Nine Necessary Steps for Protecting Your Rights as a Landlord
As a landlord, it’s important you take the necessary steps to protect your property and your rights. These nine steps are crucial, especially if you ever find yourself in court battling a bad tenant.
Use a Written Lease Agreement
The verbal contract between tenant and landlord won’t hold up in court. Always have a written lease or rental agreement for your property -- whether it’s being rented out for a month, year or even while you’re away on vacation.
Conduct Background Checks
It is within your right to conduct a background check on your prospective tenants. You can conduct criminal checks as well as verify employment, income, and check the tenant’s credit to make sure they’ll fulfill the obligations of your rental agreement.
Charge a Security Deposit
You can charge a security deposit, and should, for your property. However, every state has limits on the amount you can charge. Therefore, consult your state laws regarding rental properties for security deposit limits.
Know Your State Landlord/Tenant Laws
Every state has different landlord/tenant laws. While there are some that are universal, you should always review the landlord/tenant laws for your state before writing your rental agreement, setting your rental prices, or selecting tenants.
Make Repairs Promptly
Always stay on top of the maintenance for your property and make repairs when tenants request them. If you don’t take care of your property, tenants have the right to withhold their rental payments or even sue you in civil court.
Disclose Information
If there are any environmental hazards -- mold for example -- you are required by federal law to tell your tenants.
Know Your Eviction Rights
You can evict a tenant from your property, but only when you have legal cause to do so. Some reasons to evict can include failure to pay rent, seriously damaged property, etc. You need to consult your specific state’s laws regarding eviction, because the length of notification or reasons for evicting can vary.
Choose the Right Tenants
Base your tenant selection on impartial, non-biased information to avoid any fair housing complaints. The best practices for choosing a tenant can include:
· Good credit, income, and references.
· Business decisions
· Based on housing rules
Always be consistent in your hiring and make sure your staff does the same.
Hire a Professional
It’s best to have an attorney review your lease agreements and help you with the tenant selection process. An attorney can make sure you follow the state and federal laws, remain complaint with the fair housing rules, and avoid any unnecessary time in court.
