Laurence Harmon

Being a landlord certainly sounds easy. All you have to do is line up responsible residents, maintain the property, and count your money as the rent rolls in, right? Actually, no. Owning and leasing residential real estate requires that you comply with a host of federal, state, and local laws. Certain residents may complicate your life by taking legal action against you or forcing you to take legal action against them.

Landlord's Legal Kit For Dummies has more than 150 forms that can help make being a landlord easier. Following the law and making sure you're complying with legal developments can improve the odds of staying out of trouble and increase your probability of success with your income-producing real estate investments.

Full compliance with fair housing laws doesn’t give landlords immunity from prosecution. Anyone can file a claim of housing discrimination against you, and you can be hauled into court over even frivolous lawsuits. The following information clarifies the legal process, so you know what to expect if someone files a housing discrimination claim against you.

As a landlord of residential property, you probably don’t need to be very concerned about hazardous wastes. This is more of a concern for commercial property owners who rent to businesses that need to dispose of hazardous wastes, such as dry cleaners, auto repair shops, print shops, and manufacturing plants. However, as a residential landlord, you still need to be concerned about residents pouring used car oil down sewers or drains, tossing old batteries in trash receptacles, or storing hazardous materials in their apartment that could leak or otherwise affect other residents.

Dozens of federal, state, and local laws govern the residential rental industry and the landlord-resident relationship. All of these laws are important. The following calls to your attention ten important laws for you to know and follow when you're a landlord. The Fair Housing Act The Fair Housing Act prohibits you from discriminating against applicants or residents based on any of the seven protected classes: Race Color Sex National origin Religion Handicap Family status The Fair Housing Act establishes only the minimum protections.

Residents often need or want to take on a new roommate, sublet the rental unit, or assign their rental contract to someone else. To deal with these types of situations, consider this advice when you’re a landlord: Require that all prospective roommates be screened and added to the rental contract. Prohibit residents from subletting their rental units.

One of the most common sources of landlord-resident disputes is the return of security deposits. To prevent confusion and disagreements, make sure you establish security deposit policies and procedures that address the following: Amount: Usually no more than the equivalent of one- or two-month's rent. Some states and municipalities have specific limits.

Careful screening can help you avoid legal issues, because you have less need to take legal action against good residents, and they're less likely to file legal claims against you. To screen applicants, take the following steps: Have the person complete and submit an application. Order a credit and background report for the prospective resident.