Landlord Tenant Law | Law Outside the Box

Settlement Agreements – What you need to know

On November 17, 2010, In Landlord Tenant Law, Small Business Law, By Luke Enno

If you have ever been involved in a dispute with someone else, I strongly recommend you give consideration to having a written settlement agreement prepared as a means to resolve the dispute. If you are going to have a settlement agreement prepared, here are a few pointers:

1. Be very clear on the terms and make sure that there is a MUTUAL exchange of promises.

2. Make sure that the parties agree to mutually release all claims. In other words, the parties can’t come back and sue each other later on with respect to the disputed issues.

3. Clarify that there is no admission of liability on the part of either party.

4. Be sure to have it stated that the agreement has been entered into knowingly and voluntarily without duress, undue influence or misrepresentation.

5. Clarify that this agreement is the entire understanding and that no modification of this agreement may happen without a mutually signed writing.

If you have questions about how this process works, please contact me. I have worked with numerous clients on preparing settlement agreements in a wide variety of contexts. Settlement agreements are an excellent (yet surprisingly simple) way to bring finality to an on-going dispute so that you can have peace of mind.

Share and Enjoy:

Security Deposit Law in MN

On November 16, 2010, In Landlord Tenant Law, By Luke Enno

Almost every week, I receive at least one call from a landlord or tenant regarding how to handle a security deposit.

For the landlord, there is ONE rule that you must remember: You must refund the entire security deposit within 21 DAYS after the tenancy ends OR give the former tenant a sufficient WRITTEN explanation as to why part or all of the security deposit is not being returned.

This is the 21 DAY RULE.

Here are a few recommended tips for the landlord:

1. Make sure to send the letter to the last known address even if it is the address where the tenant just moved out.

2. Send the letter by certified mail and get a return receipt.

3. If you return any or all of the security deposit, it would be preferred if you sent it back in the form of a money order or cashier’s check rather than a check (identity theft).

4. If you are not going to return all of the security deposit, enclose an accounting statement to demonstrate why you are entitled to retain the security deposit.

5. Don’t forget to add the appropriate interest to the security deposit (currently 1% per year).

6. Talk with a knowledgeable landlord-tenant law attorney if you have questions. A lot of tenants know the rules better than their landlords and you as a landlord can incur civil penalties for mishandling this process.

Share and Enjoy:

Tagged with: landlord tenant law • landlords • renters • security deposit • tenants

Charging Late Fees: 2 New Landlord Tenant Laws

On August 9, 2010, In Landlord Tenant Law, By Luke Enno

Charging late fees is customary in most leases. However, as of August 1, 2010, in Minnesota, you should know that there are 2 new laws relating to how and when you can charge late fees.

#1 – For leases starting after January 1, 2011, the landlord cannot charge more than 8% of the monthly rent amount as a late fee UNLESS there is a federal law to the contrary (i.e. HUD or RD housing). For example, if you charge a tenant $500/month for rent, you CANNOT charge that tenant more than $40 in late fees for a given month ($500 x 8% = $40).

#2 – If it is not written into the lease that you can charge late fees, you are prohibited from charging late fees. As a landlord, you need to state in the lease that you have the right to charge late fees if rent is late by a certain number of days and also how much that late fee is.

For more information about these new laws, please go to this link or contact my office.

Share and Enjoy:

Tagged with: landlords • leases • property managers • renters • tenants

Screening Tenants: 5 New Landlord Tenant Laws in 2010

On August 6, 2010, In Landlord Tenant Law, By Luke Enno

Are you a landlord who handles screening potential tenants? If so, you should know that as of August 1, 2010, several new laws were enacted in Minnesota which will affect how you screen potential tenants.

#1 – Landlords MUST give potential renters a written set of criteria that the landlord is using to evaluate that potential renter prior to accepting that potential renter’s application fee.

#2 – Landlords MUST cash one application fee at a time. In other words, landlords are barred from collecting a fees from a bunch of different applicants at once and picking and choosing the applicant they prefer and not refunding the application fees to the other applicants who were turned down.

#3 – Landlords MUST refund a potential renter’s application fee if the landlord declines the application for a reason not stated in the landlord’s application criteria. It is important for the landlord to follow its own application criteria or risk violating the law.

#4 – Landlords MUST provide any and all reasons for rejecting a potential renter’s application within 14 days after rejection and identify the criteria the potential renter failed to meet.

#5 – Landlords MUST give a potential renter a written receipt for the application fee upon request by the potential renter.

In addition to any other remedies, a landlord who violates any of these laws is liable to the potential renter for the amount of the screening fee plus a civil penalty of up to $100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy.

For the potential renter that lies on the application, such potential renter is liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees.

For more information, refer to the statute or contact my office.

Share and Enjoy:

Tagged with: landlord tenant law • landlords • leases • property managers • renters • tenants

6 New Landlord Tenant Laws You Should Know

On August 5, 2010, In Landlord Tenant Law, By Luke Enno

Whether you are a landlord or a renter, Minnesota enacted several laws starting August 1, 2010. Here is a sampling of important laws that are now in effect:

#1 – If you pay your rent in cash, your landlord MUST provide you a receipt. If the landlord fails to provide you with a receipt, the landlord is violating the law.

#2 – If you pay rent by money order, you can use its stub or a copy of the money order as proof of payment.

#3 – Starting August 1, 2011 for new leases and starting August 1, 2012 for renewed leases, if the landlord’s lease allows the landlord to get attorney fees for winning in court, then if you win over the landlord in court, you are allowed to get your attorney fees recovered. This is true even if the lease does not provide a way for you to recover attorney fees.

#4 – Landlords who do not divide utilities fairly among tenants MUST refund each tenant whichever is more: (1) $500 or (2) triple the damages.

#5 – If a landlord refuses to return your security deposit in bad faith, you can now receive up to $500 in addition to double the security deposit back.

#6 – Landlords must keep your abandoned property for 28 days. If the landlord throws out your property before 28 days are up, the landlord MUST pay you whichever is more: (1) $1000 or (2) triple the damages.

For more information about these new laws, please go to this link or contact my office.

Share and Enjoy:

Tagged with: landlords • leases • property managers • renters • tenants

New Landlord-Tenant Laws You Need to Know

On August 4, 2010, In Landlord Tenant Law, By Luke Enno

In Minnesota, a series of new laws were recently enacted on August 1, 2010 and they WILL affect all Minnesotans who are either renters or else who rent (such as landlords and property managers). These new laws involve a number of very important financial and other considerations that could have a significant impact on both renters and landlords.

The Minnesota legislature focused on several areas of the law including:

1 – The rental screening process

2 – Rental homes in foreclosure

3 – Capping late fees

4 – Payment of utilities

5 – Penalties for bad faith failure to return a security deposit

Harsh fines and penalties are being applied to landlords for failure to follow these new laws.

Over the next few days, I will be highlighting key laws and how they may impact you. If you have a colleague or friend that rents, I would encourage you to have them read my blog posts. For more information on these new laws and what they say, please go directly to this link.

Share and Enjoy:

Tagged with: landlord tenant law • leases • property managers • renters • tenants

Hiring an attorney – what you need to know!

On March 26, 2010, In Divorce Law, Landlord Tenant Law, Probate in Minnesota, Small Business Law, Wills and Trusts, By Luke Enno

Are you in the process of hiring an attorney? Selecting the right lawyer to represent you is critical to the success of your case. As in any profession, there are good attorneys and not-so-good attorneys. Often an attorney might be good in one particular field but not in another. I happen to have a lot of experience working in estate planning and small business formations. I have no expertise in personal injury or criminal defense however. This is important to know because if you tried to hire me to represent you in a personal injury case, you’re chances of success would be diminished greatly unfortunately.

In 1984, my dad had a significant need for a knowledgeable business attorney to represent him in a major business deal involving tens of thousands of dollars. Rather than selecting an experienced lawyer in that field, he pursued hiring a general practice attorney that really didn’t have the knowledge or expertise to adequately represent him. My dad didn’t know this going in however.

Why?

Because he didn’t ask the important questions about what this attorney knew or didn’t know until after the business deal was done. Unfortunately, it was too late then because the business deal went sour quickly. My dad discovered too late that this lawyer had steered him in the wrong direction on a number of aspects of the business deal which two attorneys informed him subsequently as he was digging out of a deep financial hole.

Here are 10 questions I recommend you asking the potential attorneys you interview:

1 – Can the lawyer provide a free consultation initially? (This gives you the time to ask important questions!)

2 – How long has the lawyer been in practice?

3 – What percentage of the lawyer’s cases are similar to your type of case? (i.e. if you are looking for an attorney to prepare your will, does the lawyer specialize in estate planning or does she primarily focus on family law?)

4 – Can the lawyer provide you with any professional references?

5 – What type of fee arrangement does the lawyer require? (Use this opportunity to negotiate the price!)

6 – Does the lawyer share my values/beliefs? (…if this is a significant issue to you)

7 – Can I feel comfortable working with this lawyer on my case? (If the attorney’s personality is not conducive to your liking, look for a different lawyer.)

8 – Who will be working on my case? (Will it be the lawyer I hire or a paralegal or other attorney?)

9 – How long will it take to complete my case? (Most experienced lawyers can give you an idea)

10 – What are the strengths and weaknesses of my case and what is the likely outcome?

These are all important questions to ask. Are there any other questions you have found helpful to ask when interviewing for an attorney?

Share and Enjoy:

Tagged with: hiring an attorney

How to hire an attorney

On March 22, 2010, In Divorce Law, Landlord Tenant Law, Probate in Minnesota, Small Business Law, Wills and Trusts, By Luke Enno

Hiring the right attorney can be one of the most important decisions you’ll ever make. Hiring the wrong attorney can result in damaging consequences including excessive fees and failed expectations. With so many different lawyers out there, how do you select the one that meets your needs?

1 – Select a lawyer who specializes in the area of law you need

If you are planning on meeting with an attorney, you should do your homework in advance on that attorney before meeting with him/her. Find out how long he/she has been practicing and in which areas he or she specializes. Note: an attorney who claims to be a generalist may not have as much experience in a particular area of the law. Attorneys who narrow in on 3 or 4 fields of law (out of many) are more likely to have specific knowledge and expertise in those areas which should help you gain better results.

2 – Locate an attorney who can offer a complimentary initial consultation

Most good lawyers will offer to meet with you for a half hour or hour free-of-charge to discuss your case. Take advantage of this opportunity and bring your questions in writing as well as important documents relevant to your case. The more focused you are at the initial meeting, the quicker the attorney can provide you with guidance as to your options.

3 - Negotiate the price

Many times, the price an attorney quotes you is negotiable. If it isn’t, they’ll let you know! In particular areas of the law, you can flat fee services (estate planning, business formation). In other areas of the law, you may be able to hire the attorney on contingency (lawsuits, personal injury cases). If you don’t ask though, you’ll not know and you’ll end up taking the price the attorney quotes or else receive a surprise bill after the work has begun! This is also an opportunity to have the attorney ballpark the final price tag for you and have all of this executed in writing. Getting it in writing helps you manage your financial expectations as well!

What have you found helpful in hiring the right lawyer?

Share and Enjoy:

Tagged with: hiring an attorney • initial consultation

Landlord-Tenant Issues: What’s Your Exit Strategy Out of a Lease?

On March 12, 2010, In Landlord Tenant Law, By Luke Enno

What’s your exit strategy? Whether you’re a landlord or tenant, you should know! In this post, I’m going to concentrate on considerations relevant to the landlord/property manager.

Your Exit Strategy is your response to addressing tenant problems in violation of the lease. For example, let’s assume your renter has recently adopted a cat. Yet the lease states, “no pets”. Or let’s assume the renter is 10 days late paying the rent and this is the third month in a row where the renter has been late. As a landlord, you need to know what to do BEFORE a violation arises. In other words, it is advisable that you anticipate HOW you will resolve a violation. Preplanning is your surest way to controlling a problem.

I’m often asked by landlords what they should do to address a persistent tenant problem. I’m convinced that a well-crafted written policy on how to address a tenant problem significantly helps keep a small problem from escalating into a big problem. In this respect, I encourage the landlord to have access to landlord-tenant law resources (including MHA (Minnesota Multi Housing Association)) and a knowledgeable landlord-tenant law attorney). Resources like this enable the landlord to understand how to resolve a particular type of tenant issue before it arises. Often, the solution is easier than first-imagined.

Let’s say you discover that your tenant has a pet which is in violation of the lease. In this instance, you would be wise to call the tenant and remind him that he is in violation of the lease. Give him a set deadline to have the animal removed. Follow-up your telephone call with a letter (and email) confirming the conversation including how it is going to be resolved.

In the alternative, think outside the box! I had a no-pets clause in a lease but waived it in exchange for an additional fee after assessing the situation with the renter. I made sure that this waiver was incorporated into an amendment to the lease and that it was signed off by both the landlord and tenant. As a rule: a written lease can be amended to fit the circumstances. Just make sure to have that lease amendment in writing and signed by both parties!

Anticipation is an effective risk management tool that can save you money, time and energy!

Share and Enjoy:

Tagged with: landlords • minnesota multi housing association • property managers • renter • tenant problems

Renter’s Insurance: Good for you. Good for your tenant.

On February 15, 2010, In Landlord Tenant Law, By Luke Enno

If you are a property manager, make sure the lease states that before the renter can move in, he must obtain (and maintain) renter’s insurance. The relative cost of renter’s insurance is minimal ($10-20/month). But renter’s insurance can be a lifesaver both for you and your renter.

Before your renter signs the lease or moves in, you need to have your renter provide proof of renter’s insurance. In addition, you should provide in the lease that if your renter fails to maintain renter’s insurance at any time, such failure is grounds for automatic termination of the lease.

Renter’s Insurance Protects the Renter’s Stuff

Your renter’s stuff is unlikely to be covered under your homeowner’s insurance policy. As such, in the event of a catastrophic loss like a fire, your renter could lose any opportunity to recover. In addition, renter’s insurance offers you as the landlord, an additional layer of legal protection in the event of a loss. A renter is less likely to sue you if renter’s insurance is in place.

Most responsible tenants understand the necessity of renter’s insurance and won’t have any issue with obtaining renter’s insurance. I recommend that if you need additional guidance understanding what renter’s insurance does to contact Dave Strebel with Anchor Insurance Agency.

Share and Enjoy:

Tagged with: landlords • lease • property managers • renter • tenant

Law Outside the Box

Small business and estate planning legal information for the rest of us

Settlement Agreements – What you need to know

Security Deposit Law in MN

Charging Late Fees: 2 New Landlord Tenant Laws

Screening Tenants: 5 New Landlord Tenant Laws in 2010

6 New Landlord Tenant Laws You Should Know

New Landlord-Tenant Laws You Need to Know

Hiring an attorney – what you need to know!

How to hire an attorney

Landlord-Tenant Issues: What’s Your Exit Strategy Out of a Lease?

Renter’s Insurance: Good for you. Good for your tenant.

Renter’s Insurance Protects the Renter’s Stuff

Legal Categories

About Luke Enno

Recent Comments

Small business and estate planning legal information for the rest of us

Renter’s Insurance Protects the Renter’s Stuff

Legal Categories

About Luke Enno

Tags

Recent Comments