Are you ready to begin collecting rent checks? Take a look at these legal hints for first-time landlords.
What you will discover:
Make a written record of it.
Take out a security deposit.
Understand the tenant’s financial situation.
Understand the terms of your lease.
Understand your responsibilities as a landlord.
Recognize the Tenant’s rights and your responsibilities to defend them.
It might be difficult to become a first-time landlord, but there is also the promise of a prosperous company (and monthly rent checks). Beyond the basics of getting the property purchased and ready to rent out, remember that setting yourself up for success also includes having the proper legal protections in place—and being proactive with legal issues can save you from large legal bills and hassles down the road. Here are some rules to help you protect yourself as a first-time landlord.
Table of Contents
Make a written record of it.
Although it may seem easy, putting everything in writing may be the wisest thing you ever do as a landlord. The Lease Agreement between you and the renter is the most significant document to put in writing. If you have a dispute with the renter, the Lease Agreement protects you and grants you legal rights that would be more difficult to show without paperwork. It also clearly states that you and your tenant(s) have agreed to particular conditions that you may refer to later if there is a disagreement.
Take out a security deposit.
Collecting a security deposit shows potential renters that you care about the condition they maintain your home in. It also motivates renters to retain the property in the same condition in which it was leased. If a tenant fails to maintain the property or destroys it, you may be permitted to retain a part or all of the security deposit to cover repairs or further cleaning.
To minimize disagreements over the quality of your rental and to make the process easier, have renters fill out a Renter’s Inspection Worksheet before they move in.
Understand the tenant’s financial situation.
It is your obligation to thoroughly investigate prospective renters. Begin by having them fill out a Rental Application, which will assist you in gathering the information you need to screen your possible renters.
Next, confirm their excellent credit and work, which will assist you assess their capacity to pay the rent. Remember that it is more simpler to locate another possible renter than it is to evict a tenant who is unable to pay the rent. Of course, you must also observe any rules that protect renters from housing discrimination, but a prospective tenant’s inability to pay the rent may normally be used to reject them. You may also utilize a Letter to Request a Credit Reference to confirm the potential tenant’s excellent credit and request a Salary Verification Letter from the tenant’s job.
Understand the terms of your lease.
Make certain that you understand and follow the conditions of the lease you signed. If you write a document and then violate its conditions, your renter may sue you in small claims court and hold you accountable. You might also get in problems with the local housing authority, which could result in fines or a decrease in rent. Furthermore, if you do not follow the lease conditions (for example, by not maintaining the property), it makes it more difficult to enforce the lease terms that you do want the renter to follow, such as paying the rent on time.
Understand your responsibilities as a landlord.
Renters have rights, but so do landlords. For example, you should be permitted to access the property for maintenance purposes with reasonable notice to the renter. You also have the right to evict a renter if they fail to keep their half of the bargain.
Before you begin, download an Eviction Worksheet to assess your circumstances. It is prudent to learn the legal procedure for evicting a renter in your city and state, since it differs depending on location. Evictions often involve tight criteria that a landlord must follow or suffer delays and increased charges.
Recognize the Tenant’s rights and your responsibilities to defend them.
Familiarize yourself with local and state laws that safeguard tenants’ rights, as well as any relevant municipal or county rules that may apply to you. It might be beneficial to have a list of local services or resources available for renters who are experiencing financial difficulties. Some renters may be eligible for rental assistance or other forms of support to ensure that their rent is paid on time each month.
