Landlord Survival Training

Tuesday, August 20th 6 to 9 pm

This dynamic three hour class is guaranteed to save you at least one

month’s rent in your first year of use.

Whether you have one tenant or hundreds, the procedures outlined in the

course & manual will bring you better applicants, happier tenants, higher

rents, less vacancy, fewer repairs, and less headaches.

In short, if you want more rental revenue and less hassle, you need to

attend this class.

ALL NEW for SUMMER of 2013. Only $79.

August 20, 2013 from 6 to 9 pm

Hilton Garden Inn Perimeter Center

Ashford Dunwoody inside I-285

1501 Lake Hearn Drive, Atlanta 30319

To REGISTER go to www.money99.com and click on REGISTER for Landlord Survival Training

SEMINAR at the top

OR Go directly to: http://money99.com/product/landlord-survival-training-for-2013-seminar/

SPECIAL REPORT2009

How To Avoid ALawsuit In Georgia

Three Ideas onMaking the Target

Smaller

By John Adams© 2009 John Adams (404) 373-6000

Information contained in this special report obtained from sources believed

reliable, but not guaranteed. The concepts presented herein represent the

opinions of the author. You should obtain competent advice from your tax

advisor or attorney before making any decisions based on this material.

How To Avoid A Lawsuit:

We live in a very litigious society. People watch the televisionshows like "Judge Judy," where everyone sues everyone for anyperceived slight, and they come out with a judgement for a milliondollars plus.

Unfortunately, the problem of people suing people gets even worsewhen rental real estate is involved, because there are large sums ofmoney at stake.

I am not an attorney and I am not trying to give you any legal advicein this special report.

Instead, I want us to use common sense and think about ways wecan avoid a lawsuit in the first place.

Lawsuits only occur because one side gets really mad or feels thatthey have been harmed in one way or another.

In addition, it is extremely unlikely that any lawsuit will occur if theside that is thinking about filing the suit (the plaintiff) comes to theconclusion that the party about to get sued (the defendant) has noassets.

If there is nothing there to sue, the problem tends to go away.

So first, let's talk about finding ways to keep tenants and neighborshappy in the first place.

Take a realistic look at your property. If you had a professionalhome inspection performed, would the inspector write you up for

Page 2 of 6

things like failure to provide handrails, loose or torn carpeting,inoperable windows, missing or non-functional smoke detectors,sub-standard electrical service, open flame heaters or unventedspace heaters in a home where children live?

What about the yard? Are there unsafe drops or gullies, are theresteps without handrails, will you find untrimmed dead tree limbs orold vehicles or appliances (even refrigerators or freezers) that mightbe death-traps?

I am not suggesting that only new homes are safe to use for rentalproperty, but I am stating for the record that if you allow obviouslyunsafe conditions to exist at your property, you are asking for alawsuit.

The key word to remember here is "reasonable".

The court will try to determine if you have taken reasonable steps inthe past to protect your tenants from harm. If you have, that willweigh in your favor. If you have not, you may find yourself on thelosing end of a large dollar award judgement.

THE ANNUAL SAFETY INSPECTION

I suggest that you conduct an annual SAFETY INSPECTION ofevery property. You should notify the tenant in writing that thesafety technician will be conducing the inspection on such and sucha date and time, and that the tenant is encouraged to let you knowin advance (in writing) if they have any safety concerns. Then youcan be sure to have the technician address those areas.

On a practical note, this is a good time to:

check the keys and locks for proper operationcheck the smoke detector on each living levelcheck for quick egress from each room in case of fire

Page 3 of 6

check the electrical panel for signs of overload or excess heatchange the furnace filter look for signs of wearcycle the furnace and watch for heat exchanger blow-backexamine the water heater flame & examine the Temp/Pressure relief valvecheck the water heater draft hood for updraftcheck water heater temperature is set under 125 degreescheck for flammable liquids or rubbish near any heat source make a visual inspection for unsafe wiring conditionscheck handrails and stair treads for safety examine exterior yard and trees for safety concernscheck for a fire extinguisher in the kitchen areacheck for persons who are young, elderly or have a disability thatmight need special care, advice, or help in an emergency situationdoes any part of the premises seem unsafe in other ways?

This inspection could be accomplished in about half an hour, and apermanent record of the inspection should become a part of thehome's written history.

If you consistently do something like this, it will possibly alert you toa potential problem before it happens, and it might very well keepyou out of court in the first place. In addition, even if you do getsued, the fact that this is one of your regular business practices willplay very positively.

In my opinion, it is REASONABLE to expect that a landlord whocared about his tenants and his property would do something likethis once a year.

In addition, my lease specifies that the tenant is required to test hissmoke detectors for proper operation once a week and notify me inwriting if it ever malfunctions. Further more, I have instructed all myservice people to always conduct a smoke detector test anytimethey walk into a rental property during the period of occupancy. It isjust a matter of our policy.

Page 4 of 6

The second part of preventing a lawsuit is to make it as difficult aspossible for the plaintiff or his attorney to find out who the owner isand whether or not he has substantial assets.

Probably the worst thing you can do is to have ownership of theproperty deeded into your name personally. Then if there is a slipand fall, the tenant goes to a personal injury attorney for lots ofmoney.

The personal injury attorney immediately checks the public recordto see who owns the property (you) and to see what else you mightown that could be used to satisfy a huge judgement. He finds thatyou own six other houses, all with very small mortgages and lots ofequity, plus your personal residence, which is free and clear ofdebt. BINGO! He files suit for ten million dollars, and he knowsthat if he happens to win in court, he might actually collect.

This is exactly why you should NEVER have any real estate deeded into your own name. Instead, it might make sense for youto consider a single member LLC for each individual property.

The Limited Liability Company serves the purpose of separatingeach property into a separate unit, and stops any judgement fromspreading to everything you own.

Yes, there are minor costs to setting up and maintaining theseLLCs, so it';s a good idea to discuss this idea with your attorneyand your account to make sure it is right for you.

Another strategy you may wish to utilize is to take steps to minimizethe amount of available equity visible to the public on each propertyyou own.

For example, if you own a rental house worth $250,000 and it isfree and clear of any debt, then the whole world can clearly see a

Page 5 of 6

target worth a quarter million dollars.

If, however, you put a $200,000 home equity line of credit on thatproperty, the holder of that mortgage instrument will file a securitydeed in the amount of $200,000 against that property, making itappear in debt to the full extent of that line of credit.

And if the holder of that mortgage instrument was an affiliated entityor even a family member or his entity, it would be extremely difficultfor a personal injury attorney to find out the current balance on thatequity line. One would have to assume it was $200,000, because itvery well could be that much!

LAST in the suggestions on how to avoid a lawsuit, is one idea thatreally shouldn't be in this report, but I am including it anyway.

KEEP YOUR INSURANCE UP TO DATE:

I recommend that you have a policy on each rental house thatcarries the maximum coverage for personal liability, usually onemillion dollars.

In addition, I strongly recommend that you carry a PERSONALUMBRELLA LIABILITY policy for another million dollars. It willprobably only cost a few hundred dollars annually, and if you haveseveral houses, it gives you great peace of mind.

These are just some ideas on how to have reasonable businesspractices, keep a low financial profile, and carry a strong level ofinsurance.

As always, I strongly recommend that you discuss these ideas with your attorney, and possibly, your accountant for applicability to yoursituation.

Good luck!

Page 6 of 6

555-2300

Like us on Facebook to receive 15% o� your next SmartMove transaction.Then return to the site periodically for relevant articles about the benefits of tenant screening,

helpful SmartMove tips and promotional discounts. We also welcome you to follow us on Twitter.

Other benefits of TransUnion

SmartMove include:

Quick access—no waiting for approval,

no additional documentation

Flexible terms—pay-per-use, no set-up

fees, no minimums

Prompt results—custom report and

leasing recommendation in minutes

Choice of who pays—you or the renter

TransUnion SmartMove® offers landlords like you a smarter way to screen potential tenants.

*

Other background check providers often try to upsell independent landlords on various data packages, making it di�cult for them to decide what they actually need, and how to act on their results. At TransUnion SmartMove, we believe the tenant screening process should be clear and simple.

�at’s why our screening solution gives landlords like you quick online background checks—and a customized leasing recommendation—without the hassle of onsite inspections or lengthy enrollment processes. And because your potential renters’ Social Security numbers remain private, your rental applicants get peace of mind, knowing the process is secure.

It takes only a few simple steps. Just create a landlord account, answer some questions about your property and send an email request for consent to your potential tenant or tenants through SmartMove. Once the rental applicants get the request, they set up their own renter account, consent to the screening, and authenticate their identity. TransUnion then screens the applicants, and, within minutes, provides you with:

A customized credit report *

A criminal report that draws from millions of criminal records

A leasing recommendation and suggested deposit amount to take based

on your set criteria

A single recommendation for multiple applicants

SmartMove packages cost either $25 or $30, depending on whether a full credit report is requested. Prices may vary, depending on the agreement in place.

SAFETY INSPECTION IDEAS:Include your intention to perform an annual safety inspection in your welcomepacket given to all residents. Stipulate that you will require access to the tenant’sresidence, and will be accompanied by the necessary safety inspectors at this time.

Inspect smoke detectors and mechanical systems such as plumbing, heating and allprovided appliances during your annual safety inspection. In addition, look fortenant-created safety issues, such as overloading circuits and the removal of safetyfeatures on windows.

Compile a checklist of safety issues for each residence and for the generalbuilding. Keeping these records will show a judge that you maintain your propertyin a responsible manner.

Follow up each inspection with a letter to the resident outlining any safety issuesthat were observed and how they have been corrected. If they are the responsibilityof the resident, make sure they know that failure to remedy the condition may begrounds for termination of the lease agreement.

Send notices to all tenants of an upcoming annual safety inspection at least 2weeks in advance and again a few days before the inspection is to take place.Allow tenants to request a morning, afternoon or evening time frame for theinspection of their residences.

Georgia does NOT require advance notice for entry, but advance notice is a goodidea. Proper notification can eliminate many tenant inspection problems.

Consider evicting a tenant who refuses your inspection. If you have given amplewritten notification and attempted to enter the premises only to encounteropposition, in Georgia, this is cause for eviction. This is a last resort.

Sometimes, just reminding the tenant that you will be protecting them by ensuringthat their dwelling meets safety codes will allow you to gain entry.

GOOD LUCK!