Many landlords are well-respected and appreciated by their tenants. Then there are those who don’t feel the love. Over the years, the ‘unloved’ landlords have created bad publicity, and bad laws, that make it harder for all landlords to run their business.
Don’t get me wrong… there are plenty of bad tenants out there as well.
The trouble is the public relations game. The media and the politicians see who is making the money (landlords), and feel sorry for (or want the votes of) the people having to pay the money (tenants).
We don’t want to scare you off from being a landlord. Many people are making fortunes as landlords. Real Estate Mogul has tons of information on becoming a successful landlord.
There are also lots of resources out there on the web to help you not only become a better landlord, but also to protect you legally from problem tenants.
Let’s take a look at one that has been around since the early days of the web.
A Federal Bureau for Landlord Protection?
Not quite, but the title of this service sure sounds like one.
It’s the Landlord Protection Agency. The LPA has been around since 2000. It was started by a landlord, John Nuzzolese, who had run rental properties since 1979. John had been burned by tenants several times. He wanted a way to fight back.
The LPA has both free resources and a subscription service. The free service provides a lot of what other real estate sites might provide:
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Some free forms to help you run your rental business
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A place to list your rentals for attracting tenants
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Monthly newsletters that provide tips for running your landlord business
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Articles on landlord-tenant law to keep you up to date
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An attorney directory that specializes in real estate law and helping landlords
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Forums to answer your landlord questions
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Links to other landlord associations and services
The paid service digs deeper into everything you need to run your rental business successfully…
It starts with all the forms you need. The LPA forms are thoroughly reviewed by an attorney, and come to you in Word format so you can easily edit them. Of course, we recommend you check them out with an attorney in your state to avoid any trouble.
LPA members also receive assistance in reporting delinquent tenants to credit bureaus.
If you have to have a tough conversation with a tenant about paying the rent, wouldn’t it be nice to let them know that you can potentially ruin their credit as well?
That would provide a strong incentive to bring the rent current.
The LPA also makes sure all your reporting to the credit bureaus is in compliance with the Fair Credit Reporting Act (FCRA). Big penalties await creditors who violate that law.
The best way to avoid late or missed rent payments is to keep bad tenants out of your properties in the first place. The LPA provides tenant-screening services for all landlords for as little as around $14 per credit report. You can receive a further discount by being an LPA member.
Besides the regular tenant screening services that are offered in lots of places on the web, the LPA maintains a database of bad tenants for its members…
The database is known as the National Tenant Rating Bureau.
Lots of landlords check this database as part of their screening process. Of course, if you are unlucky enough to have a bad tenant, the LPA would welcome your report to save other landlords from dealing with them.
Just letting tenants know you will be filling out a report on them may be incentive enough for them to become current on their rent.
Another nice feature of an LPA membership is their ‘Ask the Attorney’ page.
John Reno is a real estate attorney based out of Long Island, NY. He has over 30 years’ experience in eviction law, and can help you with any rental property legal issues you might be experiencing.
Membership in the LPA also provides discounts at lots of businesses that cater to landlords. Through the power of their membership, the LPA has set up a Community Buying Group that negotiates with suppliers to receive bulk discounts.
Some of these discounts may save you the cost of membership in the LPA.
Speaking of membership costs, the LPA might be a very worthwhile investment in protecting you as a landlord. Initially a 1-year membership costs $99.99. If you sign up for multiple years, or are a renewing member, you will receive discounts from the initial price.
The fact that the LPA has been around for so long and has a ton of members is a testament to the services it provides.
Many states are not very landlord-friendly, and many landlords have a lot to lose with just one frivolous lawsuit. Protecting yourself from these risks is just a prudent way of doing business.
Add Something
How do you protect yourself as a landlord? Share below.
Stay Up to Date – Find a way to learn what the latest changes in your state’s laws are. Make sure you are in compliance.
Help Other Landlords – Even if they are your competition, both of you want to have great communities that attract great tenants. Work together so you all prosper.
Use Local Attorneys – Don’t just rely on national websites for your forms. Make sure your documents and procedures comply with your local area.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.