2016 Printing
What New Landlords Need to
know about leasing property
Suggestions for the Prospective Landlord
This brochure was prepared courtesy of the
Georgia Association of REALTORS® to help
owners with leasing their property. The
recommendations herein are general in
nature and are not intended to be exhaustive.
Some of the recommendations may not
ƒ’’Ž›–‘•’‡…‹Ƥ…’”‘’‡”–‹‡•Ǥ™‡”•ƒ”‡
encouraged to consult with experts and
professionals of their own choosing to
ensure that they are protected in leasing a
house.
Cindy Rampley
THIS FORM IS COPYRIGHTED AND MAY ONLY BE USED IN REAL ESTATE TRANSACTIONS IN WHICH _____________________________
IS INVOLVED AS A
REAL ESTATE LICENSEE. UNAUTHORIZED USE OF THE FORM MAY RESULT IN LEGAL SANCTIONS BEING BROUGHT AGAINST THE USER AND SHOULD BE
REPORTED TO THE GEORGIA ASSOCIATION OF REALTORS® AT (770) 451-1831.
Copyright© 2016 by Georgia Association of REALTORS®, Inc.
B8, What New Landlords Need to Know About Leasing Property, Page 1 of 5, 01/01/16
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rewarding. It can provide the landlord with a stream
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in a rising housing market. Renting can also give the
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conditions are not favorable. However, there can be
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owner is new to the business. This brochure is intended
compensation insurance helps protect the landlord
to help new landlords understand some of these risks
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and how best to avoid them.
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insurance helps protect the landlord against claims for
1. &RQ¿UPWKDW/HDVLQJLV3HUPLWWHGLeasing of houses
damages and/or injuries caused as a result of the work
is restricted in the covenants of most condominium
of the contractor.
and some homeowners associations. Some of those
restrictions prohibit leasing of houses if a certain
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It is much easier to prevent bad tenants from moving
leased. In other cases, leases must be for a minimum
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Inexperienced landlords sometimes underestimate the
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Doing a thorough background check are all important
are applicable to leasing.
tools to predict whether tenants will honor their
contractual obligations under the lease. Even with all
2. /DQGORUGV1HHG6SHFLDO,QVXUDQFH Most homeowner
of the safeguards, however, there is no guarantee that
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the tenant will do what he or she has agreed to do in the
owner occupied. If an owner is leasing out his or her
lease.
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leased. Owners should consult with their insurance
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professionals to determine what insurance and the
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brokers recommend that landlords: a) obtain what is
lease. Verbal leases create too much potential for the
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parties to have different recollections of the business
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arrangement between the parties. Moreover, verbal
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thought to be a greater risk of claims associated with
lease will include often leaving the owner unprotected
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in the event of a problem tenant.
Cindy Rampley
THIS FORM IS COPYRIGHTED AND MAY ONLY BE USED IN REAL ESTATE TRANSACTIONS IN WHICH _____________________________
IS INVOLVED AS A
REAL ESTATE LICENSEE. UNAUTHORIZED USE OF THE FORM MAY RESULT IN LEGAL SANCTIONS BEING BROUGHT AGAINST THE USER AND SHOULD BE
REPORTED TO THE GEORGIA ASSOCIATION OF REALTORS® AT (770) 451-1831.
Copyright© 2016 by Georgia Association of REALTORS®, Inc.
B8, What New Landlords Need to Know About Leasing Property, Page 2 of 5, 01/01/16
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once the lease commences except to the extent
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otherwise provided in the lease. Landlords and their
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in the lease. Therefore, for example, while a tenant
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can be asked to change the batteries on a smoke alarm
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so provides. Therefore, it is important that the rights of
unit (since these are maintenance functions), a tenant
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cannot be asked to repair a broken smoke alarm or a
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heating and air conditioning unit.
7. )DLU KRXVLQJ ODZV DSSO\ WR UHQWDOV Federal and
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state fair housing laws prohibit discrimination in the
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leasing of housing on the basis of race, color, religion,
certain state mandated procedures unless the landlord:
sex, national origin, handicap and familial status. This
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means, for example, that an owner of a three bedroom
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house cannot prohibit a husband and wife and their
10 or fewer rental units between the landlord and his/
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children. Such a prohibition would constitute unlawful
manager. Some landlords follow these state mandated
discrimination based upon familial status under our
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the procedures can, in some cases, protect the landlord
limitations such as no more than two (2) persons per
as well as the tenant. These state law requirements
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include the following:
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that a tenant could use as a bedroom. For instance,
(a) Move-In Inspection 8QOHVV WKH ODQGORUG LV H[HPSW
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from the requirement, the landlord must give the tenant
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a handicapped person needing a service animal
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deposit. The landlord and the tenant should each
accommodation even in a home in which pets are not
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permitted.
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to supplement the list with photographs and digital
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the commencement of the lease in the event of a dispute
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Cindy Rampley
THIS FORM IS COPYRIGHTED AND MAY ONLY BE USED IN REAL ESTATE TRANSACTIONS IN WHICH _____________________________
IS INVOLVED AS A
REAL ESTATE LICENSEE. UNAUTHORIZED USE OF THE FORM MAY RESULT IN LEGAL SANCTIONS BEING BROUGHT AGAINST THE USER AND SHOULD BE
REPORTED TO THE GEORGIA ASSOCIATION OF REALTORS® AT (770) 451-1831.
Copyright© 2016 by Georgia Association of REALTORS®, Inc.
B8, What New Landlords Need to Know About Leasing Property, Page 3 of 5, 01/01/16
(b) Move-Out Procedure8QOHVVWKHODQGORUGLVH[HPSW
(d) Not Following State Mandated Procedures Can Have
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is exempt from state law, there are serious negative
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consequences to landlords not following these state
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an exemption, the landlord is required to return the
The tenant has the right to do his or her own inspection
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the landlord and tenant should both sign it and keep a
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with it, the tenant is supposed to sign a statement
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explaining the basis for his or her disagreement. While
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recover for normal wear and tear.
SURFHVV. Most residential evictions are handled in the
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located. After sending a letter to the tenant terminating
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the lease and demanding possession, a lawsuit is
deposit is required to be held in an escrow account
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the eviction. While the process can take as little as
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Within this time frame, the landlord is required to
Landlords who have experienced a contested eviction
provide the tenant with a written statement of the
tend to start eviction proceedings sooner rather than
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eviction.
the tenant.
Cindy Rampley
THIS FORM IS COPYRIGHTED AND MAY ONLY BE USED IN REAL ESTATE TRANSACTIONS IN WHICH _____________________________
IS INVOLVED AS A
REAL ESTATE LICENSEE. UNAUTHORIZED USE OF THE FORM MAY RESULT IN LEGAL SANCTIONS BEING BROUGHT AGAINST THE USER AND SHOULD BE
REPORTED TO THE GEORGIA ASSOCIATION OF REALTORS® AT (770) 451-1831.
Copyright© 2016 by Georgia Association of REALTORS®, Inc.
B8, What New Landlords Need to Know About Leasing Property, Page 4 of 5, 01/01/16
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which is more protective than federal law, applies to
rent or the owner gets the late night call that a plumbing
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orders for a period in excess of three (3) months. In that
the time and inclination to do that job well, others
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do not. While this does not happen often, some of
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the risks landlords face include a tenant making
and proof of the assignment are given to the landlord
methamphetamines or growing marijuana in the
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an act or omission of the tenant.
skipping out before the lease expires. A professional
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occurrences. For those risks that could not be avoided,
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landlord must disclose what he or she knows about the
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do this can result in stiff penalties under federal law.
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Estate Commission.
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residence” of the owner and the sale of their personal
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educated on the law or seeking professional management
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obligation. That homeowner could still lease his or her
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\HDU WKHUHE\ VHOOLQJ WKHLU ³SHUVRQDO UHVLGHQFH´ DQG
avoiding a capital gains tax obligation. Prior to leasing,
landlords should consult with their CPA or tax advisor
to better understand their tax obligations.
Cindy Rampley
THIS FORM IS COPYRIGHTED AND MAY ONLY BE USED IN REAL ESTATE TRANSACTIONS IN WHICH _____________________________
IS INVOLVED AS A
REAL ESTATE LICENSEE. UNAUTHORIZED USE OF THE FORM MAY RESULT IN LEGAL SANCTIONS BEING BROUGHT AGAINST THE USER AND SHOULD BE
REPORTED TO THE GEORGIA ASSOCIATION OF REALTORS® AT (770) 451-1831.
Copyright© 2016 by Georgia Association of REALTORS®, Inc.
B8, What New Landlords Need to Know About Leasing Property, Page 5 of 5, 01/01/16