A landlord is an entity that owns property and rents or leases it to others in exchange for rent payments. Whether they are individuals, businesses, or other organizations, landlords are responsible for maintaining and repairing their properties. The specific duties and obligations of landlords and tenants are usually outlined in a lease agreement.
Key Takeaways
- Landlords own and lease property to tenants in return for rent payments.
- Properties can be leased for residential or commercial use, adhering to zoning regulations.
- Lease agreements are legal contracts outlining the rights and responsibilities of each party.
- Landlords earn passive rental income but must manage maintenance costs and legal risks.
- Discrimination, improper evictions, unannounced entry, and unreasonable rent hikes are prohibited for landlords.
What Landlords Do
A landlord invests in real estate as a source of financial profit. By owning and leasing property, they earn a steady stream of income and have the potential for property appreciation.
Landlords can be individuals, corporate entities, or even government agencies, and may own a variety of properties such as:
- Multi-family homes, apartment buildings, and condominiums
- Land and empty lots
- Vacation properties like cottages and villas
- Commercial properties, including standalone business properties, shopping malls, and office buildings
Absentee Landlords
Absentee landlords own properties but don’t live near them. This can be risky since they’re not around to monitor the property, which could lead to damage or neglect and potential squatting situations.
Landlord Rights and Responsibilities
Although landlord rights and responsibilities vary across states, some general laws are universally applicable:
- Collecting Rent: Landlords have the right to collect rent and any prearranged late fees.
- Rent Increases and Evictions: Landlords can raise rent and evict tenants following the terms in the lease and legal guidelines.
- Maintenance and Repairs: Property owners must ensure their properties are habitable, perform prompt repairs, and keep vital services functional.
- Security Deposits: Landlords can charge security deposits but must manage them according to state laws.
Types of Landlords
Different types of landlords include:
- Individual Landlords: May own one or more properties to supplement income or diversify investments.
- Corporate Landlords: Businesses that purchase properties to lease them out for profit.
- Government Agencies: Municipal governments may own and manage affordable or subsidized housing.
Advantages and Disadvantages of Being a Landlord
Advantages:
- Leveraging borrowed funds to purchase properties.
- Tax-deductible costs.
- Consistent income stream.
- Potential property value appreciation.
Disadvantages:
- Managing and maintaining properties require effort.
- Taxes on capital gains when selling properties.
- Tenant-related issues and unforeseen costs.
- Legal liabilities.
Limits on a Landlord’s Rights
Landlords cannot:
- Discriminate based on race, color, national origin, sexual orientation, familial status, disability, or gender (Fair Housing Act).
- Enter a tenant’s property without proper notice (usually 24 hours, but varies by state).
- Evict tenants improperly; they must follow legal procedures.
- Raise rent without sufficient notice, usually 30 days, and adhere to any local rent control laws.
FAQs
How Much Notice Does a Landlord Have to Give a Tenant to Move Out?
In most states, landlords must give a 30-day notice to end a month-to-month lease.
How Long Does a Landlord Have to Make Repairs?
Landlord-tenant laws vary, but typically, landlords have 3-7 days for critical repairs and up to 30 days for less serious issues.
How Do I Report a Landlord for Negligence?
If a landlord doesn’t address reported issues, you can file a complaint with:
- The local health department
- The Rental Protection Agency
- The U.S. Department of Housing and Urban Development (HUD)
- The local police
How Much Can a Landlord Raise the Rent?
Rent increase regulations vary by location, but reasonable notice (usually 30 days) is required, and some areas have rent control laws limiting increases.
The Bottom Line
Landlords have specific duties, rights, and responsibilities, some of which vary by state. These are usually outlined in a lease agreement, a key legal document stating the monthly rent, lease duration, and roles of both landlords and tenants.
Related Terms: tenant, property management, lease agreement, real estate investment, income stream.
References
- LawDepot. “What Are My Rights as a Landlord?”
- National Low Income Housing Coalition. “From the Field: Oregon Passes Nation’s First Statewide Rent Control Law”.
- Settlement.org. “What Are My Responsibilities as a Landlord?”
- Lamacchia Property Management. “What is Security Deposit Management?”
- Settlement.org. “What is Subsidized Housing?”
- Internal Revenue Service. “Instructions for Form 8824 (2020)”.
- United States Department of Hosing and Urban Development. “Housing Discrimination Under the Fair Housing Act”.
- Rental Protection Agency. “Home”.
- United States Department of Housing and Urban Development. “Bad Landlords in Federal Housing Complaints”.
- California Legislative Information. “AB-1482 Tenant Protection Act of 2019: Tenancy: Rent Caps”.
