Top 5 Legal Mistakes That Can Sink Your Landlord Business

Being a successful landlord requires legal knowledge irrespective of your state or country. Owning a property without any property managing company overseeing it means you own a small business and the law guiding business applies to you as well.

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Managing a rental home requires a lot of patience as you have to deal with tenants of different backgrounds. It also requires experience and knowledge since you would need to be conversant with many things. Knowing your legal rights as a property owner is just as important as knowing your customer’s legal rights.

There are legal mistakes Landlords made that could have serious repercussions, and to avoid that, we will be dishing out the top 5 of those mistakes. 

5 Legal Mistakes That Could Be Detrimental To Your Landlord Business

  1. Asking Discriminating Questions

I think we all are guilty of this, you might term it as being inquisitive, but it is not. Sometimes, as the Landlord, you want to be 100% sure of the occupant you will be handing over your property, but it has limits. 

The federal fair housing act prohibits unnecessary inquisitiveness. Questions about race and color should be totally avoid. We all know the entire world is fighting against racism; asking questions about this can fuel another dispute; you wouldn’t want to appear on national TV as the pioneer of racism in your home country.

Religious tolerance is another thing the federal fair housing act promotes. The federal fair act also listed national origin, gender identity, familial status, and disability, among other insensitive questions to avoid.

Now, don’t get this wrong; you have the legal right to ask questions but only non-discriminatory questions like income, reasons for past evictions, background checks, and job history.

  1. Failing To Provide A Safe Environment

Most people could choose to sleep outside a convenience store till dawn and go about their business as if nothing happened, but for their safety and that of their property, they opt to have a roof over their head. 

As a Landlord, failing to create a safe environment for your occupant. It means you don’t deserve the rent they are paying. It’s a legal mistake, and you could be sued for that. I understand that not many Landlords are conversant with the law governing rental business, so it is necessary to liaise with a property management company like MD2 or MDSquared Property Group to help with the rental business so you can avoid legal mistakes.

  1. Using Generic Lease Form

Reaching an agreement with an occupant means you have decided to give your property out. And then to back that up, a lease form or agreement form has to be issue. But Landlords use an outdate form or a generic form that could be found everywhere on the internet which is not compliant with laws of the country.

  1. Refusing To Make Repairs

In a sane climate, a warranty of habitability should exist, and almost all countries have a law concerning that. A rental unit should provide gas, plumbing, potable water, and electricity, among a few others. If the property remains in a state of disrepair, then the tenant can opt to fix the problem. And deduct the fee from his rent or report the incident to the state building inspector.

  1. Not Refunding Security Deposits

The list of legal mistakes will not be complete without mentioning security deposits. In most cases, Landlords use security deposits wrongly even though most countries’ laws say it must be returned if there is no violation at the tenant’s end.

It is a common practice amongst Landlords not to return security deposits. And this could cause a legal issue where the Landlord will be orders to pay two or three times the amount to the tenant.


It is incumbent on any businessman to know the rule guiding his business. So he doesn’t face the wrath of the law. Property rental is a business since it involves money, a buyer, which will be the tenant/occupant, the seller who is the Landlord, and the house property, which is the commodity.

Faulting any of the laws guiding rental business puts you as the Landlord at risk of facing the wrath of the law. So it is important you team up with property management companies to know the legal mistakes to avoid.

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