Lease Agreements
The lease agreement is the most critical document in the landlord-tenant relationship. It establishes the rights and responsibilities of both parties. While oral agreements can be binding for short-term leases in some states, a written lease is always recommended to prevent disputes.
Essential Clauses to Include:
- Parties: Full legal names of all adult tenants and the landlord or property manager.
- Property Description: The full address and unit number of the rental property.
- Term of Lease: Start and end dates. Specify whether it's a fixed-term lease or a month-to-month tenancy.
- Rent: The amount of rent due, the due date, acceptable payment methods, and any grace period or late fees.
- Security Deposit: The amount, where it will be held, and the conditions for its return.
- Rules and Policies: Policies on pets, smoking, noise, guests, and property alterations.
- Landlord's Right of Entry: The required notice period the landlord must provide before entering the property for non-emergency reasons.
Required Disclosures (USA Federal):
- Lead-Based Paint: For properties built before 1978, landlords must provide an EPA-approved pamphlet on lead-based paint hazards and disclose any known information about lead paint in the home.
Note: States and cities often have additional required disclosures, such as information on radon, asbestos, or recent flooding. Always check local regulations.
Tenant Screening
A thorough and fair screening process is crucial for finding reliable tenants. However, it must be conducted in compliance with federal, state, and local laws to avoid discrimination.
Key Compliance Points:
- Consistency is Key: Apply the same screening criteria to every applicant to avoid accusations of discrimination. Criteria should be objective (e.g., income-to-rent ratio, credit score minimum).
- Permissible Information: You can ask for information to verify identity, income, credit history, and rental history. This includes pay stubs, bank statements, and references from previous landlords.
- Fair Credit Reporting Act (FCRA): If you use a credit report or background check to make a decision, you must comply with the FCRA. This includes getting the applicant's written consent and providing an "adverse action notice" if you deny them based on information in the report.
Avoiding Discrimination:
Your screening questions and decisions must not be based on an applicant's protected class status under the Fair Housing Act (see Fair Housing tab). For example, you cannot ask an applicant about their religion or nationality.
Note: Some cities and states have "ban the box" laws that limit when a landlord can inquire about an applicant's criminal history.
Security Deposits
Security deposit laws are highly specific and vary significantly by state. Mishandling a deposit can lead to substantial financial penalties for the landlord.
Common State-Level Regulations:
- Maximum Amount: Most states limit the maximum security deposit a landlord can charge, often equivalent to one or two months' rent.
- Holding the Deposit: Some states require landlords to keep security deposits in a separate, interest-bearing account and to pay the interest to the tenant.
- Allowable Deductions: Landlords can typically only deduct for unpaid rent and damages beyond normal wear and tear. The definition of "normal wear and tear" (e.g., faded paint, minor carpet wear) versus "damage" (e.g., large holes in walls, broken windows) is a common point of dispute.
- Return Deadline: States impose strict deadlines for returning the deposit and/or an itemized list of deductions after a tenant moves out, usually between 14 and 60 days.
Warning: Failure to comply with security deposit laws can result in the landlord forfeiting the right to any of the deposit and potentially being liable for double or triple the deposit amount in damages to the tenant.
Fair Housing Laws
The federal Fair Housing Act (FHA) prohibits housing discrimination based on a person's membership in a protected class. State and local laws often add more protected classes.
Federal Protected Classes:
- Race
- Color
- Religion
- National Origin
- Sex (including gender identity and sexual orientation per recent interpretations)
- Familial Status (presence of children under 18)
- Disability
Prohibited Actions:
It is illegal to take any of the following actions based on a protected class:
- Refusing to rent or sell housing.
- Setting different terms, conditions, or privileges for rental.
- Providing different housing services or facilities.
- Falsely denying that housing is available for inspection or rent.
- Making discriminatory statements or advertisements (e.g., "perfect for a single professional" could be seen as discriminating against families).
- Refusing to make reasonable accommodations or modifications for a person with a disability.
Maintenance & Repairs
Landlords have a legal duty to keep their rental properties in a safe and habitable condition. This is known as the "implied warranty of habitability."
Landlord Responsibilities Typically Include:
- Ensuring structural components (roof, walls, floors) are sound.
- Maintaining common areas in a clean and safe condition.
- Providing functional plumbing, heating, and electrical systems.
- Supplying hot and cold water.
- Controlling pest infestations.
Handling Repair Requests:
It's essential to have a clear process for tenants to submit repair requests and to respond to them promptly. In many states, if a landlord fails to make necessary repairs in a timely manner after receiving written notice, tenants may have legal remedies, such as:
- Rent Withholding: Placing rent in an escrow account until repairs are made.
- Repair and Deduct: Hiring a professional to make the repair and deducting the cost from their rent.
- Lease Termination: Moving out and breaking the lease without penalty if the issue is severe enough to make the unit uninhabitable.
The Eviction Process
Eviction is a legal process to remove a tenant from a rental property. Landlords must follow the exact legal procedures required by their state; otherwise, the eviction may be deemed unlawful.
Legal Grounds for Eviction:
- Non-payment of rent.
- Violation of a significant lease term (e.g., having an unauthorized pet, causing major property damage).
- Engaging in illegal activity on the premises.
- Holding over after the lease term has expired.
The Legal Process (General Steps):
- Serve a Written Notice: The landlord must first provide the tenant with a formal written notice (e.g., "Pay Rent or Quit," "Notice to Cure or Quit"). The type of notice and the amount of time given depends on the reason for eviction and state law.
- File an Eviction Lawsuit: If the tenant does not comply with the notice, the landlord must file an eviction lawsuit (often called an "unlawful detainer" action) with the court.
- Court Hearing: Both landlord and tenant present their cases to a judge.
- Writ of Possession: If the judge rules in the landlord's favor, the court issues a writ of possession, which allows law enforcement to remove the tenant from the property.
CRITICAL: Landlords must never attempt a "self-help" eviction, such as changing the locks, removing the tenant's belongings, or shutting off utilities. These actions are illegal in every state and carry severe penalties.
