14 Rental Property Rules You’re Probably Breaking Right Now

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Rental property can be a great investment, but it also involves more than collecting rent. The truth is, many landlords—especially new ones—may not know they’re breaking some important rules along the way. As much as landlords want to stay on top of things, there’s always a bit of a learning curve.

While some are legal requirements, some are just best practices to help avoid disputes, fines and a bad reputation. Here’s a rundown of rental property rules that are often overlooked but can make a big difference for you and your tenants to help keep you on the straight and narrow.

Regular Property Inspections

A Realtor Welcoming a Client into the House — Photo Credit: RDNE Stock project/Pexels

It may seem like second nature to inspect your rental property, but there’s a right way and a wrong way to do it. It’s not ideal for a long term relationship, as frequent inspections can make tenants feel like you’re hovering. Never inspecting can also mean you never see the damage. The rule of thumb is to have inspections no more than six months apart, with proper notice. Respect your tenants’ space always, give them a heads up, and keep to a reasonable inspection schedule.

Security Deposit Mismanagement

Security deposits are a common area of contention and many landlords are unaware of how to handle them. State laws usually have clear guidelines on whether it’s failing to return them in a timely manner, or not keeping them in a separate account. Find out the particular rules in your area: how much you can charge, where you store the deposit and how to do itemized deductions. This is one area where you don’t want to take any chances as mishandled deposits can result in fines or even lawsuits.

Failure to Provide Contact Information

Not every landlord gives tenants a reliable way to reach them. What if a tenant’s pipe bursts and they have no idea how to contact you. In an emergency, make sure tenants know the ways they can reach you, or the person on our team whom you’ve designated as your property manager. If you’re using a management company, your tenants should have your phone number (or an email address) to call you if they need to.

Ignoring Maintenance Requests

If you don’t take care of maintenance requests, you will have bigger headaches down the road. Ignoring requests can make your tenants frustrated, and depending on your state, it could also violate “habitability” requirements. This includes things such as working plumbing, heating and electricity. When work is required in regards to maintenance of the various parts of the property, handling such requests quickly and in a timely way will show tenants that you are committed to making the property a safe and comfortable home for them and those who live with them.

Overlooking Rent Receipts

If your tenant wants a receipt, you have to give them one. Many landlords think that receipts aren’t necessary, but receipts can help clear up confusion about payments and show transparency. It’s also handy for tenants who need proof of payment for their records. It is simple and organized if you consider an electronic system to track and document rent payments.

Changing Locks Without Notice

Changing locks between tenants is a good security measure, but changing locks during a lease can prove tricky. If for any reason you decide to change the locks, notify your tenant and give them a new key right away. If you change locks without letting the tenant know, you could be liable for wrongful eviction, which could cause you some legal hot water.

When Not Screening Tenants Properly

Real Estate Agent in Black Coat Discussing an Ownership Agreement to a Couple Inside the Office — Photo credit: RDNE Stock project/Pexels

Landlords who cut corners on tenant screening can come to regret it. Your chance to confirm that tenants are responsible, reliable, and financially stable is screening. If you skip this step or you do a quick check without a formal process, you may have some problems later on. We run credit and background checks, verify income and get references. In the long run, it’s worth it to decrease the probability of late payments or property damage.

Not Keeping Up With Local Laws

Rentals laws can vary greatly, so it’s important to know what the laws are for your area. Even seasoned landlords can get out of compliance if they don’t keep up with rent control ordinances and occupancy limits. Consult with a local expert, subscribe to landlord newsletters, attend local landlord workshops. Staying current is more than just being legally smart, it builds trust with tenants.

Entering the Property Without Proper Notice

Telltale Signs You're Dealing With a Master Manipulator — Image Credit: Andrea Piacquadio/Pexels

It might be your property but your tenant’s privacy is protected by law. You generally have to give at least 24 hours’ notice (check your state’s requirements, this can vary) even if you just want to check a leaky faucet or show the place to a potential renter. And in some states, unannounced visits can make tenants feel uncomfortable, or even result in penalties for violating tenants’ privacy rights.

Leasing Practices That Discriminate

According to HUD, housing discrimination is illegal, and even well meaning landlords can accidentally cross the line. Fair housing laws prohibit discrimination based on race, religion, gender, national origin, family status and disability, among other things. Advertising, screening and selecting tenants all need to be done with these rules in mind.

Not Documenting Condition Before Move In

A Real Estate Agent Discussing a Document to a Man — Image Credit: MART PRODUCTION/ Pexels

A rookie mistake that can lead to disputes later is failing to document your property’s condition before a new tenant moves in. Get your tenant to take photos, make detailed notes, and go through a checklist with you at move in. This will be your starting point for any damage claims at move out. Good documentation can help prevent “he said, she said” arguments, and can make security deposit returns a little less painful.

Smoke and Carbon Monoxide Detectors – Forgetting About Them

Most places have a law that smoke and carbon monoxide detectors are required. It can save lives and help you avoid liability if they are installed and working properly. Replace batteries if they are exhausted and test them as often as possible. Also, replace the detectors every 10 years, as advised by the National Fire Chiefs Council. Document your maintenance efforts. It’s one small step that goes a long way toward safety and peace of mind.

Enforcing Unreasonable Late Fees

The late fees should be reasonable and are acceptable under local laws. High fees may deter late payments, but some landlords believe that too many fees will generate legal problems and unhappy tenants. Your local regulations will usually put a cap on how much you can charge, so check there first. A good late fee shows you’re willing to work with tenants without being punitive.

Specific Pet Restrictions Without specifics

Global Hygiene Habits That Americans Find Unsanitary — Photo Credit: Pikwizard

If you have a pet policy, make sure it’s crystal clear. Misunderstandings are inevitable around vague or overly strict pet restrictions, and tenants will become frustrated if they’re not prepared for the “no pets” clause or pet fee. Instead, write any pet related rules into the lease, including fees, breed restrictions, and weight limits, so that tenants know exactly what is and isn’t allowed.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.