landlord/tenant Q&A

LURLINE R. JOHNSON (R), ABR, CRB, CRS, GRI, RMP
Property Manager
Property Profi les, Inc.
Past President, Oahu Chapter
National Association of Residential Property Managers

In keeping with our previous format for the past few weeks, here are more short answer questions that were asked during our Property Management Seminar that was attended by over 300 people.

Q. What can a previous landlord tell you? Is it unlike employers giving only stated information instead of opinion?

A. A previous owner should provide accurate and timely information about a past tenant. They can report on whether rent was paid on time, if there were any late charges assessed, if any portion of the security deposit was withheld and why. They should also report on the care of the property and if there was any damage to the property when they left. These are all facts, but they can also share their opinion of the renters – such as if they were good tenants, if they got along with neighbors and if they would rent to them again.

Q. Please comment on refundable vs non-refundable rental application fees? A. Application fees are charged to cover the expenses of processing an application. This could also include the cost of running a credit check on the potential tenant. These fees should be reasonable – they are not designed to be another source of income to the landlord. Most property managers say that their application fees are non-refundable as they are used to run credit reports, etc. which incur out-of-pocket costs. Of course, if the application isn’t processed because it came in after another renter was chosen, then it would be considerate to return the fee back to the applicant.

Q. Renter’s insurance…can an owner require it?

A. Yes, an owner can require that a tenant purchase a homeowners’ insurance for renters, but the requirement must be consistent for all tenants at the property, otherwise it could be considered discriminatory. Owners should also be aware that tenants may run into similar issues they may have in acquiring an insurance policy For example: I had an older home in Manoa that still had knob and tube electrical and it took the renters a long time to find a company who would cover them. That of course was an exceptional situation.

Q. Can we require renter’s insurance if we allow a dog but not for people without one? Just in case the dog bites someone?

A. Yes, that is the common reason why most landlords require homeowner’s insurance for renters. If you are requiring the insurance because of a pet on property, you will want to be sure that the pet is listed with the insurance company. There could be an issue if the pet is on their “notorious breeds” list – which would include breeds such as Pit bulls, Rottweilers, German Shepherds and Chows. If the animal is deemed to be an assistance animal – either a service dog or a comfort animal – you can’t require the renter to get the insurance. The assistance animal is not considered a pet but an accommodation for the renter.

Q. What kind of questions can you ask on a rental application? Can you ask for date of birth, whether they have a pet or some kind of an animal? Can you ask if they have an assistance animal?

A. You can certainly ask if they are coming with a pet or some form of assistance animal.

Be sure to be aware of the distinction between the two (as highlighted in the question above). You may not however ask their age, since age is a protected class in the State of Hawaii under Chapter 515 – Discrimination in Real Property Transactions. You always want to be aware of the protected classes under both State and Federal Laws. The other protected classed in Hawaii are race, sex, color, religion, marital status, familial status, ancestry, disability, HIV infection and sexual orientation or gender expression and identity. under the Federal Fair Housing Act of 1968, the protected classes are race, color, religion, sex, handicap, national origin and familial status.

Q. How do you notify prospective tenant you aren’t accepting them…reasons why?

A. You should identify to the applicant how you will be choosing a tenant – assuming there are more than one applicant at the showing and there is concern about the process. Normally, it would be the first completed application that meets the minimum requirements and can move into the property at the earliest time frame. For example – you have two completed applications that come in on the same day – both are financially qualified with good credit scores and past landlord references – but one will take it at the beginning of the month and the second doesn’t want to move in until the middle of the month. In this case you can without any hesitation choose the party that can move in sooner.