Rental Housing Journal Utah January 2017 by Professional Publishing, Inc

January 2017 - Vol. 9 Issue 1

Rental Housing Journal Utah

2. President’s Message – Congratulations to the 2016 Tribute Awards Winners 3. Director’s Message – Utah is a Great Place to Be a Landlord 4. Ask the Attorney – Preventing Tenant Problems 5. How to Use an "End of Term Notice"

UPCOMING EVENTS Good Landlord Class Ogden ............................... Feb 21st 8:30am Salt Lake............................ Feb 17th 8:30am www.GoodLandlordingTraining.com General Membership Meetings Update on New UAA Forms Provo ................................ Feb 22nd 7:00 pm

EVENTS Day at the Hill ..................................................... Feb 14th Utah State Capitol, Salt Lake City

UAA Education Conference & Tradeshow ............................. Apr 25th South Towne Expo Center uaahq.org/uaa-education-conference-trade-show

(New Location: 495 N University Ave, Provo)

Salt Lake........................... Feb 22rd 7:00 pm www.GoodLandlordingTraining.com

www.rentalhousingjournal.com • Professional Publishing, Inc Official Publication of The Utah Apartment Association Utah’s Leading Advocate for the Rental Housing Industry – 888-244-0401 – WWW.UAAHQ.ORG

How the UAA PAC Protects You

ne of the biggest reasons for having an Apartment Association is to represent us as an industry in the Government Affairs arena. This is why the Utah Apartment Association was founded over 80 years ago, and this is why advocacy at all levels of government continues to be a major priority for us today. For the past 10 years the Utah Apartment Association has been one of the most energetic, proactive and pragmatic advocacy groups in our state. We have helped to find solutions for problems, proposed fair regulations, and worked with other groups such as city governments, tenant advocates, and the courts to negotiate win/win solutions for the issues that have come up in our industry. This has enormous value for us. As members of the association and part of the rental housing industry we have all benefited significantly from the Utah Apartment Association’s advocacy efforts.

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continued on page 7

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Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

President’s Message Congratulations to the 2016 Tribute Awards Winners

Peter Harradine, AIT, CAM 2017 UAA Board Chair Utah Apartment Association

e recently had our 2016 Tribute Awards dinner. I would like to thank all of those who made it to the event. It was a fantastic opportunity to honor the finalists and winners

who had been nominated by their peers, customers and supervisors as representing the best in Residential Rental Housing. The Awards process has always been a fair and professional process, but we made it better this year. I want to take a minute and go over the process for you so you can understand and explain to others how the process worked. This year, the UAA took the level of our nominating and judging process up a notch. Nominating an individual or a person was a more involved process. Judging was even more thorough than ever before. In most categories there were multiple

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processes that ran simultaneously. For instance, this year, the leasing agents were interviewed, shopped and required to fill out written responses that were also judged. Each area was worth a portion of the final score. Overall, this year we did more secret shops, and had nearly three times as many people involved in judging than previously. We made finalists work harder to earn their awards. The board and awards committee’s efforts to reinvent this event and its processes it has led to one of the highest turn outs ever at the awards.

I would like to thank the board, the committees, the volunteers, the sponsors and the members of the association who nominated individuals for the awards. Above all, I would like to thank the finalist and the winners for their dedication and example of excellence. Congratulations!

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Rental Housing Journal Utah is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

www.rentalhousingjournal.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

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Rental Housing Journal Utah · January 2017

Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

Director’s Message

Utah is a Great Place to Be a Landlord

L. Paul Smith, CAE UAA Executive Director Utah Apartment Association

2. Good tenant screening doesn’t guarantee success. But it dramatically improves your odds. But doing background checks by themselves isn’t a magic bullet – the key is understanding risk and having rental criteria that protect and guide you (For more info attend the February General Membership Meetings on this topic)

t a class the UAA was putting on a while back a very upset landlord, who doesn’t like the city requiring that she get a business license, continually complained about how unfair the system is for landlords. As you can imagine, the other 80 or so people in that class strongly disagreed with her. Some of her complaints were: 1. Tenants can walk all over landlords and no one does anything about it

3. Utah has some of the best and fairest laws in the country. There are significant protections for tenants BUT – most of those were sponsored by the UAA and the Rental Housing Industry in such a way as to not hurt landlords. In addition, Utah has some of the best collection/eviction/landlord tenant laws as well as restric-

tions on government regulations that hurt landlords and tenants in the country. From time to time you will encounter grumpy landlords whose first inclination is to complain and be a victim. As an educated industry member, take the time to kindly correct and educate them as to how good we really have it.

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2. No matter how diligently you screen tenants they end up being bad and a problem 3. The rules and laws in Utah are ridiculous and slanted to tenants It was amazing to me to watch for an hour as each time this person would say something, how others in the class would politely try to set her straight and tell her how wrong each of those three allegations were. She ultimately got worked up and left, much to the delight of the class of responsible and striving landlords who weren’t buying her negativity or pessimism. I thought in light of the good students who experienced this with me I would repeat their points. 1. Tenants only get away with what you let them. Utah has one of the fastest, cheapest, and least complicated eviction processes in the country. If your tenants are pushing you around, you aren’t enforcing your contracts. You need to have a good rental agreement (like the one the UAA publishes) but you need to enforce it with 3 Day notices, etc. in order for it to count for anything!

Rental Housing Journal Utah · January 2017

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Rental Housing Journal Utah

Ask the Attorney

Preventing Tenant Problems

By Jeremy M Shorts Utah Eviction Law

aking a few simple steps can help avoid some of the problems and lawsuits that we see. First, and foremost, landlords should properly screen their tenants by performing background checks and verifying the information placed on a rental application. Many of our evictions involve people who have had problems with landlords in the past. A landlord cannot rest easy just because a tenant marks “No” when the application asks “Have you ever been evicted?. If a tenant is in the

middle of an active eviction, they know most landlords will immediately reject them. Landlords must perform thorough background checks and verify the information on the rental application. If a landlord is considering renting to someone they are concerned about, there are a few different things they can do to protect themselves. Two of the best options are (1) increased rent, deposit, etc., and/or (2) get a co-signer to also sign the lease. A landlord cannot discriminate against a tenant based on their race, color, sex, religion, national origin, disability, source of income, familial status, sexual orientation, or gender identity. Notice that “poor credit”, “lower income”, and “prior evictions” are not protected classes. If a tenant has some of these issues, a landlord can provide an extra layer of protection by increasing the rent, requiring first AND last month’s rent, increasing

the security deposit, and/or requiring a co-signer. A co-signer does not actually reside in the unit, but they sign the lease and agree to perform all obligations of the actual tenants. If an eviction or breach of the lease occurs, the co-signer is financially responsible for any potential judgment obtained against the tenant. Not only does this increase the landlord’s chances of recovering monies owed, a co-signer can help to put additional pressure on the tenant to comply with the lease. We recently had a very volatile case that involved just about everything – suspected drug use, fights with neighbors, loud music and parties, police being called, and Facebook drama. All of this ended with us discovering several online profiles of the tenant for illegal escort services. The chances of evicting were strong (several neighbors and witnesses came forward in support of our eviction), but the chances of recovering any potential judgment was very low. BUT – the landlord was smart and required an increased security deposit as well as requiring a cosigner (the tenant’s father). The father was the poster child for a good co-signer – a prominent business man in Utah

with a strong and stable business. We not only evicted the tenant, but obtained a judgment of around $9,100.00 (primarily for treble damages). The co-signing father not only helped us convince the tenant it was time to move, he also immediately paid the judgment IN FULL in order to avoid the judgment going on his credit. This was a perfect example of how a landlord can protect themselves. All hard costs (rent, attorney fees, etc.) were paid in full, and the landlord also received several thousand dollars in treble damages. Every situation is different and if you have an excellent candidate these steps may be unnecessary. But If you have any valid concerns about a tenant, a few basic steps can provide significant protection down the road. If you are concerned, don’t hesitate to negotiate additional terms to your lease. Jeremy Shorts, Esq. Utah Eviction Law Phone: 801-610-9879 Fax: 801-494-2058 Email: info@utahevictionlaw.com

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Rental Housing Journal Utah · January 2017

Rental Housing Journal Utah

How to Use an “End of Term Notice”

t happens all the time. You get a phone call from your tenant saying that they just got a job offer in another state, or that they are buying a house, or that they need to movie for whatever reason. All that matters is that they give you the proper amount of notice. They don’t have to tell you why they are moving or give you any reason whatsoever. And you have the exact same rights that they do! Once the lease expires, neither party has any obligation to continue or to sign a new lease. So, if you have a tenant who is not necessarily breaking the lease, not necessarily breaking the law, but is causing problems for you, your neighborhood, or your other tenants then you should give them a notice that you are not going to be renewing their lease.

give at least 15 days’ notice before the contract renews itself. If that doesn’t happen the arrangement will continue under the current terms and conditions on a month to month basis. However, just because you gave your tenants a 15 day notice doesn’t mean that they have to move out 15 days later, it means that whatever month that last day is in is the last month that the contract will be valid. So if you give a 15 day notice to a tenant on the 10th of the month then they will have to leave at the end of the month, however if you give it to them on the 17th,

Timing is key Under Utah law rental arrangements may only be terminated by one of the parties (landlord or tenant) as laid out in the agreement. If the agreement doesn’t say anything, then either party must

then they will have until the end of the next month. (By the way, the same thing applies to tenants, if their notice period goes into the next month, then they may be responsible for rent for the whole next month’s rent.)

Fair Housing Complications You do not have to give a reason for why you are choosing to not renew a contract. However, you’d better have a good reason because if the reason you chose not to renew their lease is viewed as discriminatory towards your tenants,

then you can be charged with violating the Fair Housing Act. Timing is important for this too. For example, imagine you find out that a tenant has an unauthorized pet in the apartment. If you serve them a Three Day Notice to Preform Covenants of the lease, and then they come to you with the necessary paperwork to have the animal accepted as an Assistance Animal for their Disability you then have to accept the animal. And if you then proceed to give them a non-renewal notice it will almost be certainly seen as illegal retalcontinued on page 7

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Rental Housing Journal Utah

How to Protect Vacant Rental Properties During the Winter

reparing your rentals for an extended vacancy is important any time of year, but if they are going to be left empty for more than a couple of days during the winter months, you should be extra cautious due to freezing weather. Getting things taken care is not difficult, but missing steps can create serious problems later.

Step 1

rity, consider using timers on a odors from rotting bits of food. If light or two. Turn off and unplug they don’t, then you can charge Unplug all unnecessary electrieverything else. them for failing to do so. cal devices. There probably aren’t toasters, computers, TVs, tablets Step 2 Step 3 and clocks, but anything plugged Have the moving tenants clean Turn down the heat. When no in can draw power and add to the electric bill and creating a small out the refrigerator, freezer, sink one is in the house, a setting of risk of fire. Nevertheless, leave traps and garbage disposal to min- around 50 degrees is sufficient to the refrigerator on and, for secu- imize the creation of offensive keep the pipes from bursting. You can always turn it up a bit if you are going to be showing the apartment to people later that day.

Step 4 If you are concerned, you can turn off the water supply to your home and open all faucets to drain them. Leave one faucet open on the lowest level of the house to allow air and excess water to drain.

Step 5 Lower the water temperature on your water heater to save money while it is vacant.

Step 6 Talk to your neighbors. Ask them to keep an eye out for suspicious activity. Ensure that your neighbor has your contact information and basic knowledge of the house.

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Rental Housing Journal Utah · January 2017

Rental Housing Journal Utah

How the UAA PAC Protects You ...continued from page 1

How to Use an "End of Term ...continued from page 5

Contributing to the PAC is so important because it enables the association to fulfill one of its main goals and functions of representing your interests and your rights to the State and local governments. Every year things are proposed that can negatively affect landlords and your bottom line. Through the PAC we are able to foster respectful working relationships and help educate others about the issues important to our industry and to our members. We work hard to find lasting solutions through common ground and compromise that will benefit our members both now and in the future, and which will have a positive impact on all parties involved. We can only accomplish these goals with donations from members like you. Your PAC contributions make a real and lasting impact. No matter what kind of rental homes you have, or how many you have, the UAA is here to help you succeed. Let’s all work together to make sure it stays that way. For more information on what the PAC is doing to protect your industry, visit www.uaahq.org/uaa-pac If you are interested in learning more about the process of how PAC funds are distributed, you are more than welcome to come to any meetings of the Government Affairs Committee or the Board of Directors. Just call the UAA staff and find out when they are next meeting. You may even find that you would like to volunteer your time to be a part of the committee and participate in the process! In 2014 the UAA was awarded a prestigious Paragon Award from the National Apartment Associa-

iation and discrimination by the Don’t go overboard courts. However, if you had served Occasionally I hear from landthem an End of Term Notice along lords that they prefer to have with the Three Day Notice up front month to month agreements inthen you would be totally fine. stead of long term leases (like for one year) because they have more You can serve the notice flexibility to end the relationship if any time the tenant is a problem. They misWhen you realize that you don’t understand the nature of rental want to continue your business re- contracts. If the tenant is not belationship with the tenant you can ing a problem, and will move when tell them at any time. In fact, the asked, then a month to month day after they sign a two year lease notice would be effective. But a you can give them a note that in tenant who is a problem tenant and two years from now you will not won’t move on their own will still keep renting to them. have to be evicted if they refuse to Of course there are reasons why leave because you gave them an you might not want to tell the ten- End of Term Notice. In addition, ants right now that you won’t keep if a tenant is a problem, Utah Law renting to them. Often it is advis- generally allows landlords to evict able that if you are going to be giv- them quicker under a “cause” evicing a 15 day notice, that you wait tion than just giving them notice until they have paid the rent for to end their tenancy. that month to give them the notice that it is their last month in order to prevent possible complications. However, in general the best advice is to give the tenants a notice as soon as they cause a problem, and a large number of landlords are beginning to give non-renewal notices with all of their 3 Day violations as an added layer of legal protection, no matter how much time is left on the lease.

tion for our Government Affairs Program. We are honored to have been recognized the best in the Nation, but we are not taking anything for granted. Our continued efforts will take time, effort and money to ensure that the Rental Housing Industry in Utah is one of the best in the country. If you aren’t able to donate to the UAA PAC when you sent in your dues check, don’t worry! You can make a donation at any time by calling the UAA staff or by sending in a check by mail. And if you did make a donation, thank you again for helping us work to preserve and improve the laws governing our industry. But there is much more to do. If you have had problems or have suggestions as to what we should work on next please let us know. Not only does it help us to know what issues you are facing, it is important for us to have real live examples of what is going on when we take your problems to the other parties involved. One of the best ways to become involved is to attend the annual UAA Day at the Hill which will be held at the Utah State Capitol on Tuesday, February 14th at 11:00. Call the UAA Staff at 801-487-5619 to RSVP. Let us know what suggestions and ideas you have so that the Utah Apartment Association can continue to protect us and advance our industry’s interests.

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