Landlord-Tenant Laws - Understanding the Basics of Tenant Rights

 Posted on December 00, 0000 in Landlord-Tenant Dispute

Renting out residential property out can give you a steady stream of income and increase your ability to build your wealth or a nest egg for your retirement. There are some risks involved, however.

Tenants may default on their rent or cause damage to the property. You could even be subject to a costly lawsuit if you violate the landlord-tenant laws imposed by local, state, or federal municipalities. Thankfully, by being educated and ensuring you have the right protections in place, you can decrease your risk of such issues. Learn more in the following sections.

Federal Landlord-Tenant Laws 

While most landlord-tenant laws are imposed at the state level, the federal government oversees two of the most basic and well-known ones:

The Fair Housing Credit Act - Restricts landlords from discriminating tenants based on their race, national origin, color, religion, sexual orientation or status, or status of disability. It is important to note that this law extends beyond the rental criteria or approval process; it also restricts landlords from making discriminatory remarks in their marketing or advertising; and

The Fair Credit Reporting Act - Dictates how a landlord can use the information that they may obtain during the rental screening process. Landlords must also gain the approval of a prospective tenant before obtaining their information for the purpose of checking their credit or background history. If a tenant is declined because of their credit or background, the landlord must also inform of the reasoning behind it, or give them a way to obtain information regarding the reason they were declined.

Violation of either of these acts can result in legal action against the landlord, which may threaten their business.

State Landlord-Tenant Laws 

Each state imposes their own protections for tenants, so if you have properties in multiple states, it is important to become familiar with each state's landlord-tenant laws. Thankfully, though, these laws generally pertain to practical issues, such as the return of a deposit or the amount of time you must give before evicting a tenant for non-payment of their rent. Most states also have habitat condition laws, which require you to maintain the property so that it remains safe and livable for current and future tenants.

Protecting Your Real Estate Business from Loss and Lawsuits 

State and federal landlord-tenant laws are complex and nuanced matters, and since failure to comply can cost you greatly - both in money and reputation - it is important to have legal assistance and protection on your side. Contact Lindell & Tessitore, P.C., where your financial interests are a top priority. Our Naperville residential real estate lawyers are some of the most trusted in the state. We can even help you in the middle of a dispute. Call 630-778-3818 and schedule a personaized consultation with our offices today.

Sources:

https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-credit-reporting-act

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2201&ChapterID=62