Ask a Lawyer: Bankruptcy
By: Steven M. Williams
I provided one of my residents with a reserved handicap parking spot in response to her recent disability accommodation request. Now she wants another space. I presume it is for her mother who apparently recently moved in and is an unauthorized resident. How should I handle this?
Your tenant has to justify the need for another space. You should ask her why she needs another one. If she claims it is for her, you need to treat this as any other disability accommodation request. You can ask her to provide documentation that explains why she needs another reserved space. That is, what is the connection between her disability (which I presume she has already verified for you) and the need for a second space. If she “comes clean” and says it is for her mother, you should address the unauthorized resident status and require that she have her mother apply for residency. If she does and qualifies, then you will need to review the mother’s accommodation request just as you originally did for the resident. If the mother refuses to apply for residency, you can likely deny the second handicap spot. It does not seem to be reasonable that you should accommodate the disability of someone who is not legally residing in your community.
I recently heard at a seminar that when I increase rents for my residents, I have to have them sign a new lease. I do not want to go through the process of getting new leases signed. Do I have to?
No. The lease that your residents originally signed will continue to renew indefinitely. If you change the terms, such as increasing the rent, you merely are required to provide proper notice of the lease changes. Once the proper notice has been given, the next lease renewal will be on the terms contained in your notice. I suggest, though, that you keep copies of the new-term notices in your residents’ files so that you can easily prove the lease terms at any given point in time.
One of my tenants has filed a Chapter 7 bankruptcy petition. He owes me about $3,000, and he says that he wants to stay. Will I ever see the money?
In a bankruptcy case, a tenant has to “assume” or “reject” his lease. If he rejects the lease, he must vacate the property. In these cases, landlords usually do not receive any of the back rent that is owed. If he assumes the lease, he can remain in the property. However, an assumption requires that your tenant pay you the back rent he owes, together with any rent that has accrued since the filing of the bankruptcy case. If you find out that a tenant has filed a bankruptcy petition, you should immediately contact your attorney to ensure that you do not miss any filing deadlines and understand what the bankruptcy case has in store for you.
One of my tenants is in bankruptcy, a chapter 13 case. She tells me that she wants to stay in the community, but he owes me about $4,000 and says that I have to wait five years to get it. What’s up with that?
In a chapter 13 bankruptcy case, the tenant has to file a Chapter 13 Plan. The Plan outlines how the tenant intends to pay her debts. Most Chapter 13 Plans have a 60-month term. And, in most cases, unsecured creditors, such as landlords, end up waiting until close to the end of the Plan term to get their money. Secured creditors, such as car financers and mortgage companies, have priority and get paid earlier in the Plan term. It sounds like your tenant included in her Plan a statement that she intends to assume the lease and that she wants to pay the rent arrears through the Plan. While this is a standard debtor tactic, it does not have to be this way. If you had known of your tenant’s intentions, you could have filed an objection to her Plan and insisted that the rent arrears be paid immediately in consideration of the lease assumption. You are in the difficult position that many landlords find themselves in when a tenant files a bankruptcy petition. This underscores the importance of acting immediately when a tenant files for bankruptcy protection.
