Many New Yorkers may be in a situation where they can rent a property or even part of a property they own to make some additional income.
Even if it ultimately does not segue into a full-time career in rentals and investment real estate, acting as a part-time landlord can be a critical part of a family’s plan to make ends meet.
However, it is important that families remember that many different local, state and federal laws impose obligations even on amateur landlords.
- Federal law and New York laws prohibit discrimination in housing. While most landlords would never intentionally discriminate, some of the details of anti-discrimination laws can be complicated. Well-meaning landlords can run afoul of them.
- There are many obligations New York landlords have under both state and local laws. Some of these laws limit what a landlord can do if a tenant does not pay the rent and require landlords to make sure their rentals meet certain minimum health and safety standards.
- A landlord will need to make sure that their lease agreement is up to date, since that contract will often determine both their tenant’s and their own rights and responsibilities.
- A would-be landlord in New York is going to have to be aware of other ins and outs of real estate law, especially if they want to buy or sell some of their rentals.
- Likewise, especially if their operation grows, a family landlord will need to understand the basics of business law. They may have to enter into investment agreements, vendor contracts and other transactions. It also may be important for an organization to set up the right business structure for their needs, and there may be some additional legal steps needed to protect their interests and clarify the relationship with any business associates.
Both established and upstart rental business need to know their options
Family landlords are likely at some point to run into a legal issue where they will need to understand their options and alternatives. Furthermore, the consequences of handling a legal matter on one’s own and making mistakes can be serious.
Mistakes can, for example, involve fines or civil liability that can cut into a family’s income when the whole point of renting properties in the first place was to make money.