Lawsuits and legal pitfalls can weigh heavily on rental property owners and managers, often resulting in costly settlements and managerial headaches. Thankfully, with adequate knowledge and proactive steps, these risks can be dodged. Avoiding legal pitfalls begins by identifying the legal stumbling blocks rental property owners and managers face and employing industry best practices. This keeps you able to protect you and your properties and sustain orderly operations. We’ll examine the most common lawsuits and legal pitfalls rental property owners face and provide tangible steps you can take to avoid them.
Common Legal Pitfalls in Property Management
In the rental real estate industry, specific legal pitfalls often thrust 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 responsible for treating their residents fairly and equally and complying with fair housing laws. State and federal housing laws outline landlord responsibilities, which typically include:
- Delivering a habitable living environment for tenants
- Efficiently handling maintenance and repair requests
- Abiding by local and federal housing and anti-discrimination laws
- Managing security deposits fairly
- Conducting legal eviction processes when warranted
Without caution, landlords can violate a tenant’s rights in many forms—refusing to lease to a disabled person or mishandling personal belongings during an eviction can lead to costly lawsuits. The right to privacy also requires landlords to provide proper notice before entering, with violations risking serious legal consequences.
Negligent Maintenance and Repairs
Another frequent legal pitfall tied to tenant rights is the failure to provide proper maintenance and repairs. The law requires landlords to keep a rental property safe and habitable, and neglecting this duty might cause personal injury, illness, or damage to personal property, potentially landing 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
Fortunately, rental property owners and managers can do several things to prevent legal issues from surfacing. Here are key actions:
- Clear and Comprehensive Lease Documents: Create lease documents that are explicit, thorough, legally sound, and outline key terms. Go over them with tenants to ensure understanding, then follow the terms closely and expect tenants to comply too.
- Training on and Adherence to Fair Housing Laws: Keep up with local and federal housing regulations to remain compliant. Understand your obligations under the law and seek training to manage housing law disputes skillfully.
- Effective Communication and Documentation: Promote regular, positive communication to elevate tenant satisfaction. Acknowledge tenant efforts, invite their feedback, and address maintenance and repair requests promptly, offering updates on work done on the property. Track all communications and agreements with tenants, including calls, with a professional demeanor.
- Proactive Maintenance: Develop and follow a proactive maintenance plan. A strict maintenance schedule protects the property and its tenants.
- Fair Tenant Screening and Eviction Procedures: Use fair, uniform practices for tenant screening, applications, and leasing. Conduct careful screenings and background checks and verify references. For an eviction, adhere to 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 need to know their obligations, act preemptively, and implement sound management strategies to avoid common legal pitfalls and lawsuits. Consulting legal advisors when in doubt or facing a tenant taking legal action is advisable. This ensures safety for you, your tenants, and your property.
Need assistance to make your property management legally sound? Contact your local property management experts in Washington; Real Property Management Southern Utah’s experts are prepared to help. Get in touch with us online or call 435-673-4242 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.
