What Are the Responsibilities of a Landlord?

A landlord’s job is to act as the guardian and steward of a rental property in much the same way that a responsible adult would actively maintain the overall health and well-being of a child placed in their care. Landlords perform a vital function for investors, which is why having an effective landlord is one of the most proactive measures a property owner can take in terms of maximizing the value of their investment real estate. 

A landlord’s work is what allows a rental property or rental unit to generate passive income — without the assistance of a landlord, the property owner or investor would have to self-manage it.

Understanding the Responsibilities of a Landlord

Being a landlord may seem like a simple task. However, it’s a complex job that requires multiple skill sets, including accounting, tenant relations and constant supervision.

Providing a Safe and Habitable Living Space

Every tenant of a rental unit or dwelling is entitled to a safe and habitable living space. This expectation exists regardless of how much, or how little, tenants are paying in rent. Providing a safe and habitable living space is as important if not more important than rent collection. Almost all rental agreements bind the landlord to complete this task.

Even if the lease doesn’t specify it, local, state and federal regulations do. Landlords who do not effectively complete basic tasks such as promptly handling repairs and maintenance issues, actively eliminating safety hazards and fostering an environment where tenants have quiet enjoyment can be sanctioned severely by local regulatory authorities. Another essential aspect of this responsibility includes ensuring that the rental property is up to code and in compliance with applicable safety regulations. 

Collecting Rent and Managing Finances

This is another mission-critical aspect of the responsibilities of a landlord. After all, the entire purpose of owning rental property is to generate passive income for the owner. That can’t happen if basic accounting tasks such as collecting tenant rents, making sure they are promptly deposited in the bank and paying the property’s bills (mortgage, liability insurance, vendors) on time aren’t completed. 

Maintaining records of the property’s financial transactions, such as managing every tenant’s security deposit and individual account ledgers for each tenant is a primary responsibility for any effective landlord. Another important job for landlords is understanding the area’s market fundamentals and properly pricing rental units. The key here is to get the maximum rent without overpricing a property so that it sits vacant for an extended period of time. 

Landlords must be sure that they are renting to a tenant who is going to respect their neighbors and pay the rent on time. Tenant screening is another important job for landlords. It only takes one poorly behaved tenant to disrupt an entire community, and evictions are an expensive last resort. Making sure that prospective tenants have a good payment history and can afford to pay the rent are critical responsibilities. 

Communicating and Interacting With Tenants

Landlords act as the face of the property when it comes to tenant relations and interactions. When tenants pay the rent or request maintenance, they do so directly through the landlord. So it stands to reason that one of the most important responsibilities of a landlord is maintaining effective communication channels with tenants and responding promptly to tenant concerns. 

That includes scheduling needed maintenance and providing adequate written notice before entering an occupied rental unit. Landlords must also be able to effectively resolve tenant disputes, such as noise complaints or people using the wrong parking space, without showing favoritism to any tenant. 

Complying with Laws and Existing Regulations

No matter where a rental property is, the landlord will be responsible for maintaining 100% compliance with applicable city, county, state and federal regulations. This may include simple tasks such as installing carbon monoxide detectors and making sure they work. However, it will also include remaining in compliance with federal and state fair housing laws when it comes to tenant screening, scheduling maintenance and resolving disputes. 

It is every landlord’s responsibility to familiarize themselves with fair housing laws and commit to following them. Landlords must be sure to handle things like rent increases in accordance with any existing rent control ordinances. Any landlord who fails in these responsibilities is exposing themselves and the property owner to legal liability or fines and sanctions from the government. 

Upholding Tenant’s Rights

Tenants are more than just piggy banks for property owners and landlords to extract money from. Through the years, tenants have fought for and gained important rights that every landlord must understand and respect. In almost all cases, landlords will be responsible for providing tenants with copies of documents related to their tenancy (rental agreements, notice to enter, notice to terminate lease, rent increase notices). 

Landlords must also handle tasks like rent increases in accordance with local laws. This process usually entails posting notices, mailing them, maintaining proof of mailing and giving tenants proper notice before entering units to conduct repairs or inspections. Usually, the required notice is 24 hours, but it varies from place to place and landlords must adhere to whatever the standard is. 

Tenants have the right to quiet enjoyment, so landlords are responsible for making sure everyone is living up to their tenant responsibilities of being a conscientious neighbor and not causing disturbances. Landlords are also required to make sure that property amenities, such as the pool or recreation areas, are available for use by tenants and in good working order.

Maintaining Insurance Coverage

Every rental property represents a significant investment for the property owner, and in many major cities, apartment buildings are worth millions. One of the best ways to protect that investment is to carry the proper insurance coverage (liability insurance) and make sure that vendors who work on the property carry current worker’s compensation and liability policies. 

It is also important for landlords to advise tenants that the landlord’s liability insurance does not cover damage to rental units after accidents such as floods, fires or damages brought about by force majeure. In fact, many rental agreements now have clauses that make carrying liability insurance a tenant's responsibility. These policies would cover tenants for the damage they do by acting recklessly, such as causing a flood or fire when cooking. A critical landlord responsibility is making sure that all tenant policies are up to date and in force. 

Conducting Background Checks and Selecting Tenants

Have you ever heard the old saying that an ounce of prevention is worth a pound of cure? It’s especially true when it comes to rental units. One of the landlord’s most important responsibilities is background checks and tenant screening, including:

• Running credit checks 
• Verifying the tenant’s payment history at their previous rental properties
• Verifying the tenant’s income (usually tenants should be making between two and a half and three times the monthly rent in gross income to qualify)
• Conducting criminal background checks on tenants

Another key aspect of selecting tenants is establishing consistent, objective criteria for tenant approval. Every landlord is responsible for screening tenants according to the same standards. This is a key aspect of federal fair housing regulations, and every landlord is responsible for 100% compliance. Failure to establish and adhere to a bias-free tenant screening process exposes the landlord and the property owner to serious legal liability.

Dealing with Lease Terminations and Evictions

Lease terminations and evictions are legal processes that must be handled in accordance with the laws of the jurisdiction of the rental property. When it comes to lease terminations and evictions, landlords are responsible for serving notice to the tenant. That process usually entails giving the notice to the tenant personally or posting it in a conspicuous place on the property and also mailing a copy. 

In many jurisdictions, landlords will be responsible for signing a proof of service document in connection with a lease termination or eviction. This proof of service is signed under penalty of perjury. Failure to properly serve a tenant with a lease termination or eviction notice can result in the notice being ruled defective. If that happens, the landlord must go all the way back to the beginning of the process and re-post the required notice.

In most cases, landlords will also be responsible for coordinating eviction efforts with a lawyer chosen by the property owner or the management company. That may entail appearing in court for an eviction hearing as the property owner’s authorized agent. It will include providing the attorney with paperwork (lease agreements, copies of notices, rent receipts) they need to move the case forward. 

Miscellaneous Responsibilities

Landlords have additional miscellaneous responsibilities for managing properties, which include:

• Conducting regular property walks and exterior inspections to identify potential hazards
• Conducting scheduled checks of smoke and carbon monoxide detectors to make sure they are in proper working order 
• Taking photographs of vacant units for advertising purposes
• Creating ads for vacant units and posting these ads through as many websites or social media networks as possible to ensure maximum exposure
• Scheduling appointments to show vacant rental units to prospective tenants

A Good Landlord is a Property Investor’s Most Valuable Asset

Buying a rental property for passive income is only half the battle. If the property is going to generate passive income for the owner, the landlord must be proactive, professional and attentive to the needs of the tenants and the owner. 

Without an effective landlord who understands and faithfully discharges their responsibilities, a rental property can fall into decay and become a financial liability for the owner. A good landlord is a property investor’s most valuable asset. 

Frequently Asked Questions