Landlord Liability Issues to Look Out For

Liability and risk come with any investment you made, including real estate investments. When you’re renting out a home to tenants, liability can hardly be avoided. 

If you’re prepared for what might happen, you can plan for how to avoid liability as a landlord. Here are some of the most common issues to look out for. 

Landlord Legal Mistakes

There’s a lot of liability in not following the local, state, and federal rental laws that govern your relationship with your tenants. You need to understand fair housing, especially as it pertains to your marketing and screening processes. There are specific rules to follow when it comes to security deposits; how to collect them and when to return them and what you can use them for. 

You’ll need to understand the process of evicting a tenant if rent isn’t paid. Landlords must understand habitability standards and the restrictions on when they can enter an occupied property. 

A legal mistake is an expensive mistake. Avoid this liability by educating yourself on the landlord and tenant laws in Vancouver and throughout Washington State. If you don’t have the time or the willingness to keep up with the laws, work with a local property manager who can keep you compliant. 

Poor Tenant Screening 

There’s a lot of liability in choosing the wrong tenant. You could find yourself chasing down late rent, cleaning up property damage after the tenant moves out, or dealing with lease violations that leave your investment property in danger.

Avoid the liability that comes with bad tenants by screening carefully and consistently. You’re looking for a resident who can be counted on to pay rent on time, take care of your home, respect the terms of the lease agreement, and communicate openly and transparently. 

Deferred and Unreported Maintenance

If you don’t take a preventative and responsive approach to maintenance and repair issues, you put your property at risk. You’ll find that the condition and the value of your investment suffers when you leave repairs unmade. Deferred maintenance is always more expensive and time consuming than routine repairs. Don’t wait for minor issues to become major catastrophes. 

Your tenants are your partners when it comes to maintaining your property. Make sure they understand the process of reporting work that needs to be done. Reinforce your need to know right away when something breaks or needs to be replaced. 

Get on a preventative schedule when it comes to your HVAC system, pest control, plumbing, roofing, and electrical work. Keep an eye on your appliances. When you invest in preventative maintenance, you protect your property, avoid liability, retain tenants, and extend the lifespan of your most expensive systems and functions. 

Weak Lease Agreements 

A strong lease will set you up for a positive rental experience that’s free from unnecessary liability. 

Make sure you have a good one in place. 

A lot of landlords make the mistake of using any lease they find on the internet. You need a lease that’s specific to Washington State, otherwise the lease agreement won’t stand up in court. It won’t be legally enforceable, and that can leave you at a huge disadvantage and with a lot of liability on your plate. 

We recommend running your lease agreement through an attorney who understands landlord and tenant law. You could also get a lease template from a local property manager or an association that serves landlords and tenants.