The Nevada Sagebrush

With Nevada continuing to hold the nation’s highest foreclosure rates, students should be doing research before they sign a contract to lease a home, Washoe County realtors and legal officials said. In February 2009, one in every 70 housing units received a foreclosure filing in Nevada, according to RealtyTrac, a real estate tracking database.

In order to stay safe in a crumbling realty climate, filing for a split lease, recognizing foreclosure-ready homes and understanding tenant rights are a necessity, Marc Ashley, staff attorney for Washoe Legal Services, said.

Choosing a home

The first step is to check whether a home is in foreclosure or in danger of foreclosing, Ashley said. Although the status of a home can be checked through the county recorder’s Web site, records are updated daily, which means a home can show up in foreclosure at any time. Real estate agents are also able to contact the escrow company to determine the title of the home, David Hughes, a realtor for Dickson Realty, said.

A foreclosure is when a bank reclaims a home because the owner is not paying for the residence. Even if the tenant is paying his or her rent, if the owner is not, both will be evicted from the residence, according to Nevada State Law.

In the case of a foreclosure, most tenants are not aware that owners aren’t paying the mortgage until they receive a three-day eviction notice, members of the Washoe County civil department, said.

Tenants have the right to testify in court and fight for a longer moving-out period, Hughes said. More importantly, students should be doing research to make sure they don’t end up in a home in danger of foreclosure, Ashley said. Recently purchased homes and those that haven’t been occupied for a while should raise a red flag, he said.

“There are a lot of foreclosures because residences were bought during the real-estate bubble,” he said. “Owners never had the intent to occupy these homes, but are now rushing to because they cannot pay for them.”

To protect tenants who get stuck in a foreclosing home, the Nevada State Legislature is discussing a bill, Assembly Bill 140, which will extend the duration of time a tenant has to move out from three days to sixty. Assembly Bill 140 could still require tenants to pay rent and follow their contract, Hughes said.

Finding out where the landlord lives is extremely important because many people become victims to out-of-state realty scams, he said.

“You don’t want to deal with out-of-state or out-of-country situations, you want to meet the landlord in person,” Hughes said.

Many people are beginning to steal pictures of homes featured on Craigslist to get tenant-hopefuls to send them a deposit on a home they do not own, Hughes said. To avoid this, students can contact the title company to double-check who the home actually belongs to.

Different kinds of leases

While everyone likes the idea of living with their friends and sharing a home, a lot of problems could be raised if it’s not done properly, legal officials said.

“If one co-tenant leaves, drops out of school or loses their job, everyone could be held liable for the rent,” Ashley said.

Legally, the tenants are bound to pay the rent for the duration of their contract. If one person cannot, others may have to pay more or could be evicted.

Because of this, legal officials said that obtaining a split-lease is safer for students. Many landlords, especially those who own homes close to universities, focus on student housing and split leases, Ashley said.

Although details can vary within the contract, students can rent individual rooms in a residence and only worry about paying for their room and a portion of the utilities. If one of the tenants can no longer pay their rent, other roommates are not responsible for that cost. Other tenants, however, may have to pay slightly more for utilities, Ashley said.

Renters should also know that even though most contracts specify a date the lease ends, a letter of termination is required 30 days in advance to end the contract. If the tenant does not submit a letter, the lease rolls over on a month-to-month basis.

Deposits and Rent

If a tenant does not pay rent, the landlord must first extend an extra seven days to receive the payment, Hughes said. If the rent is still not paid, the landlord must take the tenant to court to have he or she evicted.

If eviction happens, renters are not guaranteed their security deposit back, which is why tenants should never put down more than one month’s rent, he said.

“Go into these deals with your eyes open and ask questions,” Hughes said. “You want to make sure your dealing with a reputable landlord. If they don’t need their deposit, they will give it back.”

 Other rights

Landlords are legally allowed to lock out a tenant if they believe the residency was abandoned. If the renter is absent for one half of the rental period without paying the rent or giving the landlord a written notice, landlords can lock the residence.

Otherwise, the owner cannot reclaim possession of the residency without a court order, according to Private Landlord Tenant Laws for Washoe County. If a landlord illegally locks a tenant out, a lawsuit can be filed to allow the tenant back on the premises.

“A landlord can get into a lot of trouble locking someone out,” Hughes said.

A landlord can only enter a tenant’s home under strict provisions within Washoe County Law. The law states the owner cannot enter renter premises except under the following conditions: in the case of an emergency, under a court order, to supply agreed services or as written in a rental or lease agreement.

The landlord is also required to give 24 hours notice before entering to inspect the residence or exhibiting the home to other mortgagors, tenants, workmen, contractors or other persons. If two weeks pass without the tenant responding to the repair notice, the landlord can legally enter to repair damages, replace a damaged item or clean the residence.

Tara Verderosa can be reached at tverderosa@nevadasagebrush.com.

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