Checklist for leasing to a rent regulated tenant

In some cities, like N.Y.C., an owner is required to give a lease to a rent regulated tenant. Whether you use a lease or not, the keys to an apartment should never be turned over to a tenant unless and until you or your rental agent follow no less than the following safeguards: 1. Have the tenant fill out and sign a written application. 2. Verify all information, employment through accounts to references. Talk to the proposed tenant's current landlord. Consider visiting their current residence or having a meal with tenants and observe. 3. Run all background checks available to you: full credit check, housing court background check, and a criminal background check. In N.Y., you are permitted to be reimbursed up to $100 of the cost of such searches. And review rental agent's due diligence. 4. Make all copies, yourself, from the originals of documents from tenant. Photocopies can be "photoshopped" to change negatives on reports or numbers on returns or stubs or statements. Do not be blinded by a tenant's offer to give you cash or extra rent or security (which is in N.Y.C. an overcharge for a regulated tenant) as a reason to skip any of these steps. 5. Take a photograph of all proposed occupants of the apartment. Have the photograph signed by the prime tenants. 6. Photograph the apartment and have the tenant sign the photographs acknowledging the condition of it before you give them the keys. 7. Wait for all checks, money orders or bank or official checks to clear. They can be stopped. Scams exist where the money orders or checks are forgeries. Once the tenant has the keys and access, you can only proceed to enforce your rights in housing court. 8. House rules? Make the tenant(s) sign a copy acknowledging receipt of them. 9. Have a written set of rules on how repairs are to be reported, including emergencies. Have the tenant sign a copy acknowledging receipt of them. Do not deviate. 10. Use appropriate leases. In N.Y.C., the Rent Stabilization Association has leases for purchase that protects owners. Include required notices and pamphlets. Even if no lease, check to see what, if any, notices or pamphlets you are required to give. (Lead? Window Guards? Etc.) 11. Tenant's movers must be insured (including workers compensation & disability). Owner and managing agent must be named as additional insured's. Verify the authenticity of the binder. 12. If permitted in your city or town, have the tenant obtain apartment dwellers insurance. 13. If in doubt, go with your gut instinct. Don't get talked into something you are uncomfortable with. No lease? Make sure you have something in writing with the tenant stating monthly rental and any additional charges tenant is responsible for. Remember, no good deed goes unpunished! Deviate from these rules at your own risk. Howard Stern, Esq., is an attorney at the Law Offices of Howard Stern, New York, N.Y.