If you have been dreaming of being a landlord in the Beehive State, now is the time to apply for an apartment construction loan. According to the U.S. Census Bureau, only less than 40% of millennials, the largest generation group in America, are homeowners. Some working adults under the age of 35 continue to rent because they still cannot afford to buy a house while others choose to stay as renters for ease of mobility.
Regardless of the reason why many millennials do not become homeowners as early as their parents and grandparents, the high demand for rental properties is too good to pass up. While being a landlord is not an effortless job, it is relatively a convenient occupation to earn regular an extra income.
To enjoy the luxury of raking in a steady stream of money through your rental property, you have to follow the rules set by Utah. The apartment business is regulated by the state, so you ought to be careful with your actions to avoid getting into trouble.
Below are some of the things you should observe once you become a landlord:
Reject Applicants Properly
You reserve the right to say no to applicants, but you cannot deny anyone from renting on the grounds of race, sex, religion, ethnicity, and income source, among others. Many laws prohibit discrimination, and you could face serious punishments when found guilty violating any of them.
You can refuse to accept an applicant based on factors that make them risky tenants. One of these considerations is bad credit standing. Another is negative testimonials from other landlords, like having a poor payment history.
Prepare a Written Contract
If you have to make your business relationship with your tenant official, you need to produce a rental agreement in writing. This document protects the interests of both parties by inking agreed-upon conditions and helps resolve future disputes.
Of course, this contract has to comply with all of the relevant laws. Otherwise, you may even raise the ire of the authorities.
Put a Premium on Property Maintenance
A tenant is generally responsible for keeping a rental property clean, but the landlord is in charge of repairs. It would be your duty to keep your apartment habitable no matter what. Failing to fulfill this obligation can go against you, for your tenant has legal options to make you pay.
Enter the Property with Permission
You have right of entry, but you have no business to invade any tenant’s privacy. Utah demands you to provide notice 24 hours before entering your property for legitimate reasons like fixing a broken pipe. To protect yourself from legal actions against you by any tenant, it is imperative to keep your written requests for rental property entry on file.
Do Not Raise Rent as Retaliation
There are guidelines when rent increases, and retaliation for a tenant’s action to exercise legal rights is not one of them. The government will not choose your side if your tenant files a legitimate retaliation claim against you.
The Utah law should be your bible to become a good landlord. Consult a lawyer to draft a fair rental agreement in order to maintain good relations with tenants and to avoid being at odds with the authorities.