Learn about what is legal and illegal before becoming a property owner
Legal actions that owners can take
There are certain actions you can take as a property owner:
- You can refuse to rent the property to someone due to poor credit or unwanted reviews, but consult with a lawyer before refusing for any other reason.
- You can increase the rent, but at specific times and by specified percentages, so check your state laws to ensure you are within permissible limits.
- You can deduct from the security deposit for damages caused by the tenant, but not for normal wear and tear.
Illegal actions that owners cannot take
There are also illegal actions you may not realize as a property owner:
- You cannot lock tenants out of their homes without first obtaining an eviction order, even if they haven’t paid rent for several months.
- You cannot retaliate against tenants for complaints about uninhabitable conditions. You cannot raise the rent or file an eviction lawsuit. You cannot harass the tenant or make living conditions uncomfortable enough that the tenant leaves the property, such as refusing to make necessary repairs.
- You cannot illegally raise the rent. For example, if you want to evict the current tenant to rent the property at a higher price to a new tenant, you must comply with specific laws on rent increase and provide proper notice before renewing the lease.
- You cannot discriminate against tenants based on factors such as social status, religion, race, or disability. Landlords must comply with fair housing laws that prohibit discrimination.
- You cannot take illegal actions to compensate for increased property costs such as taxes, insurance, utilities, or maintenance. Do not try to save money by hiring unqualified workers to perform repairs at a lower cost or refuse to schedule necessary inspections for the property. If your costs as a property owner increase, consult a lawyer and a real estate agent to discuss your available options.
- You cannot refuse to make repairs that could affect the health or safety of the tenant. As a property owner, you must maintain the property in a habitable condition. You must also hire licensed contractors to perform necessary work.
- You cannot enter the property without proper notice to the tenant, except in emergencies. The notice period must be specified in your state’s landlord-tenant laws, and if it is not, it should be clearly outlined in the lease agreement beforehand.
- You cannot rent out apartments without obtaining the required inspections. Some states require a new ownership certificate or a health and safety inspection each time the unit is rented to a new person. Some states or cities require fire inspections before renting to ensure that the unit has the appropriate number of carbon monoxide or smoke detectors and that they are functioning properly.
- You cannot make illegal deductions from the tenant’s security deposit. A landlord may attempt to keep the tenant’s security deposit for illegal reasons, such as damages that occurred to the property before the tenant moved in or other fictitious lease violations. Legitimate reasons for withholding a security deposit include non-payment of rent and damages traceable to the tenant. Normal wear and tear does not justify deducting money from the security deposit.
Frequently Asked Questions (FAQs)
What are the tenant’s rights when the owner sells the property?
It depends on the lease. If the tenant is in a fixed-term lease, the landlord is required to inform the tenant in writing in advance that the property will be sold. If the lease is month-to-month, the landlord is not obligated to provide advance notice. If there is a clause for early termination of the lease, the tenant may have no rights. The landlord can sell the property with the tenant’s lease in place, allowing them to stay until the lease expires. The tenant may also make an offer to buy the property from the owner. This may vary from state to state.
How much
Can the landlord increase the rent?
If the property is not stabilized in rent, it is likely that there is no limit to how much the rent can be increased once the lease expires. This can vary from state to state and city to city. Generally, the landlord must notify tenants in advance (at least 30 days) and in writing if the rent will be increased by no less than 5%.
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Source: https://www.thebalancemoney.com/illegal-actions-your-landlord-could-be-taking-4154964
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