Lawsuits and legal pitfalls can become a substantial ordeal for rental property owners and managers, often generating costly settlements and notable distress. Nevertheless, with proper insight and proactive steps, many of these complications can be sidestepped. Avoiding legal pitfalls begins with discerning the most typical legal issues rental property owners and managers face and adopting industry best practices. By taking these actions, you can protect you and your properties and preserve orderly operations. In what follows, we’ll examine some of the most regular lawsuits and legal pitfalls rental property owners face and provide actionable steps you can take to avoid them.
Common Legal Pitfalls in Property Management
Within the rental real estate industry, the main triggers a property owner or manager might face a lawsuit or other legal nightmare originate from a few essential legal pitfalls.
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
- Handling maintenance and repair requests quickly
- Observing local and federal housing and anti-discrimination laws
- Managing security deposits correctly and fairly
- Following legal eviction processes when necessary
Frankly, without careful attention, landlords might violate a tenant’s rights in these areas in numerous ways. For instance, refusing to lease to a disabled person or improperly managing a tenant’s personal belongings during an eviction are two of many missteps that could lead to costly lawsuits. A tenant also has a right to privacy, requiring a landlord to provide proper notice before entering their residence or unit. Failing this can result in serious legal consequences.
Negligent Maintenance and Repairs
Another common legal pitfall associated with tenant rights stems from failing to provide proper maintenance and repairs for a rental property. As mentioned, the law requires landlords to keep a rental property safe and habitable. Neglecting this task might cause personal injury, illness, or damage to personal property, potentially involving 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
The positive aspect is that a rental property owner or manager can do many things to prevent legal issues before they arise. These include:
- Clear and Comprehensive Lease Documents: Lease documents should be explicit, complete, legally sound, and define key terms. Take time to go over the lease thoroughly with your tenant and ensure they understand. Once a lease is in place, you should follow the terms closely and communicate that you expect the same from your tenant.
- Training on and Adherence to Fair Housing Laws: Staying updated on local and federal housing regulations is crucial for compliance. Ensure you fully understand your obligations under the law, and if needed, seek additional training on handling common issues that may stem from housing law disputes.
- Effective Communication and Documentation: Consistent, upbeat communication is vital for tenant satisfaction. Take opportunities to acknowledge your resident’s efforts and welcome their feedback. Respond to all maintenance and repair requests promptly and provide updates on work done on the property. Maintain detailed records of all communications and agreements with tenants, including phone calls, and uphold a professional demeanor.
- Proactive Maintenance: Develop and implement a proactive maintenance plan for your property. Establishing and adhering to a strict maintenance schedule can keep both the property and your tenant safe.
- Fair Tenant Screening and Eviction Procedures: Use steady and fair practices in tenant screening, application reviews, and leasing. Conduct thorough screenings and background checks and verify all references carefully. In the event of an eviction, comply with all state and local laws as outlined, including timelines, notices, and the proper handling of a tenant’s personal property.
Protect Your Business with Legal Precautions
Property owners and managers must understand their obligations, act proactively, and implement sound management strategies to avoid common legal pitfalls and lawsuits. They should also seek legal advice when uncertain about decisions or when facing a situation that might lead to a tenant taking legal action against them. By doing so, they can ensure that they, their tenants, and their property are protected.
Do you need help ensuring your property management practices are legally sound? Contact your local property management experts in Fayetteville; the professionals at Real Property Management First Choice are ready to assist. Get in touch with us online or call 479-242-0791 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.
