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emotional support animals - what landlords need to know

1/31/2017

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​There is a difference between a Service animal and an Emotional support animal.
 
The life-saving tasks a trained service animal can perform are remarkable!  Service animals have been known to predict impending seizures, perform complex household tasks, protect their companions from oncoming traffic and even provide a calming influence for suffers of autism or post-traumatic stress disorder.  Registered service animals, as defined by the Americans with Disabilities Act, or ADA, are limited to canines and miniature horses and are required to have rigorous training to qualify for a service role.
 
In contrast, emotional support animals, or ESAs, may be untrained members of almost any animal species who are said to provide some therapeutic benefit to their human companions.  Applications for ESA certifications are up about 279% since 2011, showing the huge increase in this trend. 
 
How exactly does an ESA differ from a registered service animal?  And for a landlord faced with a prospective renter demanding tenant rights to fair housing; what reasonable requirements are necessary under the ADA and the Fair Housing Act?  This is the question!
 
Service animal or emotional support animal:
The difference between a service animal and an emotional support animal is training.  A service animal must undergo a lengthy preparation and evaluation process, while an ESA does not require a single day of doggie school and does not even need to be a dog.
 
Service animals:
According to the ADA, service animals are defined as “dogs that are individually trained to do work or perform tasks for people with disabilities.  The emphasis here is on the word “trained”.  This training typically begins in puppyhood and lasts two years or more.
 
After completion of training, the animal must also be certified by the state regulatory agency.  Then the animal is granted “public access” and “state and local governments, businesses and nonprofit organizations that serve the public generally must allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed to go”.
 
GRAY AREA:  Assistance animals
The Federal Housing Administration has a more inclusive definition of service animals and refers to “assistance animals”.  As a Landlord, you should understand this definition, because penalties for refusing access to a real assistance animal can be extreme.  In general, you must make reasonable accommodations for an assistance animal even if your property maintains a no-pets policy!
 
Unlike the definition with the ADA, an assistance animal does NOT have to be trained for a particular set of tasks as long as the animal “works, provides assistance or performs tasks for the benefit of a person with a disability, or provides emotional support that alleviates one or more identified symptoms or effects of a person’s disability.
 
Emotional support animals:
An emotional support animal, as traditionally regarded within the service animal community, is an animal without specialized training that serves as a companion for someone suffering from certain mental health disorders, including anxiety and depression.  This term is not recognized by the ADA and is only vaguely mentioned in some interpretations of the Fair Housing Act.
 
However, the “emotional support” referred to in the ADA-approved definition above pertains to mental health assistance provided by the animal to an owner suffering from the emotional side effects of an underlying recognized disability, including PTSD or autism. 
 

 
Landlord’s responsibilities and obligations:
Now to the part that all Landlords will perk up their ears for……..The Department of Housing and Urban Development has issued several interpretive statements regarding a landlords duties with regard to renters seeking accommodation for an assistance animal. 
 
First, you may NOT ask for documentation if the disability is obvious or apparent.  If the disability is not obvious, you can only ask these two questions:
  • Does the applicant have a disability as defined by the ADA?
  • Does the applicant have a disability-related need for an assistance animal?
 
If the answer to either of the above questions is “no”, you are within your rights to deny the request for a waiver of your no-pets policy.  In making that decision, you can request medical documentation from a licensed doctor indicating the applicant does suffer from a disability, but you CANNOT ask to review the applicant’s medical records.
 
  • To obtain certification as an ESA, which is a very unregulated frontier, an owner need NOT suffer from an underlying disability as long as he experiences regular bouts of anxiety or emotional instability.​
  • Under Federal law, you do NOT have to permit emotional support animals for everyone with a mental illness, only those who are disabled AND have a mental illness.  The mental illness must in some way be directly related to the disability.  This can vary from state to state.  
  •  For emotional support animals, you only need to make a reasonable accommodation if the support is needed to relieve the effects of a pre-existing disability.  Emotional support animals that only serve to make the tenant more comfortable, alleviate stress or lessen anxiety symptoms may be excluded, if the tenant is not actually suffering from a documented disability. 
  • You MUST accommodate a support animal, even IF untrained, that provides stability for a tenant with a documented mental or psychiatric disability.
 
You cannot impose weight or size restriction on an assistance animal, provided the animal can be kept on the property without reducing the property value or creating undue financial hardship.  Typically, a landlord would have a difficult time establishing an undue financial hardship.
 
It is generally accepted that you can collect a Pet Deposit for an emotional support animal and require that the animal be spayed or neutered, but if the pet is a “service animal”, you cannot charge a Pet Deposit.
 
A true emotional support animal has been prescribed by a physician and a letter should be easy for the tenant to provide.

If you have questions, consult a legal professional for advice.  This article is for informational purposes only and is not legal advice.
 
This an emerging issue for Landlords and there are many court cases already.  Bottom line…..This is just beginning and it’s best to be very careful with this new issue!
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just move into your new rental home?  tips to make it your own...

1/30/2017

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Adding your own touches helps make a new place feel like home!  Just be sure you understand the terms of your Lease before modifying anything and if you get permission to make modifications, GET IT IN WRITING!
 
Freshen up 
Weird smells happen.  Even when the property was thoroughly cleaned, some smells can come back.  Try to find the source of any unsavory odors. 
  • If you are not sure of the source, put white vinegar in a bowl and circulate air throughout the rental by turning on a fan and opening windows and doors. 
  • You can also combine equal parts of water and white vinegar as a neutralizing spray.  You can sprinkle baking soda over carpet and other fabrics to help neutralize smells. 
  • If the aroma is coming from the garbage disposal, grinding up lemon or orange peels work wonders. 
  • No disposal or have a slow drain..... baking soda, vinegar and hot water also do great things. 


Find your style
Not sure if you prefer contemporary, traditional, country or cottage?  Search decorating sites to find the style that suits you best.  One decorating site is Zillow Digs where you can filter by room type or color, if you really want that one certain color.  An eclectic mix of styles, like sleek modern with vintage accessories, can help strike a comfortable balance and really make your place feel like you!  The key is finding what inspires you and incorporating elements of it throughout.
 
Make your temporary mark
Even though you can’t make permanent changes, there are plenty of ways to personalize a rental. 
  • Add window dressings.  Most rentals come with no window coverings or very basic mini blinds.  Adding flowing curtains or even a modern print can transform the look of a space.
  • Add a rug or two.  Rentals often have very basic flooring.  A fun rug – even laid on top of carpet – can detract the eye from what’s beneath it.  Use rugs with distinct colors and textures to make them pop!
  • Try removable wallpaper or decals, which allows you to add personality to your space without making any permanent changes.
  • Simple touches like throw pillows are a great way to add personal flair without a huge investment.

Plant a container garden
  • Nothing breathes life into a place quite like plants and container gardening works well even in the tiniest of spaces.  Again, tons of advice on the Internet, just search “container garden”.

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​Show off the place
The place really feels like home when you entertain friends and family!  Having guests is the best motivator to get your place into shape.  Worried about entertaining tight quarters?
  • Edit your guest list.  You don’t have to invite everyone you know at once.  Make sure you have enough room for guests to move around without stepping on each other.
  • Keep the space open.  You may want to move some of the furniture just when entertaining.
  • Assume spills will happen, and the smaller the space, the more spills are likely.  If you have light carpeting, consider serving white wine or beer.  You will be responsible for carpet stains that won’t come out.
 
Cheers on finding your new place!  Enjoy!
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Is ownership of your rental property in an llc?

1/27/2017

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If not, there are some important points you should consider.
 
First and possibly most importantly, LLCs limit personal vulnerability to potential lawsuits related to the property.
 
Consider the situation where a tenant has a back yard BBQ and the tenant’s guest falls over the deck railing and is injured.  In today’s legal climate, it is quite possible the injured guest would pursue a claim based on the “unsafe condition” of the deck.  The Owner will be named in any lawsuit.
 
If the rental property were owned by an individual, he or she would have to defend his or her personal assets from the plaintiff’s claims.  In contrast, if the property were owned by an LLC, the owner’s risk exposure would be insulated by the protection of the company and only the assets owned by the LLC would be exposed to potential lawsuits (as opposed to all the Owner’s personal assets.)
 
Insurance:  Yes, your Insurance policy would kick in and be some protection, however, if the lawsuit were to go beyond your policy limits or exceptions and carve-outs, then your personal assets would be vulnerable.  While the chance of a loss that exceeds policy limits may be small, the consequences can be devastating.
 
An alternative, or for additional protection to forming an LLC in terms of asset protection is an Umbrella Insurance Policy.
 
Tax Advantages:  An LLC can offer options of pass-through taxation or avoidance of double-taxation you can get taxed as a partnership.  If you have the LLC taxed as an S-Corp you may be able to use that to reduce self-employment tax or other taxes.  The tax advantages must be tailored to your specific structure and situation and not all the options apply to everyone, so you would want to discuss tax advantages with your tax advisor.
 
LLCs Can Make Business Life Easier, opposed to other entity forms:
 
When delegating management responsibilities, LLCs have greater flexibility than a corporation or partnership.  While corporations are required to have officers and directors, the LLC can be easily managed by its owners or third-party managers.
 
In the many states that impose increased fees based on the authorized number of shares, LLCs may pay lower state registration and maintenance fees than corporations.
 
Owners of LLCs have flexibility in distribution of profits, as determined by the LLC’s Operating Agreement.  Cash flow distributions do not have to be pro rata according to ownership like an S corporation.  This gives owners the ability to financially reward the “sweat equity” effort of select members through distributions of cash flow.
 
Unlike an S corporation, foreign ownership and investment in U.S. real estate is possible through an LLC.
 
LLC owners can easily transfer ownership in real estate holding by proactively gifting the company’s membership interest to their heirs each year.  Over time, it is entirely possible to pass ownership of real estate owned by an LLC to loved ones without ever having to formally execute and record a new deed.  This enables property owners to avoid transfer and recording taxes and fees.  These fees can be substantial in many states.
 
Disadvantages of an LLC:
 
Cost?  In some states, there is a reasonably small fee to form an LLC and no yearly fees.  That makes an LLC very affordable.  Legal Zoom even offers a form to use.  (Not recommending that without some advice from your advisor, but it is an option out there.)  For example, in the state of Missouri, forming an LLC is easy and not very costly.
 
Other states are much more expensive and can have an $800 yearly fee and possible other costs.  Get advice regarding the regulations in your state.
 
Financing:  Some lenders won’t lend money to an LLC and if they do, it may still be backed by your personal name.  This probably is not a factor if your primary goal is to limit personal liability.
 
Triggering Due-on-Sale Clauses:   If you already own your rental property and want to quit claim it to an LLC, there is a slight risk it could trigger the “due-on-sale” clause in your loan agreement.  You could then owe the remainder of the loan immediately or must re-finance.  Word is this is a very small chance, but it is thrown out there as a possibility. 
 
To LLC or Not to LLC?
 
The insulation from personal risk exposure for real estate investors provided by an LLC, the relative ease of administration and potential tax benefits, make ownership of rental property with an LLC a desirable option in most instances.
 
But, before you make any decisions, consult a licensed professional who specialized in real estate investing to guide you on what is best for your individual situation.
 
Happy Investing!
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