Some common mistakes made by first-time landlords
Bad landlords are getting a lot of press lately and tenants are fighting back. This recent article in the New York Times (http://nyti.ms/ibh8BO) explains how many cities are working to make sure landlords follow housing laws. Working with a Louisiana property management firm means that you will avoid some of the common mistakes made by solo or first time landlords. Here are some of the ways that Baton Rouge property management firms like OneProp help their landlords stay away from bad publicity.
- Security Deposits. Believe it or not, collecting a security deposit can be a complicated task. Many solo property investors getting into condo management without one of the Baton Rouge Louisiana condo management firms may not know that security deposits are regulated at the state level. Many landlords working without the help of a Louisiana property management firm believe they can simply take a tenants security deposit if there is any damage incurred to the rental property. This is not true. Under Louisiana law a landlord must send a tenant an itemized list of all deductions from their security deposit within 30 days of the rental agreement or lease terminating. As a landlord working with one of the Baton Rouge property management firms like OneProp, you can work according to the law when it comes to security deposits.
- Disclosing lead based paint. Many property investors are buying older condominiums and apartments, unaware of the special circumstances under which they must be rented. Property investors working with a Baton Rouge Louisiana condo management firm like OneProp will know that environmental dangers like lead based paint must be disclosed to a tenant before a lease or rental agreement is signed. So far, failure to disclose lead based paint has cost property investors, homeowners and real estate agents over $400,000! Working with a condo management professional at OneProp means that you can work within the guidelines of all environmental hazard disclosure laws.
- Leases and Rental Agreements. Property investors working without a Louisiana property management firm may not know the difference between a lease and a rental agreement and how it can impact them financially. According to Louisiana law, a lease legally binds a tenant and landlord or condo management professional to the terms of an agreement over a certain period of time not to exceed ninety-nine years. A rental agreement is presumed to be month-to-month and may be terminated by the landlord or Baton Rouge Louisiana condo management professional ten days before the end of the month. Discussing the benefits of each type of agreement with one of the Baton Rouge property management firms can help you decide which is better for your specific investment property.
As a landlord, you must make sure you are working within the bound of all state and local laws when renting your investment property. Owning an investment property can bring great financial rewards, but it must be done according to the letter of the law. Make sure you are working with a OneProp property manager to respect your rights as a landlord and those of your tenants as well.
