When making the rental contract, need help, codes etc

Question

Every state, im pretty sure, has their own landlord/tenant code book correct? So say you have rentals in de, pa, va, md, you have you buy a landlord/tenant code book and read them front to back and understand the do's and donts of all those states before making a contract or even starting a rental to do it right. I have delaware's code book and the way its worded is a little tough to understand at times but im doing my best to comprehend, the important parts like max to charge for security deposit, when youre able to have a late fee, how much it can be, when to evict how to execute this.. Its all very complicated so I may have to read it front to back a few times.

My question is how many of you actually do this? My girlfriends mom has been renting for awhile and their landlord never gave them a short summary of the landlord tenant code book which is stated in the book that they should recieve one, do any landlords on here do this?

Trying to avoid problems in the future for my first rental, i know most tenants dont have money to bring lawyers in and pick the landlord apart but thats no reason to slack in areas i could get into trouble for.

I guess I could find a contract already written and modify it to best suite my rental.

Sean Gallagher · Answer

I actually found a site online that upkeeps with all contracts for every state. I ordered a complete packet, has eviction notices and all, just for my state.. 20 bucks not bad. It was updated in october. http://www.nupplegal.com/derental.html

Steve Babiak · Answer

Again, you have to be very local about this. The newsletters are usually only available to paid members. In Philadelphia, there is The Homeowners Association of Philadelphia HAPCO, there is Apartment Association of Greater Philadelphia, there is DIG. And others - those are just the ones that spring to mind now. Look for similar wherever you seek to hold rentals.

Steve Babiak · Answer

Actually, I have found that the apartment associations and the REIA will do a good job of keeping up on the changes in regulations. So having those memberships and reading their newsletters will go a long way toward keeping you aware of changes to regulations.

Steve Babiak · Answer

Even within a single state there can be great variation in what is required. For example I have rental property inside Philadelphia and in the Philadelphia suburbs. Philadelphia has far more in the way of requirements to meet. And there are many layers that have to be accomodated as well, What I mean here is that, there will be federal level requirements (Lead Based Paint disclosure document for pre-1978 construction), there is state level stuff (in PA for example, we have to use a plain language lease - no legalese), and then there are local requirements (Phila has their own Lead Based Paint disclosure, and a tenant handbook that the landlord has to give to the tenant as a couple examples here). I would venture to say that having one lease document that is universal throughout all states might be a tough thing to come up with, and you'd certainly have to include things that would be considered extraneous in some areas (because they are required things in a few locations).

Mark Updegraff · Answer

Great Post guys! Looking into eviction process for PA,& will need a good lease shortly. I'll make sure to report back any nuances I discover. In Rochester NY I use the EPA lead disclosure along with another lead sheet (i forget the exact form but can dig it up if anyone needs)

Sean Gallagher · Answer

I went to the reia main site.. so i think and couldnt find any newsletter that you speak of.. What apartment associations?

J Scott · Answer

Yes, it's ultimately the owner's responsibility, but I'm guessing it's nearly impossible for a typical real estate investor to stay up to speed on the nuances of tenant law in many different states. This is what attorneys get paid for, and if used property, they will help protect the owner from making mistakes that can cost him dearly... The most successful real estate investors are those who surround themselves with a qualified team, including attorneys, CPAs, and advisors...

Dale Osborn · Answer

The bigger problem with all these rules - they keep changing in mid-stream. One day this is the correct way to operate - the next day you are doing things wrong. You need to stay up on all the changes as well. Perhaps that is the attorney's responsibility, but ultimate responsibility falls back onto the property Owner!

Sean Gallagher · Answer

so I should have the house inspected by a qualified person prior to renting. Im just trying to go through the whole process of what I will be going through to make sure im prepared. How much money do you guys usually set aside as emergency per rental? Water breaks, leaks, water heater, im guessing 5k per rental? And then figure new roofing every so often years. I have good contacts in all construction/repair areas so I shouldnt be hit too hard when that comes around. Trying to put figures together of how much money I should have set aside seperate from the actual purchase price for things such as house inspection, advertising, possible bills prior to house is on the market.

Sean Gallagher · Answer

good idea scott, It would be nice to have the lawyer as a future contact as well for any problems that may occur.