Being a successful landlord necessitates a combination of practical knowledge, business savvy, and market knowledge. It also necessitates a thorough understanding of the law, as federal and state regulations govern practically every element of your organization. You might get yourself into legal trouble if you don’t know the rules.
Using Off-The-Shelf Or Out-Of-Date Lease Forms:
The majority of landlords understand the importance of having a formal lease or rental agreement. However, using the incorrect form might land you in trouble. The so-called “standard” forms you may get for free (or even buy) on the internet are almost certainly not compatible with your state’s legislation. If you employ a form lease that ignores tenants’ rights, you may land yourself on the losing end of a lawsuit due to an unenforceable lease condition.
Making Discriminatory Policies Against Families:
Many landlords strive to keep families out of their rentals because children create more wear or desire a more “mature, peaceful” atmosphere. These aren’t sound business judgments; they’re clear evidence of illegal family status housing discrimination.
Using Substantial Late Fees As A Revenue Source:
While a higher cost can be a more substantial inducement, some landlords go too far by establishing penalties that aren’t proportional to the actual losses they incur when renters don’t pay on time. Excessive late fines that you can’t support with substantial evidence are likely to be struck down by the courts.
Infringing On Tenants’ Privacy Rights:
Most states have precise landlord access regulations that specify when, why, and how much warning landlords must give before entering a tenant’s house. On the other hand, many landlords turn up unexpectedly, seeking to inspect the property, conduct an on-the-spot repair, or display the property to potential renters.
Successful landlords use abilities from various fields, including customer service, marketing, bookkeeping, and house maintenance. By educating yourself and networking with other experienced landlords and relevant professionals like Hach & Rose, LLP, you can reduce the risks that come with being a landlord. Join a local or national landlord association to stay up to date on new rules and regulations, as well as to share your experiences and learn from others’ errors so you can avoid the most common landlord blunders. For more information, click here.
