Know Obligations of A Landlord For Renting Out Your Property
Letting out your property could give you the freedom to move on at a time when selling has become incredibly difficult. Buying a house can itself be an experience of a lifetime. People with larger disposable incomes are contemplating buying a second house. Buying a second home could be for varied reasons say, investment, rent it or resell it at a better price in the near future. If you are buying a property for renting out or letting out your existing property, you must know legal obligations of a landlord.
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Legal obligations of a Landlord
Under common law, landlords must ensure the safety and maintenance of rented property and their contents so that no injury or damage is caused to the occupants, neighbors or the public. You must also ensure that the electrical system and any electrical appliances that you supply are safe to use. However, you are not responsible for any appliances that the tenant is entitled to take with him or her at the end of the tenancy. Some of the important obligations of a landlord are following.
- Tenant information: Before you rent out your property, you need to know the background of your tenant. It is responsibility of landlord to inform nearest police station about new rental agreement and give tenant details. In some states, Tenant Information Form is available online from official websites of city police where a landlord can take printout and fill up all the required details. You need to get a photocopy of an Identity proof of tenant, a photocopy of your rental agreement and 2 recent photographs of tenants.
- Security deposit: A security deposit protects the landlord if the tenant vacates without making required payments or damages the unit. A landlord cannot retain a security deposit to cover normal wear and tear. However, landlord can deduct unpaid rent, late charges, unpaid utilities which the tenant is responsible for, damages caused by the tenant etc. All landlords, regardless of the number of units they own, must return the security deposit within thirty days after the termination of the lease. If the landlord is deduct unpaid rent or other expense, a statement specifying the exact reasons why the security deposit is being retained or deducted must be sent to tenant.
- Safety Obligations: Landlords must ensure the safety and maintenance of rented property and their contents so that no injury or damage is caused to the occupants, neighbors or the public. As a landlord you need to make sure that both the outside and inside of your property are well maintained and kept to a high level of repair. You need to ensure that all gas appliances such as boilers and ovens are fully maintained and inspected for their safety and suitability. Failing to provide adequate safety measures could leave you liable for damages or legal action.
- Obligation to Repair: As a landlord, you are obligated to maintain your rental property and make it comfortable and habitable for your tenants. When something breaks, malfunctions, or becomes inoperable, it is generally the responsibility of the landlord to repair it as quickly as possible. Normally, a landlord is required to provide repair when the damage is not the fault of the tenant, such as a water line breaking, or other problem that was not caused by the direct action of a tenant. If damage is done to the structure of the rental property, again, you will first need to determine who or what was responsible. If the tenant caused the damage, a landlord is required to provide repair and deduct the repair cost from security deposit. A landlord should inform the same to tenants to avoid disputes when vacating.
- Rent Receipt: A landlord is obligated to issue rent receipt to tenant who makes a payment of rent. The rent receipt must contain details such as name of tenant, the month & year for which rent paid, the amount received and signed by the landlord or his authorized agent. If the landlord or his authorized agent refuses or neglects to deliver to the tenant a receipt, rent controller can direct the landlord to pay double the amount of rent to tenant.
Landlords have a right to access the unit whenever necessary to perform repairs and assess problems. However, a landlord cannot enter the unit at will. In most states, the average notice must come at least 24 to 72 hours prior to landlord’s entry. Whether the damage is the fault of the tenant or not, as a landlord, you are obligated to maintain your rental property and repair when something breaks, malfunctions, or becomes inoperable. Ensure your install basic fire safety equipments in the rental property. You must ensure the safety of rented property and their contents. It’s your responsibility to insure the rental property against losses caused by things such as fire, theft and natural disasters. You have the right to bar a tenant from bringing pets.
Refusing to refund the security deposit
If your tenant has paid all rents and dues, you must refund security deposit within 30 days from receipt of notice and when security deposit is surrendered or refunded to tenant, you must take the keys back. The landlord must not take more than the cost of the damage. He should make the list of deductions and refund remaining amount to tenant.
If the landlord unlawfully refuses to refund the security deposit, the tenant may bring a claim for those monies in the magistrate court or state court where the landlord resides or otherwise has designated a person as his agent of service. If the landlord does not contact the tenant and settle the dispute, court action may be warranted. Tenants can try to get a private attorney to take their case on “Contingency.” Contingency means that the lawyer will only get paid if they win the case.
You are responsible for general maintenance and upkeep of your property. Under common law, landlords must ensure the safety and maintenance of rented property and their contents. If you have several rental properties or do not have the time to provide necessary repairs and maintenance, you may need to outsource these duties. It is important that landlords fully understand their obligations. One of your major landlord responsibilities are finding the right tenants. The right tenants will pay their rent regularly on time and care for your property.