subject: Leasing a Home can be Dangerous [print this page] Leasing a Home can be Dangerous Leasing a Home can be Dangerous
Most people and companies leasing a home or apartment require a credit or background check. There are circumstances where the lessor may need to demand the same credit and background check from their potential landlord.
A background check should include credit checks, criminal records, partial or total real estate property transfers or sales, outstanding legal judgments, outstanding hot checks, multiple drivers licenses, multiple names, more than one passport, ongoing personal and corporate bankruptcies, past bankruptcies, past lawsuits, current lawsuits, and tax liens. This background check can extend to include the loss of medical and legal professional credentials. Look carefully at records for multiple drug arrests and driving under the influence of alcohol. Never assume that a person holding professional credentials is ethical. My previous real estate experience gives me pause to understand that even judges and ministers can behave in unethical and illegal ways in their personal real estate transactions. Do not assume that any profession is exempt from bad behavior.
When good realtors are involved, there may be often bea false sense of security. Realtors usually serve as a buffer and eliminate or reduce any problems for either side of the lease transaction. Unethical landlords can also victimize realtors.
My experience leasing a home in Austin will illuminate several of the issues that can arise. My lease provided for a very large security and pet deposit for a lovely home in one of the best Austin neighborhoods. A prestigious well-respected Austin real estate firm handled the leasing of this home.
Initially, the landlord failed to make repairs that were agreed upon as part of the lease agreement prior to move in. Move-in repairs were crucial including the fence and gate repair, plumbing issues in the master bathroom, and a broken oven in the kitchen. I contacted the realtor and they were unable to help. They also had problems with the landlord.
A visit with the Austin Tenants Council during the initial month of my lease resulted in advice to immediately move out of the property. I did not follow their advise due the time and expense of moving in less than one month after move-in. I had just unpacked boxes shortly before my meeting with them. Do not move into a rental property where the agreed upon repairs have not been made.
Tenant Councils and Law Schools that provide tenant advise are great resources for assistance during these situations. This home went into bankruptcy. The Austin Tenants Council advised me that recovering my security deposit is doubtful after a home has entered bankruptcy proceeding. I attended a second meeting with the Austin Tenant's Council after being informed of the Bankruptcy proceeding that included this home. I attended a meeting with the Bankruptcy trustee for the home to request that my deposit be noted as an outstanding obligation for the home and the landlord. The landlord never disputed the amount of the deposit.
I received a notice from the landlord that he wanted me to vacate the property. The rent was fully paid. There was never a letter terminating the lease agreement. Shortly thereafter, I appeared in front of Jade Meeker, Justice for the Peace of Precinct 5 in Travis County, Texas. In her courtroom, she informed me that she was not interested in the facts of the case concerning the bankruptcy status of the landlord. From her perspective, it was irrelevant. It also was irrelevant that the landlord had $3,250 of my money in security deposits. I had my lease terminated with complete disregard to any facts other than the landlord wanted rent for a lease that technically had been turned earlier to the Western District Bankruptcy Court of Texas. I received five days to leave the property. During the previous month, I received several written notifications from the bankruptcy court showing that it was in control of my lease.
The courts and Texas do not accommodate this situation for the lessor very well. I tried very hard to receive guidance from the bankruptcy court on how to handle the payment of rent to a landlord who is in bankruptcy for the second time and has over three thousand dollars of my money in deposits. There was complete disregard for me. I had a justice of the peace fail to consider the complexity of the situation.
The home was left in good condition. Photos were taken and a person other than a lessor was present to walk through the property after move out. This provides a witness for the condition of the home in the event that there is a dispute with the landlord. I had planned on staying in the home and had notified the bankruptcy judge of the new landscaping. I landscaped the front and back yards and restored the grass. There were seven major repairs that were done on the house requiring my time and finances up front. Try to remember to document the condition of the house with photos or video and an unrelated witness and provide the landlord with your forwarding address so that he can mail your security deposit.
Landlord issues that may directly impact the lessor include landlord credit issues, property taxes in arrears, mortgage payments in arrears, home repair failure, failure to return telephone calls, failure to reimburse for required repairs, failure to respond to mail, many civil lawsuits against the landlord, criminal background, bankruptcies, multiple divorces, and multiple simultaneous deaths in the family of the landlord.
Imagine that you are in a home and you find out that your landlord has a criminal background involving murder. In most states, a landlord has a key to the home that they have rented to you. You are in a situation where murderer has a key to the home that you are leasing. If the landlord is a felon convicted of stealing personal property, you have a different type of security problem.
In bankruptcy issues where you are the lessor, your home will enter the care of a bankruptcy court and its trustee. You will be at the mercy of an institution that cares little about you and your financial situation or your safety. Their primary relationship is with the bankrupt landlord that used to own or control your home. I had this situation occur and attempted to contact Bankruptcy court judges by certified mail on three separate occasions and went in person to talk to the trustee. I was given no information about who to pay and was instructed to contact an attorney if I wanted to know anything.
It seems as though it would be illegal to hold an eviction proceeding with a tenant that has contacted the bankruptcy court this many times trying to handle this situation. It also seems that a bankruptcy court would not be in favor of a bankrupt landlord making a decision about terminating a lease agreement for a home under their control. It was previously my understanding that maximizing cash flow to the court was always the objective. My experience with the Texas legal system has seemed rather like an odd cram down that should be illegal in a land of justice and honor. I am a very well educated person and cannot imagine what this process would degrade to for a party without college education.
2010 by Dr R Stone, MD- Alternative Medicine, India
