# Landlord: Duties, Responsibilities, and Rights

## What Is a Landlord?

A landlord is someone who owns and rents real estate. Landlords can be individuals, businesses, or other entities. Landlords typically provide the necessary maintenance or repairs during the rental period. Specific duties and obligations are normally outlined in a [lease](https://www.investopedia.com/terms/l/lease.asp) agreement.

### Key Takeaways

*   A landlord is a person or entity who owns real estate. They then lease it out to tenants in return for rent payments.
*   A landlord can rent to either residential or commercial tenants, depending on the zoning restrictions and the type of property.
*   Landlords and tenants are bound by a lease agreement, which is a legal contract specifying the rights and responsibilities of each party.
*   Being a landlord can generate passive rental income, but it can also come with unforeseen costs and unique legal and financial risks.
*   Landlords are not allowed to discriminate, enter the property without proper notice, evict a tenant improperly, or raise the rent without notice.

![A man signs a contract on a clipboard in front of a woman](https://www.investopedia.com/thmb/yqILfoIScr187pIG1zd8fML0nXU=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1330108263-f7adb1554e344cbbbd227f35b6569229.jpg)

*— Giselleflissak / Getty Images*

## What Landlords Do

As noted above, a landlord is anyone who owns property and rents it out to someone else. This party is called the tenant. Landlords invest in [real estate](https://www.investopedia.com/terms/r/realestate.asp) as a source of profit. By owning property and leasing it out, a landlord can earn a steady stream of [income](https://www.investopedia.com/terms/i/income.asp) along with the potential for appreciation of their properties.

Landlords may be individuals, businesses, or other entities, such as government agencies. Similarly, the types of properties they own can also vary. That means that the types of properties they own aren't limited to just homes. In addition to single-family residences, their real estate portfolios may include:

*   Multi-family residential dwellings, such as multi-family homes, apartment buildings, and [condominiums](https://www.investopedia.com/terms/c/condominium.asp)
*   Land and empty lots
*   Vacation properties, such as cottages and villas
*   [Commercial properties](https://www.investopedia.com/terms/c/commercial-property.asp), such as standalone business properties, shopping malls, office buildings, or mixed-use buildings

Landlords typically use [leases](https://www.investopedia.com/terms/l/lease.asp) when they rent out their [assets](https://www.investopedia.com/terms/a/asset.asp). A lease is a legally binding contract that outlines the terms under which one party agrees to rent property from another. It guarantees the [lessee](https://www.investopedia.com/terms/l/lessee.asp) (the tenant) the use of an asset and guarantees that the [lessor](https://www.investopedia.com/terms/l/lessor.asp) (the property owner or landlord) is entitled to regular payments for a specified period in exchange.

### Absentee Landlords

There are some landlords who own property but don't live or work near the property. These people or entities are called [absentee landlords.](https://www.investopedia.com/terms/a/absentee-landlord.asp) Being an absentee landlord can be risky. Damage due to tenant negligence or misbehavior is an ongoing worry. In addition, squatting situations can arise without adequate monitoring of the property.

## Landlord Rights and Responsibilities

Landlords have specific rights and responsibilities that vary from state to state. There are also general laws that are common to all states.

Landlords have the right to collect rent as well as any prearranged [late fees](https://www.investopedia.com/terms/l/late-fee.asp). They also have the right to raise the rent as defined in the tenant-landlord lease agreement. When tenants do not pay rent, landlords have the right to evict them. The process of [eviction](https://www.investopedia.com/terms/e/eviction.asp) varies from state to state. Most states provide landlords with the ability to collect back rent as well as legal costs.

> **Fast Fact**
>
> In 2019, Oregon became the first state to implement statewide rent control, placing a limit on rent increases.

Landlords are responsible for maintaining their rental properties and keeping them in habitable condition. They must ensure that properties are clean and empty when new tenants move in. In addition, landlords must follow all local building codes, perform prompt repairs, and keep all vital services, including plumbing, electricity, and heat, in working order.

Landlords are also responsible for managing [security deposits.](https://www.investopedia.com/terms/s/security-deposit.asp) While landlords have the right to charge tenants a security deposit to cover property damage and unpaid rent, the deposit doesn't belong to the landlord. The laws governing security deposits vary from state to state.

## Types of Landlords

Landlords may be individuals, corporations, or other entities, such as government agencies.

Individuals may own one or more properties and rent them out to supplement their incomes or as a way to [diversify](https://www.investopedia.com/terms/d/diversification.asp) their investment portfolios. For instance, a middle-aged couple may decide to purchase a second home and rent it out as a way to increase their monthly income. Keeping the property rented out during [retirement](https://www.investopedia.com/terms/r/retirement.asp) can help these individuals supplement any money they receive from [Social Security benefits](https://www.investopedia.com/terms/s/social-security-benefits.asp) or their investments.

Other landlords, such as corporations, may be in the business of purchasing properties for the express purpose of renting them out. For example, a real estate corporation may purchase office buildings and rent them out to different businesses for monthly rent.

Municipal governments, especially those in large cities, often own housing corporations. These agencies own, rent out, manage, and maintain [affordable or subsidized housing](https://www.investopedia.com/articles/mortgages-real-estate/10/affordable-housing.asp) rentals to those in need. Rental payments are commonly determined based on a tenant's income for these dwellings.

## Advantages and Disadvantages of Being a Landlord

There are advantages and disadvantages to becoming a landlord.

Advantages of Being a Landlord

*   Tax-deductible costs
    
*   Income stream
    
*   Potential for appreciation
    

Disadvantages of Being a Landlord

*   Various responsibilities of maintaining and managing the property
    
*   Taxes on capital gains
    
*   Unforeseen costs
    
*   Unique legal liabilities
    

On the pro side, most costs associated with rental properties are [tax-deductible](https://www.investopedia.com/terms/d/deductible.asp). If there is no net profit after [expenses](https://www.investopedia.com/terms/e/expense.asp), rental income is essentially un-taxed income. As the rental property [mortgage](https://www.investopedia.com/terms/m/mortgage.asp) is paid down, landlords increase their ownership percentage of their property and gain access to the appreciation of value.

However, [when a landlord sells a property](https://www.investopedia.com/articles/investing/012117/buying-house-tenants-quick-guide.asp), they will pay taxes on any [capital gains](https://www.investopedia.com/terms/c/capitalgain.asp) unless they roll over the money into another rental property. This process called a [1031 exchange](https://www.investopedia.com/articles/06/section1031exchange.asp), and it has specific requirements. The new property must be identified within 45 days of the sale, and the full transfer must take place within 180 days.

## Limits on a Landlord's Rights

There are four main things landlords aren't allowed to do:

**Discriminate:** The [Fair Housing Act](https://www.investopedia.com/terms/f/fair-housing-act.asp) strictly forbids landlords from denying a lease to someone based on their race, color, national origin, sexual orientation, familial status, disability, or gender.

**Enter without proper notice:** Unless it's for an emergency situation, landlords must give proper notice before entering a property. Laws vary by state, but many statutes require at least 24 hours' notice.

**Evict tenants improperly:** A landlord may evict a tenant, but they must always go through the proper legal channels. Failure to follow proper protocol may put the landlord in a precarious legal position.

**Raise rents without notice:** Landlords must give ample notice before increasing a tenant's rent (typically a minimum of 30 days). And depending on the state, rent control laws might prevent landlords from raising rents above a certain limit, even when the lease is up for renewal.

## How Much Notice Does a Landlord Have to Give a Tenant to Move Out?

In most states, landlords must give a tenant 30 days' notice to end a month-to-month lease.

## How Long Does a Landlord Have to Make Repairs?

Landlord-tenant laws vary from state to state. But generally speaking, a landlord has three to seven days to fix critical issues (such as no heat or running water) and 30 days for less serious problems.

## How Do I Report a Landlord for Negligence?

In most cases, you must first notify the landlord of any issue(s) before you file a complaint. If there is no response or the landlord doesn't rectify the situation, you may file a complaint with the local health department, the Rental Protection Agency, the U.S. Department of Housing and Urban Development's (HUD) Multifamily Housing Complaint Line, and/or the local police.

  

## How Much Can a Landlord Raise the Rent?

The amount a landlord can increase the rent depends on local laws. In areas without rent control, rent increases vary by state. For example, in California, the Tenant Protection Act of 2019 provides a rent cap increase for areas within California that do not have a rent control in place.

## The Bottom Line

Landlords have specific duties, responsibilities, and rights. Some of them vary by state, but some are common to all states. They all should be outlined in the lease agreement. This legal contract states the rent the tenant must pay and for how long. It also stipulates the duties and responsibilities of both landlords and tenants and the consequences of a breach.

> **Article Sources**
>
> 1.  National Low Income Housing Coalition. "[From the Field: Oregon Passes Nation's First Statewide Rent Control Law](https://nlihc.org/resource/field-oregon-passes-nations-first-statewide-rent-control-law)."
>     
> 2.  Settlement.org. "[What Are My Responsibilities as a Landlord?](https://settlement.org/ontario/housing/rent-a-home/landlord-rights-and-responsibilities/what-are-my-responsibilities-as-a-landlord/)"
>     
> 3.  Lamacchia Property Management. "[What is Security Deposit Management?](https://lamacchiapm.com/what-is-security-deposit-management/)"
>     
> 4.  Settlement.org. "[What is Subsidized Housing?](https://settlement.org/ontario/housing/subsidized-housing/subsidized-housing/what-is-subsidized-housing/)"
>     
> 5.  Internal Revenue Service. "[Instructions for Form 8824 (2020)](https://www.irs.gov/instructions/i8824)."
>     
> 6.  United States Department of Hosing and Urban Development. "[Housing Discrimination Under the Fair Housing Act](https://web.archive.org/web/20250101150011/https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview)."
>     
> 7.  Rental Protection Agency. "[Home](https://www.rentalprotectionagency.com/)."
>     
> 8.  United States Department of Housing and Urban Development. "[Bad Landlords in Federal Housing Complaints](https://www.hud.gov/complaints/badlandlord)."
>     
> 9.  California Legislative Information. "[AB-1482 Tenant Protection Act of 2019: Tenancy: Rent Caps](https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1482)."