Rental Property Law

Learning rental property law is critical when owning rental property. You must make sure that you operate within the law and know how to protect your rights as a landlord. The law steps in as soon as you begin to advertise your property for rent and does not end until you have resolved the status of tenant security deposits.

In the U.S. landlord/tenant relationships are governed by the Uniform Residential Landlord and Tenant Act. However, most States have more restrictive rental property laws in place that supersede the URLTA. Some places are more tenant friendly (such as New York City's rent control laws), while others give more power to landlords.

Many decisions you make as a landlord can result in lawsuits or fines, so follow rental property law.

When you are screening tenants know that you cannot discriminate based on race, sex, children, religion and in some areas may be forced to provide handicap access. Make sure that you have a uniform screening process based on financial factors or have poor references to justify not accepting applicants.

Another important protection for you is to have the tenant fill out an "inspection check list" before occupying the property. Take pictures as well of the condition of the property.

The most critical decisions you make regarding rental property law will be the clauses in your lease agreement . The lease agreement should specify the following:

• The names of the landlord and tenants as well as all those who will be inhabiting the property


• The length of the lease (month to month or yearly, etc.)


• How much the rent is and when it is due


• Late fees if rent is not paid on time


• How much the security deposit is and conditions for return (you may be required to keep security money in a separate interest bearing account in some States)


• Whether or not the tenant can keep pets and additional security deposit for pets


• What happens if the tenant does not abide by the requirements of the lease agreement


• Under what conditions you can enter the property


• How the property is to be maintained by the landlord and the tenant


• Who will pay legal fees if the tenant violates the agreement


• What will happen at the end of the lease

While you can put a clause into the lease allowing you to enter the property, the tenant does not have the obligation to let you in unless there is a demonstrated emergency. However, if they fail to allow you to enter the premises, the tenant is in violation of the lease agreement and you can start an eviction proceeding.

Rental Property Law and the Tenant Eviction Process

When a tenant violates the terms of the lease agreement you cannot just change the locks and through their belongings to the street. There is a process for eviction that you must follow. First, the tenant must be given a notice (typically 3 days) to "pay or cure" (in the case of alte rent it is often called "pay or quit"). These are some of the reasons that you can evict a tenant for:

• Failure to pay the rent


• Damages to the property by the tenant (the legal term is "waste")


• The tenant has pets in violation of the rental agreement


• Disturbing the neighbors or conducting illegal activities


• People living in the property not listed on the rental agreement

If the tenant does not correct the deficiencies in the "pay or cure" notice, you will have to go to the local Court to file legal papers to start a law suit to evict the tenant. Usually it is best to hire a real estate attorney to make sure that you get the tenant out. DIY can cost you more in loss of rental income then the attorneys fees.

The only reason you should lose an eviction lawsuit is if you neglected the property and it is not inhabitable (called "constructive eviction"). The lesson here is that if the tenant has given you written notice about problems with the property, it is in your best interest to fix them before the eviction process starts. Some landlords mistakenly think that if they don't fix or repair the property the tenants will leave on their own, but this is a short-sighted action.

At the end of the lease you have the responsibility to settle the status of the security deposit. If you took pictures and had the tenant sign an inspection check list at the beginning, this should be easy to do. If you try to take advantage of the tenant you can end up in small claims court. conversely, if the tenant has caused excess damage, you may be able to recover those damages in small claims court.

Learn how to evict a tenant here.

Rental property law can work both ways. Make sure that as a landlord, you are abiding by local and State laws.

Custom Search