Lawsuits and legal pitfalls can trouble rental property owners and managers, often leading to costly settlements and managerial stress. Yet, with sufficient knowledge and proactive steps, these issues can be circumvented. Avoiding legal pitfalls involves recognizing the legal difficulties rental property owners and managers face and utilizing industry best practices. This approach helps protect you and your properties while ensuring steady operations. We’ll explore the most common lawsuits and legal pitfalls rental property owners face and provide practical steps you can take to avoid them.
Common Legal Pitfalls in Property Management
In the rental real estate industry, certain legal pitfalls often draw a property owner or manager into a lawsuit or legal nightmare.
Violating Tenant’s Rights
One of the most common reasons a rental property owner or manager ends up in court is violating one or more of a tenant’s rights. Property owners are obligated to treat residents fairly and equally and remain complying with fair housing laws. State and federal housing laws outline landlord responsibilities, including:
- Maintaining a habitable living environment for tenants
- Handling maintenance and repair requests promptly
- Adhering to local and federal housing and anti-discrimination laws
- Managing security deposits fairly
- Following legal eviction processes as needed
Inadvertently, landlords can violate a tenant’s rights in many ways—refusing to lease to a disabled person or mishandling personal belongings during an eviction can prompt costly lawsuits. Tenants’ right to privacy also requires landlords to provide proper notice before entering, with noncompliance leading to serious legal consequences.
Negligent Maintenance and Repairs
Failing to provide proper maintenance and repairs is another typical legal pitfall related to tenant rights. The law requires landlords to keep a rental property safe and habitable, and neglecting this can cause personal injury, illness, or damage to personal property, potentially ensnaring a property owner in a lawsuit.
Lease Disputes
A third common area with potential for legal pitfalls is unclear or misleading lease documents. A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party. It guarantees the lessee, also known as the tenant, use of the property and guarantees the lessor (the property owner or landlord) regular payments for a specified period in exchange. When lease documents are vague, unclear, or not specific enough, misunderstandings and legal action can result.
Proactive Steps to Prevent Legal Issues
Happily, rental property owners and managers can do plenty to prevent legal issues from occurring. Here are some steps:
- Clear and Comprehensive Lease Documents: Draft lease documents that are concise, comprehensive, legally sound, and define key terms. Discuss them with tenants to ensure clarity, then follow the terms closely and expect tenants to follow suit.
- Training on and Adherence to Fair Housing Laws: Keep informed about local and federal housing regulations to stay compliant. Understand your obligations under the law and seek training to manage housing law disputes well.
- Effective Communication and Documentation: Sustain regular, positive communication to improve tenant satisfaction. Acknowledge tenant efforts, ask for their feedback, and address maintenance and repair requests quickly, providing updates on work done on the property. Log all communications and agreements with tenants, including calls, with professionalism.
- Proactive Maintenance: Create and follow a proactive maintenance plan. A strict maintenance schedule ensures safety for the property and tenants.
- Fair Tenant Screening and Eviction Procedures: Use equitable methods for tenant screening, applications, and leasing. Perform detailed screenings and background checks and verify references. During an eviction, comply with state and local laws, including timelines, notices, and proper handling of a tenant’s personal property.
Protect Your Business with Legal Precautions
Property owners and managers should know their responsibilities, act preemptively, and implement sound management strategies to avoid common legal pitfalls and lawsuits. Seeking legal counsel when uncertain or facing a tenant taking legal action is recommended. This safeguards you, your tenants, and your property.
Struggling to keep your property management legally sound? Reach out to your local property management experts in Irving; Real Property Management Meridian’s professionals are here to help. Get in touch with us online or call 817-678-8787 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
