Rental Property Owners Have Rights Too

As a property owner, you may be contemplating entering the rental business. There are many good reasons to, including a lucrative rental market, and the ability to diversify your income stream.

What’s more, it’s never been easier. Property owners can list their suite on platforms that do all the legwork by marketing the property, finding a reliable renter, and handling the finer points of the transaction.

Despite these benefits, you may be apprehensive. It’s true that while most rental transactions go smoothly, some can hit obstacles. In this unlikely event, you should know that you have rights too. Some of these are as follows.

#1 The Right to a Deposit

Before your renter moves in, you can collect a deposit. The amount usually equals one month’s rent but can vary region to region. It’s crucial that you collect this for your security.

#2 The Right to Collect Rent

You are owed rent on the day it’s due in full. There are no two ways about this. The onus is on your renter to pay on time, even if there is an interruption due to holidays. As the property owner, how strictly you apply this rule depends on you.

Many property owners give renters some leeway in special circumstances, especially if they maintain a healthy relationship with them. At the same time, if you’d like to act against a consistently late paying renter, the law is on your side.

#3 The Right to Increase Rent

If you follow the guidelines, you can increase the amount of rent once every 12 months. These guidelines include giving advance notice and calculating the increment as per local laws. It’s advisable to add these annual increases, even if small, to help offset the cost of inflation. On the other hand, forgoing them may help you retain a good renter.

#4 The Right to Inspect Your Property

You are entitled to inspect your rental property because it’s your asset. At the same time, it’s also your renter’s home and their privacy should be respected. By giving proper notice before a visit, you can find the right balance, which can be determined by consulting your regional rules.

#5 The Right to Approve a Sublet

Sometimes a renter may consider subletting their home when leaving for an extended period. As the property owner, you have the right to deny them this request.

#6 The Right to End a Tenancy Agreement

If your renter hasn’t broken any rules, there are only two ways you may end a tenancy agreement – provided you properly compensate them. The first is if you or your family need to move in, and the second is if you are selling the property.

However, you could also end a tenancy agreement early in the following unlikely events.

  • Your renter doesn’t pay rent
  • Your renter engages in illegal activity
  • Your renter damages property
  • Your renter negatively affects the reasonable enjoyment of others in the building
  • Your renter breaks health, safety, or housing laws

As mentioned above, most tenancy arrangements go smoothly with both parties getting what they signed up for. But rest assured, should a special circumstance arise, you have entitlements as well.