We regularly represent New Jersey residential landlords. Because the New Jersey Anti Eviction Act affords a decided advantage to residential tenants, it is crucial that a New Jersey landlord create leverage to protect its interests. Here are a few tips:
- DON’T download a random lease from the internet and assume that it secures your rights. For example, you are not permitted to claim attorneys fees and late charges in an eviction unless the lease states that same are payable as “additional rent”. This benefits you because you can file an evicfion if the tenant owes one months rent, and then the tenant would have to pay the past due rent and the attorneys fees in order to have the case dismissed. It should also be noted that late fees must be reasonable in order to be enforceable, and it is best that the late fee be a flat amount, e.g. 5-10% of the monthly rent. Collecting interest on past due rent from a residential tenant is not advisable.
- DON’T download required notices from the internet. In New Jersey, the main notices used are a notice to cease and a notice to quit. These must be worded exactly, and properly served on the tenant to be effective. I have witnessed many judges dismissing cases based on these notices because they do not comply with the statute. Retain an attorney so you get it right.
- DON’T allow an existing lease to expire without offering the tenant a new lease at a higher rent. It is best if this is done annually. After all, the landlord’s operating expenses increase annually, such as property taxes and insurance, so this should be passed on to the tenant. If your property is located in a municipality with a rent control ordinance, your ability to raise the rent may be limited. New Jersey law generally requires landlords to offer their residential tenants a renewal lease.
- DON’T assume that when a lease expires, the resulting month to month tenancy allows you to cancel the tenancy on 30 days notice. New Jersey landlords must have a ground for eviction, as specified in the Anti Eviction Act. Tenants may cancel a month to month lease on 30 days notice to the landlord.
- DON’T assume that if your lease contains a provision requiring the tenant to move out at the expiration of the lease, the tenant must move out or can be evicted. This violates New Jersey law which requires the landlord to offer a renewal lease, unless there is a ground for eviction.
- DON’T think of your tenant as your friend. An apartment rental is a business transaction. Your demeanor must be firm but polite. Many tenants may try to see what they can get away with. As I told my tenants in the past when I was a landlord, if I knew that you expected to live here for free, I would have rented to my sister. Be professional and diligent.
- DON’T try to change locks or remove tenant belongings without a court order. Doing so is illegal and can subject the landlord to exposure for significant damages if it is sued.
- DON’T think that being a landlord is easy or simple. A successful landlord visits its tenants, observes the condition of the rental, attends to any necessary repairs and collects rent. It is a contact sport. You need to be hands on. If that is not your cup of tea, then invest your money elsewhere in a passive activity.
We are experienced New Jersey landlord attorneys. We can provide you with an enforceable form of lease in Word format that you can use for all of your tenancies. Similarly, we know how to prepare effective tenant notices. Lastly we are available to discuss your tenant matter and advise you how best to proceed. We do not represent residential tenants. A corporate landlord must be represented by counsel in order to file an eviction in the New Jersey courts.
Call Whelan & Whelan today for a consultation.
