Lawsuits and legal pitfalls can cast a shadow over rental property owners and managers, often leading to costly settlements and operational setbacks. However, with the right knowledge and proactive steps, these risks can be managed effectively. Avoiding legal pitfalls hinges on understanding the most common legal challenges rental property owners and managers face and embracing industry best practices. This not only helps protect you and your properties but also promotes a seamless management process. In this article, we’ll explore the common lawsuits and legal pitfalls rental property owners face and offer steps you can take to avoid them.
Common Legal Pitfalls in Property Management
In the rental real estate industry, numerous legal pitfalls can entangle a property owner or manager in a lawsuit or legal nightmare. Here are the key reasons a rental property owner or manager ends up in court.
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 must treat residents fairly and equally and ensure they’re complying with fair housing laws. State and federal housing laws outline landlord responsibilities, such as:
- Providing a habitable living environment for tenants
- Addressing maintenance and repair requests swiftly
- Adhering to local and federal housing and anti-discrimination laws
- Accurately managing security deposits
- Following legal eviction processes
Mistakes like refusing to lease to a disabled person or mishandling handling a tenant’s personal belongings during an eviction are mistakes that can lead to costly lawsuits. Tenants also have a right to privacy, requiring landlords to provide proper notice before entering, with serious legal consequences for non-compliance.
Negligent Maintenance and Repairs
Neglecting to provide proper maintenance and repairs is another legal pitfall tied to tenant rights. The law requires landlords to keep a rental property safe and habitable. Failure here can cause personal injury, illness, or damage to personal property, risking a lawsuit for the property owner.
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—the property—from another. It ensures the lessee (the tenant) has use of the property, while the lessor (the property owner or landlord) receives regular payments for a specified period in exchange. Poorly written lease documents can lead to disputes and legal action.
Proactive Steps to Prevent Legal Issues
The good news is that there are many things a rental property owner or manager can do to prevent legal issues before they start. These include:
- Clear and Comprehensive Lease Documents: Create lease documents that are legally sound and specify key terms. Go over the lease with tenants for clarity, then follow the terms closely and expect tenant adherence.
- Training on and Adherence to Fair Housing Laws: Remain up-to-date on local and federal housing regulations to understand your obligations under the law. Seek training on handling common issues in housing law disputes.
- Effective Communication and Documentation: Build tenant satisfaction with regular communication. Welcome feedback, handle maintenance and repair requests quickly, and provide updates on work done on the property. Log all communications and agreements with tenants, keeping a professional demeanor.
- Proactive Maintenance: A proactive maintenance plan with a strict maintenance schedule can keep the property and your tenant safe.
- Fair Tenant Screening and Eviction Procedures: Employ consistent and fair practices in tenant screening with detailed background checks. For an eviction, follow state and local laws and ensure proper handling of a tenant’s personal property.
Protect Your Business with Legal Precautions
To avoid common legal pitfalls and lawsuits, property owners and managers must act proactively and implement sound management strategies. When uncertain, seek legal advice to avoid a tenant taking legal action, ensuring you, your tenants, and your property are protected.
For support ensuring your property management practices are legally sound, reach out to property management experts in Glens Falls at Real Property Management Capital Region. Get in touch with us online or call 518-290-1448 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.
