(updated 2/22/2022; orig. 9/19/2005 )
There are two things that tend to make both new and experienced rental property owners nervous about the business of landlording… PROPERTY MANAGEMENT & LEGAL ISSUES.
Most people realize that you have to deal with legal issues directly related to tenants, like leases, evictions, collecting rents, etc. Most also realize that managing a property is really a business. However, newer landlords tent to forget the other legal issues, such as dealing with IRS regulations regarding the income tax reporting of rental properties, state mandated laws like the handling of security deposits, government housing agency regulations and local municipality landlord/tenant and rental property ordinances.
So, to make a potentially very long blog much, much shorter, I have assembled some legal and property management resources that just about every landlord should find valuable. Some of these are free and others are inexpensive. Of course, they don’t substitute for a competent attorney, but they do provide a lot of education that should make you “legally literate” about many of the issue that come up in the landlording and property management arena. I have even more resources at the www.ManageRentalProperty.com section of my website dealing with landlord legal forms and landlord-tenant law!
Here are some useful sites and resources to get you started:
- US Legal Forms – Landlord forms and Tenant forms
- NJ Deparment of Community Affairs Landlord-Tenant Information – this is a MUST READ for New Jersey landlords!
- The Legal Information Institute (of Cornell University)
- EZ Landlord Forms to help you create legally compliant landlord-tentant forms in your state.
- HUD Fair Market Rent information from my site relating to landlords and rental properties
- Every Landlord’s Guide to Managing Property – excellent book on practical issues we all face as property managers
- Every Landlord’s Legal Guide – great reference I have used many, many times
- IRS Publication 527, Residential Rental Property – packed with useful forms and information
Good luck and good landlording!
Regards,
Steven A. Boorstein
Author
How To Buy Your First Rental Property and Beyond
http://www.howtobuyrentalproperty.com/
Hi Steve; I just recently purchased a property and I am starting to move tenants in. I read your article on security deposits and i would like to know can i place security deposit in my personal savings account and do i have to specify that it is a security deposit/ landlord tenant account and do i have to place the tenants name on the account and ss #? The rental is in new jersey.
In New Jersey, security deposits should be placed in a Landlord/Tenant account. The landlord has control of the account, but it is held on behalf of the tenant. Any interest earned needs to be paid to the tenant… see my article:
http://www.landlordbusinessinsider.com/2008/01/nj-landlords-remember-security-deposit.html
Tenants have to be informed as to which bank the security deposit is held and if you have above a certain number of units, you are required to utilize a high yield account.
In addition, I believe that the bank has to be chartered in NJ.
Lots of rules and regulations… be sure to search this site and also ManageRentalProperty.com for more information and resources.
Best of luck!
Steve