Landlord resources: a complete guide to renting out property

Finding success as a landlord starts with understanding your rights and obligations. In this guide, we'll cover everything you need to know to manage your rental properties.

Renting out property like new metro city can seem overwhelming when landlords have to create protective documents, follow landlord-tenant laws, and consider tax implications for their rental income.

However, these challenges can be worth overcoming when you consider the financial rewards of renting out property. Having rental income can set you up for success and offer you financial freedom in the future.

In this guide, we'll cover basic landlord-tenant law, landlord responsibilities and limitations, and the pros and cons of hiring a property manager.

What is landlord-tenant law?

Landlord-tenant law outlines the rights and responsibilities of landlords and tenants involved in residential and commercial lease agreements. Besides outlining and governing the actions of landlords and tenants during a tenancy, some aspects of landlord-tenant law also govern the application and screening process.

In the United States, landlord-tenant law is composed mostly of state-specific laws. Each state has its own laws that cover every aspect of the landlord-tenant relationship. Some state laws favour landlords over tenants. However, state laws regarding landlords and tenants cover the same key areas and some states have very similar regulations.

When renting out a property to a tenant, it is very important to familiarize yourself with the laws in the state where your property is located.

In addition to the state-specific laws that regulate the duties and rights of landlords and tenants, there are federal and municipal laws that regulate tenancies and influence the state-specific laws.

Federal landlord-tenant laws

Numerous federal laws govern the rights and duties of landlords and tenants, both before and during a tenancy:

The Uniform Residential Landlord and Tenant Act (URLTA)

The Uniform Residential Landlord and Tenant Act (URLTA) helps the states govern residential tenancies and protect both landlords and tenants. The purpose of the act is to define the rights and obligations of landlords and tenants so they maintain the quality of rental properties.

When both parties maintain a rental property, tenants have a higher quality of living and landlords don't have to make as many repairs. Since states can determine their own landlord-tenant laws, states have adopted different amounts of the rights and duties outlined in this act.

The Fair Housing Act

Even when someone is applying to rent a space, they are protected by federal legislation that gives them a fair chance at securing housing. The Fair Housing Act is federal legislation that prohibits housing providers from discriminating against tenants and denying people housing based on:

• Race
• Color
• Religion
• National origin
• Sex
• Disability
• Familial status

The Fair Housing Act also applies to real estate companies, municipalities, banks, and insurance companies when people are buying a home, trying to get a mortgage, seeking housing assistance, or buying insurance.

If a landlord discriminates against a tenant or applicant, the wronged party can file a complaint with the Department of Housing and Urban Development.

The Fair Credit Reporting Act

Often, when a tenant submits a Rental Application to rent a space, the landlord will screen them by conducting a credit check through a credit reporting agency or tenant screening company. The Fair Credit Reporting Act is a law that protects the credit information of consumers when they apply to rent a space. This law dictates that the landlord cannot provide the applicant's credit information to anyone else unless they have a legitimate reason that meets the act's criteria. Additionally, you must securely dispose of a tenant’s credit report and any information you gathered from it.

By learning about landlord-tenant laws, you can ensure you are following the best practices to avoid any legal battles with your tenant.

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