Landlord and Tenant – Landlord’s Responsibility 1
The U.S. homeownership rate fell to 63.4 percent in the second quarter of 2015, according to the U.S. Census. That is down from 63.7 percent in the first quarter and from 64.7 percent in the same quarter of 2014. It marks the lowest homeownership rate since 1967. Household formation, however, is rising. The number of occupied housing units grew, but all on the renter side. The number of owner-occupied units fell from a year ago. No wonder both rents and occupancies continue to soar. And the rental income contribute to more on personal income. It accounts 4.4% of personal income which is highest since 1947.
Landlord need to prepare the lease. If realtor helps them rent out the residential unit – house, apartment unit – most likely the real estate agent use standard lease form. Local realtor association work with staff/local attorney to standardize the lease form.
In New Jersey, landlord can collect as much as one and half month of monthly rent as security deposit.
The landlord are required to deposit the security in either interest bearing Saving or Money market account which can be used for renting properties with long term tenants. The Tenant does not have to be present at the opening of the account. If the Tenant is to be responsible for the taxes, please bring a completed W-9 form for the Tenant to the opening of the account. Landlord need also inform to the Tenant information detailing what type of account and interest rate etc. within 30 days. The Tenant tend to use and replace the last month’s rent with security deposit they already handed at the beginning of lease term. But this is not a practice permissible under most of lease. Only 15% of landlords actually open the escrow account pursuant to lease.
Lastly the owner of rental unit needs to apply CCO (Continued Certificate of Occupancy) in township that the unit is located. CCO indicate whether it is for rental and sale and there are many checkbox specifying whether Carbon monoxide detector/Smoke detector are installed. It is advisable to contact the township to arrange the inspection prior to moving date.
Most township has 2 days in a week to dispatch inspector and charge $50-$100 for fee. In practice, Landlord feel this is cumbersome and opt out having not CCO for new tenant.