ARTICLES
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FAQs About LandlordsBy Pierre Mouchette | Real Property Experts LLC
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What is....
A landlord is a ‘person or organization’ that leases real estate they own to another ‘individual or organization’ in exchange for rent. Landlords and renters can be individuals, businesses, or other organizations. Renters are also called tenants.
What Does A Landlord Do?
Landlords collect rent from their tenants, and they can evict tenants who fail to pay rent. But a landlord must ensure that their rental property remains habitable while occupied by a renter. Most states, cities, and towns require a landlord’s rental property to meet a standard called an implied warranty of habitability. Landlord-tenant laws govern the relationship between a landlord and their renter. These laws vary by state and locale.
Are All Real Estate Investors Landlords?
Real estate investors are not the same as landlords. Landlords are property owners whose primary business goal is making money by collecting rent. They want to maximize their profits, so they limit their costs by handling the management of their rental properties themselves.
A landlord may hire professionals, such as plumbers, electricians, painters etc. to maintain and repair their rental property. They may also pay a property manager, or property management company to oversee their business. Alternatively, they might provide that service themselves, thereby reducing their costs and increasing their profits.
Real estate investors focus on earning money by owning and selling property.
Some real estate investors may rent their property while they own it. But in doing so it is a short-term tactic. For example, an investor may rent a home while they wait for the housing market to improve.
A real estate investor who rents their property, almost always hires a property manager or property management company to run things. Doing so allows the investor to focus on growing their real estate business, not managing rental properties.
Rental Agreements
A lease, or rental agreement, defines the terms by which the landlord rents their property to the tenant. Items usually listed in a lease include the property’s security deposit, the amount of rent owed by the tenant, and the length of time for which the agreement is valid.
At the end of a rental agreement, a landlord can choose not to renew, and eviction is not necessary. If the tenant refuses to vacate, the landlord will need to evict them. Most states require the landlord to notify the tenant in writing, 30 days before the lease ends, that they are not going to renew the rental agreement.
Eviction Laws for Landlords
Landlords can evict tenants who violate their rental agreements, or lease. Eviction means a landlord removes a renter from the rental property. Most evictions occur before the end of the renter’s lease, with failure to pay rent as the most common cause. In all situations, the landlord must adhere to local eviction laws.
Discrimination
Landlords also cannot discriminate. The federal government, via the Fair Housing Act, protects tenants based on race, color, national origin, sex, religion, disability, and familial status. Landlords cannot choose to evict someone because they fall into one of these protected classes.
The best approach is for landlords to reduce the likelihood of eviction, starting with tenant screening. This step is part of the rental application process. It involves a landlord reviewing a potential renter’s credit score, credit history, and verifying their income. The goal of tenant screening is to ensure the renter poses less risk to the landlord.
Note: The Fair Housing Act applies during the rental application process. Landlords cannot refuse to rent to someone based on the protected classes listed above. Some states extend those protections to others.
Important Tenants’ Rights to Know
Most states extend legal protections to tenants, though landlord-tenant laws. Below are the tenants’ rights that are applicable in most locations.
Tenants have a right to privacy. This right means landlords have to abide by state and federal privacy laws, and it governs how landlords access a rental property while a tenant occupies it. Most laws allow landlords access to their rental units for three reasons:
Tenants also have the right to a safe, habitable rental property. This rule means landlords must maintain their rental units, including making repairs as needed. Tenants who feel their landlords are not adhering to this standard can report the landlord to local authorities.
Note: laws vary by state, so it is necessary to know what applies where your rental property is located. Remember, when in doubt, consult an attorney.
A landlord is a ‘person or organization’ that leases real estate they own to another ‘individual or organization’ in exchange for rent. Landlords and renters can be individuals, businesses, or other organizations. Renters are also called tenants.
What Does A Landlord Do?
Landlords collect rent from their tenants, and they can evict tenants who fail to pay rent. But a landlord must ensure that their rental property remains habitable while occupied by a renter. Most states, cities, and towns require a landlord’s rental property to meet a standard called an implied warranty of habitability. Landlord-tenant laws govern the relationship between a landlord and their renter. These laws vary by state and locale.
Are All Real Estate Investors Landlords?
Real estate investors are not the same as landlords. Landlords are property owners whose primary business goal is making money by collecting rent. They want to maximize their profits, so they limit their costs by handling the management of their rental properties themselves.
A landlord may hire professionals, such as plumbers, electricians, painters etc. to maintain and repair their rental property. They may also pay a property manager, or property management company to oversee their business. Alternatively, they might provide that service themselves, thereby reducing their costs and increasing their profits.
Real estate investors focus on earning money by owning and selling property.
Some real estate investors may rent their property while they own it. But in doing so it is a short-term tactic. For example, an investor may rent a home while they wait for the housing market to improve.
A real estate investor who rents their property, almost always hires a property manager or property management company to run things. Doing so allows the investor to focus on growing their real estate business, not managing rental properties.
Rental Agreements
A lease, or rental agreement, defines the terms by which the landlord rents their property to the tenant. Items usually listed in a lease include the property’s security deposit, the amount of rent owed by the tenant, and the length of time for which the agreement is valid.
At the end of a rental agreement, a landlord can choose not to renew, and eviction is not necessary. If the tenant refuses to vacate, the landlord will need to evict them. Most states require the landlord to notify the tenant in writing, 30 days before the lease ends, that they are not going to renew the rental agreement.
Eviction Laws for Landlords
Landlords can evict tenants who violate their rental agreements, or lease. Eviction means a landlord removes a renter from the rental property. Most evictions occur before the end of the renter’s lease, with failure to pay rent as the most common cause. In all situations, the landlord must adhere to local eviction laws.
Discrimination
Landlords also cannot discriminate. The federal government, via the Fair Housing Act, protects tenants based on race, color, national origin, sex, religion, disability, and familial status. Landlords cannot choose to evict someone because they fall into one of these protected classes.
The best approach is for landlords to reduce the likelihood of eviction, starting with tenant screening. This step is part of the rental application process. It involves a landlord reviewing a potential renter’s credit score, credit history, and verifying their income. The goal of tenant screening is to ensure the renter poses less risk to the landlord.
Note: The Fair Housing Act applies during the rental application process. Landlords cannot refuse to rent to someone based on the protected classes listed above. Some states extend those protections to others.
Important Tenants’ Rights to Know
Most states extend legal protections to tenants, though landlord-tenant laws. Below are the tenants’ rights that are applicable in most locations.
Tenants have a right to privacy. This right means landlords have to abide by state and federal privacy laws, and it governs how landlords access a rental property while a tenant occupies it. Most laws allow landlords access to their rental units for three reasons:
- To make repairs.
- To respond to an emergency.
- To show the property to prospective tenants or buyers.
Tenants also have the right to a safe, habitable rental property. This rule means landlords must maintain their rental units, including making repairs as needed. Tenants who feel their landlords are not adhering to this standard can report the landlord to local authorities.
Note: laws vary by state, so it is necessary to know what applies where your rental property is located. Remember, when in doubt, consult an attorney.
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RPE Category (Digital Digest)
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REAL ESTATE | RESIDENTIAL SMALL ASSET INVESTOR | Landlord
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PUBLISHED:
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February 12, 2021
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