So, you’ve decided to enter the property business? There are lots of routes to take here from broker to estate agent, but you’ve gone down the path of the landlord. It’s not a bad idea, and it can be a fulltime main business. Or, it can be a way to provide you and your family with a lovely extra cushion of cash. However, you do need to be wary of the legal issues that landlords face. Tenants, as you should be aware, have rights. Failing to maintain these rights could lead to you having to deal with a nasty lawsuit. So, let’s look at some of the ways you can avoid this.
Write A Contract – Make It Ironclad
The first step is to make sure that you have a contract for your tenants. These days, it’s possible for anyone to become a landlord with very little knowledge or know how. It has opened the sector up to amateur investors which is fine, but they can also usually do it without a letting agent or property manager. Ah, well this is where things can get a little dicey. Without this, you won’t know how to protect yourself, and you won’t have an expert to help.
If you rent out property, get a legal advisor whether you hire them full time or on a temp basis. They can start earning their money by writing you a great contract for new tenants. That’s going to save you from contract disputes that could be worth thousands.
Keep Things Safe And Healthy
One of your main requirements as a landlord is to make sure that you are providing a safe environment for tenants to meet legal requirements. You definitely don’t want to sleep walk into becoming a slumlord which can happen. But you should also be aware of what you are and aren’t required to provide. This can vary from state to state. Take air conditioning for instance. Most states require you to provide heating, but a lot see an AC system as a luxury, so it’s important to know which applies to you in your area. Of course, it might best to provide something like HVAC systems just to be on the safe side. You do want to provide tenants with a quality place to live.
Get Things Fixed
Your contract will likely require you to maintain property within reason. If you don’t do this, you’ll be leaving yourself open to legal action. If you are renting out a holiday home, make sure there’s a local service you can use to send over and handle any issues. Remember, if you aren’t using professional services, being a landlord can not be a hands-off experience. You need to be there for your tenants and make sure that their issues are resolved within good time.
As you can see, there are a few ways you can run into legal issues as an operating landlord. Take this advice though, and you should be able to avoid the problems that could bring your new property venture crashing down and leave you submerged in legal bills.