Avoid These Legal Landmines: A Landlord’s Guide to Staying Compliant

Landlords Beware

Becoming a landlord puts you in a legally-binding relationship with your tenants, where you’re bound by local, state, and federal laws. One mistake – even unknowingly – could lead to expensive lawsuits, a damaged reputation, and possibly even the right to rent your property.

Understanding landlord-tenant laws is critical, whether you’re only renting one property or a handful. In this article, we’ll cover five of the most common legal pitfalls landlords face and how to navigate them to avoid harsh consequences.

1. Screening tenants with discriminatory qualifications

The federal Fair Housing Act [FHA] prohibits landlords from discriminating against tenants based on certain qualities, like race, color, religion, sex, familial status, national origin, and disability. Violating this law can be disastrous. However, there are some exceptions to the FHA.

For example, the law doesn’t typically apply to owner-occupied buildings with four or fewer units, single-family homes rented without an agent, religious organizations, private clubs, or senior housing.

Unfortunately, it’s easy to violate the FHA without knowing. For example, stating in your rental ad that a unit is “perfect for singles” or “great for couples” is all it takes to be subject to a lawsuit. And that’s why smart investors hire a property manager.

The pros know exactly how to create compliant listings and navigate Fair Housing laws at the state and federal level. For example, Spring property managers from Green Residential have decades of experience filling vacancies for Texas investors while maintaining legal compliance. If legalities are something you’d rather leave to the experts, the best solution is to hire a property manager.

2. Including invalid lease terms

Your lease is the first line of defense against lawsuits, and it’s critical for your lease agreements to be completely valid. If you end up in a lawsuit with a tenant, you won’t typically be able to hold tenants to invalid terms. For example, if your lease outlines security deposit terms that violate state law, it won’t be enforceable.

It’s not good enough to download a blank lease template from the internet and fill in the blanks. Lease templates are not usually created by attorneys, and even if they are, the terms may not apply to you. Always hire your own attorney to draft your lease agreements based on current federal and state landlord-tenant laws.

3. Not allowing emotional support animals [ESAs]

All landlords who are subject to the FHA are required to allow service animals and emotional support animals [ESAs]. There is a misconception that ESA approvals are completely at the discretion of the landlord, but not under the FHA. Both ESAs and service animals must be accepted if they are legitimate. However, the landlord can enforce removal under some circumstances.

While it’s illegal to inquire about the nature of a tenant’s disability, landlords can request a doctor’s note to verify the necessity of either a service animal or ESA. Failure to accept a legitimate service animal or ESA is grounds for a lawsuit.

4. Mishandling security deposits

Each state has specific laws governing how security deposits must be handled, from where the money must be housed to how it’s returned and what deductions can be taken. Any deviation from state law puts you at risk for a lawsuit. For example, most states require you to provide an itemized list of deductions from a tenant’s deposit if those deductions reach a certain amount.

There are also strict timelines for returning a deposit, and some services can’t be deducted as a routine task [like painting or carpet cleaning] in some states. If you’re going to charge a tenant for painting or carpet cleaning in certain states, it needs to be based on the condition of the unit and not your routine move-out procedures.

If you’ve never spoken to a lawyer about security deposits, it’s advised to get up to speed before you make a costly mistake.

5. Ignoring habitability laws

Tenants have the right to live in a safe, habitable home, and you’re legally obligated to provide that environment. Essential services include heat, water, hot water, and electricity. These are non-negotiable. Failing to provide these services can result in tenants withholding rent in some states, making repairs and deducting the cost from the rent, and legal action.

Handle all repairs promptly, even if it’s not a serious emergency. Don’t leave your tenants hanging for more than 24-72 hours for urgent issues or a couple of weeks for less urgent situations.

Be smart, stay compliant

As a landlord, it’s crucial to stay legally compliant. One lawsuit could wipe you out if you’re not careful. However, understanding and respecting landlord-tenant laws will keep you on the right side of the law.


Subscribe to Our Newsletter

Related Articles

Top Trending

how to use facetime on android
How to Use FaceTime on Android: The Complete Professional Guide
tpg products sbtpg llc
Understanding TPG Products SBTPG LLC: A Guide for Tax Professionals and Consumers
Best Upcoming Kdramas
8 Best Upcoming Korean Dramas Premiering in 2026: The Ultimate Watchlist
schoology bcps
Mastering Schoology BCPS: The Ultimate Guide for Parents and Students
The Digital Detox Retreat Is It Worth the Money
The "Digital Detox" Retreat: Is It Worth The Money?

Fintech & Finance

safest stablecoins 2026
5 Stablecoins You Can Actually Trust in 2026
Most Innovative Fintech Startups
The 10 Most Innovative Fintech Startups of 2026: The AI & DeFi Revolution
Best alternatives to Revolut and Wise
Top 5 Best Alternatives To Revolut And Wise In 2026
credit cards for airport lounge access
5 Best Cards for Airport Lounge Access in 2026
Best credit monitoring services 2026
Top 6 Credit Monitoring Services for 2026

Sustainability & Living

Indigenous Knowledge In Climate Change
The Role of Indigenous Knowledge In Fighting Climate Change for a Greener Future!
best durable reusable water bottles
Top 6 Reusable Water Bottles That Last a Lifetime
Ethics Of Geo-Engineering
Dive Into The Ethics of Geo-Engineering: Can We Hack the Climate?
Eco-friendly credit cards
7 "Green" Credit Cards That Plant Trees While You Spend
top renewable energy cities 2026
10 Cities Leading the Renewable Energy Transition

GAMING

Custom UggControMan Controller
UnderGrowthGames Custom Controller UggControMan: Unlocking The Gaming Precision!
Upcoming game remakes 2026
7 Remakes And Remasters Confirmed For 2026 Release
The 5 Best VR Headsets Under $500 January 2026 Guide
The 5 Best VR Headsets Under $500: January 2026 Buying Guide
Do Mopfell78 PC Gamers Have An Advantage In Fortnite And Graphic-Intensive PC Games
Do Mopfell78 PC Gamers Have An Advantage in Fortnite And Graphic-Intensive PC Games?
Esports Tournaments Q1 2026
Top 10 Esports Tournaments to Watch in Q1 2026

Business & Marketing

digital infusing aggr8tech
Unlocking Efficiency: The Strategic Impact of Digital Infusing Aggr8tech in Modern Enterprises
startup booted fundraising strategy
Beyond the Deck: Building a Startup Bootstrapped Fundraising Strategy That Actually Works
Stocks Betterthisworld
Complete Guide to Purpose-Driven Investing in Stocks Betterthisworld
charfen.co.uk
Mastering Entrepreneurial Growth: A Strategic Overview of Charfen.co.uk
Crew Cloudysocial
Crew Cloudysocial: Boost Your Team's Social Media Collaboration

Technology & AI

best ai chatbots customer service
10 Best AI Chatbots for Customer Service Automation
Best Antivirus for Mac
10 Top-Rated Antivirus Suites For Mac Users
Best cloud storage for backups 2026
6 Best Cloud Storage Solutions for Backups in 2026
snapjotz com
Mastering Digital Thought Capture: A Deep Dive into Snapjotz com
Custom UggControMan Controller
UnderGrowthGames Custom Controller UggControMan: Unlocking The Gaming Precision!

Fitness & Wellness

noblu glasses
Noblu Glasses Review: Do They Deliver Effective Blue Light Protection?
The Psychological Cost of Climate Anxiety Coping Mechanisms for 2026
The Psychological Cost of Climate Anxiety: Coping Mechanisms for 2026
Modern Stoicism for timeless wisdom
Stoicism for the Modern Age: Ancient Wisdom for 2026 Problems [Transform Your Life]
Digital Disconnect Evening Rituals
How Digital Disconnect Evening Rituals Can Transform Your Sleep Quality
Circadian Lighting Habits for Seasonal Depression
Light Your Way: Circadian Habits for Seasonal Depression