Ask a Lawyer
By: Steven M. Williams
A former resident filed a fair housing complaint against me recently. Forget the fact that the case is totally without merit. But, now I find that my insurance company is refusing to cover the claim. I thought that my general liability policy should cover this. What am I missing?
Insurance companies will cover fair housing complaints. But, they are generally not covered under a general commercial liability policy. Instead, most companies require a special rider to your policy. As you may have guessed, this means a higher premium. But, in the long run, it is probably worth it: By the time you pay a lawyer to defend you in the case, even if you win the case, you could have paid the increased premium many times over. Landlords should check with their insurance brokers to find out if they have this coverage. If not, they should consider a rider. Unfortunately, it is too late for you in this case. If you were to put a rider in place now, it would likely not apply retroactively to cover this claim.
I believe firmly in fair housing, and I enforce all fair housing rules in my community. I have been told that I should have a written fair housing policy, but I do not think I need one. What do you think?
I recommend that all landlords have a written fair housing policy. This serves several purposes: First, it lets your residents, rental prospects, more importantly, your employees, know that you take fair housing seriously. Second, it shows your employees what you expect from them. It provides a road map, so to speak, on how they are expected to behave. Finally, in the event you are sued for a fair housing violation, it shows the investigator that you are committed to fair housing. In the event of a lawsuit, one of the documents that the investigator will request is your fair housing policy. When you can produce it, you “win points” with the investigator. When you cannot produce it, your commitment can be questioned.
My local Magisterial District Judge never grants me possession if I do not have a signed lease from the tenant. I cannot always control whether a tenant signs a lease. In these cases, am I stuck with the tenant even though there is no written lease?
Unfortunately, I am hearing this more and more. You have four options, as I see it: First, you can talk with the MDJ and explain that you have tried to get the tenant to sign a lease, but that the tenant refuses. The MDJ may reconsider her position in light of this. Second, you can resend the lease to the tenant with a letter that states that the lease will become effective even if the tenant refuses to sign it. The MDJ may, based on your letter, deem the lease to be in force and grant the possession judgment. Third, you can appeal from the MDJ judgment to the County Court of Common Pleas (“CCP”). In most cases, the CCP will be less concerned about the tenant not having a written lease. Fourth, rather than filing the eviction complaint in the MDJ court, you can simply file initially in the CCP. Of course, these last two options are not ideal because the CCP process will take longer and cost you more. But, in the face of an uncooperative MDJ, you may have no choice.
I want to require all of my tenants to pay their rent using my online portal. Some of my tenants are refusing to do this. Can I force them to pay rent this way?
The answer depends partially on what your lease says. If it allows rent payments in forms other than online, then you cannot require the online payments unless you first amend your lease. If the lease already provides that you can designate the manner of rent payments, then you can change it as you wish.
How much notice do I have to give a tenant if I want to non-renew his lease? The current lease term is month-to-month.
Unfortunately, there is no such thing as a non-renewal of a manufactured home tenant’s lease. While the lease designates the term as being month-to-month, you are required to allow renewals indefinitely unless you have a basis to terminate the lease (i.e., an uncured breach by the tenant or the termination of the park).
In our community, we generally allow residents to improve their homes and lots, but only with our prior approval. Can we condition our approval on the residents obtaining building permits from our township?
Absolutely. As the landlord and the owner of the real estate, you are entitled to require approvals before residents improve their homes or lots. However, this approval is not absolute. For example, you probably are limited in the extent to which you can control improvements to the interior of the home that do not in any way affect the land or other residents. Additionally, if you allow a resident to make certain improvements to their lot, you would not be able to prohibit another resident from making the same improvement. More importantly, you should require permits. Requiring permits does two things: First, it ensures that the work is done properly and in accordance with the township’s codes because with permits comes mandatory inspections. Second, it protects you as the landowner. Some codes officials have taken the position that as the landowner, you are responsible for all work done on the property, even inside a home. In some cases, codes officials have tried to hold landlords responsible for the failure to obtain a permit and for work that was done in violation of the codes. By requiring that the residents obtain permits, you are adding a layer of insulation between you and the potential liabilities that can arise when work is done without a permit.
