No matter how careful you are, there is always a chance that you or your tenants can do something legally wrong. For instance, some landlords make the mistake of overcharging for a security deposit, while others fail to give tenants a receipt for their rent payment. These small mistakes can cost you a lot of money! If a tenant thinks you have broken the law, he or she can file a lawsuit against you. If the tenant wins, you could be ordered to pay the tenant’s attorney fees. If the tenant wants to move out early, most states allow him or her to deduct up to a certain amount of money from the security deposit to cover unpaid rent or repair costs. If this has happened to you, then you are not alone. Many landlords make similar mistakes, and the best thing you can do is learn from their mistakes. Here are some common mistakes that landlords make. Try to avoid falling into these pitfalls yourself.

Using Outdated or Generic Lease Forms

Some landlords think it’s okay to use generic or outdated forms. But that’s a big mistake. Not only is it illegal in some states, but using the wrong form can cause problems in the future, including when you try to evict a tenant who doesn’t pay the rent on time or violates the lease. Instead of taking the chance of using an incorrect form, ask an attorney for a state-specific model lease. The attorney will even help you customize the lease to fit the needs of your property.

Asking the Inappropriate Questions During Applicant Screening

One of the biggest mistakes landlords and property managers make during the applicant screening process is asking questions that are too personal. Some landlords use discriminatory questions to screen out applicants, a practice that is illegal under the federal Fair Housing Act and can also leave landlords open to lawsuits from rejected applicants. Personal questions may include asking about an applicant’s marital status, income level, sex, religion, national origin, or whether he or she has children. Even asking questions about an applicant’s criminal record can be a legal minefield, depending on how the question is worded. 

Establishing Policies that Discriminate Against Tenants

The Fair Housing Act of 1968 protects renters from discrimination based on race, color, religion, sex, national origin, and disability. While the law does not specifically address family status, the Department of Housing and Urban Development (HUD) has interpreted the act to prohibit discrimination on the basis of family size and familial status. This means landlords can not refuse to rent to families with children, limit the number of children you can have, or require that children be older before they move in.

Violating Tenants’ Rights to Privacy

There is a long history of tenants’ rights to privacy, and the level of privacy a tenant can expect in their home or apartment varies greatly from state to state. Landlords may not want to walk into your home without a good reason, and if they do, they are often required to give you a certain amount of notice before they show up. Entry is also supposed to be used only for legitimate purposes, like performing a routine check-up on the property or showing it to prospective tenants.

Final Words

Landlords are a target for many consumer protection statutes, most notably the Federal Fair Housing Act and the Civil Rights Act. To avoid legal difficulties, make sure you know what the law says about the tenant selection process, what is and isn’t considered discrimination, what you can and cannot include in a lease, and what is considered a fair return on investment.

Attend the Compliance Prime webinar to know more about frequent mistakes that the landlord should avoid.