For the past two years, the headlines have been dominated about housing foreclosures. One of the aspects of the foreclosure crisis that has received very little attention, however, is the role that rental properties have played in the housing slump. Many landlords have seen their properties go into foreclosure, and as a result, many tenants have found themselves in very dire straights. In Minneapolis alone, 65% of foreclosures have been on rental properties. Nationwide, it is estimated that 40% of people to lose their homes to foreclosure are renters. And according to a report by the Center for Responsible Lending, the number of rental properties going into foreclosure is expected to rise.

Fortunately, renters have very specific rights when it comes to the foreclosure process, thanks to a bill passed in April.

Protecting Tenants at Foreclosure Act of 2009
According to the Protesting Tenants at Foreclosure Act of 2009, banks or owners who obtain a property through the foreclosure process do not have the right to evict a tenant if a lease is still in effect. The exception is if the new owner wants to live in the property. In this case, tenants have to be served 90 days notice – which is much longer than the typical eviction process. In summary:

• Leases would survive a foreclosure — meaning the tenant could stay at least until the end of the lease.  The lease survives and ends as it would had there been no foreclosure.
• Month-to-month tenants would be entitled to 90 days’ notice before having to move out
• Any state legislation that is more generous to tenants will not be preempted by the federal law
• These protections apply to Section 8 tenants, too

Relocation Assistance
If Fannie Mae or Freddie Mac owns the mortgage on a foreclosed property, renters should consider themselves lucky. Both agencies have vowed to assist renters with the relocation process by providing money to help renters pay security deposits and first months’ rent on a new place to live. The only way that a tenant would know the details of their landlords’ mortgage is to wait for Fannie Mae or Freddie Mac to contact them. That can be a bit unsettling, because you may not have an exact time frame for that knock on the door. One real estate appraiser I talked to said that their office is so backlogged with foreclosed properties that it can often take 9-12 months before Fannie Mae takes action on a foreclosed property. However, the standard is that Fannie Mae will contact the tenant within 30 days of the property going into foreclosure.

To find out if you are eligible for rental or relocation assistance from Fannie Me, click here. Although Fannie Mae will allow you to sign a new month-to-month lease in order to keep people on the property, you should be aware that the property will be on the market, and that you would have to be willing to allow real estate agents to show the home.

If you’re living in a rental property that has undergone foreclosure, here’s wishing you the best as you and your family relocate.

Additional Resources:
NOLO
Legal Assistance Resource Center

Here are half a dozen helpful tips for home sellers who want to attract a buyer and close a deal before colder weather sets in, real estate markets slow down, and most of those who are shopping for a new home go into hibernation until next year arrives.

1. Evaluate Realtor Performance
First of all, evaluate your listing agent’s performance in an objective manner. Are they doing enough to advertise the property, and have they held any Open Houses to encourage visits from potential buyers?

If you live in a LGBT enclave, does your real estate agent understand the local LGBT market and have strong connections to those who live and work in the neighborhood? Sometimes hiring a broker who is also an active and supportive member of the LGBT community can be an advantage if you are a LGBT homeowner.

2. Redefine Your Goals
As the brisk sales season winds down it is important that you reexamine your specific goals as a seller. Ask yourself whether you are really determined to sell and move, or whether you might be interested in alternatives such as refinancing, renting part of the home to a tenant for extra income, or waiting until the market improves and you can realize a greater return on your investment.

3. Study the Competition
In a competitive market it is essential that you know what other sellers are doing. Know the listing prices of competing homes. Stay current regarding sales prices of homes similar to yours that have recently sold and how long were they were on the market.

Check out other homes. Examine their curb appeal and the conditions of important features and components such as the roof, the paint job, and the landscaping. If your home needs updating in order to compete, factor that into your strategy and pricing.

Analyze sales data and make sure that your offering price is where you want it to be in terms of being either on the high side, somewhere in the middle, or the best bargain on the entire street.

4. Add an Incentive
By adding a home warranty, a repair allowance, or an offer to help pay your buyer’s closing costs you can often inspire hesitant buyers to get off the fence and sign a contract.

You can also offer intangible incentives through improved curb appeal, a home staging makeover (where you hire a professional to decorate your home to look like a model home), or a simple cosmetic upgrade that won’t strain your budget but will quickly dress up your property.

5. Crunch New Numbers
Holding on to houses across the winter season can mean that you will face higher utility bills, especially if you live in an older home that is relatively expensive to heat. The longer you keep the home the more taxes and insurance you’ll pay, too – but you will also reap some tax benefits by paying mortgage interest. Crunch the numbers with the help of your Realtor to understand the bottom line benefits to holding or selling. That information will help you decide whether to wait for higher prices next year or to lower your price to inspire a sale now.

6. Use Calendar Benchmarks
Even houses that are difficult to sell will move if the price is attractive enough to buyers. But sellers often procrastination when it comes to dropping the price – even if they believe it is a smart thing to do – because they get too emotionally involved.

Remove the emotions and avoiding costly delays by relying upon the calendar – not your feelings and whims – to trigger price drops. If you plan to drop the price 20 percent to motivate a faster sale, for instance, one strategy could be to drop the price 10 percent if nobody makes a serious offer within 15 days. Then if the house is still not attracting enough attention, automatically drop to the 20 percent off mark when the 30 day deadline expires.

Mark the dates on the calendar and give instructions to your Realtor to set things in motion if time elapses past a designated deadline.

If you absolutely need to sell right away, then prepare to do whatever it takes rather than trying to hold out for a slightly higher price. And if you happen to be upside down in your mortgage like many Americans, talk to the lender or a credit counselor about loan modification. The worst thing is to do nothing, so remain proactive and positive to invite success.

Remember to trust the sale of your home to a professional committed to equality, integrity, and hard work in service to the LGBT community at www.GayRealEstate.com. Or call toll-free 1-888-420-MOVE (6683).

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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.

Photo credit: www.GayRealEstate.com.

Now, the search for a down payment acts as a major caveat clouding the vision of both the homebuyer and the mortgage broker. I have discovered a strategy that assists both to their goal. We know it may be a good time to buy, but our problem is no longer the price or interest rate, it happens to be the ability to come up with the seed money required to get that price or interest rate. And time is of the essence with the new offer of a tax credit for first-time home-buyers!

Enter the Single-K.

With most mutual fund companies offering a product that allows an individual, couple (married or domestic partnership) and their immediate family to start a plan that is essentially an equivalent to a larger company’s 401(k), the Single-K works for those who own a business and it carries a number of distinct benefits. First, the Single-K has a very handsome contribution limit should your business be profitable. But contributions are not the point of this piece. The access to a down payment is. And what if you don’t own a business?

Practically anyone can start a business in this country. Heck, if you love vitamins, skin care or legal insurance, you can start your own network marketing company for around $100. By starting a business, you open yourself up to over 13,000 pages of the US Tax Code that allows you to not only start a plan like the Single-K, you are open to indulge in the tax benefits it provides.

The essential benefit is the loan provision most of these Single-K plans offer. By transferring an old IRA, 401(k), SIMPLE IRA, SEP IRA or even an existing plan from some companies that offer an “In-Service Withdrawal,” you are on your way to accessing the down payment for your new home. Remember, you must own a business that employs no one other than immediate family members and other stipulations may apply. But if you qualify (contact me to determine if you do), the “Loan Provision” could be of great interest to you and your home buying desires. For one particular mutual fund company, Single-K owners are able to borrow up to $50,000 or 50% of the balance of the plan and if used for a primary residence, that payment is amortized over 15 years at a phenomenal rate (like, Prime + 0%). This interest is paid back to your Single-K (so it won’t increase your debt-to-income ratio) and the payments could be quite low, depending on the size of your loan and the Prime interest rate. The annual fee of a said mutual fund company is just $15, the loan fee is a one-time $40 and transaction fees could be as low as 1%!

If you or someone you know is digging deep to find that down payment but doesn’t want to borrow from family or the bank, they may be able to borrow it from themselves.

Contact me for more details.

First timers are urged to do whatever they can to streamline the real estate shopping experience, and working with a gay-friendly Realtor and lender can often save valuable time for LGBT buyers.

A gay or lesbian couple may need to seek legal and financial advice in order to help them better understand their rights as owners, for example, since many of the benefits related to real estate ownership are only available to those couples who are legally married.

An experienced Realtor accustomed to working with LGBT clients will either know the answers immediately or be able to quickly refer the buyers to a reputable real estate attorney who is well-versed in complex LGBT legal issues.

For a loan processor unfamiliar with financing for LGBT partnerships confusion may also arise, and that usually translates into frustrating delays. So work with a mortgage lender experienced in making loans to the LGBT community.

Keep in mind that the government and the IRS define first time home buyers in a broader sense. You may still be entitled to the tax perk even if you have already owned a home in your life or have bought and sold dozens of them.

That’s because the official definition of a first time buyer is one who has not owned or co-owned their principle residence during the past three consecutive years.

But just having a purchase contract or an approved mortgage application is not sufficient to qualify you for the tax benefit, and deals often get postponed en route to the closing table. That is especially true during months with major holidays. Real estate attorneys and title companies may, for example, work fewer days or limited hours as Thanksgiving approaches. Buyers should also expect that there will be a flurry of November activity as other new home buyers also rush to close on time.

The anticipated surge in last-minute transactions may create delays at banks, mortgage companies, and law offices that handle real estate closings.

So a better strategy is to get sales settled way ahead of time – ideally before the end of October. Since it takes about 4-6 weeks to close most sales that means that buyers should submit their purchase offers to sellers in September to be safe.

Recently home sales experienced their sharpest increase in nearly a decade. That may cause underwriting delays, and with $8,000 at stake it pays to be proactive to facilitate the home buying process, find the best deal on an appropriate mortgage, and get to closing to claim the tax perk before time expires.

For expert help with all your real estate and home financing needs contact www.GayRealEstate.com and www.GayMortgageLoans.com. The members of these networks are dedicated to supporting the GLBT community. Or call toll free at 1-888-420-MOVE (6683).

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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.

Photo credit: www.GayRealEstate.com.

1. Invest in Curb Appeal
The first thing to do with a vacant listing – and it is a good idea even for listings that are occupied – is to put the lock box out of view. Seeing a lock box hanging from a front door knob is a telltale sign that nobody is home. Keep the yard trimmed and manicured and put a fresh coat of paint on the front door. Make sure the entranceway is lighted at night, and that windows facing the street on ground level are covered with sheer curtains or blinds that let in light but protect from prying eyes.

2. Notify Neighbors and Local Police Patrols
Just as you might while vacationing, enlist the help of neighbors or local police to keep a watchful eye on the house. A neighbor may be willing to park an extra car in front of your property from time to time, to create the illusion that it is occupied. Have someone trustworthy enter the home once a week to give it a once-over and check for any signs of trouble or needed repairs.

3. Spend a Little on Utilities – But Not Too Much
Homes that sit vacant often suffer from being closed up and not ventilated, and this can cause a musty odor, mildew or mold, or even warping of wood and peeling paint. To keep the structure healthy, set heat or air conditioning units to come on when they hit extreme thermostat readings. That way if the inside of the house gets above 85 degrees it has a chance to cool off, and if it drops below 45 it will re-warm before freezing. Set water heaters to their vacation settings to conserve energy. Should you decide to turn off all of the utilities while the premises are vacant, consult a home repair and maintenance contractor to advise you how to professionally prepare plumbing pipes, boilers, chimneys, and other major components before leaving the house completely “unplugged” for a long period of time.

4. Hire a Property Management Agent
By paying a nominal monthly fee it is possible to hire professional property managers to take care of all these things and more, so that you don’t have to worry about them yourself. There are even certified management companies with special training, schooling, and industry credentials. Your local Realtor should be able to help find and recommend someone.

5. Work with a Professional House Sitter
Others work as house sitters, and will maintain a home in exchange for free or reduced rent. Hire those who are bonded and insured and have a verifiable track record and excellent references. By choosing the right tenant to act as a house sitter it is possible to get peace of mind while bartering for minor repairs or chores – or receiving discounted rent to help you make your monthly mortgage payment until the home sells.

6. Use a Staging Company
The ultimate showcasing strategy for vacant listings involves hiring a professional staging company. These businesses combine real estate marketing and home decorating experience to set up houses to look like model homes. Using a staging company means that the home will be made to look its best in terms of interior decorating, which can dramatically improve success when potential buyers tour the property. They can use your furnishings or bring in furniture and accessories to match any style of home, from Victorian historical houses to sleek modern urban lofts or casual beachfront condos.

Leaving properties empty and neglected not only detracts from their marketability and attractive allure, but it can lead to extraordinary expenses that no homeowner wants to incur – or to an outright emergency. Termites or carpenter ants can destroy an entire home in a remarkably short period of time. Rodents or birds that find their way into an attic can wreak havoc, and a small amount of dampness can explode into toxic mold that is capable of rendering a house unsafe to inhabit.

But visiting a vacant property on a regular basis and giving it a quick walk-through inspection to check for potential problems can usually prevent any of these unwanted complications. Investing even a few minutes per week is all it takes to check on a home. Doing it can be one of the most valuable yet easily affordable investments that you can make to protect your real estate assets.

To find a qualified real estate agent to help you in buying, selling, managing, or locating investment property, just visit www.GayRealEstate.com or call toll free 1-888-420-MOVE (6683).These brokers specialize in serving the worldwide GLBT community.

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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.

Photo credit: www.GayRealEstate.com.

A gay or lesbian couple may need to seek legal and financial advice in order to help them better understand their rights as owners, for example, since many of the benefits related to real estate ownership are only available to those couples who are legally married according to state and federal statutes. An experienced Realtor accustomed to working with LGBT clients will either know the answers immediately or be able to quickly refer the buyers to a reputable real estate attorney who is well-versed in complex LGBT legal issues.

Similarly, those who want to buy together gay may encounter complications along the way when trying to secure mortgage financing. They may need guidance regarding whose credit report or income to submit on the loan application, or they may need reassurance that, for example, the mortgage documents and deed are crafted in such a way that they reflect equitable sharing of assets and liabilities. For a loan processor unfamiliar with mortgage financing for LGBT partnerships this may create confusion, and when mortgage applications encounter people who are confused that usually translates into frustrating delays.

Plus, the harsh reality is that many people do not support equal rights for gays and are reluctant to roll up their sleeves to help expand the LGBT community in their own neighborhood or city. While they might not openly discriminate against their own clients or customers because they are gay, they may decide to do only the bare minimum to assist them – which is a common tactic of covert discrimination. When working with someone who engages in foot dragging or is not as attentive as possible, precious time gets spent without successful results – and with $8,000 on the line there is really no time to waste. A better strategy is to work from the very beginning with professionals who are known within the community for doing excellent, enthusiastic, tireless work on behalf of satisfied LGBT buyers.

Keep in mind that the government and the IRS define first time home owners in a broader sense, so you may still be entitled to the tax credit even if you have already owned a home sometime in your life – or have even bought and sold dozens of them in your lifetime. That’s because according to the official definition of a first time buyer you must not have owned or co-owned your principle residence during the past three consecutive years. So if you have been a renter over the past few years, for example, and have not owned your own principal residence for at least three years, then you are considered a first time buyer.

But just having a purchase contract or an approved mortgage application is not sufficient to qualify you for the tax benefit, and deals often get postponed en route to the closing table. That is especially true during months with major holidays. Real estate attorneys and title companies may, for example, work fewer days or limited hours as Thanksgiving approaches. Buyers counting on getting their real estate transactions closed at the end of November may find out that the preparation of final documents cannot be scheduled on time, and that could be a potential nightmare.

Buyers should, for instance, expect that there will be a flurry of late November activity as other new home buyers also rush to close on time. The anticipated surge in last-minute transactions may create delays at banks, mortgage companies, and law offices that handle real estate closings. So a better strategy is to get sales settled way ahead of time – ideally before the end of October.

Finding and successfully closing on a new home can be a time-consuming effort with many unexpected hurdles and frustrating delays, even under ordinary circumstances. But according to the Commerce Department low interest rates, the big federal tax credit, and deeply discounted prices have caused residential real estate sales to jump to the highest level in months. In June, for example, new home sales experienced their sharpest increase in nearly a decade. That may cause underwriting delays, and with $8,000 at stake it pays to be proactive to facilitate the home buying process, find the best deal on an appropriate mortgage, and get to closing to claim the tax perk before time expires.

For expert help with all your real estate and home financing needs contact www.GayRealEstate.com and www.GayMortgageLoans.com. The members of these networks are dedicated to supporting the GLBT community. Or call toll free at 1-888-420-MOVE (6683).

—-
Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.

Photo credit: www.GayRealEstate.com.

But the question in the mind of most GLBT buyers is whether or not the location of the property is also adequately and appropriately diversified. Before making the biggest and most important purchase and investment of a lifetime, it helps to know whether or not the money is going into a neighborhood that will not only support the value of the real estate but also the values and lifestyle of the homeowner.

Before buying any property, anywhere, it is always advisable to get to know the area ahead of time, with firsthand experience and personal observation. Spend as much time as possible walking the streets near the house or condo and meeting people, because once the home is purchased those strangers will likely be the welcoming committee, the fellow condo association voters, and your new next door neighbors.

Use the opportunity of face to face contact with locals and neighbors to dig deeper, even it means asking rather candid, straightforward questions. Negative responses to inquiries about gay and lesbian subjects can be the most informative of all – even if they do ruffle your feathers – because that kind of reaction is usually just the tip of the iceberg in terms of a deeper and more insidious bigotry. Before setting up house in a community find out for sure whether or not there are any other GLBT residents, organizations, small businesses, newspapers, arts groups, and so forth. Scan the message boards in local cafes and bookstores, look for GLBT community papers and magazines, or do research on the Internet. One of the best sources of information is GLBT travel guide books. They may not explain real estate market specifics, but they do list the addresses and neighborhoods of a wide range of GLBT businesses and attractions. If the community assets and resources you seek are conspicuous by their absence, it may be time to start house hunting elsewhere.

But keep in mind that you may also be pleasantly surprised. One lesbian couple we know moved to what they thought was a nice town, but then found it hard to locate the city’s GLBT underground scene. Feeling isolated and somewhat desperate they finally asked a neighbor where they might go to find the GLBT underground, and the neighbor just laughed. “We don’t have a gay underground because we brought it out of the closet years ago. The whole town is a GLBT scene so stop trying to uncover it and just get out there and enjoy!” They bought a home and have lived happily (above ground) ever since.

Using a qualified Realtor who is an active member of the GLBT community is one of the best ways to zone-in on gay enclaves. But many homebuyers make the mistake of assuming that just because their Realtor has a rainbow decal on their car, they are automatically familiar with the local gay community. Or they take it for granted that every gay-friendly real estate agent is an experienced professional who fully understands the nuances of the local market. Rather than making broad assumptions, interview agents and chose those who impress you with their depth of knowledge and expertise – both in terms of the housing market and in regards to the GLBT community and social network. Work with one who demonstrates competence and with whom you have a good rapport, because the key to a successful working relationship with a Realtor is excellent two-way communication.

One of the benefits of finding and working with an especially qualified and resourceful Realtor who has connections to the GLBT community is that they can, in turn, introduce you to an entire network of other professionals in the area. Through her or him you can soon get the names and phone numbers of mortgage brokers, insurance agents, home inspectors, contractors, and attorneys who can also provide needed guidance and helpful advice.

GLBT home buyers can effectively fine tune their real estate “Gay-dar” by performing a small amount of due diligence background research in these easy ways. The process of exploring a neighborhood to check out the attitudes of those who live and work there does not have to take time or cost money. Not doing adequate investigation, however, can have extremely costly repercussions – both personally and financially – and can turn a dream home into a major disappointment or outright nightmare.

To find quality real estate experts serving the GLBT community, visit www.GayRealEstate.com. These agents and brokers take pride in helping clients find homes in neighborhoods they enjoy within communities they love. Toll Free phone number 1-888-420-MOVE (6683).

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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.

Photo credit: www.GayRealEstate.com.

1. I gain peace of mind. There is something to be said about owning our most significant asset outright. Until this happens, this asset is technically a liability.

2. I no longer have to worry about job loss. Our biggest monthly expense is our mortgage. If Jeanine or I lost our job, we’d have to dip into our savings to cover this cost. If this expense was eliminated then our ability to survive without income increases dramatically. This is a true freedom.

3. It reduces my cost of living. There are two paths to wealth. Increase income or reduce your expenses. Do both and you’re set.

4. It’s a smart bet. I know I’m getting a good return on my investment when I’m using it to pay off my mortgage.

5. The tax deduction is overrated. We still have a big mortgage and believe you me; the tax deduction comes in handy every time tax day rolls around. That said, in my opinion, the 4 benefits listed above outweigh any justification (including the mortgage-interest deduction) for not paying off our mortgage as soon as possible.

What are your plans? Do you hope to pay off your mortgage eventually? Or can you relate to these people profiled in this recent NPR segment about why mortgage-burning parties are almost extinct?

Photo credit: stock.xchng.

Bank of America, the country’s largest mortgage lender, is rolling out a large program to finance jumbo loans between roughly $730,000 and $1.5 million, with fixed 30-year rates starting in the upper 5 percent range.

According to Inside Mortgage Finance, the jumbo sector showed signs of life in the second quarter of 2009 with Bank of America and Citigroup leading the way. Home-Account (the mortgage-finding service with a little twist) noted on its blog last week, “Welcome back jumbo. Too bad most of us can’t qualify.” They explained there’s a catch if you need one of these loans today (which is still most of coastal California):

Want a jumbo loan? Then be ready to make a 30-40 percent down payment on your new house.  This immediately eliminates refinancing most of the older jumbo loans in California, for example, where more than half of the mortgages were already of jumbo size. If your jumbo mortgage is underwater don’t expect to be able to refinance — or even to apply for a mortgage modification, since the Obama plan, for example, doesn’t even cover jumbos.

So if few people can qualify, then why are lenders getting back into this business. The above post explains:

The reason lenders are jumping into jumbo mortgages is because under these terms it is a great business. Wall Street still won’t touch jumbos for securitization, but that doesn’t matter because the banks are tending to hold these loans in their own portfolios. And for good reasons:

1) the lenders have plenty of equity down so the properties are worth more than the loans against them;
2) it costs little more to foreclose on a jumbo than on a conventional loan so for the lender the downside is the same while the upside is much larger, and;
3) under current Fed policy the banks are making these 6-percent jumbos with 0.25-percent money — a fantastic spread by historical standards.

Other resources:

• Here’s a good video on Bloomberg that discusses the outlook of the mortgage market and jumbo loans in particular.
• Here is a recent paper from the National Association of Realtors on the impact of the jumbo mortgage credit crunch.

Anyone in California or New York City have a story to share about their need for a jumbo loan or trying to refinance one?

Photo credit: stock.xchng.

Well, the answer varies from state to state, but there are some simple steps everyone should take to make sure that money gets back out of the hands of greedy landlords. For a list of how long your landlord has to get you back your money, see this list. Be sure to note that in places like Los Angeles, landlords are required to pay you interest for the time they have held onto your deposit. New Yorkers, your first stop should be at the Web site of The Met Council. They’ve saved me -for free – countless times.

In the meantime, the first thing you should do is memorialize all conversations you have with your landlord about the return of your security deposit. That means sending him/her a letter, stating what you discussed and making sure he/she signs for the letter upon its delivery. The only way to do that is to send all correspondence via Certified mail.

Details to clear with the landlord should include when to expect the money, how much, and possible deductions he/she will take off for cleaning. Obviously, your apartment is not going to look the same as when you first came in, and it’s up to the landlord to determine if the current condition of the apartment justifies any additional cleaning/repair out of his/her pocket. Be sure to clarify with your landlord, and then include in your letter, what is acceptable wear-and-tear.

The best way to make sure the landlord does not pull a fast one on you is to take photos of your apartment. In this digital age, no spot, crack or stain should get left up for question: take a photo of it! These photos can be used in small claims court, should you need to challenge your landlord if he/she does not give you back your money.

Now I don’t mean to demonize all landlords. In fact, we here at Queercents know of a few good ones.

Still, you have to be on guard. The ideal situation is to convince the landlord to do a walk-through with you. Now, New Yorkers laugh at this, since most of us never actually meet our landlords, but the best way for a landlord to ensure his/her property is taken care of is to see it before a tenant leaves. The landlord should see the apartment after all the furniture is out of the apartment – that way he/she can’t accuse you of hiding any damage with, say, a couch. At the end of the walk through, have the landlord sign an agreement that you have left the apartment in fair condition. This sounds very demanding and takes a lot of effort, but it’s worth it! You have to protect yourself and your rights.

Some states actually require landlords to give you move-in or move-out checklist where you can document the condition of the apartment. Keep a copy of all these documents and fill them out while you do the walk through. If you want to hire professionals for repairs, make sure you have the documented approval of your landlord. Then, keep any invoices and mail your landlord a copy to verify that you’re taking care of the problems and expect to receive your full deposit back.

Note: If your landlord is avoiding your mail, somehow, you still have recourse. You can send your letter again, but this time with a certificate of mailing, showing you sent him/her a certified letter. This will hold up in court, should a landlord claim he/she never received anything.

If a landlord tries to hold on to your money, demand an itemized list explaining where the money’s going. Bottom line here is don’t assume that a super-nice landlord means you’ll get a returned security deposit.

When all else fails, you’re only left with small claims court. These courts handle lesser disputes, usually those under $10,000. Many courts have online resource centers, so be sure to check yours out before you show up. Here is California’s, for example.

On the day of your hearing, remember to bring all documentation, including pictures, cleaning and repair records. Also bring the letters you sent to your landlord. With any luck, a decision on your security deposit will be rendered on the spot. If not, there’s always Judge Judy!

Photo credit: Flickr Commons