Minnesota Rental Laws

As a property management company specializing in single family homes and small residential rental property, we have helped hundreds of homeowners to manage their homes and small apartment buildings. We found similar errors that these owners have made while managing their own property. The following are the ten most common. We hope this report will help you become better owners of rental properties.

1. No screening each applicant.

Besides the violation of fair housing by screening some candidates and not others, you are going to be problems if you do not properly screen your prospective tenants. Good tenants are a key to a good rental property investment. You should have each tenant interested in completing an application, which should be considered in light of credit, before income rental or ownership history, stable income and criminal history. Your criteria should be applied consistently to all applicants the demand for goods.

2. Do not follow the Fair Housing Laws

Rental owners lose millions of dollars each year because of ignorance and flagrant violations of fair housing laws. It is illegal to discriminate against anyone based on race, color, religion, sex, national origin, disability or family status. It is a federal law. Minnesota state law also includes marital status, with regard to public assistance, and depending on the municipality where your property may also include the affective preference and age. There are some exceptions to the law if you are a homeowner, however, it is best to consult your lawyer or HUD before renting your house.

3. Do not sit still on the market for rental home

Most homeowners hire just look in the newspaper to see what other owners rent their property and determine rent. It's a way, but certainly not the only or the best. Unless you rent hundreds of properties, you're not going to have the data and experience necessary to effectively fix the rent. If you do not have professional management, try some tests. Start advertising your property for two months. set the higher rent than you see in the newspaper. see the reactions you get. If you're inundated with calls, you can feel good, but it usually means that your rental price is too low. This is a test question. Upon renewal of the lease, most landlords are reluctant to test higher rents. The typical excuses are that they think the tenant to move or they do not have enough time to re-rent the property. Consider the cost, time and hassle for the tenant to move. If your tenant is insured as an important client during the lease term, coupled with the hassle of moving, a modest rent increase will generally not frighten them. Tenants Don 't expect to rent will not rise forever, and a slight increase each year as the market requires, is much easier that a significant increase from time to time.

Four. Not signing a lease

Many owners have the idea that a lease from month to month is the best way to go, because they can get the tenant out easier. Therefore, these owners did not sign a lease. While you must give 30 days notice to the tenant to leave, if they do not, you always want to have to evict them. Until then, they would probably be a month behind in rent. Have good written lease is always the best way forward. You reduce your risk and have a better understanding with your tenant. Even if you decide to go month by month, enter in writing.

5. Do not make a report on the condition of the property Move-in/Move-out

One of the best ways to justify withholding money from a tenant.