Owner Responsibilities
by Hugh Cobb
Shock alert: residents can be childish. Some residents just never grow up. You increase the rent, they become crybabies—whining and complaining about greedy landlords. You send them a lease violation, they tattletale on other residents. You try to collect rent, they throw a temper tantrum.
As immature as these behaviors are, taking their toys and going home is far worse—a.k.a. abandonment. Skipping-rope is fun; skipping-out on a lease contract is not. Fortunately, the TAA Lease and TAA REDBOOK are excellent resources to help you deal with skippers in a calm, rational, and adult manner.
If you suspect a resident has skipped, begin by reading and rereading Paragraph 41.3 of the TAA Lease Contract. This paragraph contains a very precise definition of abandonment (including death of a sole resident).
The "abandonment" definition states:
As immature as these behaviors are, taking their toys and going home is far worse—a.k.a. abandonment. Skipping-rope is fun; skipping-out on a lease contract is not. Fortunately, the TAA Lease and TAA REDBOOK are excellent resources to help you deal with skippers in a calm, rational, and adult manner.
If you suspect a resident has skipped, begin by reading and rereading Paragraph 41.3 of the TAA Lease Contract. This paragraph contains a very precise definition of abandonment (including death of a sole resident).
The "abandonment" definition states:
“You have abandoned the apartment when all of the following have occurred: (A) everyone appears to have moved out in our reasonable judgment; (B) clothes, furniture, and personal belongings have been substantially removed in our reasonable judgment; (C) you’ve been in default for nonpayment of rent for 5 consecutive days, or water, gas, or electric service for the apartment not connected in our name has been terminated or transferred; and (D) you’ve not responded for 2 days to our notice left on the inside of the main entry door stating that we consider the apartment abandoned. An apartment is also considered abandoned 10 days after the death of a sole resident.”
According to TAA’s legal counsel, there are four requirements that all must be met in order to consider a dwelling "abandoned." First, everyone must appear to have moved out in your reasonable judgment. Second, clothing, furniture and personal belongings must have been substantially removed in your reasonable judgment. Third, the resident must have been in default for non-payment of rent for five consecutive days. Alternatively, the gas, water or electricity has been terminated or transferred by the resident. Fourth, the resident has not responded for two days to the notice of abandonment left by the owner inside the main entry door.
The REDBOOK adds this caution: the term "abandonment" is a contractually defined term; therefore, you must be able to conclude that all of the elements contained in the definition have been met before deeming the apartment "abandoned" and removing the property.
Abandonment is a four-way test. So, ask yourself, has this apartment really been abandon? Just because their rent payment is six-days late, doesn’t mean they’ve abandoned the unit. A bare apartment with minimal furniture, no personal items, and little clothing doesn’t mean it has been abandon. If you or your staff have not seen or heard from a resident for an extended period of time doesn’t mean the unit is abandon. If utilities have been cut-off, doesn’t constitute abandonment. If their neighbors tells you they’re gone, doesn’t mean it is abandon.
However, if any of the above scenarios occur, and you strongly suspect that a rental unit has been abandoned; place a Notice of Abandon Dwelling on the inside of the main entry door. This sample notice is available in the REDBOOK. If they fail to respond to this notice within two days, then you have satisfied one of the four requirements for abandonment.
If you reasonably conclude that all of the elements of "abandonment" four-way test have been met (i.e. unpaid rent, stuff gone, utilities off, and non-response to notice), you can begin the make-ready process (change the locks, walk for damages, do the trash-out, schedule repairs, etc.).
Finally, review your rights and obligations as described in Paragraph 14 of the TAA Lease Contract. One man’s trash is another man’s treasure. Paragraph 14 gives you the right to immediately throw away or give to charity any property left in an abandoned apartment (with an exception for animals and property left after the death of a sole resident). More importantly, Paragraph 14 gives you legal cover from lawsuits claiming that you unlawfully or prematurely threw-out or gave-away the resident's property that was left in the dwelling after the resident vacated the dwelling.
Bottom-line, declaring a rental unit abandoned requires property management professionals to be reasonable even when a resident is acting like an irresponsible, spoiled brat.
Hugh Cobb is the Chief Operation Officer (COO) of Capstone Real Estate Services and the 2015-2016 AATC Government Affairs Committee Chair and Political Action Committee (PAC) trustees chair.
The REDBOOK adds this caution: the term "abandonment" is a contractually defined term; therefore, you must be able to conclude that all of the elements contained in the definition have been met before deeming the apartment "abandoned" and removing the property.
Abandonment is a four-way test. So, ask yourself, has this apartment really been abandon? Just because their rent payment is six-days late, doesn’t mean they’ve abandoned the unit. A bare apartment with minimal furniture, no personal items, and little clothing doesn’t mean it has been abandon. If you or your staff have not seen or heard from a resident for an extended period of time doesn’t mean the unit is abandon. If utilities have been cut-off, doesn’t constitute abandonment. If their neighbors tells you they’re gone, doesn’t mean it is abandon.
However, if any of the above scenarios occur, and you strongly suspect that a rental unit has been abandoned; place a Notice of Abandon Dwelling on the inside of the main entry door. This sample notice is available in the REDBOOK. If they fail to respond to this notice within two days, then you have satisfied one of the four requirements for abandonment.
If you reasonably conclude that all of the elements of "abandonment" four-way test have been met (i.e. unpaid rent, stuff gone, utilities off, and non-response to notice), you can begin the make-ready process (change the locks, walk for damages, do the trash-out, schedule repairs, etc.).
Finally, review your rights and obligations as described in Paragraph 14 of the TAA Lease Contract. One man’s trash is another man’s treasure. Paragraph 14 gives you the right to immediately throw away or give to charity any property left in an abandoned apartment (with an exception for animals and property left after the death of a sole resident). More importantly, Paragraph 14 gives you legal cover from lawsuits claiming that you unlawfully or prematurely threw-out or gave-away the resident's property that was left in the dwelling after the resident vacated the dwelling.
Bottom-line, declaring a rental unit abandoned requires property management professionals to be reasonable even when a resident is acting like an irresponsible, spoiled brat.
Hugh Cobb is the Chief Operation Officer (COO) of Capstone Real Estate Services and the 2015-2016 AATC Government Affairs Committee Chair and Political Action Committee (PAC) trustees chair.
