Landlord Basics
Wednesday, 1 February 2017
by Staff, Spaulding Law
Well managed rental properties with consistent tenants can provide steady income (if the rent is higher than your expenses). Property, when purchased at a reasonable price, has a tendency to appreciate. And owning property can also be a low risk investment because, although its value may fluctuate with the market, the property will not disappear the way your money can in the stock market. Notwithstanding these advantages, if you choose to rent property you will want to make sure that your property and rights are properly protected. Below are a few things you should keep in mind:
Written Rental Agreements
Know the law of the state you are in and the rights you are guaranteed as the landlord as well as the rights guaranteed to the tenant. Most states will have provisions that act as a default if no written agreement is in place and may not favor the landlord. A landlord can be assured of having the best terms possible if they are aware of which rights can be changed by a written agreement. For example, this is a great place to spell out the terms of the security deposit, when and how much will be returned, and under what conditions.
Background Checks
A landlord should be aware of who their tenants will be. It is important to note that there are some things that cannot factor into a landlord’s decision to rent such as: race, color, religion, sex, national origin, handicap, family status, or source of income. A landlord would be wise to confirm a potential tenant’s employment, credit history, and if possible, their previous landlord’s experience.
Supervise Property Managers
Property managers can greatly reduce the amount of work a property owner has to put into renting their property. They can take care of finding tenants, collecting rent, and making repairs on your property. However, a property owner can be responsible for the actions of their property managers. The property owner may be financially responsible if there is a violation of a building or health code as well as if the property manager engages in illegal practices such as discrimination.
This information is made available by Spaulding Law for educational purposes only and not to provide legal advice. By using this website, you understand that there is no attorney-client relationship between you and Spaulding Law, unless you have entered into a separate representation agreement. This information should not be used as a substitute for competent legal advice from a licensed professional attorney.
Written Rental Agreements
Know the law of the state you are in and the rights you are guaranteed as the landlord as well as the rights guaranteed to the tenant. Most states will have provisions that act as a default if no written agreement is in place and may not favor the landlord. A landlord can be assured of having the best terms possible if they are aware of which rights can be changed by a written agreement. For example, this is a great place to spell out the terms of the security deposit, when and how much will be returned, and under what conditions.
Background Checks
A landlord should be aware of who their tenants will be. It is important to note that there are some things that cannot factor into a landlord’s decision to rent such as: race, color, religion, sex, national origin, handicap, family status, or source of income. A landlord would be wise to confirm a potential tenant’s employment, credit history, and if possible, their previous landlord’s experience.
Supervise Property Managers
Property managers can greatly reduce the amount of work a property owner has to put into renting their property. They can take care of finding tenants, collecting rent, and making repairs on your property. However, a property owner can be responsible for the actions of their property managers. The property owner may be financially responsible if there is a violation of a building or health code as well as if the property manager engages in illegal practices such as discrimination.
This information is made available by Spaulding Law for educational purposes only and not to provide legal advice. By using this website, you understand that there is no attorney-client relationship between you and Spaulding Law, unless you have entered into a separate representation agreement. This information should not be used as a substitute for competent legal advice from a licensed professional attorney.
