every landlord's legal guide 10th (2010)

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Leases
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Every
Landlord’s
Legal Guide
10th edition
by Marcia Stewart and Attorneys Ralph Warner
& Janet Portman
TENTH EDITION APRIL 2010
Book Design TERRI HEARSH
CD-ROM Preparation ELLEN BITTER
Proofreading JIM BRUCE
Index JEAN MANN
Printing DETLA PRINTING SOLUTIONS, INC.
Stewart, Marcia.

Every landlord’s legal guide / by Marcia Stewart, Ralph Warner & Janet Portman. 10th
ed.
p. cm.
ISBN-13: 978-1-4133-1197-6 (pbk.)
ISBN-10: 1-4133-1197-0 (pbk.)
1. Landlord and tenant United States Popular works. 2. Leases United States
Popular works. 3. Rent United States Popular works. I. Warner, Ralph E. II. Portman,
Janet. III. Title.
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Acknowledgments
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many people.
We’d like to especially acknowledge David Brown, author of Nolo’s The
California Landlord’s Law Books, who contributed many creative ideas to

this book. We owe special thanks to Terri Hearsh, our superb book designer.
Thanks also to Ellen Bitter for her meticulous work preparing the CD-ROM.
Nolo’s original Landlords’ Team deserves much of the credit for this book,
especially Mary Randolph, a fantastic editor whose sharp pen and cheerful spirit
were invaluable (and who came back to review the tenth edition).
Other wonderful Nolo people contributed in many different ways to this
book, especially Nolo editors and authors Shae Irving, Steve Elias, Amy
DelPo, Lisa Guerin, Steve Fishman, Tony Mancuso, and Ralph Warner.
Michael Mansel of Insurance Associates in Walnut Creek, California,
offered invaluable suggestions on the insurance sections of this book.
About the Authors
Marcia Stewart is the coauthor of Every Tenant’s Legal Guide, Renters’ Rights,
Leases & Rental Agreements, First-Time Landlord, and Nolo’s Essential Guide
to Buying Your First Home. Marcia received a Master’s degree in Public Policy
from the University of California at Berkeley.
Ralph Warner is Nolo’s Cofounder. He has dedicated his professional life
to making plain-English legal information accessible and affordable to all
Americans. Ralph is the author of a number of self-help law titles, including
Everybody’s Guide to Small Claims Court, Save Your Small Business, Get a Life,
and many landlord/ tenant and real estate publications. He holds a law degree
from Boalt Hall School of Law at the University of California at Berkeley.
Janet Portman, an attorney and Nolo’s Managing Editor, received
undergraduate and graduate degrees from Stanford and a law degree from
Santa Clara University. She is an expert on landlord-tenant law and the
coauthor of Every Tenant’s Legal Guide, Renters’ Rights, The California
Landlord’s Law Book: Rights and Responsibilities, California Tenant’s Rights,
Leases & Rental Agreements, and Negotiate the Best Lease for Your Business.
As a practicing attorney, she specialized in criminal defense, conducting
trials and preparing and arguing appeals before the Court of Appeal and the
California Supreme Court. Janet writes a nationally syndicated column, “Rent

It Right,” which appears on many websites and in several newspapers.
Downloading Forms and Other Materials
e printed version of this book comes with a CD-ROM that contains
legal forms and other material. You can download that material by going
the forms, which you can ll in or modify and then print.
to www.nolo.com/back-of-book/elli.html. You’ll get editable versions of
CHAP-
TER
Table of Content s
Your Landlord Companion
1
Screening Tenants: Your Most Important Decision
Avoiding Fair Housing Complaints and Lawsuits 4
How to Advertise Rental Property 5
Renting Property at’s Still Occupied 6
Dealing With Prospective Tenants and Accepting Rental Applications 7
Checking References, Credit History, and More 14
Choosing—And Rejecting—An Applicant 24
Finder’s Fees and Holding Deposits 26
2
Preparing Leases and Rental Agreements
Which Is Better, a Lease or a Rental Agreement? 33
Clause-by-Clause Instructions for Completing the Lease or
Rental Agreement Form 35
Signing the Lease or Rental Agreement 55
About Cosigners 55
3
Basic Rent Rules
How Much Can You Charge? 66
Rent Control 66

When Rent Is Due 69
Where and How Rent Is Due 71
Late Charges and Discounts for Early Payments 72
Returned Check Charges 73
Partial or Delayed Rent Payments 73
Raising the Rent 74
4
Security Deposits
Purpose and Use of Security Deposits 78
Dollar Limits on Deposits 79
How Much Deposit Should You Charge? 79
Last Month’s Rent 80
Interest and Accounts on Deposits 82
Nonrefundable Deposits and Fees 83
How to Increase Deposits 83
Handling Deposits When You Buy or Sell Rental Property 84
5
Discrimination
Legal Reasons for Rejecting a Rental Applicant 87
Sources of Antidiscrimination Laws 90
Types of Illegal Discrimination 93
Valid Occupancy Limits 106
Managers and Discrimination 111
Unlawful Discrimination Complaints 112
Insurance Coverage in Discrimination Claims 113
6
Property Managers
Hiring Your Own Resident Manager 119
How to Prepare a Property Manager Agreement 124
Your Legal Obligations as an Employer 125

Management Companies 132
Your Liability for a Manager’s Acts 134
Notifying Tenants of the Manager 138
Firing a Manager 138
Evicting a Manager 139
7
Getting the Tenant Moved In
Inspect the Rental Unit 142
Photograph the Rental Unit 148
Send New Tenants a Move-In Letter 148
Cash Rent and Security Deposit Checks 148
Organize Your Tenant Records 151
Organize Income and Expenses for Schedule E 152
8
Cotenants, Sublets, and Assignments
Cotenants 156
What to Do When a Tenant Wants to Sublet or Assign 162
When a Tenant Brings in a Roommate 168
Guests and New Occupants You Haven’t Approved 170
9
Landlord’s Duty to Repair and Maintain the Premises
Your Duty to Keep the Premises Livable 175
How to Meet Your Legal Repair and Maintenance Responsibilities 177
Avoiding Problems With a Good Maintenance and Repair System 181
Tenant Updates and Landlord’s Regular Safety and Maintenance Inspections 187
Tenant Responses to Unfit Premises: Paying Less Rent 190
Tenant Responses to Unfit Premises: Calling Inspectors,
Filing Lawsuits, and Moving Out 198
Minor Repairs 201
Delegating Landlord’s Responsibilities to Tenants 204

Tenants’ Alterations and Improvements 207
Cable TV Access 209
Satellite Dishes and Antennas 212
10
Landlord’s Liability for Tenant Injuries From Dangerous Conditions
How to Prevent Injuries 218
Liability and Other Property Insurance 222
Your Liability for Tenant Injuries 225
If a Tenant Was at Fault, Too 230
How Much Money an Injured Tenant May Recover 232
11
Landlord’s Liability for Environmental Health Hazards
Asbestos 235
Lead 237
Radon 245
Carbon Monoxide 246
Mold 247
Bedbugs 250
Electromagnetic Fields 253
12
Landlord’s Liability for Criminal Activity
Comply With All State and Local Laws on Security 257
Keep Your Promises About Security 258
Prevent Criminal Acts 259
Protect Tenants From Each Other 266
Protect Tenants From Your Employees 268
Deal With Drug-Dealing Tenants 268
If You Are Sued 272
13
Landlord’s Right of Entry and Tenants’ Privacy

General Rules of Entry 277
Entry in Case of Emergency 278
Entry With the Permission of the Tenant 279
Entry to Make Repairs or Inspect the Property 279
Entry to Show Property to Prospective Tenants or Buyers 282
Entry After the Tenant Has Moved Out 284
Entry by Others 284
Other Types of Invasions of Privacy 286
What to Do When Tenants Unreasonably Deny Entry 288
Tenants’ Remedies If a Landlord Acts Illegally 289
14
Ending a Tenancy
Changing Lease or Rental Agreement Terms 292
How Month-to-Month Tenancies End 293
How Leases End 298
If the Tenant Breaks the Lease 301
When a Tenant Dies 307
Condominium Conversions 308
15
Returning Security Deposits and Other Move-Out Issues
Preparing a Move-Out Letter 313
Inspecting the Unit When a Tenant Leaves 313
Applying the Security Deposit to the Last Month’s Rent 317
Basic Rules for Returning Deposits 318
Deductions for Cleaning and Damage 318
Deductions for Unpaid Rent 321
Preparing an Itemized Statement of Deductions 323
Mailing the Security Deposit Itemization 329
Security Deposits From Cotenants 329
If a Tenant Sues You 330

If the Deposit Doesn’t Cover Damage and Unpaid Rent 333
What to Do With Property Abandoned by a Tenant 335
16
Problems With Tenants: How to Resolve
Disputes Without a Lawyer
Negotiating a Settlement: Start by Talking 342
When Warning Notices Are Appropriate 344
Understanding Mediation 346
Using Arbitration 348
Representing Yourself in Small Claims Court 348
How to Avoid Charges of Retaliation 350
17
Terminations and Evictions
e Landlord’s Role in Evictions 354
Termination Notices 355
Late Rent 356
Other Tenant Violations of the Lease or Rental Agreement 359
Violations of a Tenant’s Legal Responsibilities 360
Tenant’s Illegal Activity on the Premises 360
How Eviction Lawsuits Work 361
Illegal “Self-Help” Evictions 366
Stopping Eviction by Filing for Bankruptcy 367
18
Lawyers and Legal Research
Finding a Lawyer 370
Types of Fee Arrangements With Lawyers 373
Saving on Legal Fees 374
Resolving Problems With Your Lawyer 375
Attorney Fees in a Lawsuit 376
Doing Your Own Legal Research 376

Where to Find State, Local, and Federal Laws 377
How to Research Court Decisions 379
Appendixes
A
State Landlord-Tenant Law Charts
State Landlord-Tenant Statutes 383
State Rent Rules 384
State Rules on Notice Required to Change or Terminate
a Month-to-Month Tenancy 386
State Security Deposit Rules 389
Required Landlord Disclosures 398
State Laws in Domestic Violence Situations 408
State Laws on Rent Withholding and Repair and Deduct Remedies 412
State Laws on Landlord’s Access to Rental Property 414
State Laws on Handling Abandoned Property 416
State Laws on Prohibiting Landlord Retaliation 417
State Laws on Termination for Nonpayment of Rent 419
State Laws on Termination for Violation of Lease 422
State Laws on Unconditional Quit 424
State Small Claims Court Limits 429
Landlord’s Duty to Rerent 432
Consequences of Self-Help Evictions 434
B
How to Use the Landlord Forms Library CD-ROM
Installing the Files Onto Your Computer 438
Using the Word Processing Files to Create Documents 438
Using EPA Forms 439
Files on the CD-ROM 440
Index 443
Landlord Forms Library on CD-ROM

Screening, Choosing, and Rejecting Applicants
Rental Application
Consent to Contact References and Perform Credit Check
Tenant References
Notice of Denial Based on Credit Report or Other Information
Notice of Conditional Acceptance Based on Credit Report or Other Information
Rental Documents and Moving In
Receipt and Holding Deposit Agreement
Landlord-Tenant Checklist
Move-In Letter
Month-to-Month Residential Rental Agreement
Month-to-Month Residential Rental Agreement (Spanish Version)
Fixed-Term Residential Lease
Fixed-Term Residential Lease (Spanish Version)
Cosigner Agreement
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards
(Spanish Version)
Protect Your Family From Lead in Your Home Pamphlet
Protect Your Family From Lead in Your Home Pamphlet (Spanish Version)
Property Manager Agreement
Verification of Disabled Status
Rental Documents during the Rental Term
Amendment to Lease or Rental Agreement
Letter to Original Tenant and New Cotenant
Consent to Assignment of Lease
Agreement for Delayed or Partial Rent Payments
Repairs and Maintenance
Time Estimate for Repair
Semiannual Safety and Maintenance Update

Agreement Regarding Tenant Alterations to Rental Unit
Notice of Intent to Enter Dwelling Unit
Resident’s Maintenance/Repair Request

Your Landlord Companion
W
hether you own one rental property or
a hundred, you want to run a profitable
business, protect your investment, and
avoid legal hassles. Your success depends heavily
on knowing and complying with dozens of state,
federal, and local laws that affect you. Fortunately,
you don’t need a law degree—just this book.
We’ll take you step by step through all your
important tasks, from accepting rental applications
to returning security deposits when a tenant moves
out and everything between, including preparing
a lease, handling repairs, and dealing with tenants
who pay late, make too much noise, or cause other
problems. We cover straightforward procedures
(such as how to legally reject a prospect) as well
as more tricky situations (like what to do when a
tenant threatens to withhold rent until you make
certain repairs). Here’s how we can help you:
State-specific legal info. This book includes all
kinds of important state-specific information. Want
to know about security deposit laws in your state?
You can look up the deposit limit, find out whether
you need to keep the deposit in a separate account
or pay interest on it, and whether you’re exempt

from the rules based on the size of your business.
Legal forms and letters on CD-ROM. The Landlord
Forms Library provides dozens of forms, letters,
notices, checklists, and agreements on CD-ROM.
From the most complicated (your lease or rental
agreement) to the simplest (a time estimate for
repair), we’ve got you covered, including forms for
the collection, itemization, and return of deposits,
and a landlord-tenant checklist to record the
condition of the rental unit at the start and end of
the tenancy. Each form is easy to customize and has
complete instructions, and there are filled-in samples
in the text.
Getting Expert Help
A wise person knows what he or she doesn’t know,
and doesn’t pretend otherwise. roughout this book,
we’ll alert you to situations in which it’s wise to get
expert help beyond this book, including:
Preparing eviction papers.• We explain how to
terminate a tenancy, but if you need to pursue
an eviction lawsuit, get more help. Evictions are
governed by very specific state and local laws
and procedures.
Rentals in mobile home parks and marinas.•
In most states, completely different sets of laws
govern these rentals.
Renting out a condo or town house.•
Many owners will find this book helpful,
but additional rules will apply to your rental
situation, courtesy of your homeowners’

association’s CC&Rs (covenants, conditions, and
restrictions). Sometimes CC&Rs clash, or may
go beyond, federal, state, or local laws, and it’s
often difficult to predict, let alone determine,
which approach a court would uphold.
Live-work units.• If you’re renting out these
units, you’ll find this book helpful, but be aware
that zoning regulations may apply.
Section 8 landlords.• If you participate in the
Section 8 rent-assistance program, you’ll find
most of the day-to-day recommendations of
this book usable, but you’ll need to use the lease
addendum supplied by the housing authority
that administers the program.
2
|
EVERY LANDLORD’S LEGAL GUIDE
Time-tested and timely. This book, which first
appeared in 1996, has been updated many times
since to keep up with the constantly changing world
of residential landlording. Ours is the only book on
the shelf that combines current, comprehensive legal
information and practical advice usable by landlords
in every state. It now covers emerging issues such as
foreclosures, how you should respond to domestic
violence on your property, the latest rules governing
your contracts with video providers, and bedbugs
(yes, bedbugs). And in case important laws change
during the life of this edition, you’ll find updates at
www.nolo.com.

Other Helpful Nolo Books and Resources for Landlords
Nolo publishes a comprehensive library of books
for landlords and property managers. Besides Every
Landlord’s Legal Guide, Nolo offers:
Every Landlord’s Guide to Finding Great •
Tenants, by Janet Portman. Focuses solely on
advertising and showing your rental, evaluating
prospects, and choosing and rejecting tenants,
with over 40 forms on CD-ROM, including a credit
report evaluation, marketing worksheets, and
departing tenant’s questionnaire. Especially useful
for landlords who own multiunit properties or
have a lot of tenant turnover.
Every Landlord’s Property Protection Guide, • by
Ron Leshnower. Covers top ten ways landlords
can minimize the legal and financial risks of owning
rental property, from getting the right insurance
to preparing for and handling disasters and
emergencies. Includes LeaseWriter Plus software.
Every Landlord’s Tax Deduction Guide, • by
Stephen Fishman. Includes all the information
you need to take advantage of tax deductions and
write-offs available to landlords, with instructions
on filling out Schedule E.
Leases and Rental Agreements,• by Marcia
Stewart, Ralph Warner, and Janet Portman.
Includes a lease, rental agreement, and several
other basic forms. If you own Every Landlord’s
Legal Guide, you don’t need Leases and Rental
Agreements.

e California Landlord’s Law Book: Rights •
and Responsibilities, by David Brown and Janet
Portman, and e California Landlord’s Law
Book: Evictions, by David Brown. Contain all
the information California landlords need to run
their business and handle an eviction in court by
themselves. Every Landlord’s Legal Guide covers
residential landlord-tenant law in all 50 states,
including California, but these books provide more
details, including rent control rules in California
cities and step-by-step instructions on how to file
and handle an eviction lawsuit.
You can order these books from Nolo’s website
(www.nolo.com) or by phone (800-728-3555). You can
also find Nolo books at public libraries and bookstores.
In addition to these products, we offer free legal
updates on the Nolo website (check out “Landlords
& Rental Property” under the Real Estate & Rental
Property section at www.nolo.com). e Legal Research
section at nolo.com will also help you find federal and
state laws that affect your rental property.
l
Our approach to running a residential rental
business rests on recognizing that tenants are your
best asset and the key element in your financial
success. Our approach will guard your legal and
financial interests and, at the same time, make your
customers—your tenants—feel that your practices
are fair and reasonable.
In a nutshell: Choose tenants carefully; keep

good tenants happy; teach mediocre tenants how
to improve; get rid of bad tenants by applying
policies that are strict, fair, and legal; and back
up everything with good records and paperwork.
Follow that simple philosophy, and you can run a
business that’s both satisfying and profitable.
Avoiding Fair Housing Complaints and Lawsuits 4
How to Advertise Rental Property 5
Renting Property at’s Still Occupied 6
Dealing With Prospective Tenants and Accepting Rental Applications 7
Tell Prospective Tenants Your Basic Requirements and Rules 7
Ask Interested Tenants to Complete a Rental Application 8
Request Proof of Identity and Immigration Status 14
Checking References, Credit History, and More 14
Check With Previous Landlords and Other References 15
Verify Income and Employment 15
Obtain a Credit Report 18
Verify Bank Account Information 21
Review Court Records 21
Use Megan’s Law to Check State Databases of Sexual Offenders 22
Choosing—And Rejecting—An Applicant 24
What Information Should You Keep on Rejected Applicants? 24
How to Reject an Applicant 24
Conditional Acceptances 26
Finder’s Fees and Holding Deposits 26
Finder’s Fees 26
Holding Deposits 26
CHAPTER
1
Screening Tenants: Your

Most Important Decision
FORMS ON CDROM
Chapter 1 includes instructions for and samples of the following forms, all of which
are on the Landlord Forms Library CD included at the back of this book:
Rental Application•
Consent to Contact References and Perform Credit Check•
Tenant References•
Notice of Denial Based on Credit Report or Other Information •
Notice of Conditional Acceptance Based on Credit Report or Other Information •
Receipt and Holding Deposit Agreement•
4
|
EVERY LANDLORD’S LEGAL GUIDE
C
hoosing tenants is the most important
decision any landlord makes, and to do it
well you need a reliable system. Follow the
steps in this chapter to maximize your chances of
selecting tenants who will pay their rent on time,
keep their units in good condition, and not cause
you any legal or practical problems later.
RELATED TOPIC
Before you advertise your property for rent,
make a number of basic decisions—including how much
rent to charge, whether to offer a fixed-term lease or a
month-to-month tenancy, how many tenants can occupy
each rental unit, how big a security deposit to require,
and whether you’ll allow pets. Making these important
decisions should dovetail with writing your lease or rental
agreement. (See Chapter 2.)

First Time Choosing Tenants?
All the rules and procedures for choosing tenants
may seem overwhelming the first time around.
is chapter provides all the legal and practical
information and forms you need to do the job right.
You can also get a lot of advice from talking with
other landlords. You may want to check out local
or state rental property associations, which range
from small, volunteer-run groups of landlords to sub-
stantial organizations with paid staff and lobbyists,
that offer a wide variety of support and services to
their members. Here are some services that may be
available from your landlords’ association:
legal information and updates through news-•
letters, publications, seminars, and other means
tenant screening and credit check services•
training and practical advice on compliance •
with legal responsibilities, and
a place to meet other rental property owners •
and exchange information and ideas.
If you can’t find an association of rental property
owners in your phone book, ask other landlords
for references. You can also contact the National
Apartment Association (NAA), a national organiza-
tion whose members include many individual state
associations (www.naahq.org).
Avoiding Fair Housing
Complaints and Lawsuits
Federal and state antidiscrimination laws limit what
you can say and do in the tenant selection process.

Because the topic of discrimination is so important
we devote a whole chapter to it later in the book
(Chapter 5), including legal reasons for refusing to
rent to a tenant and how to avoid discrimination
in your tenant selection process. You should read
Chapter 5 before you run an ad or interview
prospective tenants. For now, keep in mind four
important points:
You are legally free to choose among prospective 1.
tenants as long as your decisions are based on
legitimate business criteria. You are entitled
to reject applicants with bad credit histories,
income that you reasonably regard as
insufficient to pay the rent, or past behavior—
such as property damage or consistent late rent
payments—that makes someone a bad risk.
A valid occupancy limit that is clearly tied to
health and safety or legitimate business needs
can also be a legal basis for refusing tenants. It
goes without saying that you may legally refuse
to rent to someone who can’t come up with the
security deposit or meet some other condition
of the tenancy.
Fair housing laws specify clearly illegal reasons to 2.
refuse to rent to a tenant. Federal law prohibits
discrimination on the basis of race, religion,
national origin, gender, age, familial status,
or physical or mental disability (including
recovering alcoholics and people with a past
drug addiction). Many states and cities also

prohibit discrimination based on marital status
or sexual orientation.
Anybody who deals with prospective tenants must 3.
follow fair housing laws. This includes owners,
landlords, managers, and real estate agents,
and all of their employees. As the property
owner, you may be held legally responsible for
your employees’ discriminatory statements or
conduct, including sexual harassment. (“Your
Liability for a Manager’s Acts,” in Chapter 6,
explains how to protect yourself from your
employee’s illegal acts.)
CHAPTER 1 | SCREENING TENANTS: YOUR MOST IMPORTANT DECISION | 5
Consistency is crucial when dealing with prospec-4.
tive tenants. If you don’t treat all tenants more
or less equally—for example, if you arbitrarily
set tougher standards for renting to a member
of a racial minority—you are violating federal
laws and opening yourself up to lawsuits.
How to Advertise Rental Property
You can advertise rental property in many ways:
putting an “Apartment for Rent” sign in front of •
the building or in one of the windows
taking out newspaper ads•
posting flyers on neighborhood bulletin •
boards, such as the local laundromat or coffee
shop
listing with a local homefinders’ or apartment-•
finding service that provides a centralized
listing of rental units for a particular

geographic area
posting a notice on Craigslist (see “Craigslist •
and Online Apartment Listing Services,” below,
for details)
listing with a local real estate broker that •
handles rentals
hiring a property management company •
that will advertise your rentals as part of the
management fee
posting a notice with a university, alumni, or •
corporate housing office, or
buying ads in apartment rental guides or •
magazines.
The kind of advertising that will work best
depends on a number of factors, including the
characteristics of the particular property (such as
rent, size, amenities), its location, your budget, and
whether you are in a hurry to rent. Many smaller
landlords find that instead of advertising widely and
having to screen many potential tenants in an effort
to sort the good from the bad, it makes better sense
to market their rentals through word of mouth—
telling friends, colleagues, neighbors, and current
tenants.
Craigslist and Online
Apartment Listing Services
Dozens of online services now make it easy to reach
potential tenants, whether they already live in your
community or are moving from out of state.
Craigslist and other online community posting

boards allow you to list your rentals at no or low
charge and are a good place to start. Craigslist, the
most established community board, has local sites
for every major metropolitan area. Check out www.
craigslist.org for details.
National apartment listing services are also
available, with the largest ones representing millions
of apartment units in the United States. Some of the
most established are:
www.move.com•
www.apartments.com•
www.rent.com•
www.apartmentguide.com, and•
www.forrent.com.•
ese national sites offer a wide range of services,
from simple text-only ads that provide basic informa-
tion on your rental (such as the number of bedrooms)
to full-scale virtual tours and floor plans of the rental
property. Prices vary widely depending on the type
of ad, how long you want it to run, and any services
you purchase (some websites provide tenant-screening
services).
To stay out of legal hot water when you advertise,
just follow these simple rules.
Describe the rental unit accurately. As a practical
matter, you should avoid abbreviations and real estate
jargon in your ad. Include basic details, such as:
rent and deposit•
size—particularly number of bedrooms and •
baths

location—either the general neighborhood or •
street address
move-in date and term—lease or month-to-•
month rental agreement
special features—such as fenced-in yard, •
view, washer/dryer, fireplace, remodeled
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EVERY LANDLORD’S LEGAL GUIDE
kitchen, furnished, garage parking, doorman,
hardwood floors, or wall-to-wall carpeting
pets (whether you allow or not and any •
restrictions)
phone number or email for more details •
(unless you’re going to show the unit only at
an open house and don’t want to take calls),
and
date and time of any open house.•
If you have any important rules (legal and non-
discriminatory), such as no pets, put them in your
ad. Letting prospective tenants know about your
important policies can save you or your manager
from talking to a lot of unsuitable people. For
example, your ad might say you require credit
checks in order to discourage applicants who have a
history of paying rent late.
Be sure your ad can’t be construed as discriminatory.
The best way to do this is to focus only on the
rental property—not on any particular type of
tenant. Specifically, ads should never mention sex,

race, religion, disability, or age (unless yours is really
legally recognized senior citizens housing). And ads
should never imply through words, photographs,
or illustrations that you prefer to rent to people
because of their age, sex, or race. For example, an
ad in an environmental or church newsletter that
contains a drawing of a recognizably white (or black
or Asian) couple with no children might open you to
an accusation of discrimination based on race, age,
and familial status (prohibiting children).
Quote an honest price in your ad. If a tenant who
is otherwise acceptable (has a good credit history
and impeccable references and meets all the criteria
explained below) shows up promptly and agrees
to all the terms set out in your ad, you may violate
false advertising laws if you arbitrarily raise the
price. This doesn’t mean you are always legally
required to rent at your advertised price, however.
If a tenant asks for more services or different lease
terms that you feel require more rent, it’s fine
to bargain and raise your price, as long as your
proposed increase doesn’t violate local rent control
laws.
Don’t advertise something you don’t have. Some
large landlords, management companies, and rental
services have advertised units that weren’t really
available in order to produce a large number of
prospective tenants who could then be directed
to higher-priced or inferior units. Such bait-and-
switch advertising is clearly illegal under consumer

fraud laws, and many property owners have been
prosecuted for such practices. So if you advertise
a sunny two-bedroom apartment next to a rose
garden for $500 a month, make sure that the second
bedroom isn’t a closet, the rose garden isn’t a beetle-
infested bush, and the $500 isn’t the first week’s
rent.
Keep in mind that even if you aren’t prosecuted
for breaking fraud laws, your advertising promises
can still come back to haunt you. A tenant who
is robbed or attacked in what you advertised as a
“high-security building” may sue you for medical
bills, lost earnings, and pain and suffering.
Renting Property at’s Still Occupied
Often, you can wait until the old tenant moves out
to show a rental unit to prospective tenants. This
gives you the chance to refurbish the unit and
avoids problems such as promising the place to a
new tenant, only to have the existing tenant not
move out on time or leave the place a mess.
To eliminate any gap in rent, however, you may
want to show a rental unit while its current tenants
are still there. This can create a conflict; in most
states, you have a right to show the still-occupied
property to prospective tenants, but your current
tenants are still entitled to their privacy.
To minimize disturbing your current tenant,
follow these guidelines:
Before implementing your plans to find a new •
tenant, discuss them with outgoing tenants, so

you can be as accommodating as possible.
Give current tenants as much notice as •
possible before entering and showing a rental
unit to prospective tenants. State law usually
requires at least one or two days. (See Chapter
13 for details.)
Try to limit the number of times you show •
the unit in a given week, and make sure your
current tenants agree to any evening and
weekend visits.
CHAPTER 1 | SCREENING TENANTS: YOUR MOST IMPORTANT DECISION | 7
Consider reducing the rent slightly for the •
existing tenant if showing the unit really will
be an imposition.
If possible, avoid putting a sign on the rental •
property itself, since this almost guarantees
that your existing tenants will be bothered
by strangers. Or, if you can’t avoid putting
up a sign, make sure any sign clearly warns
against disturbing the occupant and includes
a telephone number for information. Some-
thing on the order of “For Rent: Shown by
Appointment Only. Call 555-1700. DO NOT
DISTURB OCCUPANTS” should work fine.
If, despite your best efforts to protect their privacy,
the current tenants are uncooperative or hostile, wait
until they leave before showing the unit. Also, if the
current tenant is a complete slob or has damaged the
place, you’ll be far better off to apply paint and elbow
grease before trying to rerent it.

Dealing With Prospective Tenants
and Accepting Rental Applications
It’s good business, as well as a sound way to protect
yourself from future legal problems, to carefully
screen prospective tenants.
Tell Prospective Tenants Your
Basic Requirements and Rules
Whether prospective tenants call about the rental, or
just show up at an open house, it’s best to describe
all your general requirements—rent, deposits,
pet policy, move-in date, maximum number of
occupants, and the like—and any special rules and
regulations up front. This helps you avoid wasting
time showing the unit to someone who simply can’t
qualify—for example, someone who can’t come up
with the security deposit. Describing your general
requirements and rules up front can also help avoid
charges of discrimination, which can occur when a
member of a racial minority or a single parent is told
key facts so late in the process that she jumps to the
conclusion that you’ve made up new requirements
just to keep her out.
Also be sure to tell prospective tenants about the
kind of personal information they’ll be expected to
supply on an application, including phone numbers
of previous landlords and credit and employment
references.
Getting a Unit Ready for
Prospective Tenants
It goes without saying that a clean rental unit in good

repair will rent more easily than a rundown hovel.
And, in the long run, it pays to keep your rental
competitive. Before showing a rental unit, make sure
the basics are covered:
Clean all rooms and furnishings, floors, walls, •
and ceilings—it’s especially important that the
bathroom and kitchen are spotless.
Remove all clutter from closets, cupboards, and •
surfaces.
Take care of any insect or rodent infestations.•
Make sure that the appliances and fixtures •
work. Repair leaky faucets and frayed cords,
replace burnt-out lights, and check the unit
for anything that might cause injury or violate
health and safety codes. (Chapter 9 discusses
state and local health and safety laws.)
Cut the grass, trim shrubbery, and remove all •
trash and debris on the grounds.
Update old fixtures and appliances, and repaint •
the walls and replace the carpets if necessary.
If the previous tenant left the place in good
shape, you may not need to do much cleaning before
showing it to prospective tenants. To make this more
likely, be sure to send outgoing tenants a move-out
letter describing your specific cleaning requirements
and conditions for returning the tenant’s security
deposit. (Chapter 15 discusses move-out letters.)
CAUTION
Show the property to and accept applications
from everyone who’s interested. Even if, after talking

to someone on the phone, you doubt that a particular
tenant can qualify, it’s best to politely take all applications.
Refusing to take an application may unnecessarily anger
a prospective tenant, and may make the applicant more
likely to look into the possibility of filing a discrimination
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EVERY LANDLORD’S LEGAL GUIDE
complaint. And discriminating against someone simply
because you don’t like the sound of their voice on the
phone (called linguistic profiling) is also illegal and may
result in a discrimination claim. Accept applications from
anyone who’s interested and make decisions about who
will rent the property later. Be sure to keep copies of all
applications. (See discussion of record keeping below.)
Ask Interested Tenants to Complete
a Rental Application
To avoid legal problems and choose the best tenant,
ask all prospective tenants to fill out a written
rental application that includes information on
the applicant’s employment, income, and credit;
Social Security and driver’s license numbers or
other identifying information; past evictions or
bankruptcies; and references.
A sample Rental Application is shown below, and
a copy is included on the Landlord Forms Library CD.
Before giving prospective tenants a Rental
Application, complete the box at the top, filling in
the property address, rental term, first month’s rent,
and any deposit or credit check fee tenants must

pay before moving in. Here are some basic rules for
accepting rental applications:
Give an application to all adult applicants. Each
prospective tenant—everyone age 18 or older
who wants to live in your rental property—should
completely fill out a written application. This is true
whether you’re renting to a married couple or to
unrelated roommates, a complete stranger, or the
cousin of your current tenant.
Insist on a completed application. Always make
sure that prospective tenants complete the entire
Rental Application, including Social Security number
(SSN) or Individual Taxpayer Identification Number
(ITIN), explained below, driver’s license number,
or other identifying information (such as a passport
number); current employment; and emergency
contacts. You may need this information later to
track down a tenant who skips town leaving unpaid
rent or abandoned property. Also, you may need
the Social Security number or other identifying
information, such as a passport, to request an
applicant’s credit report.
You may encounter an applicant who does not
have an SSN (only citizens or immigrants authorized
to work in the United States can obtain one). For
example, someone with a student visa will not
normally have an SSN. If you categorically refuse to
rent to applicants without SSNs, and these applicants
happen to be foreign students, you’re courting a fair
housing complaint.

Fortunately, nonimmigrant aliens (such as people
lawfully in the U.S. who don’t intend to stay here
permanently, and even those who are here illegally)
can obtain an alternate piece of identification that
will suit your needs as well as an SSN. It’s called an
Individual Taxpayer Identification Number (ITIN),
and is issued by the IRS to people who expect to
pay taxes. Most people who are here long enough to
apply for an apartment will also be earning income
while in the U.S. and will therefore have an ITIN.
Consumer reporting agencies and tenant screening
companies can use an ITIN to find the information
they need to effectively screen an applicant. On the
Rental Application, use the line “Other Identifying
Information” for an applicant’s ITIN.
CAUTION
Do not consider an ITIN number as proof
of legal status in the U.S. e IRS does not research the
taxpayer’s immigration status before handing out the
number.
Check for a signature and consider getting a separate
credit check authorization. Be sure all potential
tenants sign the Rental Application, authorizing
you to verify the information and references and
to run a credit report. (Some employers and others
require written authorization before they will talk
to you.) You may also want to prepare a separate
authorization, signed and dated by the applicant, so
that you don’t need to copy the entire application
and send it off every time a bank or employer wants

proof that the tenant authorized you to verify the
information. See the sample Consent to Contact
References and Perform Credit Check, below. A copy
is included on the Landlord Forms Library CD.
When you talk to prospective tenants, stick to
questions on the application. Avoid asking questions