Rental Advice - Kentucky
A prospective renter recently posed a two part question, which I answered in my blog. I'm reproducing the answers here as they may be helpful. The first question was on recommended steps to take prior to signing the lease agreement. The second (follow up) question concerned the security deposit.
I RENTER TIPS
Q: What do you recommend I do prior to signing my lease agreement?
A: (1) Check The Lease: Make sure you read the lease carefully and understand it all. Don't assume the terms are non-negotiable. If you are in doubt, contact a competent realtor or attorney. It may be a free service.
(2) Check The Escrow Account: Get details of bank account into which your escrowed money will be placed. Don't back down on this. Your escrowed money is for certain purposes only. Contact a realtor or attorney to find out those purposes. Know the law and your rights before you sign.
(3) Check The Unit You Are Renting: Take photos of the entire unit and especially any defect in the property and have your landlord acknowledge the defects exist. Prior but unrecorded or exagerated defects is the very best way to lose your security deposit. Don't blindly sign that the property has no defects. Insist on a walk-through prior to signing.
(4) Check The Landlord / Management Company. If you are renting a single family residence, ask the owner/manager if they have other properties and where. See how they are maintained. Ask tenants in the sfr or the apartment building about him. Do your research before you sign.
This is a very short list. Depending on your competence in dealing with leases, either check it carefully yourself or contact a realtor or attorney to help you.
II SECURITY DEPOSIT
Q: Thank you for your answer. But we have heard that the Landlord will probably keep our deposit. Is that true?
A You have a right to get 100% of your security deposit back if you comply with the terms of the contract. The key phrase found in most contracts in the boilerplate language is "fair wear and tear excluded", or something similar. In other words, if you leave the apartment in the same condition as when you took possession, with the only deterioration due to that caused by normal usage, you're in the clear and must receive back your security deposit. It should all be spelled out in your contract.
I have been dealing with landlords all my professional life, as both attorney (outside the US) and as realtor. Some are very good friends of mine. But landlords are like everyone else, some good, some bad. I can tell you that in some purchase analyses landlords do in assessing the return on investment for multi-unit complexes, they look at the amount of late fees and withheld deposits as separate parts of their revenue and profit stream. There was one I saw that it amounted to 3% of gross income. Not all security deposits are justifiably withheld - know your rights.
So....check out the landlord, but also prepare in advance to defend yourself by doing a walk through prior to signing with the landlord or his representative, and meticulously note those items that are defective. Get the landlord to sign off on it. And if you notice a defect or it becomes apparent only after you move in, bring it to the landlords attention in writing immediately and get him to agree it is not your fault (if you can). And then do a walkthrough just prior to leaving with the landlord or his representative.
Rental contracts are very heavily weighted against tenants in favor of landlords and the terms may be negotiable. If not and the term is important, walk away. Know your rights.
Most leases are going to be OK. But we purchase car and home insurance or accidental disability insurance because we know that sometimes things go wrong. Be prepared.
