Managing rental properties isn’t just about finding tenants and collecting rent—it also involves adhering to legal requirements and knowing how to handle evictions when necessary. Legal compliance and eviction procedures are some of the most complex aspects of property management, but landlords who understand their responsibilities can protect themselves from costly legal issues and disputes.
In this blog, we’ll break down what landlords need to know about legal compliance in property management, the eviction process, and best practices for staying on the right side of the law.
Understanding Legal Compliance in Property Management
1. Fair Housing Laws
Best Practices:
- Ensure your rental application and screening criteria comply with fair housing laws.
- Avoid discriminatory language in advertisements (e.g., “No children allowed”).
- Apply the same screening criteria to all applicants.
2. Lease Agreements and Disclosures
Best Practices:
- Use state-approved lease agreements.
- Include all required disclosures.
- Clearly outline tenant and landlord responsibilities.
3. Security Deposit Laws
Most states regulate how security deposits must be handled, including maximum amounts, how they must be stored, and when they must be returned.
Best Practices:
- Store security deposits in a separate account if required by law.
- Provide a written receipt and itemized deductions if any portion is withheld.
- Return the deposit within the timeframe specified by state law.
4. Habitability and Maintenance Requirements
Landlords must ensure that rental properties are safe and habitable, meeting health and safety codes. Common habitability concerns include plumbing issues, heating malfunctions, pest infestations, and structural problems.
Best Practices:
- Respond promptly to maintenance requests.
- Conduct regular property inspections.
- Provide tenants with proper notice before entering the unit (usually 24–48 hours, depending on state law).
5. Rent Control and Rent Increase Laws
Some cities and states impose rent control laws that limit how much landlords can increase rent and how often they can do so. Even in areas without rent control, most states require 30 to 90 days’ notice for rent increases.
Best Practices:
- Research local rent control regulations.
- Provide proper notice before increasing rent.
- Keep rent increases reasonable to maintain tenant retention.
The Eviction Process: A Step-by-Step Guide
Step 1: Establish a Legal Reason for Eviction
- Non-payment of rent – Tenant has failed to pay rent despite notices.
- Lease violations – Tenant has breached the lease agreement (e.g., unauthorized occupants, illegal activities).
- End of lease term – Tenant refuses to leave after their lease has ended.
- Property damage – Significant damage beyond normal wear and tear.
Step 2: Provide the Tenant with Proper Notice
- Pay or Quit Notice (e.g., 3-day or 14-day) – Requires the tenant to pay overdue rent or vacate.
- Cure or Quit Notice – Gives the tenant a chance to fix a lease violation.
- Unconditional Quit Notice – Requires immediate eviction without the chance to correct the issue (used for serious violations, such as illegal activity).
Step 3: File an Eviction Lawsuit (Unlawful Detainer Action)
- Filing a complaint with the local court.
- Paying court fees.
- Serving the tenant with a summons to appear in court.
Step 4: Court Hearing and Judgment
If the case goes to court, both the landlord and tenant will present their arguments. The judge will issue a ruling based on:
- Evidence provided (e.g., lease agreement, payment records, photos of property damage)
- Whether the landlord followed proper procedures.
If the judge rules in the landlord’s favor, the tenant will be given a deadline to vacate (usually 3–7 days). If the tenant refuses to leave, law enforcement may enforce the eviction.
Step 5: Tenant Move-Out and Property Recovery
After the eviction is finalized, landlords should:
- Change the locks and secure the property.
- Inspect the unit for damage.
- Determine security deposit deductions (if applicable).
- Prepare the unit for a new tenant.
Avoiding Evictions Through Proper Management
1. Screen Tenants Thoroughly
A strong screening process can prevent many eviction situations. Look for:
- Good credit history
- Stable income (3x monthly rent is a common benchmark)
- Positive rental references
- No prior evictions or criminal history related to property damage
2. Set Clear Expectations
Clearly communicate lease terms and responsibilities to tenants from the start. Ensure they understand rent payment deadlines, maintenance expectations, and rules for property use.
3. Maintain Open Communication
Many eviction situations arise from misunderstandings or temporary hardships. Keeping an open line of communication can allow for solutions like:
- Payment plans for tenants struggling financially.
- Reminders and grace periods for late rent.
- Early intervention when lease violations occur.
4. Hire a Professional Property Manager
Need help managing your rental property? Contact SJA Property Management to learn how we can handle legal compliance, tenant management, and eviction procedures for you!
