While the article “Common renter’s rights you need to know about” covered a number of laws and statutes you must be aware of as a REI professional, there are many others that short document didn’t cover. Here are a few additional tenant law issues it will help you to know.
One huge area of contention with renters and landlords is the area of security deposits. Because of the potential for property damage and loss, landlords sometimes want to charge exorbitant deposits to protect their interests. As good as that may sound from a landlord’s perspective, the fact is that many states put a strict limit on the amount you can charge a tenant for a security deposit. This amount varies by state, so be sure to read up on your particular state’s laws to ensure you’re following the rules.
In addition to the amount that can be charged as a security deposit, landlords are often limited as to what that deposit can be used for. A tenant’s security deposit cannot be used to cover the normal “wear and tear” on a property that comes from daily living. While there’s a fine line between what’s considered normal and what’s considered abusive or destructive, it pays to know that there are limits as to what a security or damage deposit will cover. Be prepared to create an itemized list of what the deposit has been used for if you should encounter problems.
There are also deadlines set in most states as to when a landlord is required to return a security deposit, or portion of one. The number of days allowed will vary, but deposits must typically be returned anywhere from two weeks to one month after the tenant moves out. And an eviction doesn’t immediately negate a deposit refund. Again, check your specific state’s laws to be sure you follow them to the letter.
A common misconception regarding tenant law is that a landlord can legally seize the tenant’s property if they are in default for nonpayment of rent. That is simply not the case. The main exception to that law is for abandonment of the property, but even there state law differs as to the definition of abandonment. While it may be frustrating, and many landlords try to use the threat of seizure as a means for getting rents paid, it’s not a legally accepted procedure.
Knowing these and other common renter’s laws will help ensure you’re in good standing as a landlord and that your leases and property rental agreements are sound. In return, they will help ensure that the property management forms you use are best designed to protect your investment as an REI professional and a landlord.
