The majority of your concerns as a landlord will involve finding the right tenants. Responsible tenants who will pay their rent on time and not leave you with a vacant property on little notice are exactly what property investors look for. But once your tenants sign their lease, what are your responsibilities to them? A study conducted by Liability Consultants Inc. claims that landlords are the most exposed to lawsuits of any profession in the country, with insurance companies paying nearly 2 million dollars a year for settlements and trials. It’s important for landlords to draw up thorough tenant agreements that will help protect both parties from frivolous lawsuits, but it’s also important for landlords to understand what they’re legally obligated to do for the people living on their property.
1. A Safe Environment
The responsibility of a landlord to provide a safe living environment can encompass many areas. The first involves providing security, including deadbolts, properly latching windows, and adequate lighting at all entrances to the property. But besides providing reasonable protection from crime, the landlord is also responsible for livable conditions. Environmental toxins and pests must be properly removed. Stairs, walls, and roofs must be in a stable condition. And tenants are entitled to heating, cooling, and trash pick up no matter how much rent they pay. Failure to provide a safe environment or asking a tenant to accept anything less than they are legally entitled to is illegal in most states.
2. Timely Repairs
Repairs go hand in hand with maintaining a safe environment. When a tenant contacts you requesting a repair, the smart thing to do to protect yourself is document the entire situation. Make note of the date you spoke to them and the date you took action, and make sure you save all your receipts and work orders. The laws concerning how quickly you must repair problems with the property varies from state to state, but in virtually all states, there is a legal obligation to not ignore them. Even if the tenant’s grounds to sue you are limited, many states give them leeway to legally withhold their rent until repairs are completed, which can cause a situation that is just as bad.
3. Full Disclosure
Before you even let your tenant sign a lease, you have to make sure you have disclosed to them all issues with the property. It’s very easy not to be aware of what your state requires you to inform your potential tenants, so it’s important to research the guidelines for your area. You could be expected to disclose recent deaths in the property, sex offenders living in the area you have knowledge of, and any number of other things that could be a concern. Full disclosure also refers to the tenants’ security deposit, especially when they move out. You have the right to retain that money, but should be able to provide them with a list of itemized deductions, if you’re using a portion of their security deposit to repair damage.
In order to be a successful landlord, you must be able to treat tenants and perspective tenants with respect and fairness. You need good tenants to pay their rent on time and stay on the property long-term to make your life a little easier and avoid the trap of lawsuits that many property investors fall into. Therefore, the kinds of things that they deserve in return aren’t much to ask.
Victoria Baines blogs for real estate blogs. In this booming rental market, consider renting out your properties, and make sure to take advantage of free tenancy agreement form available online.
