Among all the terms in real estate, “landlord” is one of the most common ones. Even though it’s a widely used phrase, many people have misconceptions about what this role entails. What is a landlord, exactly? What does a landlord do? What are some of the biggest landlord responsibilities? Let’s answer those questions below.
Content of the Article
- What Is a Landlord?
- What Does a Landlord Do?
- Legal Obligations of a Landlord
- Pros and Challenges of Being a Landlord
What Is a Landlord?
A landlord is someone who owns property and leases it to tenants in exchange for rent. While this might sound simple at first, it can be a complicated occupation, especially when you consider a landlord’s responsibilities. However, to ease the burden, you can partner with property management companies in Baltimore to handle the complexities of managing your properties.
What Does a Landlord Do?
Now that we’ve defined what a landlord is, let’s go into some of the biggest landlord responsibilities. Note that there are a lot of them–this section just gets into some of the top ones. To start with, here’s a few things landlords can expect in their roles:
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Maintaining the Property
Maintaining a property is one of the core landlord responsibilities. They’re expected to perform regular upkeep, make timely repairs, and keep the property in top shape. By doing this, they can preserve the property’s value and make it appealing to prospective tenants. In addition, regular maintenance can minimize future repair costs. It’s a win-win for landlords.
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Handling Tenants
Keeping tenants is just as important as finding them. Once you’ve attracted qualified tenants, you must figure out how to manage relationships with them. This means ensuring clear communication, addressing maintenance requests promptly, and enforcing the terms of the lease. By maintaining a positive relationship with tenants, you can achieve long-term tenancies and tenant satisfaction.
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Marketing
Landlord responsibilities go beyond just maintaining the property and handling tenants. You also need to ensure your property is visible to prospective renters. For example, you must develop eye-catching listings, learn how to navigate social media algorithms, and more. Truly effective marketing helps you reach a larger pool of potential tenants, reduces vacancies, and maintains the profitability of your property.
Legal Obligations of a Landlord
Landlords’ responsibilities cross over to legal obligations. Landlords must comply with legal requirements to protect tenant rights and housing laws. Keep reading to learn more:
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Providing a Safe and Habitable Living Space
It is a landlord’s legal responsibility to ensure their rental property satisfies federal, state, and local standards of habitability. For instance, they should provide working plumbing, electrical systems, heating, and general compliance with health and safety codes.
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Respecting Tenant Privacy
Sometimes, the landlord may need to enter the rental property, like for routine check-ups or addressing maintenance requests. However, they must respect the tenant’s privacy by providing proper notice before entering. Like many other required notices landlords must make, the notice period varies by jurisdiction. Typically, though, it is 24-48 hours, except in emergencies. Additionally, landlords must handle tenants’ sensitive data in accordance with these laws.
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Adhering to Fair Housing Laws
Fair Housing Laws protect people’s access to equal housing opportunities regardless of race, color, religion, sex, disability, familial status, or national origin. As such, landlords must not discriminate against tenants (or prospective tenants) on the basis of these protected classes. This applies to all parts of the tenancy process, from marketing to move-outs.
On a related note, many state and local areas have their own protected classes, as well as other Fair Housing Laws that landlords must abide by. Also, while people with criminal histories are not necessarily part of a protected class, they still have protections under Fair Housing and other laws. In addition to all that, there are other federal laws, like the Fair Criminal Screening for Housing Act. So, that is something to keep in mind.
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Complying with Rent Control and Rent Increase Regulations
In certain jurisdictions, the government sets a limit on the amount that landlords can charge. That said, landlords must follow legal guidelines when setting rental prices and making increases. They are also required to provide adequate notice before raising rent. Also, rent increases may be subject to regulations.
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Leasing Agreements
A leasing agreement is a legally binding contract between the landlord and the tenant. It outlines the tenancy terms, such as the rental rate, payment schedule, tenancy duration, and each party’s responsibilities. Essentially, it’s meant to make each party’s rights and duties explicitly clear. By making a comprehensive lease agreement, you can help avoid disagreements and offer legal protection if problems occur during the tenancy.
Pros and Challenges of Being a Landlord
Becoming a landlord can be one of the best ventures to embark on. It offers a number of benefits, like financial growth through steady and passive income. Additionally, you get to be your own boss, which is an appealing option. However, it is not without challenges, such as time consumption and tenant issues. Let’s go through them in detail:
Pros
- Steady Income
One of the greatest advantages of being a landlord is the steady income you can get when your units are occupied. When you have this, you can help cover a mortgage and other expenses associated with your property. Furthermore, you can use the funds on groceries, utilities, and other life expenses.
- Property Appreciation
Another big reason it may be the ideal time for prospective landlords to invest in real estate is the opportunity for property appreciation. Property appreciation refers to the tendency of real estate to increase in value over time. Because of that tendency, becoming a landlord can yield substantial profit. Additionally, a landlord can influence the appreciation of their properties by simply upgrading them and making them appealing to potential renters.
- Builds Equity
Another advantage of being a landlord is that it can help you build equity in your property. Assuming you purchased your rental property with a mortgage, your rental income can help you pay it off. Then, you can increase your equity over time.
- Flexibility
Landlords can control their business virtually however they choose. They have autonomy over key decisions, like which rental rates to set, which properties and areas to invest in, and which property improvements to choose. This way, you can shape your business to match your vision.
Challenges
- It is Time-Consuming
Managing rental properties requires a lot of time and attention. There are various responsibilities, such as screening tenants, handling repairs, and addressing renters’ issues, among others. Nevertheless, you can hire a property management company to manage the investment on your behalf.
- Tenant Issues
Handling tenants comes with its own set of challenges, ranging from late payments and eviction processes to dealing with difficult tenants. These issues can become emotionally and financially draining, especially if they escalate into legal matters. Fortunately, you can alleviate this burden by hiring a property manager to handle these responsibilities on your behalf.
- Market Changes
The real estate market can sometimes be volatile. This can lead to various rough patches, like times your location is less popular than usual. On the other side of the coin, these conditions are typically not permanent.
Struggling With Landlord Responsibilities? Get Professional Help!
Now that we’ve defined what a landlord is, what they do, and their responsibilities, it’s clear that being a landlord has big pluses and minuses. It can provide you with financial stability, property appreciation, and flexibility. At the same time, it requires a significant investment of time and effort. However, with the right support, it doesn’t have to be so stressful. You can establish yourself in real estate with less strings attached.
Bay Property Management Group is your trusted partner in accomplishing a better balance. If you need reliable management for your existing property, we’re here to help. We can handle your marketing, tenant screening, maintenance services, tenant care, and more. Contact us today for any assistance you need!
