Laws of Apartments Rentals
The laws for apartment rentals vary from state to state. However, some landlord/tenant interactions are regulated by standard procedures regardless of location. To ensure that you are following the laws established in your jurisdiction, call your local apartment association, state Department of Consumer Affairs or the Attorney General's office. Following legal requirements can protect you from lawsuits filed by tenants.
Background Check
Screening prospective tenants is an important step in determining whether or not they will pay the rent on time and take care of the apartment unit. It is legal to make specific inquiries with permission from the applicants. Before you perform a background check, obtain a copy of the driver's license, and a completed and signed application from each adult who will be living in the unit that gives you permission to perform a variety of checks. Employers should be called to verify length of employment and income. Each Social Security number should be checked to ensure that it belongs to the respective applicant. Request a history of prior evictions and ask previous landlords if rent was paid on time. Request bank account information from the applicants' financial institutions. One of the key elements of a background check is the credit history and score. Once you have documentation of the applicants' income and payment records, you will be able to make an informed decision about their suitability as tenants in your apartment building.
Lease Agreement
Although most states don't legally require that you have a written agreement between you and the tenant, it's wise to have one in case there is a misunderstanding about any of the provisions outlined prior to residency. It may be in the form of a month-to-month rental contract or a longer-term lease. Important information to include are the names of all of the occupants living in the unit, with each adult signing in agreement; the term of the contract; the amount of the rent and security deposit; and any other important provision for the building.
Fair Housing
Understand your federal, state and local fair housing laws. Title VIII of the Civil Rights Act of 1968 (also known as the Fair Housing Act) and its amendments make it illegal to refuse occupancy to an applicant based on race, gender, color, religion, national origin, disability, pregnancy or families with children under 18 years of age. Complaints may be filed with the U.S. Department of Housing and Urban Development. Only base tenant approval on tangible and verifiable information found during the screening process. Make your decisions consistently and, if possible, have written criteria that is applied equally to everyone.
Evictions
Eviction of tenants may be performed only if you have legal grounds. Common reasons that justify eviction of a tenant are for not paying the rent or for activity that violates the lease, such as vandalism or other criminal acts. In general, you must give your tenant notice before any adverse action takes place. If you are terminating the lease for cause, some states require a 60-day notice. However, if you are evicting for nonpayment, you must give a three-day "pay or quit" notice that tells the tenant that the entire rent due must be paid in three days or the eviction process will begin. Depending on the laws in your state, you can file an "unlawful detainer" with the court, and your tenant will have anywhere from approximately one to nine weeks before a formal eviction takes place, if approved by the judge.
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