What are My Rights as a Landlord?

Tenant Background Information You Can and Cannot Check

You have the right to know who is moving into your rental property and to refuse rental to applicants who do not meet your established criteria. The law allows you to approve or deny a rental application based on the following criteria:

• Credit history, including a low credit score and/or major issues such as bankruptcy

• Whether he or she can provide proof of stable employment

• Whether a prospective renter has enough funds to pay the first month’s rent and a security deposit

• Past criminal history, especially as it pertains to someone who would make a poor renter, such as a drug conviction

• One or more evictions on the applicant’s record

• Poor reference from past rental companies for issues such as frequent late payments or noise complaints

You can access an applicant’s credit history, criminal background check, employment history, and rental history as well as contact references to complete the application process. While you are within your legal rights to deny an applicant with one or more of these issues, you may want to ask him or her to explain first. A recent bankruptcy, for example, may have been due to job loss from COVID-19 and the applicant now has a new job. The amount of flexibility you want to offer is up to you. It is important to document your decisions and the terms of acceptance or denial in a written agreement.

Landlord-tenant laws also specifically prohibit basing your rental decision on any of the following:

• Disability

• Gender

• Family status

• National origin

• Race or color

• Religion

Federal laws, such as the Fair Housing Act, protect tenant rights in these areas and require landlords to comply with anti-discrimination statutes in addition to state regulations.

If you have questions about your legal obligations or want to ensure your screening process complies with all applicable laws, consider consulting a landlord-tenant lawyer or real estate attorney.

Right to Collect Rent and Security Deposits, Including an Additional Amount for Pets

You have the right to expect rent payments on time. To avoid any confusion with tenants, be sure to include consequences for not making timely rental payments in the rental agreement. You may charge late fees for overdue rent, but these must be specified in the rental agreement and comply with state laws, including any legal caps and required grace periods. Lease terms should clearly outline when tenants must pay rent, the amount of any late fees, and the specified period after which late fees apply. The lease agreement should also spell out the eviction process in case of chronic late or non-payment of rent. Unpaid rent can lead to eviction proceedings, but proper notice and adherence to state laws are required.

A security deposit is an additional sum of money the tenant pays when moving into the rental unit. The purpose is to cover your costs to repair any damages from the tenant and to clean up the property to make it available for the next tenant. Many states limit how much you can charge for a damage deposit. The equivalent of one month’s rent is typical. You can only deduct from the tenant’s security deposit during the move-out inspection if he or she caused necessary repairs beyond normal wear and tear, not for improvements or upgrades. We recommend placing security deposits in a separate bank account to avoid confusion with the primary rental account.

Most states allow landlords to collect an extra deposit if the tenant has pets. Remember this is refundable to the tenant if the pets do not cause any unusual damage. You may also be able to charge a pet fee, which is typically a small percentage added onto the monthly rent. While a pet deposit is refundable, a pet fee is not.

It is important to budget for property taxes as part of your overall financial management as a landlord. Rent increases must comply with state laws and should be clearly outlined in the lease terms, including any notice requirements for tenants. Note that lease terms and responsibilities may differ for commercial tenants compared to residential tenants, with commercial tenants often handling more repairs and maintenance themselves.

Right to Enter the Tenant’s Property for Repairs and Emergencies

You have the legal right to enter the tenant’s property at any time in response to an emergency, such as burst pipes causing flooding. This right to enter is part of the legal framework governing tenancy, which outlines both landlord and tenant rights and responsibilities. It is important to make this clear to new tenants when they sign a lease as some may get upset if you enter the unit while they are not at home.

For anything else, including routine maintenance and repairs, you must provide the tenant with proper notice as required by law—typically at least a 24-hour notice, although some states require a longer notice period. Be sure to inform the tenant of the day and time you plan to enter the unit as well as the purpose of your visit. In most cases, the tenant will have informed you of a maintenance or repair issue and will not be surprised by your visit.

Depending on landlord-tenant laws in your state, you may also be able to enter to perform routine maintenance if the tenant is away from home for an extended period. Assuming the tenant is informed of the upcoming visit, you should inform him or her of your intentions and describe any repairs or maintenance that you performed.

Additionally, zoning restrictions may affect how and when landlords can access certain types of properties, so it is important to be aware of local regulations.

Evicting a Tenant

Although you have the right to evict a tenant for non-payment of rent or other causes, doing so is not always an easy process. A landlord cannot forcibly remove a tenant without first obtaining a court order through the legal eviction process. It is essential to provide proper notice to tenants before initiating eviction proceedings, as required by law. Eviction laws are complex, with many statutes, and landlord-tenant laws vary by state, so understanding your local regulations is crucial. Consulting a landlord-tenant lawyer or real estate attorney can help property owners navigate the eviction process and ensure compliance with all legal requirements. Legal resources, such as directories of lawyers, are available to help landlords find experienced legal representation. If you are dealing with a problem tenant, it is important to follow all legal procedures to address the issue and avoid violating tenant rights. Be sure to read and understand the eviction laws in your state before you give the tenant an eviction notice. Failing to follow the law to the letter or evicting someone on grounds that the Fair Housing Authority determines is discriminatory can cause significant problems for you. One of them is that the tenant can sue you in court. Eviction and housing policy are also influenced by broader urban development considerations.

Record Keeping: Protecting Your Rights and Staying Compliant

Maintaining thorough and accurate records is one of the most important landlord responsibilities when managing a rental property. Good record keeping not only helps you stay organized, but also ensures you remain compliant with landlord-tenant laws and are prepared in case any legal issues arise.

As a landlord, you should keep detailed documentation of all rental income and expenses related to your property. This includes records of rent payments, security deposits, maintenance and repair costs, and any fees collected. Keeping track of these financial details is essential for managing your rental income, preparing for tax season, and demonstrating compliance with state and local laws.

It is also important to document all communication with your tenants. Save copies of emails, written notices, and any correspondence related to the rental unit. This can be invaluable if a rental dispute occurs or if you need to provide evidence during eviction proceedings or other legal circumstances.

Organized record keeping supports a professional landlord-tenant relationship and helps you fulfill your landlord responsibilities. Whether you manage your property independently or use a property management company, having reliable legal information and well-maintained records can protect your rights as a property owner and help you make informed decisions. By staying diligent with your documentation, you can avoid many common legal issues and ensure your rental property business runs smoothly.