While the process of finding a new tenant can be relatively simple, the difficult part is familiarizing yourself with landlord-tenant laws. And, even if you’re familiar with them, rental laws are constantly changing. That’s why keeping a tab on local regulations regularly can help you manage your rental properties better.
While the best way to familiarize yourself with rental laws is to consult with a qualified legal expert, this article takes a closer look at ten landlord-tenant laws that all landlords should research.
1. Rental License
Depending on where you live, you may need a rental license before you can rent out your property. Rental licensing programs exist to ensure that rental properties meet minimum housing standards.
Some states, such as Oregon, require all landlords to have rental licenses for their properties. However, in other states only certain counties, cities or municipalities may have the mandate. For example, landlords in Philadelphia must be licensed, even though there is no statewide requirement in Pennsylvania.
Failure to comply with these requirements can result in fines and other penalties, so review your state and local laws before leasing your rental properties.
2. Rent and Security Deposit Collection
Rent collection is the primary income source for rental businesses, so it is essential to be aware of any applicable rent laws for your state. States such as Ohio and Virginia do not have any specific statewide rental regulations. Meanwhile, California law states that landlords cannot expect tenants to pay rent in cash.
The security deposit amount is also subject to specific laws that differ from state to state. For example, Rhode Island landlords are not allowed to take a security deposit of more than one month’s rent and must return the deposit within 20 days after the lease expires.
There is no limit to how much a landlord can charge for a security deposit in Florida. However, if you decide to place the deposit in an interest-bearing account, you must choose to pay the tenant at least 75% of the annual average interest rate or 5% simple interest per year.
3. Late Fee and Grace Period
A late fee An easy and enforceable way to encourage on-time rent payments, but states may have specific rules that apply to them. According to Tennessee law, landlords can charge late fees if they do not exceed 10% of the rent value.
Before charging late fees, you should also consider the laws regarding grace periods. Tennessee has a statewide five-day grace period before landlords can consider late rent.
In states that do not have laws regarding late fees and grace periods, landlords must include them in their leases to make their policies enforceable.
4. Required clauses and disclosures in lease agreements
Your lease agreement is a legally binding contract that outlines the terms and expectations that both parties must adhere to during the lease term. To be an enforceable agreement, it must contain locally required clauses and clauses that do not infringe on tenants’ rights.
States such as New York, Minnesota and Rhode Island all require the following clauses:
- Landlord name, address and phone number
- Rent Amount and Due Date
- lease agreement term
- rental unit details
Aside from clauses, landlords may also be required to include specific disclosures in the lease. A general requirement in many states is to disclose lead-based paint and all known hazards of lead-based paint with warnings and warnings. EPA Pamphlet,
Some states may have more specific requirements. For example, landlords in Missouri must also disclose whether the property was used as a site for methamphetamine production.
You can research your local landlord-tenant laws to verify which clauses are required, but it can be helpful to include the clauses listed above in your written lease, even if there is no statewide requirement.
5. Marijuana Use
While laws regarding marijuana use are changing in states across the country, landlords are generally allowed to set their own policies for their rental properties. Similar to banning cigar and cigarette smoke, you can also prohibit tenants from smoking marijuana in your unit. You may also be able to prohibit tenants from producing marijuana.
For example, Wisconsin law prohibits the possession, sale and manufacture of marijuana. Landlords can give tenants a non-cureable five-day notice to leave if they produce or distribute marijuana at the rental property.
6. Pets, emotional support animals and service animals
More than half of US households have a pet, so understanding the landlord-tenant laws in your state related to pets can benefit your rental business. Some states, such as Kansas, restrict how much landlords can charge for a pet deposit. Other states, such as New Hampshire, have no cap on pet fees.
It’s worth noting that emotional support animals (ESAs) and service animals are not considered pets and are regulated differently. ESAs are animals that provide disability-free emotional support to a person. Per the Fair Housing Act, tenants with disabilities who have an emotional support animal can live in housing with a “no pets” policy.
Landlords are permitted to request the proper documentation for the ESA. However, landlords cannot:
- Charge a fee, additional rent or security deposit to have an emotional support animal
- Ask the tenant about their disability
- the animal needs any specific training
- Refuse to let a tenant home because their insurance doesn’t cover the ESA
According to the Americans with Disabilities Act, service animals are animals that are individually trained to perform work or tasks that alleviate their handler’s disability. Because they are not pets, they cannot be subject to a pet fee. However, landlords can collect a security deposit to cover any damage caused to the property by the animal.
7. Abandonment of property
Sometimes, tenants may leave some of their belongings on the property after they move out. Before discarding items, you may need to follow a certain process to confirm that the tenant no longer wants them.
These laws differ from state to state. Michigan has no specific laws regarding abandonment of property, while New Mexico landlords must keep any personal property abandoned by the tenant at the rental for at least 30 days and notify the owner of their intentions after 30 days. to be informed about. Discarding goods without following the correct procedure leaves you vulnerable to legal issues.
8. Subletting
If your tenant plans to be away from the property for an extended period, you can discuss sub-leasing as an option to keep your rental income uninterrupted. But what are the laws regarding subletting?
In most states, landlords can determine their sublease policies based on their lease agreements. Typically, landlords will include a clause regarding sublease within the written lease or add a clause with amendments to the lease if necessary.
Some states, such as New York and Virginia, have more specific requirements, so verify your state’s policy to avoid any challenges.
9. Lease Renewal
Whether you’ve included an automatic renewal clause in your lease or have found high-quality tenants you want to retain, you should verify your state’s lease renewal laws.
Some states mandate that fixed-term tenancies automatically terminate at the end of the specified term and convert to renewing month-to-month tenancies with continued occupancy and payments by the tenant. In other states, the automatic renewal clause must be disclosed, and the landlord must remind the tenant during a specified notice period.
Knowing how to handle lease renewals according to local landlord-tenant laws can help you cover your bases and communicate clearly with your tenants when a lease expires.
10. Eviction
Sometimes, the only way to deal with a problem tenant is to evict them. This eviction process is highly specialized and varies from state to state, so understanding the laws is essential if you are planning an eviction.
Although the eviction process can vary between states, they generally begin by identifying the legal reason for evicting the tenant. Some of these reasons include:
- non payment of rent
- breach of lease
- no lease or lease expiration
- physical health or safety violations
It is important to note that the landlord must have a valid legal reason to initiate the eviction process. Furthermore, self-help evictions are considered illegal in most states. This means that the landlord cannot attempt to evict the tenant by changing the locks, disconnecting utilities, entering the property, removing the tenant’s belongings, and so on.
conclusion
Understanding rental laws can prepare you for the various situations you may face as a landlord and give you the knowledge to handle them with confidence. If questions arise, consult a legal expert to help you better understand local ordinances.
*Disclaimer: The information provided on this website is not legal advice. Instead, all information available on this site is for informational purposes only. Use of and access to this information does not create an attorney-client relationship between the reader and Avail, BiggerPockets or the contributing law firm.
This article was submitted by Avail
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