FROM THE PRESIDENT - Don Schmidt
The three topics presented during the first meeting of the new year
were very informative. The topics of tenant screening, new tenant
package, and problems to avoid were high priority items from our
brainstorming session. The interaction between the presenters and the
membership audience added to the quality of the information. This
interaction proves that no one has all the answers, but the input from a
group who share the same goals and experiences is of great value.
We now have over 40 members. The Board of Directors decided that
since 1996 was only a partial year for our organization, all dues paid in
1996 will be carried over into 1997. The Board is looking forward to
working with all the members in 1997 to achieve our common mission
"TO MAINTAIN AND IMPROVE PROPERTY VALUE, IN
PARTNERSHIP WITH THE COMMUNITY, TO ATTRACT QUALITY
TENANTS AND TO HAVE A SAFE, DESIRABLE NEIGHBORHOOD."
Remember, there is no saturation level for knowledge. A
knowledgeable Landlord is a good Landlord and an effective business
person. Hope to see you at the next meeting.
For those members who did not pick up their New Tenant Package at
the last meeting, they will be available at the March meeting.
TENANT SCREENING - Jim Bruggeman
Screening Your prospective tenants is probably one of the most
important tasks of Landlording. Tenant screening on your own is often
very difficult even if you are able to obtain all the information needed
for screening, such as credit check, previous landlords, employer and
criminal record check. To do tenant screening properly it takes a lot of
time and talent.
Therefore, I feel it's worthwhile to use a professional screening
company. These screening companies charge a small yearly membership fee.
The charge for each application is $25, which can be paid for by the
prospective tenant. These screening companies are professionals in
finding information on tenants that is very essential to getting good
tenants. You want tenants that pay rent "ON TIME" and take care of your
property. Once the screening companies receive the credit application it
usually only takes 24-48 hours to find out if the prospective tenant is
approved.
Normally, when you tell prospective tenants that you do a credit
check the undesirable tenants tend to disappear. The following is a list
of tenant screening companies:
Apartment Tenant Services
of America, Inc.
P.O. Box 130
St. Ann, Mo. 63074-0130
(314) 426-5200
Sue Bollegar - President
Credit Information
3550 McKelvey Rd. Ste. 210
Bridgeton, Mo. 63044
(314) 344-0084
Dave Creath
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Gleem Credit Services
9191 W. Florrissant
St. Louis Mo. 63136
(314) 521-1300
Infotech Credit Reporting
390A North Euclid Ave.
St. Louis, Mo. 63108
(314) 367-4300
Kathy
Rental Source Inc.
P.O. Box 984
St. Peters, Mo. 63376
(314) 947-0077
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TO LEASE OR NOT TO LEASE, THAT IS THE QUESTION
MONTH TO MONTH RENTAL
PLUSES:
* More flexibility than leases
* Change rent on short notice
* Change terms of tenancy on short notice.
MINUSES
* More tenant turnover
* Tenants move out at anytime with 30 day notice
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FIXED-TERM LEASE
PLUSES
* Tenant commitment to period of lease
* Less tenant turnover
MINUSES
* Landlord can't change rent
* Landlord can't change terms of tenancy
* Can't evict unless terms of lease are broken
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In summary, there is no one correct answer to monthly vs lease rental
agreement. If you are in an environment where rental units are at a
premium and new tenants can be found in a short time, the monthly
agreement could be to your advantage. However, if good tenants are hard
to find, you may want tenants to commit to a longer period as spelled out
in a lease.
If you have a good tenant, the disadvantages of a lease become less
significant. Although a lease may encourage tenants to stay longer, it
is no guarantee. Some tenants do not take serious the commitment to a
long term lease. Also, a good tenant might leave after the term of the
first lease because they are not sure of committing for another lease
period. Maybe a combination of lease and monthly agreement should be
used. Use a lease for new tenants. After their lease is up, give them
the option of going with another lease or going month to month. This way
you have gotten your long term commitment and removed a deadline for you
tenant to make a re-location decision.
Whatever option you use, it is recommended that your agreement be in
writing. A monthly agreement can have as many conditions as a lease with
the exception of the period of time covered.
ITS THE LAW
SECURITY DEPOSITS
The Security Deposit Law as written in Chapter 535 of the Missouri
Revised Statues:
535.300.
Security deposits, limitation-return of deposit or notice of
damages, when--withholding deposit, when--tenant's right to
damages-- security deposit defined.
1. A landlord may not demand or receive a security deposit in excess of
two month's rent.
2. Within thirty days after the date of termination of tenancy, the
landlord shall:
(1) Return the full amount of the security deposit: or (2) Furnish
to the tenant a written itemized list of the damages for which the
security deposit or any portion thereof is withheld, along with the
balance of the security deposit. The landlord shall have complied with
this subsection by mailing such statement and any payment to
the last known address of the tenant.
3. The landlord may withhold from the security deposit only such
amounts as are reasonably necessary for the following reasons:
(1) To remedy a tenant's default in the payment of rent due to the
landlord, pursuant to the rental agreement;
(2) To restore the dwelling unit to its condition at
the commencement of the tenancy,ordinary wear and
tear expected; or
(3) To compensate the landlord for actual damages ustained as a
result of the tenant's failure to give adequate notice to
terminate the tenancy pursuant to law or the rental agreement; provided
that the landlord makes reasonable efforts to mitigate damages.
4. The landlord shall give the tenant or his representative reasonable
notice in writing at his last known address or in person of the date and
time when the landlord will inspect the dwelling unit following the
termination of the rental agreement to determine the amount of the
security deposit to be withheld, and the inspection shall be held at a
reasonable time. The tenant shall have the right to be present at the
inspection of the dwelling unit at the time and date scheduled by the
landlord.
5. If the landlord wrongfully withholds all or any portion of the
security deposit in violation of this section, the tenant shall recover
as damages not more than twice the amount wrongfully withheld.
6. Nothing in this section shall be construed to limit the right of the
landlord to recover actual damages in excess of the security deposit, or
to permit a tenant to apply or deduct any portion of the security deposit
at any time in lieu of payment of rent.
7. As used in this section, the term "security deposit" means any
deposit of money or property, however denominated, which is furnished by
a tenant to a landlord to secure the performance of any part of the
rental agreement, including damages to the dwelling unit. This term does
not include any money or property denominated as deposit for a pet on the
premises. (L.1983,H.B. No. 175, p913, 1.)
"APPROVED CONTRACTORS"
One of the items discussed in our brainstorming session was a list
of Approved Contractors. In our last meeting, the membership was asked
to submit names of contractors/businesses in which they had successful
experience with and are presently using or will continue to use in the
future. This should not be construed as an indorsement by the Carondelet
Holly Hills Landlord Association. The following is the first input from
the membership:
Harris Exteriors Siding &
Seamless Guttering
966-5198
Farley Roofing Hot Tar, Shingles,
Slate Repair, Tuckpointing
631-3743
JR Plumbing
849-1009
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Budget Roofing Shingles & Flat Roof
966-7242
Studio Ten Shingle Roofs
849-8102
Cocos Plumbing
631-2688
West Side Serv. Appliance Repair
721-5500
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All members are encouraged to submit names of contractors that they have
had and are happy with the results. If any member experiences
unsatisfactory service with a listed contractor the name will be removed.
The Association will not keep a list of unsatisfactory contractors.
Please submit your Contractors in writing at the next meeting or send
them to Don Schmidt, P.O. Box 16392, St. Louis, 63125.
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