Landlording 101
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“Become a Landlord Wiz for your Rental Biz”
Jeremy R.M. Piper, Attorney
Not a landlord? You might be soon. With today’s real estate
market, more and more people are finding themselves left with
no choice but to accept a tenant. This is not a decision that
should be taken lightly, nor is it one that should be avoided at
all costs. Many people have found great success in the
Landlord business, why not you? The common denominator
among successful Landlords is education and execution;
knowing the laws and rules which govern the industry and
making them work for you.
The landlord/tenant relationship is an ancient one. Throughout
history landlords have provided shelter and collected, or
attempted to collect, rent from their tenants. Conversely, and
for just as long, tenants have failed to pay rent, complained
about housing conditions and breached rental agreements. As
a result of this contentious history, a complex set of laws and
court rules have been developed. Without a basic
understanding of those laws and rules a rental business
venture can quickly spiral into an involuntary, free housing
program.
From “For Rent” to “Evicted” you need to know what documents
and procedures are required. This article only provides a
cursory review of the process but attempts to present the big
picture to help landlords, both professional and accidental.
Lease: Without question you need a very good, written lease
agreement. If your property is residential the actual wording of
the lease is governed by Michigan Law. There are provisions
required by law to be in lease agreements. Even the size of
the font used is specified by statute! Landlords have lost
thousands of dollars as a result of faulty leases. Do not let
anyone move into your property without signing a lease first!
Notices: Eventually you will have a tenant who pays late or
breaks the lease agreement. What do you do? You must
notify them of their transgression in writing and give them time
to respond. Easy enough? Not quite. While the notice form is
not mandated by Law, some courts, including Flint’s 68th
District Court, have issued local rules requiring one version
over all others. If you send the wrong or an incomplete notice
you usually don’t find out about it until you are in court and the
Judge tells you to start over.
Complaint: Along with a summons, this document gets you
into court to help you collect your rent or get your property
back. Within the complaint you inform the court of what it is you
want the court to do. You can also specify if you want a money
judgment or a possession judgment. While money judgments
are attractive, they are often hard to obtain and sometimes
inadequately reflect the Landlord’s true measure of damages.
Tenant’s are almost always given at least ten (10) days from
the date of court to occupy (and potentially damage) your
property.
Judgment: The judge signs this document and the parties
are required to do what it says. If you know what you can and
cannot ask for you can construct your own judgment which
provides you the most protection. For instances, certain courts
allow future rent to be included in the judgment amount so long
as it is due within the redemption period (usually 10 days).
Knowing this detail in advance may allow you to plan your court
date to ensure maximum efficiency. Some courts provide
litigants a judgment form, while some do not. Judgments do not
last forever and are void after 56 days, or by certain actions of
the Landlord.
Order of Eviction: This document, often called a “writ”, is
the rather abrupt end to a tenancy which usually started with
the best of intentions. Good landlords avoid this procedure at
all costs. Hopefully you will manage your tenants in a way that
keeps the Sheriff off the porch and the furniture in the house.
Before you or your seller becomes a landlord you should
approach the endeavor with the same professionalism as
buying or selling a home. Know the rules and the procedures
and you will find success. Consult a professional property
manager or your lawyer before you take on a tenant.
Uninformed and unprepared Landlords pay for their lack of
knowledge in lost rent and unnecessary legal fees down the
road. Educate yourself and you will become a Landlord Wiz
today.
Jeremy Piper is a graduate of Wayne State University Law School and
Albion College. His office is located in Downtown Flint. His practice
areas include real estate, landlord –tenant, criminal law, small business
law, contracts and sports law. He serves on the Board of Directors of the
Genesee County Bar Association and is the chairman of the District Court
Committee. Born in Flint, Jeremy lives in Grand Blanc. He can be
reached at jpiper@piperlegal.com
Jeremy R.M. Piper, Attorney
Not a landlord? You might be soon. With today’s real estate
market, more and more people are finding themselves left with
no choice but to accept a tenant. This is not a decision that
should be taken lightly, nor is it one that should be avoided at
all costs. Many people have found great success in the
Landlord business, why not you? The common denominator
among successful Landlords is education and execution;
knowing the laws and rules which govern the industry and
making them work for you.
The landlord/tenant relationship is an ancient one. Throughout
history landlords have provided shelter and collected, or
attempted to collect, rent from their tenants. Conversely, and
for just as long, tenants have failed to pay rent, complained
about housing conditions and breached rental agreements. As
a result of this contentious history, a complex set of laws and
court rules have been developed. Without a basic
understanding of those laws and rules a rental business
venture can quickly spiral into an involuntary, free housing
program.
From “For Rent” to “Evicted” you need to know what documents
and procedures are required. This article only provides a
cursory review of the process but attempts to present the big
picture to help landlords, both professional and accidental.
Lease: Without question you need a very good, written lease
agreement. If your property is residential the actual wording of
the lease is governed by Michigan Law. There are provisions
required by law to be in lease agreements. Even the size of
the font used is specified by statute! Landlords have lost
thousands of dollars as a result of faulty leases. Do not let
anyone move into your property without signing a lease first!
Notices: Eventually you will have a tenant who pays late or
breaks the lease agreement. What do you do? You must
notify them of their transgression in writing and give them time
to respond. Easy enough? Not quite. While the notice form is
not mandated by Law, some courts, including Flint’s 68th
District Court, have issued local rules requiring one version
over all others. If you send the wrong or an incomplete notice
you usually don’t find out about it until you are in court and the
Judge tells you to start over.
Complaint: Along with a summons, this document gets you
into court to help you collect your rent or get your property
back. Within the complaint you inform the court of what it is you
want the court to do. You can also specify if you want a money
judgment or a possession judgment. While money judgments
are attractive, they are often hard to obtain and sometimes
inadequately reflect the Landlord’s true measure of damages.
Tenant’s are almost always given at least ten (10) days from
the date of court to occupy (and potentially damage) your
property.
Judgment: The judge signs this document and the parties
are required to do what it says. If you know what you can and
cannot ask for you can construct your own judgment which
provides you the most protection. For instances, certain courts
allow future rent to be included in the judgment amount so long
as it is due within the redemption period (usually 10 days).
Knowing this detail in advance may allow you to plan your court
date to ensure maximum efficiency. Some courts provide
litigants a judgment form, while some do not. Judgments do not
last forever and are void after 56 days, or by certain actions of
the Landlord.
Order of Eviction: This document, often called a “writ”, is
the rather abrupt end to a tenancy which usually started with
the best of intentions. Good landlords avoid this procedure at
all costs. Hopefully you will manage your tenants in a way that
keeps the Sheriff off the porch and the furniture in the house.
Before you or your seller becomes a landlord you should
approach the endeavor with the same professionalism as
buying or selling a home. Know the rules and the procedures
and you will find success. Consult a professional property
manager or your lawyer before you take on a tenant.
Uninformed and unprepared Landlords pay for their lack of
knowledge in lost rent and unnecessary legal fees down the
road. Educate yourself and you will become a Landlord Wiz
today.
Jeremy Piper is a graduate of Wayne State University Law School and
Albion College. His office is located in Downtown Flint. His practice
areas include real estate, landlord –tenant, criminal law, small business
law, contracts and sports law. He serves on the Board of Directors of the
Genesee County Bar Association and is the chairman of the District Court
Committee. Born in Flint, Jeremy lives in Grand Blanc. He can be
reached at jpiper@piperlegal.com