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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I would like to share an experience that can apply to both landlords and tenants regarding who is on a lease. Whether you are a tenant or landlord you hopefully are using a written lease prepared by an attorney. But a sometimes overlooked area is the named parties in the lease; specifically all individuals, over the age of 18, who will be occupying the property. In Park City roperty management having every adult who will reside in the property named on the lease is a very important step to take for both landlords and tenants.
Tenant At Will
Tenancy at will can arise from a few different sources. For example a tenant named on the lease has allowed another person to reside in the property without permission of the landlord. This person who does not have permission from the landlord is a tenant at will. A guest at the property who refuses to leave or a tenant named in a lease whose lease has expired would also be termed a tenant at will. A final example would be a prior owner who continues to reside in a home that was purchased by another party in a foreclosure. For this post the important examples are the first two, a resident without permission for the landlord and a guest who won't leave. 
A perfect example of how things can go wrong in these situations would be a tenant named on the lease invites a person to live with them, either as a roommate, boyfriend/girlfriend, or similar arrangement. For whatever reason the living arrangement doesn't work and the tenant named in the lease decides to move out. This leaves the tenant, the landlord, and the current resident in a difficult situation. The tenant is still responsible for the terms of their lease, the landlord now has a property that is occupied by a person without a lease and the resident does not have any written agreement about their rights to the property.
Unlawful Detainer
A tenant moves from a state of tenant at will to unlawful detainer when a landlord takes action to have them removed from the property. Possible causes for action on the part of the landlord can come from a tenant not paying rent, or the landlord not wanting to renew a lease to a
tenant or allow them to rent on a month to month basis. The landlord must then post either a 3 day pay or vacate notice in the case of unpaid rent or a 5 day notice to tenant at will in the case of a landlord not wanting to renew. Once the notice has been posted and the alloted amount of time has passed if the tenant still remains in the property they are considered to be in unlawful detainer. In the example I shared above perhaps the landlord has determined that the individual remaining in the property would not make a suitable tenant or the tenant named in the lease or the remaining person are not willing or able to pay rent. The remaining individual would then be in a state of unlawful detainer.
Treble Damage
I know what you're thinking and yes, "treble damage" would make a good name for a punk rock band. However treble, in this case, has nothing to do with music. Under Utah law a landlord is able to claim treble (or triple) damage in an unlawful detainer. Damages that can be trebled, or tripled, include rent, damage caused by the tenant (in court these damages are refered to as "waste"), and the abatement (getting rid of) of any nuisance caused by the tenant. Attorney's fees can also be included in a judgement however they cannot be trebled. If you, as a tenant, find yourself in an unlawful detainer the best decision you could make is to quickly pack up your belongings and leave. Don't put holes in the walls or an other unnecessary damage as this can come back to hurt you in a court case. For landlords in an unlawful detainer it is recommended to keep accurate records for rent, waste and abatement in the event your case does go to court. Mistakes on a landlord's part could lead to a case being thrown out. In eviction cases it is always recommended that you consult an attorney familiar with your state laws or engage the services of a Utah property manager who has a working relationship with an attorney.
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".
In a previous blog, 3 Tips For Successful Residential Property Management, I briefly touched on the Fair Housing Act and some possible consequences to getting sideways with Uncle Sam. In this blog I would like to go over the act in a little better detail as I feel this is something that many people have heard of but know little about. In particular how this act relates to rental property management is something every landlord should be aware of.
The Fair Housing Act
Passed in 1968 the act prohibits discrimination in the sale, rental, and financing of property to any individual based on race, religion and national origin. An update to the law in 1974 included gender to this list. Most people would view the discrimination against these four classes as an obvious no-no but an update to the law in 1988 created two new classes you might not know about.
Handicap
We are all familiar with the ubiquitous handicap parking signs but handicap or disability is also a protected class when it comes to rental properties. For example if you set a no pets policy at your rental property, or if your property is part of a condominium association that does not allow pets, you cannot refuse to rent to a blind person who uses a Seeing Eye dog. Also a landlord cannot prohibit a disabled tenant from making, at their own expense, reasonable modifications to the property that will allow them to use it. However if a modification is made the disabled tenant is obligated to restore the property to original condition upon their moving. And finally if there are any rules or policies that inhibit a disabled person from using the housing then reasonable accommodations must be made for the tenant.
Familial Status
Familial status, a somewhat confusing term, can easily be understood as having kids. Discrimination against this type of protected class can be somewhat difficult to understand but I have found a simple way to determine if a rule or policy is discriminatory. A posted rule stating "No kids in the pool from 10-2" may see innocuous enough but if "kids" were to be replaced with "Asians" or "Catholics" then it becomes clear that the rule is discriminatory. I recently had a resident stop by my office concerned about the prospect of having a new neighbor move in above them. They were concerned about the noise and asked that I would only rent to a single person, preferably a woman with no kids who worked as a flight attendant! Not only was the request a little extreme but it would also be a discriminatory practice. As a professional property manager I cannot even engage in what is called "steering", the act of suggesting only certain properties to a family or other protected class.
What Does This Mean For Me?
Great question, glad you asked! There are rules regarding what housing is covered by the Act and what is not. Generally most housing is covered but under certain circumstances a single-family home rented without the use of a broker is not covered, as long as the owner of the property does not also own more than four rental properties at a time. For reference you can take a look at an overview of the Fair Housing Act or, if you are really suffering from insomnia, you can take a look at the entire text of the Act here. Now if I could make a recommendation to anyone it would be to follow the requirements of the Act whether you think you should or not. While it is always best to error on the side of caution you can be certain that your actions in managing a rental property are ethical and honest.