Congratulations! You're a landlord! But, before you start collecting rent and signing leases, there are some important legal considerations to keep in mind.
Entering the rental market in the State of Pennsylvania can be an overwhelming process for first-time landlords. Apart from getting a property ready for lease, you also have to understand all the legal requirements and regulations for rental properties. Not only to protect yourself as a landlord, but your tenant as well.
Before you can start renting out your property, there are some steps you should take to make sure it's ready.
You'll need to make sure all appliances are in good working order. Pennsylvania law requires from all rental properties to meet basic habitability standards, and that includes proper heating, plumbing, structural integrity, etc. You should also make any necessary repairs, check for pest infestations, verify that smoke and carbon monoxide detectors are installed and operational.
It’s also worth it to conduct a pre-rental inspection, because then you can document the property's condition and in this way be protected against disputes regarding damages in the future.
Once your property is ready for rent, you’ll need to create a document outlining the rules and regulations that the tenant must follow, including any state-specific clauses and special requirements.
PA lease agreement should include the rental rate, late fees, security deposit, term of the lease. It should also clearly state the rights and responsibilities of landlord and tenant, any eviction policies that can be implemented, and lease termination clauses. It’s better to add maintenance and repair responsibilities, too, as it will prevent any misunderstandings regarding which side has to handle it later.
Make sure you understand all laws before drafting a lease agreement.
Finally, you’ll want to screen potential tenants to make sure they're financially responsible and have a history of paying rent on time. Many also check if there is any criminal background or legal issues that could make potential tenants a liability.
Pennsylvania landlords must comply with the Fair Housing Act that prohibits to discriminate based on race, religion, gender, disability, or family status. You can request background checks, credit reports, rental history, but first, you must obtain written consent from applicants, and only after this, be conducting these checks.
Once you've taken these steps, it's time to start advertising the property and finding tenants. Promote your rental on social media, local listings, through a real estate agent, whichever way feels more comfortable and affordable for you — and you'll be ready to rent out your property in no time.
There are some legal considerations to consider if you are renting out your property for the first time.
One of the most important things is to make sure that you have all documentation in place before beginning the tenancy. Of course, this list starts with a rental agreement, which outlines the rights and responsibilities of both parties. Among other documents, the following ones might be necessary in the state of Pennsylvania:
Security deposit receipts
Move-in and move-out condition reports
Notices for rent increases or lease termination
Records of maintenance and repair requests
Pennsylvania law also requires landlords to provide tenants with a lead disclosure form if the rental property was built before 1978.
It’s essential to understand federal fair housing laws and make sure all advertising and tenant selection processes from your side comply with these regulations. Also, don’t forget to look through Pennsylvania-specific rental laws. For example, Pennsylvania’s Landlord-Tenant Act governs security deposits, eviction procedures, property maintenance responsibilities and other rent-related matters.
Local zoning laws govern everything from how many tenants can occupy a rental unit to what types of renovations you can make. Some cities in Pennsylvania, such as Philadelphia and Pittsburgh, require landlords to obtain rental licenses or occupancy permits before leasing their properties. These regulations vary by location, so landlords should better verify requirements with their local housing authority.
Finally, be sure to stay up-to-date on any changes in tenancy laws or regulations. Monitoring updates from Pennsylvania’s Attorney General’s Office and local housing authorities can help you remain legally secure and protect you from potential liability and/or disputes with tenants.
There are a few key documents that landlords should always have prepared for their tenants. These include:
the lease agreement, which outlines all the terms of the rental;
a security deposit agreement, which lays out how the security deposit will be handled and returned;
an addendum to the lease, which includes any other clauses or rules specific to your rental;
lead disclosure form if the property was built before 1978;
local rental registration or license (if required by municipality);
notice of any known safety hazards or necessary repairs.
Before renting your property, there are a few general steps you should take. It’s necessary and can be highly important for any potential future disputes to conduct safety inspections. Make repairs and updates where necessary, and ensure all appliances and fixtures work properly. You should also obtain the necessary licenses and permits from your local government. Additionally, it’s best to check in with your insurance provider to make sure your property is covered.
Take your time to do the research and understand all applicable laws in your state. This will help ensure that you and your tenants are fully protected.
Navigating the rental market in Pennsylvania can be a difficult process for first-time landlords due to its complexity. But understanding all necessary laws and regulations definitely helps, and it can protect your new business and guarantee a successful tenant-landlord relationship. Knowing all legal considerations in your state can ensure your rental business is well-protected and legally compliant.
