We’re back in court again and there are lots of lessons for the landlord/ property managers to learn.  The big one for today was arrive on time and plan to wait.  If you get a court summons for 9:00 when you arrive you will find a whole court room full of people with a summons for the same time.  

The first order of business in some counties is to call the docket.  If neither plaintiff or defendant are present to answer the call the case can be dismissed at that time.  The order in which cases are heard is usually determined by the case number assigned to your case.  However, the magistrate may choose to hear cases where a police officers or attorneys are involved first.  On this particular day the first case took an hour and half to reach completion, our case was heard two hours after our summons time.  So go with your information in order and no pressing appointments scheduled for several hours as you may be there for a while. 

One other case that was presented today that may be of interest to landlords and property owners was from an apartment complex who was trying to evict a tenant for noise and other lease violations.  This is always a difficult case to prove and was made more challenging in this case by the fact that the defendant was present with an attorney and the property manager was neither professional nor prepared.  According to her statements she had made numerous contacts with the tenant concerning complaints from neighbors for noise, loud music, parties, etc.  However, she had no documentation to show this. She had no ledger of calls received from other tenants, calls to the tenant, letters to the tenant advising him of his violation of the lease, or conversations with the tenant.  She was very motherly with a real concern for her tenants but this did not substitute for professionalism.  The magistrate ruled that she had not proved a lease violation “by the better weight of the evidence.”  Remember when you go to court that the courts job is not to decide who is right but who is legal.  Base your arguments on the terms of the lease and be sure to document any violations and your reactions to such violations.  In this case a call ledger, copies of letters to the tenant, or complaining neighbors acting as witnesses would have helped her case.

 One of the most informative, scary and frustrating parts of being a property manager is going to small claims court seeking an eviction. It’s informative because there is no better way to learn what not to do than watching some one make a mistake; scary because of the stomach butterflies that going to such an official setting causes; frustrating because of the time involved and the hoops one has to jump through to achieve the obvious.  It is even entertaining in a perverted sort of way because people do the most ridiculous things. 

 Last week I was in Mecklenburg County Small Claims and there was a case where the owner was suing the tenant for back rent.  The tenant had already moved without giving notice.  Her rent was subsidized by a government program and the government had stopped payment because the home had failed an inspection.  The Landlord contended that the home failed because the tenant did not show up to unlock the door for the inspector and he, the landlord, did not have key.  The report the tenant presented showed that the owner was responsible for repairs.  The owner repeatedly said he had e-mails from the housing authority showing that the tenant was responsible but he had not brought them to court.  The judge ruled in the owner was not entitled to rent because he had not met his obligations of keeping the house in an acceptable condition.  The case was dismissed.  Lesson one:  Never go to court with out all of your evidence-pictures, e-mails, leases, phone records, etc. 

 Let me first say that I am not an attorney and do not give legal advice.  However, I will tell you how we proceed when we need to go to court.  The procedure for filing a summary ejectment is governed by state law.  Therefore the forms and charges are the same state wide.  However, the procedures vary slightly from county to county. 

The most common reason for us to seek summary ejectment in court is tenants who did not pay rent.  The first thing we do is complete NC court form CVM 201 Complaint in Summary Ejectment -5 copies please plus one for you.  The complaint must be accompanied by a magistrates summons (form CVM 100) also 5 copies.  These forms are available on line at NCCourts.com.  Currently the charge for filing this is $100 for 2 tenants and $85 for one tenant.  How this is made out depends on the county.  The forms, the check, a stamped envelope addressed to tenants and in some counties an envelope addressed to you should be delivered to the clerk of court.  Do not take a personal check.  You will need cash, money order or bank check. Some counties will tell you while you are at the clerk of court what your court date is, in other counties they will send you a copy of the summons telling you when to appear.  This is usually two to four weeks from the time of filing. 

Follow our blog monthly and learn more about our experiences working with the NC Court system as a landlord. 

This blog is prepared by Betty White, ARM®  Manager of Hecht Property Management, LLC.

The standard Residential Rental Contract (form 410-T) has been updated in response to recent legislation enacted by the NC General Assembly (Senate Bill 1924 and Senate Bill 661).  The purpose of this article is to summarize the changes to the form.

Fees- With respect to leases entered into on or after October 1, 2009, a landlord may charge certain fees related to an eviction of a tenant.  The new charges are:

1.  Complaint-Filing Fee.  A fee of up to $15.00 or five percent (5%) of the rental payment, whichever is greater, may be charged if: (1) a tenant is in default of the lease, (2) the landlord files and serves a complaint for summary ejectment and/or monies owed, (3) the tenant cures the default or claim, and (4) the landlord dismissed the complaint prior to judgement.

2. Court appearance Fee.  A fee of up to ten percent (10%) of the rental payment may be charged if:  (1) a tenant is in default of the lease, the landlord files, serves and successfully prosecutes a complaint for summary ejectment and/or monies owed in small claims court and neither party appeals the judgement of the magistrate.

3. Second Trial Fee. A fee of up to twelve percent (12%) of the rental payment may be charged for a new trial following an appeal from the judgement of a magistrate, provided the landlord proves: (1) that the tenant is in default of the lease and (2) the landlord prevails.

The “Summary Ejectment Administrative Fee” blank that was provided for in the previous version of the rental contract has been eliminated and replaced by blanks for the above-referenced fees.  It is important to note the following:

1.  Only ONE of these fees may be charged for an eviction

2. The charge is in addition to court costs and normal late fees

3. The fee must be specifically provided for in the rental contract

4. A summary ejectment administrative fee may NOT be charged for evictions on any lease entered into on or after October 1, 2009.  Any fees other than those listed above and reasonable attorney’s fee’s are void and against public policy and any attempt to collect such a fee could subject landlord or property manager to a claim for unfair and deceptive trade practices.

5. If the rent is subsidized by HUD, the US Department of Agriculture, a State Agency, a public housing authority or a local government, the fee shall be calculated on the tenant’s share of the rent only.

Tenant Security Deposit.  Effective October 1, 2009, if the extent of a landlord’s claim against the security deposit cannot be determined within 30 days, the landlord will be allowed to provide the tenant with an interim accounting no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord and then provide a final accounting within 60 days after termination of the tenancy and delivery of possession of the premises to the landlord.  This change in the Tenant Security Deposit Act recognizes the fact that landlords sometimes have difficulty determining the extent of the landlords damages within 30 days, such as when a contractor performing repairs has yet to bill the landlord.  Notwithstanding the new law, landlords and property managers should continue to adhere to provisions in existing leases which require a final accounting within 30 days after termination of the tenancy and delivery of possession of the premises. 

Landlord’s Obligations  Effective October 1, 2009, landlords are required to repair or remedy and “imminently dangerous condition” once the landlord has actual knowledge of the condition or receives notice of it from the tenant.  That obligation is set forth in new subsection (e) paragraph 6.  According to the new law, the term “imminently dangerous condition” means any of the following:

- Unsafe wiring, Unsafe footing/steps, Unsafe ceilings or roofs, Unsafe chimneys or flues, Lack of potable water, Lack of operable locks on all doors leading to the outside, Broken windows or lack of operable locks on all windows on the ground level, Lack of operable heating facilities capable of heating living areas to 65 degrees Fahrenheit when it is 20 degrees Fahrenheit outside from November 1 through March 31, Lack of operable bathtub or shower, Rat infestation as a result of defects in the structure that make the premises not impervious to rodents, Excessive standing water, sewage or flooding problems caused by plumbing leaks or inadequate drainage that contribute to mosquito infestation or mold.

Although the landlord must repair such items whether or not the damage was caused by the tenant, the new law specifically provides that the landlord may recover from the tenant the reasonable costs of the repairs that are the tenant’s fault.  This obligation applies to all residential leases, not just those entered into on or after October 1, 2009.

Smoke and Carbon Monoxide Detectors.  Effective January 1, 2010, the law will require the installation of battery-operated or electrical carbon monoxide detectors on each level of any residential rental unit that has (1) a fireplace, (2) a fossil-fuel burning heater or appliance or (3) an attached garage.  The new law’s provisions regarding responsibility for repairs to carbon monoxide detectors and installation and replacement of batteries in battery-operated devices are the same as the current law regarding smoke detectors.  This obligation applies to all affected leases, not just those entered into on or after January 1, 2010.

Cole Amusements will bring their rides in again this year, along with the midway to offer games and food.  Kids and adults alike will enjoy the ferris wheel and supershot (think “drop zone”), and if you have the nerve, just get on board the Zipper!  The little kids will enjoy the kidstown area, Willie the Whale and the Dizzy Dragon.  When done riding, find some popcorn, cotton candy or something to drink and just walk the midway.

 The area craft booths will be back and I’m sure there will be plenty of items you just can’t live without; that always happens to me!  The area businesses and organizations will be represented and those are great support for this annual community event!  While visiting all the booths, take time out to stop by the many food vendors, offering everything from ribs and burgers to corn on the cob and funnel cakes.  You definitely will not go hungry at Denver Days.

 The entertainment stages this year will offer our local singing and dancing groups as usual so come see what the  Denver and East Lincoln area has to offer you. 

 Denver Days 2009 will be featuring a “beach weekend” and featuring some of the hottest beach bands for your enjoyment, and to dance by!  Friday night at 8:00 PM enjoy the Craig Woolard Band.  Craig was with The Embers for many years and is renowned in the beach music business.  Come bring a lawn chair or blanket and enjoy his music under the stars.

 Saturday we feature three bands, all staying with the beach theme.  The Entertainers will take the big stage and bring their flavor of the beach.  Once they have entertained the crowd and we have a short set-up break, Mark Roberts and Breeze will start about 6:00 PM, and their reputation as a top beach band is well-deserved.

 To close out Saturday evening’s program and to close out the 2009 edition of Denver Days, please join us for The Embers!  At the top of the list of beach bands, The Embers will put on a show that will keep you there until the very last song!

 Although a lot is going on Friday and Saturday, Denver Days officially begins Wednesday September 23^rd at 5:00.  The rides will be open, along with the midway and the crowds will nto be huge.  Wednesday night is Gospel Night, beginning at 6:00 PM and featuring a variety of performers.

 Thursday brings us rides again, beginning with free rides at Noon for our special needs kids.  The 2^nd annual “classic car drive-in” is at 5:00, followed by the drive-in movie on our huge inflatable screen, which starts at 7:30.

Friday the rides open at 5:00 and Saturday everything starts up at 10:00 A.M.

 If you have never been to Denver Days, it’s a great experience!  Come see your neighbors, have some fun, find some treasures to purchase and enjoy the food and entertainment!  If you come every year like many of us, welcome back!

 Denver Days 2009 is located just off Hwy. 16, about 3 miles north of the Hwy. 16 – Hwy. 73 intersection.  Parking is just $10 per car and the bands are included for that nominal fee.  All our net proceeds will go toward parks and recreation for the East Lincoln area.

 For more information, visit www.denverdays.com

On March 26, 2009, Bob Hecht announced to the agents, staff and managers of Century 21 Hecht Realty that he had agreed to sell the real estate company to Coldwell Banker United Realtors.  He explained that over the past 37 years, he had been approached by other firms but had declined because of the people and the working relationships he had with everyone at Century 21 Hecht.  But this time, the answer was yes and came after months of looking at all of the options and what would be best for the agents and those involved with the company.

The real estate business has changed dramatically in the past few years and to be successful you need all of the tools and systems possible provided to you by the real estate company you are affiliated with.  Century 21 Hecht provided more than the large majority of firms and had the training and coaching programs in place and working well, but Bob Hecht  knew that an association with a larger firm would benefit the agents more.  Coldwell Banker United Realtors is the largest Coldwell Banker company in the country, with over 80 offices through the southeast and over 20 offices in the Carolinas alone.  The company has the tools and the training for the agent and the affiliation with the nationally-respected Coldwell Banker organization.

The transition was another story.  Once the announcement was made, Bob Hecht  left the meeting to allow the Coldwell Banker United folks time to talk with the agents and staff about the company and what would be the same as well as the differences.  Basically the first few days were a blur with agents getting new business cards, receiving new signs,  changing out signs through the entire area, notifying the sellers, dealing with the transition and the comments and opinions.  It was a tough decision, but after 37 years of worrying about over 140 people, the time was right to provide more options and more opportunities for the agents, and that’s what this was all about.

Century 21 Hecht Realty is no longer at Lake Norman but has become a part of Coldwell Banker United.  The new company ranks second in market share for the area, and will offer the same great services and great agents as before, and with the addition of extra services provided by Coldwell Banker as well as the agents who worked with Coldwell Banker before the sale and merger.

So now buyers and sellers are getting the best of both worlds, and the opportunity to sell or buy real estate just got better through the combined firm!

More on the transition and the future for Bob Hecht  at Lake Norman, working with Hecht Development Co.  and Hecht Property Management to come.