they must follow all the state rules including conducting an assessment, submitting a work plan, following all required procedures for decontamination and disposal of material, and confirm that any remaining meth traces are below the standard set in State Rule 392-600. If you would like to read the full text of the rule you can do so here.
Help For Landlords
The Utah Department of Health has produced a useful FAQ sheet for landlords that offers brief explanations of what methamphetamine is, the responsibilities of a landlord, a checklist detailing potential signs of meth use or production, methods of testing for meth, and information about State Rule 392-600. You can find this helpful FAQ sheet by clicking here. As I stated earlier landlords are fortunate that the rate of meth production has declined steadily over the last decade. Meth use continues to rise and does pose a potential for property damage depending on the amount used by a tenant as well as the method. Property owners who are involved in Park City property management should call local law enforcement if they suspect their tenants are using or producing methamphetamine.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
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Although generally infrequent, situations where a tenant abandons a property can occure, and for a variety of reasons. In today's blog post I want to give you some of the basic information on Utah property management law regarding abandonment and abandoned premises. Along with that basic information I will provide links to the Utah code so you may continue your research further. This should help any landlord make informed decisions in their Park City property management business.
Abandonment
There are specific requirements in Utah property management law that must be met before a property can be declared abandoned by a tenant. This is so that mistakes on the part of a landlord, for example a tenant taking a long vacation or being away on a business trip, can be avoided. Abandonment can be presumed in one of two ways, depending on whether or not the tenant's property has been left behind. Let's take a look at abandonment with personal property left
behind. The first step in determining abandonment is if the tenant has not notified the landlord that they will be absent from the property. Second the tenant has to have failed to pay rent within 15 days of the date rent was due. And third there is no reasonable evidence, beyond the presence of the tenant's personal property, that would indicate the tenant is still living in the property. The second method for determining abandonment when a tenant's personal property is not present is slightly different. Again, notice of the tenant's absence from the property has not been given. The tenant then fails to pay rent when it is due, the tenant's personal property has been removed from the premises, and there is no reasonable evidence the tenant is occupying the property. If either of these conditions are present the property is considered abandoned and certain actions can take place.
Abandoned Premises
Once a property has been determined to be abandoned the property owner can begin to move forward with getting the property rented again. Utah property management law allows for the owner of a property to remove any personal property left behind by a tenant but requires that 
the items be stored for 30 days. A tenant who abandons a property can also be held accountable for the remaining rent due to the terms of the lease or for rent accrued during the time at which the property is vacant. If the property is re-rented at a fair market value and this is less than the amount specified in the tenant's lease the tenant will also be responsible for the difference. If there is any damage to the property above normal wear and tear then a landlord can include any repair costs in the amount a tenant owes. A landlord can also charge reasonable moving and storage fees for any personal property that must be kept for 30 days. The landlord must make a reasonable effort to inform the former tenant of the location of his property but if, after 30 days, the property is unclaimed the landlord may sell the property to offset their costs or donate the property to a charity.
Summary
It is important for a landlord be proactive if he has reason to believe a tenant may abandon a property. Things like frequent rent payments, asking to be released from a lease, and talks of job transfer are all clues that a tenant may be on the way out. Stay in contact with your tenant. If they leave stuff behind you have to wait the 15 days, if they don't you should move quickly to get your property rented to somebody new. These simple tips will help you in your Park City property management. For a full text of the applicable laws click here.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
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In perhaps one form or another I have previously talked about different types of tenants. It can be difficult to search through several articles to piece together this information so I thought it would be good to write on article about the four different types of tenants in Park City property management.
1. Estate For Years
When people think of tenants they are most likely thinking of the first type of tenant, known as "estate for years". Far and away the most common type of agreement involving real property, estate for years is a leasehold agreement on a property with a specific beginning and end date. The most common estate for years is a one year lease on a property but there is actually no requirement for the term to even be a year. The criteria are simply a beginning and end date. Leases may vary but estate for years does not require a notice to terminate as the lease already has an end date. Whether for a month, year, or many years, estate for years covers the majority of tenants and landlords in Park City property management.
2. Periodic Tenancy
Periodic tenancy is often referred to by the type of period it is based on, month-to-month being a common example. In periodic tenancy the lease continues from one term to another automatically, whether week-to-week, month-to-month, or year-to-year. The lease will continue to renew indefinitely until one party terminates it at the end of the specified period. Many estate for years leases revert to a periodic tenancy at the end of the term, an example being a year lease that becomes month-to-month after the year has ended. In a month-to-month tenancy the lease may only be terminated at the end of the month. Many leases spell out the type of valid notice of termination that must be provided, along with a required number of days prior to termination that the notice must be provided. Many leases will require 30 day notice of termination. If the termination is unspecified Utah property management law requires a 15 day notice.
3. Tenancy At Will
Tenancy at will is, as it sounds, an at will agreement between two parties involving real property. There is no specified term, period, duration, or termination requirements. In tenancy at will the lease can be ended at any time, be either party, with or without the agreement of both parties. Generally there is not a written document in a tenancy at will situation, as a written document or lease will generally spell out terms that would classify a tenant as either estate at years or periodic tenancy. An example of this would be allowing your younger sibling to live on the basement of your home. The sibling is a tenant at will, there is not specified term (perhaps to the consternation of your spouse), and the tenancy can be terminated at any time without notice by your sibling moving out or you spouse letting you know, in probably more colorful language, that they have had enough.
4. Tenancy At Sufferance
Tenancy at sufferance is a very limited type of tenancy that only occurs in specific instances. It could really be considered a transitional phase. Tenancy at sufferance exists when a tenant is "held over". A hold over tenant occurs when the lease has ended and a renewal has either not yet been offered by the landlord, or the landlord is unwilling to renew. The tenant is still remaining in the property and is thus a tenant at sufferance. At this point the landlord will either offer a renewal of the lease agreement to the tenant or proceed with an eviction of an unwanted tenant.
If you are interested in learning more about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".
If you have leased a rental property as either a landlord or a tenant you are probably familiar with the term "nuisance". I would like to take some time to explain what a nuisance is legally defined as in Utah and also how the rules of a community or home owner's association can play a part in defining a nuisance.
Nuisance
Utah law defines a nuisance in two ways. The first definition describes a nuisance as "anything which is injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property". The second description of nuisance lists several criminal activities. Let's take a look at those first.
Criminal Activity
This may seem somewhat obvious but types of criminal activity can also be classified as a nuisance. Drug dealing our property being used as a drug house; gambling; criminal activity associated, for the benefit of , or at the direction of criminal street gangs; criminal activity committed to gain membership, increased status, or acceptance in a criminal street gang; and prostitution are some of the offenses specifically mentioned in Utah law to constitute a nuisance. The law also states that nuisance may be subject to action by a landlord against a tenant. 
Non-Criminal Activity
Non-criminal activity deals more with the first definition of of nuisance: things that are injurious to health, indecent, offensive to the senses or somehow interfere with the free use and comfortable enjoyment of the property. Utah law also specifically lists two other non-criminal activities that can be considered a nuisance: party houses that frequently create the conditions mentioned above and "tobacco smoke that drifts into any residential unit a person rents, leases, or owns, from another residential or commercial unit ..... more than once in each of two or more consecutive seven-day periods" and creates the conditions described above. Partying and smoking are fairly obvious nuisances and in general things like loud music, pounding on floors, yelling, dogs barking non-stop, and general disregard for your neighbors could be considered a nuisance. However I would like to give an example of something that could be considered a nuisance but should be given some reasonable consideration. 
Let's say your upstairs neighbor has decided to tear out and replace the flooring in his property. He has decided to install tile that is in accordance with any community rules that may apply to flooring, he has pulled all necessary permits for the work and he is obeying any local quiet hours or noise ordinances. During the course of the work he uses a tile saw. Tile saws are extremely loud and could easily be described as "offensive to the senses" or can "interfere with the comfortable enjoyment" of your property. Is it reasonable to consider this a nuisance and pursue some action against it? In instances like this reasonable judgment should be used.
Community Nuisance Rules
Many communities or home owners associations also have rules about nuisances. If there is a Park City property manager they would be the first contact to get further information on nuisance rules in the community. General the governing documents of an association will contain a blanket statement that explains that any act or omission whereby any rule or provision of the governing documents is broken constitutes a nuisance. Most communities will also have specific rules regarding quiet hours, parking, pets, use restrictions on a property, etc. It is your job as a responsible landlord or tenant to make yourself aware of these rules and do your best to follow them. I would also recommend that if you think something you are doing could possibly be a nuisance reach out to your neighbors, landlord, or property manager and proactively work towards a resolution. For more information on Utah law you can click here.
If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
Park City property management can become very confusing when examining the legal aspects so I have created these 3 legal tips for landlords that cover issues I commonly see people get wrong. This is not meant to be a long or exhaustive description of the laws surrounding property but rather the basics that a landlord is likely to encounter during the usual management of a rental property. Should you need further information or more specific legal advice you can consult the sources I list at the end of this blog or contact an attorney specializing in property management.
1. Entering A Property
I have seen both extremes when it comes to entering a rental property. From a property owner who manages their own property and will go in whenever they want because "It's my property!", to owners who buy investment property, hire a Park City property management company, and never set foot in their property. Whether entering a property to perform maintenance work, touring a prospective tenant while the property is still occupied, or a general property check there are basic legal guidelines in place. In most instances a landlord is legally obligated to provide a tenant with 24 hour notice before entering a property. A best practice would be contacting a tenant directly and scheduling a time however a notice left on the door will also fulfill this requirement. The only time it is appropriate for a landlord to enter a property without notice is in the event of an emergency. As a landlord you should realize that once a lease is executed you give up the right to enter your property whenever you would like. Respect your tenants and they will respect you and your property.
2. Changing The Locks
How many times have you heard the threat "I'm going to change the locks!" made when
talking about Park City property management? Perhaps you may have even said the same, or at least
thought about it when a tenant is being problematic. If a tenant is not paying rent, is creating a nuisance in the community or engaging in illegal activity on the premises, or if the tenant is damaging the property you may feel it is your right, as a property owner, to change the locks. The truth is locks can only be changed by the landlord in very limited and specific circumstances and a court order must be obtained first. In fact, should you change the locks without a court order a tenant can contact the police and you could end up in a lot of trouble. Most landlords will not contemplate changing the locks without some cause for doing so. In this case the first step a landlord must take is a 3 day notice. This notice can take the form of a 3 day to pay or vacate in the case of unpaid rents or a 3 day to comply or vacate in the instance of behavior that violates the lease agreement. The key for a landlord is quickly posting a notice if your tenant has violated the terms of the lease agreement. At this point a tenant will either realize you are serious and get with the program or if they do not you have begun to take the proper legal steps to get them removed from the property.
3. Handling A Deposit
How quickly do you have to return a tenant's deposit? Is it upon move out? A week after move out? Never? What can and can't you charge a tenant for? These are all good questions to ask yourself when it comes time for a tenant to move out. And if you don't know the answers you should start doing some research. Utah property management law provides for a 30 day window after tenancy ends or within 15 days of receipt of the tenants new address, whichever is later. A tenant can be charged for any damages beyond reasonable wear and tear, cleaning, and other items provided for in the lease. In the event that there is damage above reasonable wear and tear then receipts for all work must be provided to the tenant explaining why this amount was deducted from their deposit.
If you would like more information about property management Park City Utah, download our free white page "5 Questions Every Landlord Should Ask Themselves".