. "LANDLORD DUTIES"
1. No matter how brief or casual the relationship is, if you let someone use your house as his/her principal residence, you are a "Landlord" under Ohio law
Ohio Revised Code Section 5321.01:
(D) "Rental agreement" means any agreement or lease, written or oral, which establishes or modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy of residential premises by one of the parties. [EMPHASIS ADDED]
DO NOT RELY UPON ANY PRE-PRINTED ADDENDUM WHICH SEEMS TO SAY THAT THE OCCUPANCY IS "NOT A LEASE." THIS MEANS NOTHING. THE TITLE OWNER MUST FOLLOW ALL THE SAME RULES AS ANY LANDLORD, UNDER ANY SCENARIO - SHORT TERM OR OTHERWISE.
NOTE: AN DOCUMENT OR ADDENDUM WHICH IS ESSENTIALLY AN "INTENT TO LEASE" IS NOT A LEASE!!!
2. Health and Safety: Ohio Revised Code Section 5321.04:
The Ohio Revised Code requires that:
(A) A landlord who is a party to a rental agreement shall do all of the following:
(1) Comply with the requirements of all applicable building, housing, health, and safety codes that materially affect health and safety;
(2) Make all repairs and do whatever is reasonably necessary to put and keep the premises in a fit and habitable condition;
(3) Keep all common areas of the premises in a safe and sanitary condition;
(4) Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, and air conditioning fixtures and appliances, and elevators, supplied or required to be supplied by him.
3. Registration with Local Government:
Example: Shaker Heights:
SHAKER HEIGHTS MUNICIPAL CODE 1413.01 ("CERTIFICATE OF OCCUPANCY")
(a) (1) As used in this Housing Code, "rental unit" means any dwelling unit within a single-family, duplex and two-family dwelling, and the third floor of a two-family dwelling that has been approved by the City for rental or separate occupancy, where either of the following conditions exists:
A. Consideration in the form of money or other valuable consideration is being paid for occupying such units; or
B. A person other than the fee simple owner of the property or his family as defined herein is occupying such unit, whether or not such person is paying consideration.
(b) No person shall occupy, and no owner or resident agent shall permit a person to occupy, a rental unit, unless the Director of Housing Inspection has issued a Certificate of Occupancy for such dwelling structure, which certificate has not expired, been revoked or otherwise become null and void
4. Lead Based Paint: - make sure you use the appropriate form for Landlord-Tenant situations.
II. EVICTION PROCESS
1. No Lock Outs: Ohio law strictly forbids you from locking out a residential tenant for any reason whatsoever. You can only remove a tenant by filing an eviction case in the appropriate Municipal Court.
2. You must comply with all Landlord duties through the date of removal of the tenant through an Eviction action in Municipal Court.
3. Tenant must receive a "3 Day Notice" before you can file Eviction action in Municipal Court.
4. After you file the case, you will have a hearing in about 3 weeks. Depending on jurisdiction, Court Bailiffs will be sent to the property within 1-2 weeks thereafter.
5. Thus, from the time of serving the 3 Day Notice, it takes up to 6 weeks to remove a Tenant.
6. Are you an LLC or a Corporation? If so, in Ohio, you must hire a lawyer to represent you in Court. Your case will be automatically dismissed if it is not signed and filed by an attorney.
III. ALLOWABLE TERMS IN LEASE:
1. Utilities: You may require that all utilities be paid by Tenant, including water and sewer, if it is separately metered.
2. Repairs: You cannot shift to the Tenant the duty to pay for repairs for items which relate to building, housing, health, and safety codes, or which are necessary to make the property "habitable."
3. Landscaping: You can require that Tenant maintain the yard. However, this is between you and the tenant - the City can still come after you for the Tenant's failures.
4. Other Costs: You can require the tenant to pay such things as taxes, your insurance premiums, and anything else that does not directly related to "building, housing, health, and safety codes that materially affect health and safety."
IV. INSURANCE ISSUES:
1. Change In Use Of Property - Check With Your Insurance Agent: Generally, the standard owner-occupant Insurance Policy will not provide coverage in the event that you turn your (former) primary residence into property into "rental" property. Make sure you check with your insurance agent to amend your Policy, if necessary.
2. Purchase the Maximum Liability Insurance You Can Afford: An increase in a liability policy from $500,000.00 to $1,000,000.00 is cheaper than you think.
3. Make Sure You Have "Business Interruption" Coverage: In the event of a major casualty (such as fire or flood), business interruption coverage will preserve your cash flow.
4. Damages to Tenant's Contents/Renter's Insurance: As long as your Lease is clear, you are not liable to the Tenant for any damages to his personal property in the event that there is a casualty (such as fire or flood). Tenant should be encouraged to purchase "Renters Insurance" to cover such losses.