How Landlords Can Ensure Success Going into 2023

How Landlords Can Ensure Success Going into 2023

In the United States the law that governs the landlord-tenant relationship. State and federal governments have specific regulations to safeguard the rights of both parties. There are often new laws and regulations at the beginning of every new year, and 2023 is no exception. You must understand and abide by these regulations to remain profitable. Here, we look at what every landlord should know going into 2023 to maintain the landlord-tenant relationship and abide by the regulations.

Understand landlord-tenant laws 

In 2023, you need to understand every landlord-tenant laws to remain compliant. Commercial and residential rentals are subject to laws comprising state statutes and common law. These laws govern the rights and obligations of landlords of rental properties and tenant rights. They also cover the clauses included in a lease, how to terminate a lease, or how to handle evictions.

These state and local laws protect rights guaranteed by federal law. As a landlord, you must maintain a safe and livable property while adhering to the lease agreement. Usually, a landlord’s and tenant’s legal relationship is founded on contract and property law.

Plan your repairs

Start planning for the New Year if your property needs a new refrigerator or HVAC system, or any other renovations. Tenants can hold you liable for material noncompliance if you don’t make necessary repairs despite a tenant’s reasonable requests. This is because all leases have an implicit guarantee that the rental property is appropriate for intended purposes.

Landlords are required by law to maintain and make repairs to rental properties. You must adhere to the law when you enter a rented property to make repairs. The changes can also command a higher rent with new tenants.

Strengthen your tenant-screening process

Even though the federal eviction ban has been lifted and COVID restrictions eased, dealing with unpaid tenants is still challenging. As a landlord, screen your tenant to avoid late payments. Late payments can be devastating, as they can cause an unpaid mortgage and neglected property upkeep.

Make sure to conduct tenant screening according to the Fair Credit Reporting Act. This law specifies how a landlord may utilize a tenant’s credit history during the tenant screening process. According to the regulation, you must obtain the applicant’s consent before running a credit report. You also must let the applicant know if the credit report’s contents were the reason for a rejection or other adverse action.

Reevaluate your rent

Most projections indicate landlords and property managers may profit over the coming years with rent prices set to rise. There is no federal cap on the yearly rent increase, but there may be a local cap. Verify with your local laws before providing your tenant with a minimum a 30 days notice before the new rent increase occurs at the beginning of the next lease period.

You must wait until the term of any agreement with them has ended before raising your rent. If there is a lease, you can’t raise the rent until the end of the lease term.

According to the Fair Housing Act, you cannot deny a prospective tenant housing or raise rent because of their race, nationality, sex, familial status, religion, or disability.

Stay up to date

In 2023, you must safeguard your rental properties and adhere to landlord-tenant laws. Part of your role is to understand what the law allows and doesn’t allow you to do. While landlords are the property’s owners, tenants have special protections against intimidation, discrimination, arbitrary rent increases, and unjustified evictions. Don’t forget to research and find updated laws that may affect your rental business in the New Year!

If you have questions about local or federal laws, please reach out to your attorney.