Why Understanding Landlord-Tenant Laws Is Critical
As a landlord, understanding landlord-tenant laws is critical. That really can't be understated.
It's not the fun part of real estate investing, but it is a necessary part if you want to protect yourself and your investments.
Landlord-tenant law outlines the rights and responsibilities of landlords and tenants. They can help resolve disputes that may arise during the landlord-tenant relationship and put in place protections for landlords and tenants.
The key is those protections put in place for tenants (rightfully so), as those are things you need to make sure you're abiding by as a landlord.
With so many laws and regulations to keep track of, though, it can be overwhelming to figure out an effective way to handle that.
That's why, next, we'll break down everything you need to do just that.
First, we'll cover some important tips for navigating landlord-tenant laws no matter what state you're in.
Then, we'll offer some invaluable tools for making sure that you're remaining compliant with your state and local laws without having to do all the work.
Tips for Navigating Landlord-Tenant Laws
When it comes to landlord-tenant laws, you don't want to mess around.
The last thing you want to do is misstep and end up in hot water with a tenant.
Some legal issues can take months to resolve, including tens of hours or your precious time (and, if you're unfortunate, money– often a lot of it).
First, let's start with some general tips for navigating landlord-tenant law.
After that, we'll talk about some resources for getting information about your specific state and local laws.
Here are some tips for navigating landlord-tenant laws:
1. Be thorough with your lease agreement
We touched on this in Part IV, so if you didn't read that make sure to go back at some point to understand what you should include in your lease agreement to properly cover yourself.
Before having your tenant sign your lease agreement, it's important to make sure that you've included everything of importance– not after.
Some key areas to review in your agreement include:
- The length of the tenancy, whether it's a fixed-term lease or a periodic tenancy
- The amount of rent due each month and when it is due
- Any fees or deposits required, such as a security deposit or last month's rent
- The terms of the deposit, including when it should be returned and under what circumstances it may be withheld
- Any restrictions on the use of the rental unit, such as whether your tenant can have pets or sublet the unit
- The responsibilities of both landlord and tenant, including maintenance and repair of the rental unit
By reviewing the terms of your rental agreement, you can ensure that your tenant follows the rules you set forth and avoid any potential issues down the line.
2. Understand your tenant's rights and responsibilities
Your tenants have legal rights and responsibilities under federal, state, and local laws.
It's important to understand these laws and how they apply to your specific situation, as they can have a significant impact on the landlord-tenant relationship.
Some of the more notable include the tenant's right to:
- A safe and habitable rental unit, free of hazards and in good repair
- Privacy in their rental unit
- Receive proper notice before a landlord enters the unit, except in case of an emergency
- Have any security deposit returned to the tenant in a timely manner, as required by state law
And some key landlord-tenant laws to be aware of include:
- Fair Housing Act: This federal law prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability.
- Landlord-Tenant Statutes: These laws outline the rights and responsibilities of landlords and tenants, including issues such as repairs, maintenance, evictions, and leases.
- State Rent Control Laws: Some states have rent control laws that limit the amount landlords can charge for rent and the frequency with which rent can be increased.
By understanding your tenant's legal rights and responsibilities, you can help ensure that you are complying with the law and avoid potential legal issues.
3. Know your rights and responsibilities
Landlord-tenant laws vary by state and can affect your rights and responsibilities as a landlord as well.
These laws outline what landlords can and can't do, and they can help resolve disputes that may arise during the landlord-tenant relationship.
As a landlord, you have the responsibility to:
- Maintain the rental unit in a safe and habitable condition
- Make any necessary repairs in a timely manner
- Respect the tenant's privacy and give proper notice before entering the unit
- Return any security deposit to the tenant in a timely manner, as required by state law
By understanding tenant rights in your area as well as your rights and responsibilities, you can help avoid disputes and potential issues.
4. Return security deposits to tenants in a timely manner
It's important to return any security deposits to your tenants in a timely manner, as required by state law.
This is typically within a few weeks (around 30 days) of the tenant moving out, as long as there is no unpaid rent or damages to the rental unit.
Security deposits are typically used to cover the cost of damage beyond normal wear and tear.
However, if the rental unit is in good condition when the tenant moves out (i.e. there is no serious damage out of the ordinary wear and tear), the landlord must return the full amount of the security deposit, minus any unpaid rent or other charges.
Landlord-Tenant Laws in All 50 States: A Complete Resource
Landlord-tenant laws are different in each state, so it's important to understand what those unique laws are in your state and to craft documentation that is compliant with them.
These laws can affect a wide range of issues, including security deposits, rent, evictions, and repairs, so it's vital to make sure you're set up properly.
One of the best resources for this information is Doorloop's resources page, which has a page for landlord-tenant laws in all 50 states as well as other similar resources.
Our landlord-tenant laws pages provide an overview of the key laws and regulations that apply to landlords and tenants in all 50 states.
Here are some of the major landlord-tenant laws as well as resources to help you find the information relevant to you:
Security Deposit Laws
Some states have limits on how much a landlord can charge for a security deposit, and these limits can vary significantly from state to state.
For example, in California, the limit is generally two months' rent, while in Virginia, there is no legal limit.
Learn more about security deposit laws in your state by visiting our security deposit laws master resource and navigating to your state-specific resource:
DoorLoop's security deposit laws resource page.
Rent Control
Some states, such as California and New York, have rent control laws that limit the amount landlords can charge for rent and the frequency with which rent can be increased.
Other states, such as Texas, do not have any rent control laws.
Knowing this is critical if you're looking to raise rents in the states you own property.
Learn more about rent control laws in your state by visiting our landlord-tenant laws master resource and navigating to your state-specific resource:
DoorLoop's landlord-tenant laws resource page.
Eviction Laws
The process for evicting a tenant can vary by state, and it is important for landlords to understand the specific rules and procedures that apply in their state.
In some states, landlords may be able to evict a tenant for any reason, while in other states, they may only be able to evict a tenant for specific reasons, such as nonpayment of rent or violation of the rental agreement.
By understanding the landlord-tenant laws in your state, you can help ensure that you are complying with the law and avoid potential legal issues.
To learn more about how to handle evictions, check out our Landlord's Guide to Evictions Whitepaper, the complete guide to handling evictions quickly and smoothly (the right way):
Learn more about rent control laws in your state by visiting our landlord-tenant laws master resource and navigating to your state-specific resource:
DoorLoop's landlord-tenant laws resource page.
Squatter Rights
Dealing with a squatter can be a nightmare.
The main issue here is that if you misstep while having a squatter in one of your properties, even if they are in the wrong, that squatter could extend their stay by several months by manipulating tenant protection laws.
To help avoid such a nightmare, it's vital to fully understand squatter laws for your state and local municipality.
Learn more about squatter rights and laws in your state by visiting our squatter rights master resource and navigating to your state-specific resource:
DoorLoop's squatter rights resource page.
Knowledge really is power, when it comes to landlord-tenant laws
Understanding landlord-tenant laws is vital to the long-term success of your portfolio (and your mental health).
It's important to understand your and your tenant's legal rights and responsibilities. It's also important to follow the proper legal process when resolving any issues that may arise.
By understanding these laws and incorporating the right clauses into your lease agreements (and procedures), you can ensure the success of your rental properties.
