How to Avoid Being Sued When You Own Rental Real Estate ....

How to Avoid Being Sued When You Own Rental Real Estate ....
The decision on whether to manage your own rental property
or to outsource it to a professional residential property
management company is a personal decision that only you can
make. Two important aspects of owning and managing
property are knowing how to properly screen tenants and
developing adequate knowledge of property law. Let's look
at both of these very important issues.

Tenant Screening - When a potential tenant submits an
application for housing with you, you have to make a
determination as to whether or not you want to rent to
them. A hundred years ago you might have been able to
reach a decision based upon a gut instinct, but you can't
rely on instincts or hunches if you want to maximize your
chances of a positive experience with a tenant you don't
know.

As an individual real estate investor, you have limited
information at your fingertips. While you can call past
and present employers, landlords, as well as other
references, that doesn't necessarily paint an accurate
picture of what kind of tenant you'll get if you opt to
rent to them.

Because information is power, you will want to obtain as
much high-quality, detailed information about potential
renters as you can to reduce your potential liability in
the event that something unexpected happens. For instance,
what do you do if it turns out that your "good renter" is a
pedophile or a rapist? Can you afford a lawsuit from
another one of your tenants if something happens and you
get sued?

There is a glut of information available in a variety of
computer databases, but if you don't know where to look,
it's useless. In addition, as an individual you might have
difficulty running criminal background checks, credit
checks, and other public notice checks. A professional
residential property management firm can complete these
checks very quickly and easily, and is well-versed in the
best ways to go about gathering this information.

Property Law - You're not a lawyer, but you almost have
to be in order to understand the myriad laws, rules, and
regulations that pertain to how you manage your property.
Federal, state and local laws vary and change regularly.
Just a few of the laws that affect you and your property
include the Americans with Disabilities Act and Federal
Fair Housing regulations. Ignorance is no excuse in the
eyes of the law, so if you run afoul of just one of these
laws, you open yourself up to being sued by a tenant, or
being fined by a governmental regulatory agency - or both.

Do you know if your property has to have a wheelchair ramp
or safety rails? What about the rules pertaining to
wiring? There are hundreds of laws, rules, and regulations
that directly apply to you and you're expected to be in
compliance with all of them at all times.

You can learn these various rules, but they change so
frequently that it can be a full-time job just staying on
top of all the changes. If you aren't in compliance,
there's always an attorney willing to file a lawsuit
seeking money from you for having the temerity to violate
the law.

If you aren't able or willing to be a "hands on" landlord,
a residential property management company can provide the
knowledge and expertise to decipher and sort out all of
these rules and regulations and keep you in regulatory
compliance.

Rates are reasonable and you will rest easier knowing that
the heavy lifting is being performed by knowledgeable
professionals who have a vested interest in seeing to it
that you're in full compliance with all of the rules and
regulations.

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Mike Lautensack is the owner of full service Residential
Property Management company based in and around
Philadelphia, PA. He advises real estate investors how to
build wealth and financial security through hassle-free
ownership of investment real estate with their "No-Hassle
Property Management Program." This proven management system
allows owners to enjoy the financial benefits of cash flow,
tax savings, and wealth creation while it GUARANTEES you
will never receive a late night emergency call, deal with a
lengthy eviction proceeding or ever have to interact with
an irate tenant. For more information please go to
http://www.delvalproperty.com/ .