Written by: Peter Minkoff
Inform yourself about landlord and tenant laws so you know how to leverage the insights to run a successful property management business.
Let’s start with a practical example: the heating system has broken and your tenant is freaking out because there is a large snowstorm outside. And it is up to you to resolve this situation and make sure they don’t freeze in the middle of the night and at the same time play by the rules.
Landlord-tenant laws might feel like a confusing maze, but getting a grip on the big picture can save you from a ton of grief and keep your tenants feeling good about you. Plus, it's a smart way to dodge any pricey legal troubles. So, let's break down what you really need to know in a way that makes sense, with some real-life situations to help you out.
The Basics of Federal Protection
The Fair Housing Act is the core of landlord-tenant laws, prohibiting discrimination based on race, religion, nationality, gender, familial status, or disability.
Imagine a property manager screening applications for a rental unit. A qualified tenant mentions they rely on a housing voucher. If you treat someone unfairly just because of where their money comes from, you or your client might find yourselves in a sticky situation, particularly in places like Washington or Oregon. These states have laws that forbid this kind of income discrimination.
Property managers are really important here. They don't just make sure everyone follows the rules; they also help landlords understand their duties under the law.
Local Laws Matter
While federal laws set the foundation, most tenant rights are shaped by state or local regulations. For example, as property managers from Landon Pacific note on their website, in California, landlords must provide 30 days' notice for a rent increase under 10%, but the rules might differ entirely in Tennessee.
As a property manager, you're the bridge between understanding and effectively applying these regulations. Keeping a checklist of local requirements ensures you and your clients stay compliant.
A Safe, Livable Space is a Non-Negotiable
Making sure a home is safe and comfortable is an absolute must. Tenants should always have things like running water and heat, and definitely feel secure with working locks. As the person in charge of the property, it's on you to get any issues sorted out quickly.
Now, if someone says they've got a window that's broken, it's your responsibility to get it fixed without any delays. The urgency depends on the situation. A shattered window in a high-crime area requires immediate action. A cracked pane that doesn't compromise safety might give you more leeway.
Documenting maintenance requests and actions protects you and the landlord from potential disputes.
Understanding Repairs and Rent Withholding
So, when your place needs fixing up but your landlord's dragging their feet, you might think about holding back on that rent payment or getting the job done yourself. Some states, like Georgia and California, have got your back with "right to deduct" rules that let you do just that, as long as you're dealing with a slumlord who's not keeping their end of the bargain.
But here's the thing: you can't just go rogue and start subtracting money from the rent or calling in the cavalry without giving your landlord a fair chance to fix things up. You've got to let them know in writing and give them a bit of time to get their act together.
As a property manager, the best way to avoid these sticky situations is to keep the lines of communication open and jump on those urgent repair issues like they're on fire. It's all about keeping everyone happy and the place livable, right?
Security Deposits: Handle With Care
You know how it is with security deposits, they can cause a real headache sometimes. Typically, after you move out of a place, your landlord needs to give you back the deposit or explain where it went within about a month.
Imagine this: you leave an apartment with just a few tiny marks on the walls and they take money for a deep clean that wasn't really needed. It's situations like these that can get people upset. This is reasonable. Charging for a full repaint? It is likely excessive.
Property managers should ensure landlords document damages with photos and receipts. This helps avoid unnecessary conflict and builds trust.
Eviction: The Last Resort
Evictions are rarely pleasant, but they sometimes become necessary. All states outline a legal eviction process, starting with a notice to vacate.
Imagine a tenant stops paying rent without explanation. Before filing for eviction, you might try mediation or offer resources for rental assistance. If an eviction does proceed, attending every court hearing and documenting violations is critical.
Property managers should see eviction as a tool of last resort. Exploring alternative solutions, like payment plans, often saves time and money while preserving relationships.
Pandemic-Era Lessons
The COVID-19 pandemic reshaped eviction and rental laws in many places. While federal eviction moratoriums have ended, some states have made pandemic-era rules permanent.
For instance, Michigan now allows virtual eviction hearings, making the process more accessible. As a property manager, staying informed about these changes ensures you're prepared for modern challenges.
The Lease is a Guide, Not the Law
Even if a lease includes illegal clauses—like shifting responsibility for structural repairs to tenants—the law always takes precedence.
For example, a landlord in Georgia might try to include a clause requiring tenants to repair plumbing issues. If challenged, this clause would likely be void. Property managers should review lease agreements carefully to flag any potential red flags.
Documentation is Your Best Friend
Solid documentation can be the difference between resolution and chaos in any dispute.
When onboarding tenants, take photos of the property and log existing issues. Use email for all communication to maintain a clear paper trail. For example, if a tenant claims they reported a leaking roof months ago but there's no record, your documentation could save the day.
Advocates and Resources are Available
Sometimes, disputes escalate despite your best efforts. Organizations like HUD (Housing and Urban Development) and local tenant advocacy groups can help tenants navigate their rights.
These resources can be equally valuable for property managers. Whether understanding a new local law or seeking advice on handling a tricky situation, staying connected to these organizations enhances your ability to serve landlords and tenants alike.
Why It Matters
Landlord-tenant laws are about way more than just rules on paper, they're the backbone of trust in the landlord-tenant relationship. When you get to know these laws and use them right, you can avoid a whole mess of legal problems and build a place where everyone feels good. For tenants, regardless of whether they are renting commercial or office rental units, it's about being treated with respect, and for landlords, it's knowing their investment is safe.
Being a property manager is like being a people person who takes care of buildings. Yes, it is about fixing leaky faucets and collecting rent, but it is also about creating a generally better living environment for the tenants. So, always stay on top of things, be fair and transparent and you will make your tenants happy while the landlords who hired you will have peace of mind.
Related: Navigating the DSCR Loan Process: A Guide for First-Time Investors