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Property Management – West Hills – Legal Issues

Legal Issues To Keep In Mind Before Renting Your House

Renting out a home is one of the most common ways to pay back a mortgage on a house. The landlord simply pays the mortgage with the rent and when everything is paid off, he can either continue to rent it out or sell it for a profit. If you choose to rent our your home, there are a number of interesting legal issues that you need to be made aware of. Naturally, a high quality property management services company will already have legal representation but those electing to fly solo when renting out their home should take a look at these seldom heard of mistakes that could get them in trouble with the law.

Security Deposits

Receiving a deposit that should be refunded if the tenant takes care of the property is standard procedure. But did you know that some states require you to place the tenant’s security deposit in a special bank account? The idea behind this is to ensure that unscrupulous landlords don’t misuse the funds and fail to pay them back later. You must also give the tenant information relating to this bank account.

In the state of Massachusetts, the tenant is also entitled to any interest accrued on this money when it is due. If you are found to have misused the deposit, you may be ordered to pay up to triple the original deposit in damages. If a tenant does make mess up the house and you are entitled to keep some of the security deposit, you must provide a detailed invoice which explains the deductions.

Keeping Out Pests

If you rent out a property and it is infested with bedbugs, woodworm or other pests, it’s not enough to make a half-hearted or even a wholehearted attempt at getting rid of the problem. If you clear the home of the pests but they come back again, you must bring in an exterminator to permanently get rid of the problem and provide the tenant with alternative accommodation while the house is being thoroughly cleaned. Virtually all states require landlords to provide tenants with a habitable dwelling.

Eviction

The law is set up in most states to protect tenants from bullying landlords. You may feel as if you’re entitled to evict the tenant and change the locks on the building if rent is way overdue but you cannot legally do this. You have to go to court first and get a judge’s order to change the locks on your property. Even if you get this order, you can’t simply get rid of a tenant’s possessions. You have to contact the tenant to inform him of your action as well as holding his possessions until you go to court again and inform the judge of the situation. You cannot keep the possessions or use them as some sort of bargaining tool.

Although renting out your property can be a lucrative enterprise, you must be aware of all your legal obligations as a landlord. You can’t harass or bully tenants because they are late with the rent, you can’t keep their deposit without due cause and you must deal with any problems they have with the building as soon as possible.

By Jason Kay

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.