Thirty years ago, custom, not law, controlled how most landlords and tenants interacted with each other. This is no longer true.
Today, whether you focus on leases and rental agreements; habitability; discrimina-tion; the amount, use and return of security deposits; how and when a landlord may enter a rental unit; or a dozen other issues, both landlord and tenant must understand their legal rights and responsibilities.
Because landlord-tenant laws vary significantly depending on where you live, remember to check your state and local laws for specifics. A list of state landlord-tenant statutes is in-cluded at the end of this chapter. You can read the state status of all but one state (Louisiana) online.
Leases and Rental Agreements It’s important to carefully read—and fully understand—the terms of your lease or rental agreement. This piece of paper is the contract that forms the legal basis for the landlord-tenant relationship.
Why is it important to sign a lease or rental agreement? The lease or rental agreement is the key document of the tenancy, setting out important issues such as:
• the length of the tenancy
• the amount of rent and deposits the tenant must pay
• the number of people who can live on the rental property
• who pays for utilities
• whether the tenant may have pets
• whether the tenant may sublet the property
• the landlord’s access to the rental property
• who pays attorney fees if there is a lawsuit.
Leases and rental agreements should always be in writing, even though oral agreements for less than a year are enforceable in most states. While oral agreements may seem easy and informal, they often lead to dis-putes. If a tenant and landlord later disagree about key agreements, such as whether or not the tenant can sub-let, the end result is all too likely to be a court argument over who said what to whom, when and in what context.
What’s the difference between a rental agreement and a lease? The biggest difference is the period of occupancy. A written rental agree-ment provides for a tenancy of a short period (often 30 days).
The tenancy is automatically renewed at the end of this period unless the tenant or land-lord ends it by giving written notice, typically 30 days. For these month-to-month rentals (meaning the rent is paid monthly), the landlord can change the terms of the agreement with proper written notice, subject to any rent control laws.
This notice is usually 30 days, but can be shorter in some states if the rent is paid weekly or bi-weekly or if the landlord and tenant agree. In some states, the rental period is longer.
A written lease, on the other hand, gives a tenant the right to occupy a rental unit for a set term—most often for six months or a year, but some-times longer—if the tenant pays the rent and complies with other lease provisions. Unlike a rental agreement, when a lease expires it does not usu-ally automatically renew itself.
A ten-ant who stays on with the landlord’s consent will generally be considered a month-to-month tenant. In addition, with a fixed-term lease, the landlord cannot raise the rent or change other terms of the ten-ancy during the lease, unless the changes are specifically provided for in the lease or the tenant agrees.
What happens if a tenant breaks a long-term lease?
As a general rule, a tenant may not legally break a lease unless the land-lord significantly violates its terms— for example, by failing to make neces-sary repairs, or by failing to comply with an important law concerning health or safety.
A few states have laws that allow tenants to break a lease because health problems or a job relocation require a permanent move. A tenant who breaks a lease with-out a legally recognized cause will be responsible for the remainder of the rent due under the lease term.
In most states, however, a landlord has a legal duty to try to find a new tenant as soon as possible—no matter what the tenant’s reason for leaving—rather than charge the tenant for the total remaining rent due under the lease. At that point, the old tenants’ respon-sibility for the rent will stop.
When can a landlord legally break a lease and end a tenancy?
Usually, a landlord may legally break a lease if a tenant significantly violates its terms or the law—for example, by paying the rent late, keeping a dog in violation of a no-pets clause in the lease, substantially damaging the property or participating in illegal activities on or near the premises, such as selling drugs.
Usually a landlord must first send the tenant a notice stating that the tenancy has been terminated. State laws set out very detailed require-ments as to how a landlord must write and deliver (serve) a termination no-tice. Depending on what the tenant has done wrong, the termination no-tice may state that the tenancy is over and warn the tenant that he or she must vacate the premises or face an eviction lawsuit.
Or, the notice may give the tenant a few days to clean up his or her act—for example, pay the rent or find a new home for the dog. If the tenant fixes the problem or leaves as directed, no one goes to court. If a tenant doesn’t comply with the termination notice, the landlord can file a lawsuit to evict the tenant.
Tuesday, July 25, 2006
Thursday, July 20, 2006
Credit, ATM, and Debit Cards: What To Do If They're Stolen
Many people find it easy and convenient to use credit cards and ATM or debit cards. Th e Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures for you to use if your cards are lost or stolen.
Limiting Your Financial Loss
Report the loss or theft of your credit cards and your ATM or debit cards to the card issuers as quickly as possible. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. It’s a good idea to follow up your phone calls with a letter. Include your account number, when you noticed your card was missing, and the date you fi rst reported the loss. You also may want to check your homeowner’s insurance policy to see if it covers your liability for card thefts. If not, some insurance companies will allow you to change your policy to include this protection.
Credit Card Loss or Fraudulent Charges
(FCBA). Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss before your credit cards are used, the FCBA says the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50
per card. Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.
Limiting Your Financial Loss
Report the loss or theft of your credit cards and your ATM or debit cards to the card issuers as quickly as possible. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. It’s a good idea to follow up your phone calls with a letter. Include your account number, when you noticed your card was missing, and the date you fi rst reported the loss. You also may want to check your homeowner’s insurance policy to see if it covers your liability for card thefts. If not, some insurance companies will allow you to change your policy to include this protection.
Credit Card Loss or Fraudulent Charges
(FCBA). Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss before your credit cards are used, the FCBA says the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50
per card. Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.
Wednesday, July 19, 2006
Save Money! Know Your Rights As A Consumer Part #3
First Mortgage Loans
Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortestterm mortgage you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed
rate mortgage.
You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $1,000.
Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees. If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.
Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of dollars a month, so ask the lender what
the highest possible monthly payment might be.
Mortgage Refinancing
Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. Calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
Home Equity Loans
Be cautious in taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home. (Equity is the cash you would have if you sold your house and paid off your mortgage loans.) If you are unable to make payments on home equity loans, you could lose your home.
Compare home equity loans offered by at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage
insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments.
Home Purchase
You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker’s firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are
showing you a property that they have listed.
Do not purchase any house until it has been examined by a home inspector that you selected. Renting a Place to Live
Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.
Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.
Home Improvement
Home repairs often cost thousands of dollars and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory completion of the work.
Home Appliances
Consult Consumer Reports, available in most public libraries, for information about specific appliance brands and models and how to evaluate them, including energy use. There are often great price and quality differences. Look for the yellow Energy Guide label on products, and especially for products that have earned the government’s ENERGYSTAR, which can save up to 50% in energy use.
Once you’ve selected a specific brand and model, check the Internet or yellow pages to learn what stores carry the brand. Call at least four of these stores to compare prices and ask if that’s the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.
Heating and Cooling
A home energy audit can identify ways to save up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.
Enrolling in load management programs and off-hour rate programs offered by your electric utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs. Telephone Service
Phone Services
Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.
Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don’t need. Each option you drop could save you $40 or more each year.
If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10 numbers or prepaid phone cards for your calls. When shopping for dial around service, look for fees, call minimum, and per minute rates. Treat prepaid cards as cash and find out if there is an expiration date.
If you use a cell phone, make sure your calling plan matches the pattern of calls you typically make. Understand peak calling periods, area coverage, roaming, and termination charges. Contracts offered by most carriers will provide you with a trial period of 14 days or more. Use that time to make sure the service provides coverage in all the places you will be using the phone (home, work etc.). Prepaid wireless plans tend to have higher per minute rates and fees but may be a better option if you use the phone only occasionally.
Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.
Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra. To save money on information calls, look the number up on the Internet, or in the directory.
Food Purchased at Markets
You can save hundreds of dollars a year by shopping at lower-priced food stores. Convenience stores often charge the highest price.
You will spend less on food if you shop with a list, take advantage of sales, and purchase basic ingredients, rather than pre-packaged components or ready-made items.
You can save hundreds of dollars a year by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
Prescription Drugs
Since brand name drugs are usually much more expensive than their generic equivalents, ask your physician and pharmacist if a less expensive generic or an over the counter alternative is available.
Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for a long time, also consider calling mail-order pharmacies, which often charge lower prices.
Funeral Arrangements
Plan ahead, making your wishes known about your funeral, memorial, or burial arrangements in writing to save your family or estate unnecessary expense.
For information about the least costly options, which may save you several thousand dollars, contact a local Funeral Consumer Alliance or memorial society, which are usually listed in the Yellow Pages under funeral services.
Before selecting a funeral home, call several and ask for prices of specific goods and services, or visit them to obtain an itemized price list. You are entitled to this information by law.
Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortestterm mortgage you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed
rate mortgage.
You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $1,000.
Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees. If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.
Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of dollars a month, so ask the lender what
the highest possible monthly payment might be.
Mortgage Refinancing
Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. Calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
Home Equity Loans
Be cautious in taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home. (Equity is the cash you would have if you sold your house and paid off your mortgage loans.) If you are unable to make payments on home equity loans, you could lose your home.
Compare home equity loans offered by at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage
insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments.
Home Purchase
You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker’s firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are
showing you a property that they have listed.
Do not purchase any house until it has been examined by a home inspector that you selected. Renting a Place to Live
Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.
Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.
Home Improvement
Home repairs often cost thousands of dollars and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory completion of the work.
Home Appliances
Consult Consumer Reports, available in most public libraries, for information about specific appliance brands and models and how to evaluate them, including energy use. There are often great price and quality differences. Look for the yellow Energy Guide label on products, and especially for products that have earned the government’s ENERGYSTAR, which can save up to 50% in energy use.
Once you’ve selected a specific brand and model, check the Internet or yellow pages to learn what stores carry the brand. Call at least four of these stores to compare prices and ask if that’s the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.
Heating and Cooling
A home energy audit can identify ways to save up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.
Enrolling in load management programs and off-hour rate programs offered by your electric utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs. Telephone Service
Phone Services
Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.
Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don’t need. Each option you drop could save you $40 or more each year.
If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10 numbers or prepaid phone cards for your calls. When shopping for dial around service, look for fees, call minimum, and per minute rates. Treat prepaid cards as cash and find out if there is an expiration date.
If you use a cell phone, make sure your calling plan matches the pattern of calls you typically make. Understand peak calling periods, area coverage, roaming, and termination charges. Contracts offered by most carriers will provide you with a trial period of 14 days or more. Use that time to make sure the service provides coverage in all the places you will be using the phone (home, work etc.). Prepaid wireless plans tend to have higher per minute rates and fees but may be a better option if you use the phone only occasionally.
Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.
Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra. To save money on information calls, look the number up on the Internet, or in the directory.
Food Purchased at Markets
You can save hundreds of dollars a year by shopping at lower-priced food stores. Convenience stores often charge the highest price.
You will spend less on food if you shop with a list, take advantage of sales, and purchase basic ingredients, rather than pre-packaged components or ready-made items.
You can save hundreds of dollars a year by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
Prescription Drugs
Since brand name drugs are usually much more expensive than their generic equivalents, ask your physician and pharmacist if a less expensive generic or an over the counter alternative is available.
Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for a long time, also consider calling mail-order pharmacies, which often charge lower prices.
Funeral Arrangements
Plan ahead, making your wishes known about your funeral, memorial, or burial arrangements in writing to save your family or estate unnecessary expense.
For information about the least costly options, which may save you several thousand dollars, contact a local Funeral Consumer Alliance or memorial society, which are usually listed in the Yellow Pages under funeral services.
Before selecting a funeral home, call several and ask for prices of specific goods and services, or visit them to obtain an itemized price list. You are entitled to this information by law.
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