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Managing Your Own Property? Know These 8 Key Legal Rules

Thinking of managing your own rental property? It can seem straightforward—market the home, find a tenant, collect rent—but there’s a lot more under the surface. One of the biggest responsibilities you’ll take on as a self-managing landlord is staying compliant with local, state, and federal laws. Ignoring them, even accidentally, can lead to lawsuits, fines, or tenant disputes.

Here’s a breakdown of the most important legal regulations every DIY landlord should know:

  1. Fair Housing Laws (Federal and State)

You cannot discriminate based on race, color, national origin, religion, sex, disability, or familial status—per the Federal Fair Housing Act. Many states (like Texas) and cities add more protections, such as sexual orientation or source of income.

Applies to: Advertising, screening, accepting tenants, and handling tenant issues.

🔹 Example: You can’t write “no kids” in your listing or deny a tenant because they use a housing voucher.

  1. Tenant Screening Laws

When running background checks, credit reports, or checking criminal history, you must comply with the Fair Credit Reporting Act (FCRA).

🔹 You must:

  • Get the applicant’s written permission.
  • Notify them if you deny their application based on the report.
  • Provide a copy of the report and an “Adverse Action Notice.”
  1. Security Deposit Rules

Each state sets limits and rules for how you must handle security deposits. In Texas, for example:

  • There’s no limit to the amount you can charge.
  • You must return the deposit within 30 days of move-out, minus any deductions (which must be itemized in writing).

🔹 Keep deposits in a separate account and document everything to avoid disputes.

  1. Lease Agreements

You must use a legally compliant lease that includes all required clauses under your state’s landlord-tenant laws.

In Texas, for instance, the lease should:

  • Include tenant and landlord responsibilities.
  • State rent due dates, late fees, and grace periods.
  • Mention how and when you can enter the property.

Avoid using generic online templates—they may leave out critical state-specific language.

  1. Right of Entry

You can’t show up unannounced. Most states require that you provide advance written notice before entering the rental, even for repairs (typically 24 hours).

Emergencies are the exception, but respecting your tenant’s right to privacy is a legal (and professional) must.

  1. Repairs and Habitability Standards

You’re legally responsible for maintaining the home in a safe, habitable condition. That includes:

  • Working plumbing and electricity
  • Functioning HVAC
  • Pest control
  • Structural safety (roof, walls, stairs)

If you fail to make essential repairs in a timely manner, tenants may have the right to withhold rent or break the lease—depending on state law.

 

  1. Evictions

Evictions must follow a very specific legal process. You can’t just change the locks or shut off utilities. In Texas, the process typically looks like this:

  1. Serve a 3-day Notice to Vacate (unless your lease says otherwise).
  2. File an eviction lawsuit (forcible entry and detainer).
  3. Attend a court hearing.
  4. Get a writ of possession (if the judge rules in your favor).

Improperly handling an eviction can lead to delays, legal fees, or even the case being thrown out.

 

  1. Local City Ordinances

Cities often have their own rules for:

  • Rental registration or licensing
  • Short-term rentals
  • Trash collection, lawn maintenance, or noise
  • Property inspections

Always check with your city or county to see if you need a rental permit or if there are zoning issues to address.

✅ Final Thoughts

Managing your own rental can make you believe that you are saving money (in the short term)—but it comes with legal risk. If you’re not up for keeping track of changing laws, handling paperwork, or navigating conflict, it might be worth hiring a professional property management company (like us!) to take the weight off your shoulders.

Have questions about staying compliant in Texas? At Real Property Management Ideal, we help property owners protect their investments with legal expertise, efficient systems, and over 30 years of experience behind us. Contact us now an let us manage all of this for you!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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