Renting involves dealing with various legal issues. With that said, we must consider who we are dealing with, keep check of all financial transactions we make, and go through the state laws that you will be renting in.
Here are some legalities that you should consider whenever you plan to rent.
The terms of a lease
The terms of a lease determine how often the renter will pay the rent alongside defining the tenant’s period for paying the rent. There is a difference between leases and rentals. Leases usually last a year, with the rent spent every month.
Generally, rentals are every month and even week to week occasionally.
The obligations and rights
Property owners have the right, according to state law, to act against a tenant who is not paying the rent. These lease agreements are usually signed and agreed upon and bound by both the tenants and the property owner.
For example, if the tenant fails to keep the lawn in good condition, the property owner can take legal action.
Even in the absence of a written lease, property owners can charge a security deposit. The security deposit covers any damages that may occur in the household or if the tenant fails to pay the rent. According to the law in California, the landlord can charge a maximum deposit equal to the rent for two months. The law can vary from state to state.
Security deposits are to be returned to the tenant after the period of the rent is finished. Any legal deductions return to the legal tenant after around 21 days from the day the tenant moves back.
Provisions related to leasing
A lease or a rental agreement includes the following:
- Renewal options
- Whether the tenant is subject to any fees
- Rules regarding keeping pets or pet deposits.
- The time when the landlord may or may not enter the property.
- Responsibilities related to maintenance.
Some of these provisions may not be enforceable. For instance, it is a possibility that the landlord may not mention that they can enter the premises of the household without any prior notice or agrees that the renter must pay for any damages that take place regardless of the fault.
The legal rights of the roommate differ from the legal rights of the tenant and the property owner. Similarly, like property owners, roommates do not have to engage in written arrangements.
Roommates can have a verbal agreement on splitting the rent, including the supply of the utilities and bills that come every month. Therefore, an oral contract is formed between the tenant and the roommate, who should use against the roommate if he violates it. However, it is always best to get everything in writing on an official contract.
Checklist of damages and issues before renting
The lease will designate which party will be responsible for maintenance activities such as mowing the lawn or maintaining the yard. Tenants agree to abide by local laws related to noise, nuisance, and enjoyment of the surrounding property. The lease may not allow the tenants to operate a business within the household premises. It is customary that a tenant walks through the house before moving in to document prior damages to the property to not charge for them after their lease term.
Always make sure that you check the state laws wherever you plan to rent a house, and never make a payment until you are delighted with the landlord and property. Record rent payments, bills, and all money spent concerning the property in your bookkeeping records so that you have sufficient proof in any case that legal issues arise.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.