Popular TV legal dramas like “Law and Order,” “Boston Legal,” and “Suits” portray courtrooms as exciting places where anything can happen and the good guys always win. But in reality, going to court is a lengthy process that involves time, money, and it is not in the least bit exciting. If you’re new to rental property management Birmingham, you may think that trying to do-it-yourself is the best solution to save money, time, and effort. But in reality, if you fail to properly recognize legal risks, you’ll end up spending more money and time sitting in a courtroom than you ever wanted to. So, how do you minimize your legal risk as a property owner? Here are some common mistakes rental owners make that are easily avoidable.

Failing to Comply with the Americans with Disabilities Act (ADA)

When someone with a disability wants to rent out your home, you have to understand and comply with all the stipulations in the ADA in order to legally protect yourself. 

“A person qualifies as disabled and legally protected if:

• The person has a written record of a disability
• The person experiences a disability either mental or physical that limits his or her ability to perform major life activities
• The person is recognized by other people as having a disability”

When “renting out my home” is your best option, look at your property to see if there is anything that would not allow a tenant with a disability to use or enjoy the property they are renting. Often those with disabilities require the use of an assistance animal or service animal to help them get around and function in their day-to-day activities.

“An assistance animal is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability. An assistance animal is not a pet.”

– from hud.gov

“A service animal is any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. Other species of animals, whether wild or domestic, trained or untrained, are not considered service animals.”

– from adata.org

Even if you have a no-pet policy in place for your rental home, you still have to allow service animals. If you fail to do so, you can be fined and taken to court. Be sure that you are in compliance with all the regulations and requirements listed in the Americans with Disabilities Act before you rent out your house to tenants.

Rental Property Management Birmingham: Not Understanding the Fair Housing Act

You want to be successful in Birmingham rental property management? Learn the details of the Fair Housing Act. 

“The Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. . . The Fair Housing Act prohibits discrimination in housing because of: Race, Color, National Origin, Religion, Sex, Familial Status, and Disability”

– from hud.gov

You can easily violate the Fair Housing Act by choosing to list your property in a certain way to attract a specific crowd, such as young college students. You could also be in violation if you interview potential tenants for your rental and choose to deny someone based on the color of their skin. You may think to yourself, “I’m the one renting out my home, so I should be able to pick and choose who lives in it!” While you have certain rights as the landlord, if you are found to be discriminatory, you’ll be singing a different tune.

Non-Compliance with Habitability Laws 

No one wants to live in a rat-infested home or a house with mold growing all over the walls. Habitability laws are in place to protect tenants from unsafe health conditions and to make you aware as the landlord what kind of standards you’re legally required to uphold. 

“Alabama tenants are legally entitled to rental property that meets basic structural, health, and safety standards and is in good repair. If a landlord fails to take care of important maintenance, such as a leaky roof or a broken heater, you may demand that the landlord take action.”

– from nolo.com

The Alabama Tenants’ Handbook specifies that in order for a place to be livable, the landlord needs to:

• Meet all building and housing codes that affect health and safety.
• Maintain all electrical, plumbing, sanitary, heating, ventilating and air conditioning systems in good working order.
• Supply running cold and hot water.
• Provide a source of heat in the winter. If you pay for heat directly, however, your landlord doesn’t have to pay your bill.
• Provide and maintain garbage containers. 
• Keep common areas clean and safe.
• Let you have peaceful enjoyment of your place.
• Make repairs to keep your place safe and livable.

There are also federal and state regulations on the maintenance of smoke alarms and carbon monoxide detectors. Learn what these are and be sure your tenants have working alarms and detectors in case of an emergency. In rental property management Birmingham, if you’re not sure if your rental home meets the Alabama habitability laws, then get an inspection from a licensed home inspector who can point out any potential issues, including structural or foundational problems with the property. 

Another Big Mistake: Hiring an Unlicensed Maintenance Company for Repairs

During the time you are renting out your home, your tenants may report maintenance issues to you, such as a leaky faucet, a broken refrigerator, or an inefficient A/C unit. When you want to correct issues such as these, it’s imperative that you hire a licensed, experienced maintenance company to properly perform the repairs. Failing to do so can land you in court when someone is hurt by a shoddy repair job.

You should also have a dedicated 24-hour contact system in place so tenants can reach you any time of the day or night to make you aware of a maintenance emergency. The longer an emergency is ignored, the bigger the problem can become. You should also have a way of documenting when the tenant called you, how many times, etc. Not keeping a record of all your correspondence with a tenant can get you in big trouble when it becomes a he said/she said battle in court.

Other Legal Mistakes to Avoid

There are many other federal, state, local, and industry laws and regulations property owners must know and abide by when renting out my home in order to avoid litigation, liability, and expense. A few others to watch out for:

• Handling rental property management activities that should only be conducted by a licensed real estate agent
• Violating trust accounting laws by treating security deposits and funds casually and inappropriately
• Neglecting the documentation of tenant correspondence
• Not keeping record of accounting, expenses, notices, complaints and leases
• Disrespecting personal tenant information by not keeping it confidential

If you’re a first-time property owner and all of the laws and regulations seem like a lot to digest, you’re in the same boat as many other landlords. That’s why rental property management Birmingham is made easier with Specialized Property Management Birmingham.

How We Protect You Legally at SPM Birmingham

As experts in the property management industry, we make it our business to keep up with all federal, state, and local laws. We are committed to keeping you in compliance so you don’t have to worry about going to court. We have an experienced in-house legal team that works diligently to stay current on all property management laws and regulations, including:

• State property code laws
• Local city ordinances
• Fair Housing Act & ADA
• Department of Real Estate
• Tenant screening regulations
• Real estate contract law on residential leases
• Trust and escrow laws on security deposits and monthly rental payments
• Tenant and landlord maintenance laws
• Collection and eviction laws
• Property inspection regulations

When you are renting out my home, you shouldn’t feel constantly stressed about legal pitfalls. With our knowledgeable team on your side, we promise to reduce your risk and financial liability. Here’s what one satisfied customer had to say about working with us:

“Specialized Property Management brings peace of mind and tremendous value to managing my investment homes, which included a townhome in a single-family home. I’ve used them for over 7 years and left them to manage my property while living out-of-state, and their level of professionalism, web tools, and dependable customer care makes things easy on both me as the homeowner and my tenants. Management team also delivers the highest quality of seamless care and responsiveness for maintenance and leasing needs. They also bring quality tenants that stay for years! Thank you for your exceptional support, Specialized Property Management!”

-LP, Specialized Client

With over 30 years of experience in rental property management Birmingham, you can count on SPM to have your back and protect you legally. Call Specialized Property Management Birmingham today to find out how much time and money you can save by working with us! Call us at 205-417-1475!