why do i need a lawyer of i have a rental property?

Most people want to have a lawyer on their side because they have more experience and know the specific laws that apply to various situations. As a landlord, it is wise to hire a lawyer before you start renting to tenants to make sure you know how to draft your leases and avoid lawsuits in the future.

Full Answer

Why do I need a landlord/tenant attorney?

If you have renter's insurance, your insurance company will cover the loss and its lawyers will then seek reimbursement from your landlord. If you don't have insurance or have inadequate coverage and the damage to your property is substantial, consider hiring a lawyer to help you obtain reimbursement from your landlord. In the alternative, you could consult with a lawyer for an …

Do I need a lawyer for a rental property lawsuit?

Fortunately, if you have liability insurance and pay your premiums, your insurer should provide you with a lawyer to defend you against personal injury claims. Sued for Major Property Damage Tenants or guests may also sue you if they think that your failure to maintain the rental property caused damage to their property.

Do you need to hire a real estate attorney at all?

Mar 16, 2021 · A good attorney can also identify potential legal problems with a property that would sail past you or even recognize a very competent (or incompetent) agent. Most importantly, they can offer legal advice and will generally have more contract insight than an agent.

What does a real estate attorney do?

Sep 16, 2019 · Reasons to Hire a Landlord Lawyer. As stated earlier, landlord lawyers do a lot of work for landlords and can be a great asset. Preventing problems from happening or dealing with problems after they occur is important if you want to avoid legal trouble. Drafting Your Leases. You need to have a clear lease agreement with any tenant. Having your agreement looked over …

What should you not do in a rental property?

8 Things You Shouldn't Let Tenants Do in Your Rental PropertyRent Without a Security Deposit. ... Pay Rent Late. ... Have Pets on the Property. ... List the Property on Airbnb. ... Smoke or Do Drugs. ... Remove Landscaping. ... Paint or Renovate Without Permission. ... Automatically Renew Lease.Jan 14, 2019

Who is responsible for rental property?

LandlordsLandlords are responsible for ensuring that a rental property is habitable.Mar 15, 2018

What are a landlords legal responsibilities?

Landlord's responsibilities A landlord is responsible for: repairs to the structure and exterior of the property, heating and hot water systems, basins, sinks, baths and other sanitaryware. the safety of gas and electrical appliances. the fire safety of furniture and furnishings provided under the tenancy.

What costs are landlords responsible for?

What are the 9 Landlord Costs you Need to Budget for in 2022?Mortgage payments.Landlord insurance.Decorating.Maintenance and repairs.Letting agency fees.Health & Safety.Paying Taxes.Finding tenants.More items...•Jan 21, 2020

Your Landlord Is Evicting You

If your landlord serves you with a termination notice that you intend to fight, hiring a lawyer can increase your chance of success. Choose a lawye...

Your Landlord Is Evicting You Without Proper Court Procedures

Landlords must follow eviction procedures set forth by state and local law. If your landlord tries to evict you by taking matters into his own hand...

Your Landlord Discriminates Against You

If you believe your landlord is discriminating against you, you may need a lawyer to stop the illegal actions and help you recover damages for any...

Your Landlord Won't Make Necessary Repairs

If your landlord isn't fulfilling important obligations under your lease and the law, it can lead to major problems. For example, think of the land...

Your Landlord Isn't Fulfilling His Promises

Sometimes, landlords make promises to encourage hesitant applicants to rent from them. For example, if an applicant is concerned about the neighbor...

You've been Injured Or Made Ill

Accidents can happen, even at a well-run rental property. However, if an accident is the result of the landlord's carelessness, you may have a lega...

Your Property Has been Damaged

Sometimes, a landlord's failure to maintain the rental property causes damage to your personal property. For example, a landlord's faulty wiring re...

How to Get A Lawyer's Help

If you are in need of a lawyer, choose one with expertise in landlord-tenant matters. For help in getting a lawyer, read the article "How to Find a...

How to evict a tenant?

Still, many landlords try to evict a tenant themselves, often with success. (For more on evicting tenants, see Nolo's area on Evicting a Tenant or Ending a Lease .) But you may be better off hiring a lawyer if: 1 this is your first eviction 2 the tenant is fighting the eviction and has a lawyer 3 the tenant is an employee whom you're firing 4 the tenant is filing for bankruptcy, or 5 you must comply with rent control or housing program rules for eviction.

How much is the penalty for a HUD violation?

HUD administrative law judges can award a civil penalty of $16,000 per violation for first-time offenders, in addition to actual damages, attorneys' fees, and other relief. Your liability can be much higher if your case goes to court or you settle.

What happens if you make a mistake on your taxes?

If you made a serious mistake on your taxes that the government hasn't yet noticed -- for example, you didn't report certain income or you took deductions for which you're not entitled -- hiring a lawyer before the auditors uncover the mistake can help you avoid a potentially damaging and embarrassing situation.

Can you sue a tenant for not maintaining the roof?

Tenants or guests may also sue you if they think that your failure to maintain the rental property caused damage to their property. For example, if you don't maintain the roof and a leak occurs during a normal winter rain, soaking the tenant's furniture, the tenant may look to you for compensation.

Do you need a lawyer for discrimination?

You don't need a lawyer every time a prospect or tenant accuses you of illegal discrimination. In fact, landlords who diligently comply with fair housing laws can still get these accusations from prospects they reject or tenants they evict for legitimate business reasons.

Why is a lawyer important?

A lawyer can be extremely valuable in helping you evaluate deeds, titles, and the terms of contracts. Too often, clients call for help after they’ve made a purchase or signed a contract that wasn’t in their best interest.

Who is Scott Royal Smith?

Scott Royal Smith is an asset protection attorney and long-time real estate investor. His law firm, Royal Legal Solutions, helps thousands of real estate investors and entrepreneurs in all 50 states protect more than $1.2 billion in assets. Since 2014, he has published over 1,000 posts and articles on BiggerPockets and has appeared on hundreds of podcasts.

When Would You Need a Lawyer?

The reality is that being a landlord is difficult work, and some tenants may give you trouble from time to time.

Drafting Your Leases

You need to have a clear lease agreement with any tenant. Having your agreement looked over by a lawyer is a good investment for you because it can help you protect yourself in the future. If you’re in the UK, the follow site offers a good tenancy agreement template.

Tenant Evictions

A lot of states try to make evictions easy for the landlords, but it is common for landlords to submit the wrong form. In other instances, you may date the form wrong or have a small error that you didn’t notice.

Are You Being Sued?

Some potential tenants or current tenants may want to sue you. If this happens, it may be for a variety of reasons.

Defense of Reputation

When you have a bad reputation as a landlord, you are less likely to get tenants. This is bad for your business.

Appearing in Court

Eventually, you may need to be the plaintiff in a case against another person regarding your rental property. You may want to sue a contractor that didn’t do a job or sue a tenant for breach of contract.

Hiring a Landlord Lawyer

If you’re ready to hire a landlord attorney to help you with your properties, now is the best time to do it.

What is a landlord tenant attorney?

A landlord/tenant attorney can help you analyze your situation, determine what your rights are, and make a well-informed decision about how to protect your interests. We've created a list of trusted landlord/tenant attorneys to help you find a lawyer who is the best fit for your situation.

What are the legal issues with landlords?

Legal issues related to real estate and the landlord/tenant relationship come in a variety of forms. These often include: 1 Landlord/tenant disputes, such as those related to rental rates, late or unpaid rent, security deposits, disagreements about the habitability of rental property, and other tenant rights and landlord rights issues. 2 Eviction, either seeking to evict a tenant or helping a tenant fight eviction and stay in their home (especially during times where additional tenants' rights/renters' rights are in effect, such as the COVID-19/coronavirus pandemic). 3 Rental agreements and lease agreements, including initial drafting and review of rental contracts, updates to the terms of the lease, and other contract-related matters. 4 Discrimination claims, including those related to housing discrimination on the basis of race, national origin, sex, religion, disability or other classification protected under the federal Fair Housing Act or other state or local ordinances. 5 Commercial real estate matters, from negotiating an initial commercial lease to litigating business disputes related to the lease or other issues. 6 Personal injury claims, if a property is not kept safe and in proper repair and someone is injured as a result. 7 Addressing tangential issues for landlords, including business law and estate planning-related issues such as business succession planning, and protection of rental property assets in a divorce or other family law matter.

Why do I need a real estate attorney?

Reasons to hire a real estate attorney even if it’s optional 1 You’re an out-of-town buyer. 2 You’re buying a property that is a short sale or bank-owned. 3 You’re buying a property that is part of an estate sale. 4 You’re buying a commercial property. 5 You’re buying a property that could potentially have some structural issues. 6 You’re buying a property in a problematic area such as a flood zone or areas with adverse conditions (tornado-prone, radon, toxicity levels, etc.).

Which states require a real estate attorney to be present at closing?

These include Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia. Keep in mind that these rules can vary by region within states, too.

What does it mean when you are selling a house?

You’re selling a property that is in some state of distress. You’re the heir or executor of a property whose owner is now deceased. You’re selling a house with an uncooperative partner. You have judgments or liens on the property.

Who is Julie Ryan Evans?

Julie Ryan Evans is an editor and writer who has covered everything from politics to pop culture and beyond. She loves running, reading, cold wine, and hot weather. Get Pre-Approved Connect with a lender who can help you with pre-approval.

What is a landlord tenant attorney?

A landlord tenant attorney is one who specializes in the legal issues surrounding landlord and tenant rights and is a valuable resource for you when you need it most. Legal expertise can guide even the most prepared landlord through the challenges of managing your rental property.

What to do if landlord tenant attorney is not doing the job you expect?

If your landlord tenant attorney is not doing the kind of job you expect, don’t hesitate to seek out another one that may be a better fit. Whether the attorney is too hard to get ahold of or your personalities just don’t mesh, don’t get stuck with someone who is not meeting your needs one way or another.

Should I use an attorney to write a lease agreement?

It’s a wise idea to use an attorney to write your lease agreement so that it covers all your rights and stays compliant with local, state and federal law. Rather than download a generic lease agreement from the internet, work with the attorney to draft an agreement that specifically reflects your property and your expectations from a tenant.

Is an LLC a member?

The owners of an LLC are called members. It is common for an LLC to have only one owner, in which case it is referred to as a single-member LLC. By putting a rental property into an LLC, you’re really saying that it’s not YOU who owns and rents real estate – instead, you own a COMPANY that owns and rents real estate.

Is LLC a tax advantage?

Benefit from Tax Advantages. Most discussions of the tax advantages of an LLC for your rental properties are quite misleading, because they tell you why an LLC is advantageous vs. other business ownership structures, such as a corporation or partnership.

How to file a 1099?

If you have to issue and file a 1099 as a taxpayer, you will need the following information: 1 Tax ID Number– This is a social security number (SSN) or employee identification number (EIN) for individuals. 2 Address – This makes sure that a copy of the 1099 can be sent to the recipient, for their tax reporting requirements. 3 Funds Paid – You will need to know the amount of money issued to the individual during that tax year.

Do you need a W-9 for a commercial lease?

Tenants in commercial leases paying more than $600 a year should request a form W-9 from the landlord before paying them. In the following year, you should issue a Form 1099 to your landlord unless they’re taxed as a corporation.

Is real estate a passive activity?

If you conduct real estate property trade or business and qualify as a real estate agent, you’re exempt from the general passive activity loss rules. This is actually good for you because losses resulting from such activities can be used to offset ordinary income.

Do landlords have to file W-9?

Landlords must provide a Form W-9 to their property managers so they can receive a Form 1099 to report rent paid in excess of $600 during the year. As mentioned above, property managers must do the same for the following contractors not taxed as corporations that were hired and paid over $600 a year.

Do property managers have to file 1099?

Property managers must file a 1099-MISC form for anyone they paid more than $600 to in the course of a year that is not a corporation.

Do you have to report rental income to IRS?

The recipients of qualifying payments are required to report them to the IRS on Form 1099-MISC. Anyone who receives rental income must report their earnings on Form 1099-MISC, with one copy going to the IRS and an additional copy going to the entity that originally made the “payment.” That way, the IRS may keep track of compensation that isn’t typically documented. Self-managing rental property owners were once responsible to report the money they paid independent contractors for services on their own property.

Is a business a for profit?

The IRS publications define a business as a for-profit activity, but that doesn’t mean that every for-profit activity is necessarily a business. The IRS publication 925 specifically says “A trade of business activity doesn’t include a rental activity or the rental of property that’s incidental to an activity of holding the property for investment.”.