{"id":369262,"date":"2016-04-04T10:47:19","date_gmt":"2016-04-04T15:47:19","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/landlord-tenant-law\/ten-landlord-legal-mistakes-to-avoid.html"},"modified":"2023-08-10T10:03:46","modified_gmt":"2023-08-10T15:03:46","slug":"ten-landlord-legal-mistakes-to-avoid","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/ten-landlord-legal-mistakes-to-avoid.html","title":{"rendered":"Ten Landlord Legal Mistakes to Avoid"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">10 Legal Mistakes Landlords Should Avoid<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-mccall-j-d\/\">Melissa McCall, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/katrina-wilson-esq\/\">Katrina Wilson, Esq.<\/a>\n                | Last updated\n        <time>\n                            August 10, 2023\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Most property owners are in the rental business to make money. They buy investment properties with the specific intent to create profit, yet many landlords make common mistakes that affect their bottom line. Being a successful landlord involves more than collecting rent payments.<\/p>\r\n<p>State landlord-tenant laws govern many aspects of the landlord-tenant relationship. Failure to follow these laws can lead to severe repercussions. For these reasons, landlords should avoid common mistakes.<\/p>\r\n<p>This article explores 10 common mistakes landlords make, along with tips on how to avoid these&nbsp;pitfalls.<\/p>\r\n<h2>Failing to Screen New Tenants Adequately<\/h2>\r\n<p>Thoroughly screening new tenants can help landlords avoid significant issues throughout the term of the lease, such as nonpayment of rent or damage to property. Currently, landlords have many tools at their disposal with which to screen potential tenants. For example, they can order a credit report to determine if the prospective tenant has a history of paying their debts on time.<\/p>\r\n<p>Many landlords and property managers also rely on references to gauge how the prospective tenant will behave in a new rental. They can contact former landlords to learn if the prospective tenant paid their rent in a timely manner and took care of the rental property.<\/p>\r\n<h2>Asking Discriminatory Questions<\/h2>\r\n<p>Under the federal&nbsp;<a href=\"https:\/\/www.findlaw.com\/civilrights\/discrimination\/fair-housing-federal-laws.html\">Fair Housing Act<\/a>, a landlord or property manager cannot refuse to rent a property for discriminatory reasons such as:<\/p>\r\n<ul>\r\n<li>Race<\/li>\r\n<li>Religion<\/li>\r\n<li>National origin<\/li>\r\n<li>Gender identity<\/li>\r\n<li><a href=\"https:\/\/www.hud.gov\/program_offices\/fair_housing_equal_opp\/housing_discrimination_and_persons_identifying_lgbtq\" target=\"_blank\" rel=\"noopener\">Sexual orientation<\/a><\/li>\r\n<li>Familial status<\/li>\r\n<\/ul>\r\n<p>Landlords should avoid any questions or conversations that may suggest discriminatory intent.&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/tenant-background-screening-faq.html\">Tenant screenings<\/a>, including rental applications, can include the following non-discriminatory things:<\/p>\r\n<ul>\r\n<li>Background checks<\/li>\r\n<li>Income<\/li>\r\n<li>Job history<\/li>\r\n<li>Past evictions<\/li>\r\n<\/ul>\r\n<h2>Drafting a Lease Agreement<\/h2>\r\n<p>A lease agreement is a binding legal contract. Landlords should refrain from drafting their agreements to avoid harming their interests.<\/p>\r\n<p>A&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>&nbsp;understands real estate law and can review the terms of the lease. This protects the landlord and helps them avoid common landlord mistakes.<\/p>\r\n<p>For example, all leases should include the following:<\/p>\r\n<ul>\r\n<li>The amount of rent<\/li>\r\n<li>When rent is due<\/li>\r\n<li>Late fees, if any<\/li>\r\n<li>Term of tenancy<\/li>\r\n<\/ul>\r\n<h2>Illegal Provisions in a Rental Agreement<\/h2>\r\n<p>A residential lease agreement shouldn&#8217;t include provisions that violate state or federal laws.<\/p>\r\n<p>A landlord should avoid the following common mistakes:<\/p>\r\n<ul>\r\n<li>Placing&nbsp;<a href=\"https:\/\/www.findlaw.com\/civilrights\/discrimination\/housing-discrimination-faqs.html\">discriminatory conditions<\/a>&nbsp;in a rental agreement<\/li>\r\n<li>Requiring the tenant to waive the right to a refund of a security deposit<\/li>\r\n<li>Forcing a renter to waive their right to sue the landlord<\/li>\r\n<\/ul>\r\n<p>Any illegal provisions may result in a lawsuit for monetary damages.<\/p>\r\n<h2>Failing to Make Disclosures to Prospective Tenants<\/h2>\r\n<p>Every state has different disclosure requirements for new tenants.<\/p>\r\n<p>Standard disclosures include the following:<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/construction-defects\/toxic-mold.html\">Notice of mold<\/a><\/li>\r\n<li>Notification of known sex offenders living in the area<\/li>\r\n<li>For properties built before 1978, whether the rental unit contains lead-based paint<\/li>\r\n<\/ul>\r\n<h2>Not Using a Property Management Company<\/h2>\r\n<p>Managing a rental property involves more than generating passive income. Landlords have to screen new tenants, make repairs, and complete renovations. Trying to do it alone is often one of the biggest mistakes a landlord can make. With so many responsibilities, it&#8217;s easy to miss something. A reputable property management company can help with many of these tasks.<\/p>\r\n<p>A property management company can manage vacancies by screening potential tenants and checking their credit reports. They can also help the landlord set the best rental price for vacancies and take care of property maintenance. New landlords, in particular, should consider a property management company because they have the know-how. They understand local laws and can help the landlord navigate these laws.<\/p>\r\n<h2>Refusing To Make Repairs<\/h2>\r\n<p>Landlords must repair things like plumbing and electricity, even if the rental agreement doesn&#8217;t define these responsibilities.<\/p>\r\n<p>Most states impose state imposes an &quot;<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/what-is-the-implied-warranty-of-habitability.html\">implied warranty of habitability<\/a>&quot; on all rental premises.<\/p>\r\n<p>A habitable rental unit provides the following:<\/p>\r\n<ul>\r\n<li>Heating<\/li>\r\n<li>Plumbing<\/li>\r\n<li>Clean water<\/li>\r\n<li>A structurally safe roof<\/li>\r\n<li>Electricity<\/li>\r\n<\/ul>\r\n<p>If the landlord ignores the maintenance issues, the tenant can do one of the following:<\/p>\r\n<ul>\r\n<li>Fix the problem and deduct the cost from the rent<\/li>\r\n<li>Live with the problem and proportionately abate rent for loss of use<\/li>\r\n<li>Move out<\/li>\r\n<li>Report the violation to a state building inspector<\/li>\r\n<\/ul>\r\n<p>Landlords should make these significant repairs within a reasonable time of a request to avoid a lawsuit against them.<\/p>\r\n<h2>Disregarding a Tenant&#8217;s Right to Privacy<\/h2>\r\n<p>A tenant always has a&nbsp;<a href=\"https:\/\/www.findlaw.com\/injury\/torts-and-personal-injuries\/invasion-of-privacy.html\">right to privacy<\/a>. In most states, a landlord must&nbsp;give a minimum 24-hour written notice before entering a tenant&#8217;s rental unit. A landlord can enter, with notice, to do one of the following:<\/p>\r\n<ul>\r\n<li>Show the unit to a prospective new tenant<\/li>\r\n<li>Do repairs or fix maintenance issues<\/li>\r\n<li>Inspect the property<\/li>\r\n<\/ul>\r\n<p>Notice is unnecessary during an emergency, such as a fire or burst pipe. A landlord may cooperate with legal authorities under a court-sanctioned warrant to enter the rental premises.<\/p>\r\n<h2>Ignoring Eviction Rules<\/h2>\r\n<p>The following actions can result in an eviction:<\/p>\r\n<ul>\r\n<li>Nonpayment of rent<\/li>\r\n<li>Failure to vacate the property after a lease agreement ends<\/li>\r\n<li>Violating a provision in the rental contract<\/li>\r\n<li>Causing damage to the rental property<\/li>\r\n<\/ul>\r\n<p>Landlords cannot rely on self-help to evict a tenant; they must use the eviction process. The landlord must give the tenant a termination notice before starting the eviction process. If the landlord tries to remove the tenant without a court order, a court can award damages to the tenant.<\/p>\r\n<h2>Keeping Security Deposits<\/h2>\r\n<p>Many lease agreements require a&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/security-deposits.html\">security deposit<\/a>&nbsp;to cover possible damage caused by the tenant. The security deposit can also cover the missing rent if a renter fails to pay. The landlord can use the security deposit to clean the property or fix damage caused by the tenant.<\/p>\r\n<p>If the landlord uses the security deposit, they must do the following:<\/p>\r\n<ul>\r\n<li>Give the tenant a detailed, itemized list of deductions<\/li>\r\n<li>Return the balance of the deposit to the tenant<\/li>\r\n<\/ul>\r\n<p>If the landlord fails to do either, the tenant can contact their local housing agency for help.<\/p>\r\n<h2>Still Have Questions? Get Help From an Expert<\/h2>\r\n<p>Rental property can prove to be an excellent real estate investment because it can generate consistent rental income. A&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>&nbsp;can help ensure the rental property provides this income. If you are a landlord or considering purchasing a rental property, consider speaking to an experienced&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local real estate attorney<\/a>&nbsp;first.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 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11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div 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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n\n\n    <\/div>\n    \n    <div class=\"fl-section-sidebar\">\n        <div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Many real estate processes can be handled on your own or with the help of a realtor\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Some tenant or neighbor disputes may need the help of local police\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Complex real estate issues (such as construction defects or illegal landlord actions) may need the support of an attorney\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Buying or selling a home, facing foreclosure, or mortgage loan issues can benefit from legal expertise. 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