LIMITED RESIDENTIAL TENANT REPRESENTATION

 To streamline my practice as I move to reduced office hours, I will limit my residential tenant representation to those tenants who rent from the following:

This is for residential tenants only:
To streamline my practice, I am accepting new cases if your landlord is one of the following:

1. Invitation Homes (and its subsidiaries);
2. Tricon
3. Pretium Partners
4. Home Partners of America
5. Progress Residential
6. First Key Homes
7. AMH
8. Amherst Holdings
9. PMI Georgia
10. Excalibur Homes
11. Evernest Property Management
12. Greystar

I will still represent small landlords and all commercial landlords and tenants.

Leaving a Rental Property Early as a Residential Tenant in Georgia

 There are numerous reasons to leave a property earlier than expected.  However, regardless of the reasons, the tenant and landlord should agree on termination provisions. 

1. A vast majority of leases require both parties to the lease to place their agreements in writing and have it signed by both parties.  Otherwise, the parties may be subject to damages.  

2. Even if the termination is based on constructive eviction, the tenant should consult an attorney.  Leaving early is risky.  The property has to be objectively uninhabitable, and you take the risk of having a court determine the place was not in fact uninhabitable.  An experienced tenant lawyer should be able to walk you through the thought process so you can make an educated decision.

3. If you claim the rental property is uninhabitable because of mold, hire a mold testing service who will complete a report and testify at trial, if necessary.  Taking pictures of a black substance is usually not enough to prove mold.  If you are claiming health issues caused by mold, you will need to take that mold report to the doctor to confirm that mold caused your health problems.  It will also be necessary for your doctor to provide a report that complies with the evidence rules. 

4. If there is an early termination provision in the lease, make sure you comply with that provision to the letter.  This requirement includes providing notice to the landlord in accordance with the lease. 99% of the time, oral notice and texts are deemed insufficient notice. 

5. If you have given proper notice for a date certain, you should coordinate an inspection and take pictures and videos of the rental property (inside and out).  The landlord has the right to refuse this request, but that does not waive your right to inform them that you have vacated, the keys and other items are where the parties agreed, in the drop box, or on the kitchen counter.  Just because your move out date is September 30th, doesn't mean the landlord can rely on that date.  You, as the tenant, have to tell them after you moved out that you have vacated.  This is so because some tenants say they will move on September 30th, but stay anyway.  You don't want to be charged for an extra month because you failed to notify the landlord that you have turned over possession.   

If you have further questions, contact The McGill Law at (770)367-1234 or demandingjustice@gmail.com.

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.

Lease Nonrenewal are Becoming a Problem

Now that people have received their taxpayer funds to pay their back rent, the next big threat to tenants, at least, is the landlord's decision to not renew leases.

This has become prevalent because some leases have renewal clauses that limit how much the rent can be raised during the next term. If the landlord can move the old tenant for a new tenant, the rent can be raised hundreds of dollars. Without a rent increase clause, the landlord can increase the rent anyway.

Georgia law on non-subsidized housing does not protect the tenant with right to renew laws and rent caps. Therefore, unless the landlord is willing to negotiate with you, the best thing to do is move on to another location.

Small Business Landlord-Tenant Issues

As I wait for the CDC Moratorium to lift, my focus has turned to small business landlord-tenant issues. It is clear to me that for small business owners hit with personal accelerated lease payments or large back rent judgments, the only option may be bankruptcy.

Due Diligence

Before settling on a location, hire an agent who can assist you in conducting due diligence regarding traffic, the history of other businesses at that location, demographics, product choice, etc. For retail businesses, location, location, location is key.

Read the Lease & Seek Counsel

I understand new business owners are excited about opening a new retail business. However, new owners shouldn't let that excitement cloud the need to review a lease with a fine tooth comb. Indeed, most retail owners open rent an empty space, commit to years of rent that total tens of thousands of dollars, and take out loans to modify that newly rented space. Sometimes, owners are so focused on construction and equipment, they forget to read the lease.

Prior to signing, hire a lawyer to review the document.

Does the document have CAM charges that will increase your monthly expenses?

Does the lease have income charges?

How are repairs allocated?

Who takes care of HVAC replacements?

What happens if the building is destroyed or damaged?

Can the tenant sublease if the business is in trouble?

Can you avoid having a personal guaranty?

Is there a lockout and seizure provision?

These are things an experienced landlord-tenant lawyer can review with you before you sign the lease.

Trouble After Opening

Sometimes, a dispute arises between the landlord and tenant for a myriad of reasons. If this happens, make sure everything is in writing to memorialize the discussion. If the parties cannot come to an agreement quickly, consult a lawyer. Getting a lawyer involved quickly may prevent headaches and costs in the future.

Dead Three Years in an Apartment

Recently, a veteran, who had diabetes, was found dead in his Texas apartment.  The man died approximately three years ago, but nobody knew.  He was on the floor for three years unnoticed.

In Georgia, this could happen to renters.
Right before his death, the veteran had moved into a new place without telling his family.  Apparently, the family didn't know his friends and vice versa.

The tenant had direct deposit for his military retirement and automatic payment for his rent.  The reports haven't said how his utilities were paid in those 3 years. Apparently, he had automatic payment for his other bills or the creditors never reached out to his listed contacts.

The one issue that has perplexed internet laypeople is the lease.  Although a significant number of leases are one year, in Georgia, the standard apartment lease has an automatic renewal clause.  In those instances, when neither the landlord nor the tenant sends a nonrenewal notice, the lease is automatically renewed for another year or month to month.  That continues until a nonrenewal notice is provided. So, in a perfect storm, this could happen in Georgia.

In the Texas case, he was a month to month tenant. There was no indication that he ever signed a one year lease.  More likely than not, the landlord thought he was the perfect tenant because he paid his rent on time and never complained. 

If you have medical issues like he had, you should remain close to at least one person and provide that person with an emergency contact.  That person should know where you live and your telephone number.  Both of you should keep in regular contact. 

Types of Landlord-Tenant Cases the Firm Will Accept (Effective Oct. 1, 2018)

Monday, October 1st, marks the 16th anniversary of the Firm.  Experience and client referrals have brought an increased demand for services.  In the last three months, the Firm has seen an explosion in demand.  Because I want to remain small without sacrificing client satisfaction, certain services will be discontinued.

The Firm will Continue to Accept the Following Cases:

                1.   Dispossessory actions (small landlords and all tenants, hourly rate and flat fee)

                2.   Lease review and negotiations (commercial and residential)

                3.   Civil actions with a value of $20,000 or more for failure to repair, negligence,  breach of contract, nuisance, breach of the warranty of habitability, etc.(flat and hourly rate arrangements)

                4.   Repair and stay negotiations (hourly rate only)

                5.   Breach of lease claims (wrongful termination)(hourly rate only)

                6.   Civil actions (wrongful eviction, conversion)

                7.   Return of Security Deposit (defense of small landlords and prosection by tenants whose landlords have more than 10 rental units) 

                8.   Appeals to State or Superior Court (hourly rate only)

                9.   Appeals to Court of Appeals or Supreme Court (hourly rate only)

                10. Litigation for damages to rental property (pursue and defend).

                11. Fair Housing violations claims and defenses (all tenants and all landlords)(hourly rate only)

The Firm will no Longer Accept the Following Cases:

                1.   Claims by tenants against small landlords for failure to return a security deposit

                2.   Negotiations to terminate leases because of a failure to repair, nuisance, or insects.

                3.   Roommate disputes

                4.   Family-related landlord-tenant disputes unless a written lease exists

                5.   Health problems caused by mold 

                6.   Defense of tenants in dispossessory actions for failure to pay rent. 

Inspect Before You Sign Your Lease

Standard leases have several things in common, including a provision that states the following:
(1) the tenant has examined the premises;
(2) the tenant is satisfied with the physical condition of the premises before taking possession; and
(3) Everything is in good working order (except as noted).

So, if you haven't examined the premises by doing a complete walk through, why would you sign the lease?  Do the walk through, make sure the checklist becomes part of the lease, and make sure there is a time is of the essence provisions for those material concerns.  At the minimum, the checklist should be made a part of the lease, and you should receive a copy that day of the lease and all referenced attachments.

If the manager tells you "we don't give keys until the lease has been signed", tell him or her to keep the keys and do the walk though together.  If the manager still refuses your request, you should assume there are major issues that need to be repaired.  The safest thing to do may be to walk away.  This is another reason to sign the lease at least a week or two before you intend to move into the new property.  It's easier to walk away if the moving truck isn't outside the door with the meter running.

AUTOMATIC LEASE RENEWALS -- Know What's in Your Lease

Tenants and landlords in residential and commercial leases should be mindful of automatic renewal dates. Frequently, leases have a 30-90 day notice of nonrenewal. If neither party sends a nonrenewal notice, the lease may be automatically renewed for another year with a rent increase.

This automatic year renewal may cause a problem for a tenant who wants to leave at the end of the first term, who cannot afford a rent increase, or who wants to change the terms of the lease.

At the same time, an automatic year renewal can create a hardship on a landlord who wants to place the property for sale, who wants to move a better commercial tenant into an occupied space, who wants to increase the rent more than what's in the lease, or who wants to change the terms of the lease.

By contrast, a month to month automatic lease renewal has different hazards for the landlord and tenant. A good tenant has bargaining power to negotiate a lower rent with better terms or leave with 30 days notice. A landlord who is shopping for a good tenant has the freedom of time to shop the rental property to obtain better lease terms. Once that new tenant is found, the old tenant may be entitled to only 60 days notice before he has to vacate the property.

The best thing to do is mark your calendar, think about your plans for the coming year, and make sure you comply with the renewal or nonrenewal terms of your lease. If you have a good relationship with your landlord or tenant, you may want to discuss his or her plans for renewal before the deadline. Otherwise, you may be at a disadvantage in future lease negotiations.

Moving to a New City for a Job? A Few Considerations for Renters.

Before you move to a new city for a job, consider at least one of options that may protect you against renting a horrible residence or losing too much money should you decide to return home:
(1) stay in temporary housing for a few months, keep your furniture in storage, and take your time looking for an apartment;
(2) consider a six month lease;
(3) demand an early termination provision on a twelve month lease that has no more than a two month penalty payment; or
(4) demand a sublet provision in the lease.

(1) and (2) can cost a few hundred dollars a month over a twelve month lease. Many large management companies have (3) and (4) in their leases.

Subletting may be great if you can find a responsible tenant.  However, unless the landlord relieves you from responsiblity for paying the rent and for any damages, you become the guarantor of strangers.

Regardless, the biggest mistake you may make is to lease a location for twelve months without seeing the apartment or home.  If the manager says you have to hurry because others want it, you should consider letting it go.  It's not worth the risk.

Suggestions for Renters -- Apartments and Houses

For those who lease, before you move into your next apartment or rental house, think about following these suggestions:

(1) inspect the premises before you pay your security deposit;

(2) if you cannot inspect the premises before paying the deposit, demand clear provisions for a deposit refund for uninhabitable conditions;

(3) demand a copy of the lease before the move in date or if possible before placing the deposit;

(4) read the lease completely before signing it to ensure you understand the terms and conditions;

(5) if the landlord has made a promise that is not in the lease, demand that it be included in the lease with a date certain for compliance;

(6) request an inspection of the premises before you sign the lease;

(7) if your budget allows, have 15-30 days between the first day of the lease and the furniture move in date to cure any problems;

(8) make sure everything is working during that 15-30 day move in gap; and

(9) make sure you follow the law regarding the move-in inspection timeline.