Landlords and Tenants Should Prepare for the Economic Downturn

As the economy continues to decline, landlords and tenants should review different economic scenarios to determine if they're ready for 2023.

For tenants, do you have a recession proof job? If so, you may not have to worry about defaulting on your lease. For everyone else, see if your landlord will agree to a 3 or 6 month lease period once your lease is scheduled to renew. A shorter period may suit you better to protect you against default just in case you lose your job. 

For landlords, do you have a repair/replacement fund for leaky roofs and busted hot water heaters? Can you survive another prolonged period when you don't collect rent as courts and sheriffs slow walk dispossessory actions and evictions?

Also, both parties should know their rights under the lease and the law. A quick or not so quick evaluation may be the answer before trouble comes.  The Firm would be happy to evaluate your document in a 15 - 60 minute conference by phone or Zoom. 

REPAIRS

You don't know how many calls and emails I receive per month from tenants who are shocked that they cannot withhold rent when the landlord doesn't repair. 

At the same time, landlords are shocked they have to repair when the tenant doesn't pay rent.  

In residential leases, a landlord cannot contract away its legal obligation. However, if a landlord refuses to repair, the tenant can use repair (pay) and deduct to repair the property. I recommend tenants research this option before using it. 

In all, there are several factors both parties should consider before entering into a new lease or letting an old lease auto renew. If you are old enough to remember the first great recession, you can easily learn from any mistakes and seek to avoid them. Otherwise, prepare for the worst and hope for the best. 90% of large CEOs and bankers expect the second great recession will hit us 2023 and continue into 2024.

Be Careful of Presidents' Day Deadlines

Many courts in Georgia are not closed for Presidents' Day (Monday, February 18th).  If you have a filing deadline that falls on Monday, call the court to see if it will br opened.

Extreme caution should be exercised for dispossessory answers that are due this Monday. Unlike regular court actions, opening a default in an dispossessory action is nearly impossible.  As a result, a landlord may apply for a writ on Tuesday if an answer isn't filed timely.  Once the judge grants the writ, it's only a matter of time before the Sheriff/Marshal comes to supervise the eviction.

LIFE & DEATH MAY NOT BE INVOLVED, BUT THE WEEK IN THE LIFE OF A CIVIL LANDLORD-TENANT AND FAMILY LAW ATTORNEY CAN SEE ONE EMERGENCY AFTER ANOTHER

Most non-criminal attorneys lead predictable lives.  The week to week schedule can remain firm.
However, in some practices, like mine, the day is day is totally unpredictable.  My two primary areas of practice are landlord-tenant and family law (divorces, child support, child custody, legitimation).

Many landlord-tenant cases have very short, but volatile lives.  While working on demand letters for security deposits or nonemergency repairs, I can receive 3-5 calls a day from people who just received pay or quit notices, lease termination notices, or dispossessory affidavits. When those calls come in, they are treated like the people who come to an emergency room with chest pains.  Those cases are placed at the beginning of the line, triaged and monitored for about 7-14 days. 

So, what happens to the initial demand letters?  They are the people in the emergency room with stomach aches, broken bones, and busted lips.  Their queue numbers may go from 3 to 8 to 2 to 4 to 2 to 1 (finally).    Just like a real-life emergency room, some people who have the stomach aches and broken bones leave,  go to another hospital, self-treat at home, or wait until their numbers are called.  For those who wait, once the doctor sees them, they are satisfied with the diagnosis and prognosis.  Of course, they are not happy with the late treatment.

In my practice, there are few tenant attorneys who have the experience and offer reasonable rates.  So, the wait is inevitable.  For those who cannot wait to have their stomach ache looked at, other attorneys may be able to help.  Those attorneys may or may not have similar wait times.

Starting October 1, 2018, several cases I normally take will no longer be accepted, and new policies will be enforced.  Those cases I no longer handle can probably be taken by lawyers with 1/5 of my experience.  Foregoing the simple cases will decrease the queue and allow for a smoother system.

First and foremost, if you are a tenant, all fees will have to paid at the time the contract is returned.  Additional activities not in the contract will be billed by a handwritten invoice with payment due within 10 days.

Additionally, for tenants who want to sue their landlords for withholding their security deposits, the leases have to allow for attorneys' fees for the prevailing party and the landlords must have more than 10 rental units.

Also, the posted initial consultation office rate of $85-150 for 30 minutes will be strictly enforced.  Therefore, if the meeting exceeds 30 minutes, you will be charged for the additional time.

For dispossessory actions,  the Firm no longer accepts checks if payment is made within 7 days of the hearing.

For appeals to state or superior court, the Firm will charge an hourly rate.  The first 10 hours plus estimated expenses must be paid with the submission of the signed contract.