Landlord
Legal contracts, taxes, and property management.
Being a rental property owner in the United States is a great opportunity, but it also carries important legal responsibilities. In this guide you will find, step by step, everything you need to manage your property legally, protect your investment, and keep a good relationship with your tenants.
How to write a solid lease agreement
- Full names of all adult tenants and the exact address of the property.
- Rent amount, due date, payment method, and the late fee.
- Lease term (month-to-month or fixed) and renewal conditions.
- Security deposit amount and the conditions for its return.
- Clear rules: pets, number of occupants, subletting, and who pays utilities.
- Maintenance responsibilities of both the tenant and the landlord.
How to screen and choose a good tenant
- Use a written rental application with employment and income details.
- Verify income: as a rule of thumb, rent should not exceed 30% of their income.
- Ask for references from previous landlords and confirm them by phone.
- With written permission, check credit history and background.
- Apply the same criteria to ALL applicants to avoid discrimination.
Handling the security deposit correctly
- Many states limit the deposit to 1 or 2 months of rent: check your state law.
- Some states require keeping the deposit in a separate bank account.
- Do a photo inventory of the unit's condition before handing over the keys.
- When the lease ends, return the deposit within your state's legal deadline.
- If you withhold part, provide a written, itemized list of deductions with receipts.
The legal eviction process (step by step)
- Never do a "self-help" eviction: changing locks or cutting utilities is ILLEGAL.
- First deliver a written notice with the timeframe your state requires.
- If the tenant does not comply, file the eviction lawsuit in court.
- Only a judge and the sheriff can order and carry out the eviction.
- Keep copies of all notices, payments, and communications as evidence.
Rental taxes and deductions
- You must report rental income on your annual tax return.
- You can deduct expenses: repairs, insurance, mortgage interest, and depreciation.
- Keep all receipts and maintain an orderly record of income and expenses.
- Consider consulting an accountant (CPA) to take advantage of all deductions.
Maintenance and legal responsibilities
- You must keep the home habitable: water, heat, electricity, and a safe structure.
- Respond to repair requests quickly and in writing.
- Notify the tenant (usually 24 hours ahead) before entering the property.
- Do periodic inspections and document everything with photos and dates.
Fair Housing Act: what you may NOT do
Federal law (the Fair Housing Act) prohibits rejecting, charging differently, or setting different rules for a tenant because of their race, color, national origin, religion, sex, disability, or for having children. Violating this law can cost you very high fines. Treat all applicants by the same criteria.
Know your obligations (HUD)Frequently asked questions from landlords
Can I refuse to rent to someone because of their origin or for having children?
No. The federal Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, disability, or familial status. You must apply the same criteria to all applicants.
How much can I charge for a security deposit?
It depends on your state. Many states limit it to 1 or 2 months of rent and require returning it within a specific timeframe. Check your state page for the exact rules.
Can I remove a non-paying tenant by changing the lock?
No, that is illegal in every state. The only legal path is the court eviction process. Changing locks, removing doors, or cutting utilities can make YOU liable for fines and damages.
Do I need a written contract?
Although some verbal agreements are valid, a written contract is always better. It protects you legally and makes the rules clear for both parties. You can download templates in our Documents section.
Key tip
Put everything in writing. Contracts, notices, and communications in writing are your best legal protection as a landlord.