How the Landlord Tenant Act Effects Property Investors

As a property investor it very important for you to understand the landlord Tenant Act. It will save you time, effort and money if you take the trouble of reading the act and understanding it.

While the landlord tenant act does indeed protect people who rent their home from unscrupulous landlords, there are times when you as an investor will feel that it doesn't live up to expectations. There is a perception that the act doesn't protect property owners from problem renters.

Laws in different countries and states may vary slightly but as general rule they are more sympathetic towards a residential tenant when compared to a commercial tenant. This is the reason why I started out as a commercial real estate investor as the laws in India in early eighties were loaded heavily in favor of the residential tenant.

In the developed western countries the laws are more balanced. However even here the act is designed to give tenants more rights when they rent a housing unit. This is to prevent a number of different things from happening as the law assumes that the tenants may not have the same level of knowledge as the landlords.

The landlord tenant act prevents discrimination against renting to a person based on their race, religion, sexual preferences etc. It also prevents landlords from evicting tenants for no reason, as well as evicting them with just a verbal statement. There is a due process of law involved, and has to be done with written statements.

Landlords can't turn off tenant's utilities, and they can sue you if you try and force them out. It also prevents landlords from coming into the house of a tenant any time they feel like it. You are required to give at least 24 to 48 hour notice.

The tenants have the right to stay in their home and it is for the landlords to take up the matter with tenancy tribunal in case of a default on part of the tenant before they can be evicted.

The landlord tenant act also protects the landlords. Each state has their own rules and regulations, and in many cases, judges tend to side with landlords more than tenants. It is important that you familiarize yourself with the fine print in the rent agreement form, and abide by all the rules to the letter.

If there is a problem, or a repair that needs to be done, the tenant will require to submit these in writing or it is not legally binding. You as a landlord are expected to carry out the repairs in reasonable time and expeditiously when they effect the safety of the residents.

Before signing in a tenant it is important that you do a walk through the property with him and register the condition of the property. You should also make a list of all the landlord chattels and take the signature of the tenants. It is also prudent to take pictures showing the condition of the property so that there is no dispute later on.

For property owners, the landlord tenant act can be a double edged sword. For the most part it works great, but there are many cases where a tenant can take advantage of their rights. Because it takes a process to evict a tenant, it can be months before you are able to get a trouble renter out of your property. In that time, they can pretty much do just about anything they want, including trashing the place. This actually happens more often than most people think, and the bills for cleaning and fixing the property can well outweigh any deposit.

The landlord tenant act works quite well for both the parties. It can protect both the tenant, as well as the landlord, but there are some things that a owner should do in order to make sure their rights are protected as well.

One of them is to make sure that your rules and regulations are clearly written in the rental agreement. Everything should be in clear detail, and it should also be clear what the consequences are if the tenant violates the lease. It should be in plain English, and no vague references of any kind.

You should also add any policies about smoking, pets, and kids, so that there is no confusion later. It may be a good idea to have some landlord tenant act brochures on hand to give to your renters.

There is no excuse in law for not being conversant with its provisions. When I started out as property investor I have had occasions when tenants knew more about the Landlord Tenant Act than me and in variably I found myself in trouble and had to suffer financial losses. The moment I took the trouble to become conversant with the provisions of the law most of my problems vanished and I became a more proficient landlord.

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