Renting Legalities: What to Know

Legalities of Renting - Complete Controller

Renting a place to live involves various legal issues and numerous factors. That said, we need to understand the perspective of landlords and renters. We must consider their needs and requirements, keep track of all financial transactions we make, and abide by the laws of the state where we hope to reside.

Here are some legalities you should consider when you look forward to renting a place to live.ADP. Payroll – HR – Benefits

The Terms of a Lease

The lease terms determine how often the renter will pay the requested rent and define the period the tenant will be responsible for paying the rent. There is a difference between leases and rentals. Leases often last a year, with the rent paid every month. Generally, rentals are paid every month or even on a week-to-week basis.

The Obligations and Rights

According to state law, property owners can act against the tenant for not paying rent. The lease is a formal agreement that binds the tenants and the property owner together.

The terms of a lease can be verbal and may vary. For example, a tenant can agree to mow the lawn in exchange for paying a portion of the rent. If the tenant fails to maintain the yard, the property owner can take action and request payment.

CorpNet. Start A New Business NowSecurity Deposits

Even without a written lease, property owners can charge a security deposit. The security deposit covers any damages in the household or if the tenant fails to pay the rent. For example, the landlord can charge a maximum deposit equal to two months’ rent, according to the law in California.

Security deposits must be returned to the customer after the rental period. Any legal deductions are also returned to the legal tenant around 21 days after the tenant moves out.

Provisions Related to Lease

A lease or a rental agreement typically includes the following:

  • Renewal options
  • Whether the tenant is subject to the fee or not
  • Rules regarding pets
  • 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 possible that the landlord may not mention that he can enter the household premises without any prior notice or agree that the renter must pay for any damages that take place regardless of the fault.

Roommate Arrangements

The legal rights of the roommate of the renter 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 verbally agree on splitting the rent, including the supply of the utilities and bills that come every month. Therefore, a verbal contract is formed between the tenant and the roommate, which can be used against the roommate if he violates it.

Cubicle to Cloud virtual businessA Checklist of Issues to Track Before Renting a Place

  • The lease will designate which party will be responsible for maintenance activities, such as lawn mowing or maintaining the yard.
  • The tenants’ agreement to comply with local laws on noise, nuisance, and enjoyment of the surrounding properties is a crucial consideration.
  • The lease does not allow the tenants to operate a business within the household premises.
  • Soliciting on the premises of the property is prohibited.
  • Loitering is prohibited on the property.

Always make sure that you check the state laws wherever you plan to rent a house and only make a payment once you are delighted with the landlord and the household. Record the rent payments, the bills, and all the money spent on the house in bookkeeping records so that you have sufficient proof of legal issues. 

Complete Controller. America’s Bookkeeping ExpertsAbout 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.ADP. Payroll – HR – Benefits