By Deirdre Mundorf
Know your rights as a tenant—and limitations as a landlord. While landlords hold a lot of power, there are several things they are not legally allowed to do.
Whether you are looking to rent an apartment or considering buying a rental property, it is essential to know what landlords are and are not allowed to do. Just as landlord rights protect landlords, tenants also have rights. Understanding what a landlord cannot do will protect you from being treated unfairly as a tenant and prevent you from crossing a legal line when renting a property. Read on to learn more about some of the laws that landlords must follow when renting their property. Keep in mind that landlord tenant law provisions can vary by state, so before renting to or from someone, read up on the local landlord and tenant laws in your state.
1. Use Discriminatory Practices
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While landlords may choose to use a tenant screening service, they may not use discrimination as the basis of any decisions regarding current or potential tenants. The Fair Housing Act states that any form of discrimination based on race, disability, color, religion, national origin, gender, sexual orientation, or familial status is illegal. If you feel like your landlord or potential landlord is using discriminatory practices, file a complaint on the HUD website or contact a local advocate in your state.
2. Enter the Property Without Giving Sufficient Notice
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A landlord may own the property, but that does not mean that they are able to enter it any time they wish. Most states have laws in place requiring landlords to provide their tenants with a minimum of 24 hours notice before they enter the property. In some states, they are required to provide written—not even via text or email—notice unless the tenant has agreed to the latter form of communication. Furthermore, landlords may only be allowed to enter a property (after providing sufficient notice) during regular business hours—9 a.m. to 5 p.m., Monday through Friday. Exceptions to this rule include emergencies or if the landlord suspects that the tenant has moved out and left the rental abandoned.
If your landlord has not been providing sufficient notice before entering your rental unit, start by making sure they are aware of the law. If this does not change their behavior, you can report them to the local housing office or even contact the police to file trespassing charges.
3. Evict Tenants Without Following Legal Guidelines
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Landlords have the right to evict tenants. However, there are limits to that right and a landlord is required to follow the proper procedures mandated by their state. In some states, they are required to give 30 days notice (or even more in some places), while other states do not require much, if any, notice to be given to the tenants before eviction can occur. If a landlord evicts a tenant without following their state’s procedures, it is possible that they could face burglary or trespassing charges. Contact your local housing authority immediately if you think your landlord evicted you without following the proper channels.
4. Raise the Rent in the Middle of the Lease Without Justifiable Cause
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Even though most landlords are renting property for income, they are not allowed to simply raise the rent in the middle of the lease to make more money. When you and your landlord signed the lease, you both agreed to the stated rent payments. Unless they have just cause—such as a roommate moving into the property or a new pet joining the household—they cannot simply decide to raise the rent before the lease is up.
5. Deny Requests for Repairs Related to Health or Safety
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While a landlord is not obligated to complete all requested repairs, they are also not allowed to refuse to complete repairs that are necessary for the health or safety of their tenants. If the property has mold, broken utilities, or other serious issues, the landlord will have to address them promptly. If you do not feel like your landlord is taking a concerning issue seriously, seek guidance from your local housing office.
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6. Rent a Room Without a Window
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If you’re considering living with private owners renting a room out, know that one of the rules for renting is that bedrooms must have a window or exterior door. In fact, it is illegal for anyone to rent a room that does not have a window. In order to qualify as a “bedroom” suitable for sleeping, a room must have an egress window or door that will allow the occupant to safely escape in the event of a fire. Homeowners are not allowed to rent out certain parts of their property, and this most certainly includes windowless rooms.
7. Charge Unreasonable Late Fees
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Late rent payments happen, and landlords are allowed to charge late fees. However, while landlord leasing requirements can vary by state, many include limitations on the fees that can be charged for late rental payments and may also specify a grace period for late payments. For example, states such as Maryland, New York, Delaware, Nevada, North Carolina, and Oregon only allow late fees up to 5 percent of the monthly rent. However, several states have no stated limit on the maximum late fee. If you live in one of these states—including Connecticut, Florida, California, Indiana, Colorado, and Louisiana—read your lease closely and do your best to make sure that you are on time with your rent payments to avoid being charged extra.
8. Withhold the Security Deposit Unjustly
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It is unlikely that you’ll find any landlords who do not require a security deposit. The security deposit is designed to protect landlords for both private owner house rentals and larger apartment complexes against damage that tenants cause to the property. Once the tenants move out, landlords can withhold some or all of the security deposit to cover necessary repairs, such as fixing something that was broken by the tenant. What they cannot do is withhold the security deposit to cover normal wear and tear, such as slightly worn carpet or a few scuff marks on the walls or floors.
9. Charge Pet Fees or Deny Housing for Individuals with Service Animals
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Landlords are not required to allow pets in their properties. And, if they decide that they are going to allow individuals with a cat or dog to live in their house, they have the right to charge a pet fee or an additional monthly rent payment. The exception to this, however, is for individuals who have a service animal. According to the U.S. Department of Housing and Urban Development, in nearly all cases, landlords cannot deny housing or refuse to accommodate an individual’s need for a service animal.
10. Raise the Rent in Retaliation of Something the Tenant Did
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If a landlord raises your rent after you made a complaint against them, they are likely breaking state law and the landlord tenant act. These laws are designed to protect tenants against retaliation after taking a legal action against their landlord, such as complaining about unsafe living conditions, following state laws to withhold some or all of the rent for uninhabitable conditions, or coordinating with other tenants to voice your views. Take action if you believe your landlord is raising your rent out of retaliation for something you did. Consider filing a suit in your local small claims court or making a complaint against your landlord to your local housing department.
FAQ About What a Landlord Cannot Do
Learn more about some of the limitations to the power a landlord holds by reading through the frequently asked questions below.
Q. Can a landlord raise rent during a pandemic?
Unless the city or state has put a rent freeze into effect because of the pandemic, landlords are allowed to raise rent.
Q. Can a landlord come on the property without notice?
No, in most states, landlords are required to give sufficient notice (typically 24 hours) before entering a tenant’s property.
Q. Do I need to have landlord insurance if I rent properties?
Landlord insurance is not required when renting a property. However, you may decide that the additional coverage provided by landlord insurance is worth the additional cost.
Q. Can a landlord kick me out?
Landlords have the right to evict tenants who do not follow the agreements set in the lease. However, in most states, they are required to give proper notice before executing an eviction.
Q. Do landlords forbid tenants to bring in animals?
Yes, with the exception of service animals, a landlord has the right to forbid their tenants from having animals in their rental unit.
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2023 was a volatile year for the multifamily industry.
Demand patterns and rent prices returned to a post-pandemic normal, but apartment communities’ operating expenses skyrocketed while nationwide occupancy rates declined.
Additionally, the supply of new units entering the marketplace drove up competition and gave renters more control in choosing where to rent.
Those issues are setting the stage as the industry turns the calendar. How will they impact your communities’ plans to attract, attain and retain residents? Let’s look deeper at the challenges owners and operators face in 2024 and how to overcome them.
Challenge #1: 2024 will be another record-breaking year of new unit deliveries.
According to Yardi Matrix, an additional 500,000+ new units will enter the marketplace in 2024, giving renters the upper hand by having more apartment choices than ever and undeniably impacting your existing communities’ ability to attract new residents.
Solution: Ensure your apartment’s digital marketing presence remains competitive by letting renters see the inside of your units.
The opening of a new apartment community nearby is less threatening when your apartments’ digital marketing presence prioritizes the needs of prospective renters. You’ll stand out in 2024 (and beyond) and make it easier for renters to choose your community when you make it possible for every renter to see the inside of the specific floorplan or unit they’re interested in on your apartment’s website and other online channels.
Challenge #2: Turnover costs are on the rise in 2024.
According to Jay Parsons, rental housing economist at RealPage, turnover costs have more than doubled since the COVID pandemic hit and can “easily exceed one month’s rent” of that unit. Alarmingly, the rising costs do not factor in marketing expenses or vacancy loss.
Solution: Make resident retention a priority by focusing on your renewal strategy.
Your lease renewal strategies in 2024 will be critical as you combat rising operational expenses. Treat renewal pricing as crucially as you would for a new lease and include any concessions, if necessary, such as offering renewal rates below what the current resident is paying.
Additionally, you must provide an excellent resident experience, as that, above anything else, is the best method for ensuring more residents choose to stay.
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Challenge #3: Apartment marketers must generate leads with smaller budgets in 2024.
Many are responding to the increasing expenses of owning and operating a multifamily property by tightening their budgets, which sometimes include marketing and advertising. The fear is that reducing marketing investment could also reduce lead counts.
Solution: Develop the right mix of marketing channels for producing better-qualified leads.
Even though it may feel that you need more marketing tools and higher budgets these days to manage multiple channels, the truth remains that there’s a very typical pattern by which renters discover, engage, and eventually select an apartment. We call it the “Leasing Funnel,” or the mix of apartment marketing channels you can apply that puts your community front and center throughout a prospect’s search.
Following the Leasing Funnel as you establish your multifamily marketing plan for 2024 will make your marketing expenses more efficient and help prospects discover and learn essential information about your community online and feel more comfortable with making the life-impacting choice of where to rent an apartment.
Takeaways
- New Unit Boom: 2024 will see a record influx of new apartments, increasing competition and requiring stronger digital marketing with floorplan-specific visual content showcasing the inside of your units to stand out.
- Rising Turnover Costs: Combat skyrocketing turnover costs by prioritizing resident retention through competitive renewal rates and an excellent resident experience.
- Smaller Marketing Budgets: Optimize marketing efforts with the “Leasing Funnel” strategy, focusing on the right mix of channels to attract better-qualified leads while maximizing efficiency and return on investment.
Source: RentVision
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By Krista Reuther
Are you new to the world of renting? Are you a landlord looking to diversify your portfolio? Or are you just curious about mid-term rentals?
No matter why you’re here, we’re glad you found us! We’ve put together this guide as an overview of everything you need to know about medium-term rentals.
In this blog, we’ll cover everything from what a mid-term rental is, how to go about their lease agreements, and who uses them. We’ll also talk about the pros and cons of managing mid-term rentals. Let’s dive in!
Table of Contents
- What Is a Mid-Term Rental?
- Who Uses Mid-Term Rentals?
- What You Need in a Mid-Term Lease Agreement
- What Are the Pros of Managing a Mid-Term Rental?
- What Are the Cons of Managing a Mid-term Rental?
- Conclusion
What Is a Mid-Term Rental?
You’ve probably heard of short-term and long-term rentals, but what exactly is a mid-term (or medium-term) rental? The answer is in the name: a mid-term lease agreement is a rental agreement between a property owner and tenant that lasts for less than one year but usually more than one month.
Ordinarily, short-term rentals last for less than one month (and are sometimes referred to as vacation rentals), while long-term rentals are typically year-long leases. Medium-term rentals fall into that sweet spot of at least one month but average three to nine months.
Mid-term rentals are ideal for landlords in highly populated cities or college towns. In addition to populous metropolises, medium-term rentals work well in areas where seasonal work is common, such as near agricultural centers. They’re also great for prospective landlords who want to get into the rental market but aren’t ready to have a long-term commitment.
Who Uses Mid-Term Rentals?
If you’re pursuing real estate investing, it makes sense that you’d want to maximize your return on investment. Mid-term rentals can offer a surprising return on investment despite frequent turnover. Mid-term rental demand is growing, especially with the post-pandemic rise in remote work creating the profile of a “digital nomad”. And of course, prolonged business trips and vacations will always create demand for flexible lease durations.
Let’s take a look at some of the most common groups of people that use mid-term rentals:
- Traveling nurses: At the height of the pandemic, traveling nurses needed housing like never before, and they’re still in high demand across the country. Rather than shell out exorbitant fees to live in a trendy Airbnb, mid-term rentals allowed nurses to establish a home away from home.
- Students: Students often need somewhere to stay while they attend class. Mid-term rentals provide students with an affordable option that doesn’t require them to live on campus or commute long distances daily.
- Digital nomads: Digital nomads are people who work from home or remotely and travel frequently as a lifestyle choice. They tend to be more transient than other travelers —they may stay with friends or family before finding a new location where they can settle down for a while.
- Business professionals: Many industries require their employees to travel. Some companies host workers in mid-term corporate housing; others seek their own mid-term housing solutions.
Other tenants who may use medium-term rentals include families relocating to a new city and professionals heading to a new place to start an internship. While all these groups may have different reasons for moving, they generally use mid-term rentals because they have reasonably extended short-term housing needs.
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What You Need in a Mid-Term Lease Agreement
Mid-term rentals are unique in many ways, which means you’ll need to make sure your lease agreement reflects your specific rental. There are several things to consider when drafting a mid-term lease agreement, including but not limited to:
- The length of stay/occupancy (rental period of one to 12 months)
- The amount of rent
- Security deposit and other applicable fees
- Amenities – utilities like Wi-Fi access and whether the rental house is furnished or not
- Local landlord-tenant laws and regulations
- Tenants’ rights
- The responsibilities of both the tenant and landlord
Generally, medium-term lease agreements may not involve a lot of legal stipulations like traditional leases. However, check your local landlord-tenant laws to make sure you’re abiding by any specific term-based lease requirements. We also recommend that you chat with your attorney or local housing authority before any documents are signed to ensure you’re doing everything by the book.
What Are the Pros of Managing a Mid-Term Rental?
While long-term rentals can be great for owners looking for a steady rental income stream over several years, mid-term rentals offer unique advantages, including:
- You have access to new tenants who may be more willing to work with you and are less likely to default on their lease agreement than long-term tenants who have lived there for several years.
- Unlike short-term housing, you’ll have a more steady cash flow that is less susceptible to seasonal fluctuations.
- You have more flexibility since you don’t have to worry about a long-term commitment.
- Your business is likely to flourish over time if the demand for medium-term rental units continues to grow.
What Are the Cons of Managing a Mid-term Rental?
As with any business venture, there are certain aspects you need to be aware of if you’re going to be handling a mid-term rental, such as:
- Your property is more likely to be used for unethical activities. This is true of short-term and mid-term tenants but is slightly more common with short-term renters because they don’t plan on being there for very long and aren’t as invested in their community or neighborhood. If something unethical happens on your rental properties, it could lead to other issues like vandalism or noise complaints. To combat this, make sure your lease agreement clearly defines acceptable and unacceptable uses of the property, and be sure to screen your tenants thoroughly.
- If you don’t have experience managing mid-term rentals, it can be challenging to find the best tenants. However, there are digital tools you can use to market your listings efficiently. Make sure your rental application is easy to fill-out and professional to attract great tenants.
- There can be more legal issues in managing a mid-term rental than a short-term one. That’s why it’s so important to speak with your attorney or local housing authority before a lease is signed. You need to know the full scope of potential risks to determine if you want mid-term rentals to comprise a share of your real estate investing efforts.
Conclusion
Mid-term rentals offer fantastic opportunities for prospective landlords and seasoned property managers alike. With a wealth of prospective tenants and the flexibility of a shorter commitment, this type of lease can prove to be lucrative. Mid-term rentals are an interesting and exciting way to diversify your investment portfolio, just remember to speak with an attorney or housing authority to confirm mid-term landlord expectations.
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