A landlord is a person or organization that leases real estate they own to another individual or organization in exchange for rent. Renters or tenants can be referred to as lessees, and landlords are referred to as lessors.
When it comes to renting, landlords must adhere to specific standards to collect rent and ensure the rental stays up to date with state or county codes.
In most states and cities, a standard called the implied warranty of habitability requires that a landlord must provide a rental unit that’s safe and livable for their tenant.
So, what exactly is considered habitable, and what responsibilities fall on the landlord versus the tenant? We’ll discuss the ups and downs of being a landlord, including the pros, cons, and responsibilities.
Landlord Responsibilities
So, what is a landlord? A landlord allows a person or organization to lease their property. Whether or not the landlord chooses to rent out to a person or organization is up to them; however, the responsibilities tend to stay the same.
Rental budgeting
A landlord’s initial budget includes the purchase of the rental property, property taxes, cost of maintenance, and any future expenses. By future expenses, I mean things like a new roof or windows.
For a rental property budget, landlords tend to leave some wiggle room just in case anything pops up, like an eviction or unpaid rent.
Like any business, it’s important to keep track of your expenses, so that come tax time, you can take full advantage of any incentives.
Lease agreements
Each state has its own set of rules related to a lease or rental agreement. These rules include limits on security deposit amounts and any explanations for discrimination against tenants. As a landlord, you must have the necessary precautions in place.
Related: How to Make a Lease Agreement
For landlords just starting out, it’s easy to find a lease agreement template online to customize. However, you may want to run your customized…